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INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2026

Income Tax Disclosure [Abstract]

Provision for income taxes

The provision for income taxes consisted of the following:

			Fiscal year ended
			January 3, 2026						December 28, 2024						December 30, 2023
(dollars in thousands)			(53 weeks)						(52 weeks)						(52 weeks)
Current tax provision:
Federal			$	10,719					$	33,397					$	47,643
State			2,362						7,422						8,943
Foreign			9,119						10,903						13,756
Total current provision			$	22,200					$	51,722					$	70,342
Deferred tax (benefit) provision:
Federal			$	(16)					$	(3,965)					$	(148)
State			(444)						(25)						(512)
Foreign			298						(2,432)						60
Total deferred benefit			(162)						(6,422)						(600)
Total provision			$	22,038					$	45,300					$	69,742

The components of income before income taxes were as follows:

			Fiscal year ended
			January 3, 2026						December 28, 2024						December 30, 2023
(dollars in thousands)			(53 weeks)						(52 weeks)						(52 weeks)
Domestic			$	48,915					$	167,741					$	240,627
Foreign			64,919						63,068						61,615
Total			$	113,834					$	230,809					$	302,242

Federal statutory tax rate reconciliation

:

			Fiscal year ended
			January 3, 2026
(dollars in thousands)			%						$
Statutory federal income tax rate			21.0		%				$	23,902
State income taxes, net of federal income tax benefit(*)			1.7		%				1,905
Impact of foreign operations
Hong Kong
Statutory tax rate difference between Hong Kong and U.S.			(2.5)		%				(2,799)
Income excluded from Hong Kong tax base			(4.7)		%				(5,309)
Mexico
Statutory tax rate difference between Mexico and U.S.			(0.3)		%				(377)
Impact related to foreign currency			1.9		%				2,201
Other			0.6		%				644
Canada
Statutory tax rate difference between Canada and U.S.			0.4		%				431
Withholding tax			1.1		%				1,287
Other countries			0.3		%				220
Impact of changes in cross border tax laws
Global intangible low-taxed income (“GILTI”)			0.4		%				500
Foreign-derived intangible income (“FDII”)			(2.0)		%				(2,247)
Tax credits
Foreign tax credits			(1.7)		%				(1,916)
Other tax credits			(0.3)		%	—			(400)
Changes in unrecognized tax benefits			(0.5)		%				(557)
Nontaxable or nondeductible items
Share-based payment awards			2.7		%				3,030
Non-deductible officer’s compensation			1.4		%				1,596
Other adjustments			(0.1)		%				(73)
Total			19.4		%				$	22,038

(*)State tax expense primarily relates to California, New York, New Jersey, and Illinois.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

			Fiscal year ended
			December 28, 2024						December 30, 2023
Statutory federal income tax rate			21.0		%				21.0		%
State income taxes, net of federal income tax benefit			2.9		%				3.0		%
Impact of foreign operations			(3.4)		%				(0.8)		%
Settlement of uncertain tax positions			(0.5)		%				(0.6)		%
Other			(0.4)		%				0.5		%
Total			19.6		%				23.1		%

Schedule of Cash Income Taxes Paid (Net of Refunds)

The components of cash income taxes paid (net of refunds) were as follows:

			Fiscal year ended
(dollars in thousands)			January 3, 2026
U.S. federal			$	20,639
U.S. state and local(*)			3,773
Foreign:
Hong Kong			5,813
Canada			5,134
Mexico			1,975
Other			255
Total			$	37,589

(*)State taxes paid primarily relate to California, New York, Texas, and New Jersey.

Components of deferred tax assets and liabilities

The following table reflects the Company’s calculation of the components of deferred tax assets and liabilities as of January 3, 2026 and December 28, 2024.

(dollars in thousands)			January 3, 2026						December 28, 2024
Deferred tax assets:			Assets (Liabilities)
Accounts receivable allowance			$	4,986					$	4,321
Inventory			12,828						12,408
Accrued liabilities			9,792						8,810
Equity-based compensation			2,401						3,886
Deferred employee benefits			3,105						3,062
Leasing liabilities			133,157						128,904
Other			4,778						5,078
Total deferred tax assets			171,047						166,469
Deferred tax liabilities:
Depreciation			(18,872)						(19,060)
Leasing assets			(120,285)						(115,419)
Tradenames and licensing agreements			(63,546)						(63,144)
Other			(2,843)						(2,712)
Total deferred tax liabilities			(205,546)						(200,335)
Net deferred tax liability			$	(34,499)					$	(33,866)

Net deferred tax liability

(dollars in thousands)			January 3, 2026						December 28, 2024
			Assets (Liabilities)
Deferred tax assets			$	4,881					$	4,344
Deferred tax liabilities			(39,380)						(38,210)
Net deferred tax liability			$	(34,499)					$	(33,866)

Unrecognized tax benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

(dollars in thousands)
Balance at December 31, 2022			$	7,093
Additions based on tax positions related to fiscal 2023			1,545
Additions for prior year tax positions			—
Reductions for lapse of statute of limitations			(2,373)
Balance at December 30, 2023			$	6,265
Additions based on tax positions related to fiscal 2024			1,500
Additions for prior year tax positions			—
Reductions for lapse of statute of limitations			(1,255)
Balance at December 28, 2024			$	6,510
Additions based on tax positions related to fiscal 2025			750
Additions for prior year tax positions			200
Reductions for lapse of statute of limitations			(1,277)
Balance at January 3, 2026			$	6,183

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