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Lease Accounting
 12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Lease Accounting Lease Accounting
The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through August 2044. The Company also leases some of its equipment as well as computer hardware and software under operating and finance lease agreements expiring on various dates through December 2029.
The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 26%, when specific sales volumes
are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume which averages approximately 25%.
During fiscal 2025, the Company closed on the sale and leaseback of its U.S. distribution center. The lease payments escalate at fixed percentage rate annually for the first ten years. After the initial lease term, the Company has the option to renew the lease for two five-year extension periods. The transaction met the criteria for sale-leaseback accounting and, as such, a net gain of $13.8 million was recognized on the sale of the assets during fiscal 2025.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $33.2 million for leases where the Company has not yet taken possession of the underlying asset as of February 1, 2025. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s consolidated balance sheets as of February 1, 2025.
The components of leases are as follows (in thousands):
Feb 1, 2025Feb 3, 2024
AssetsBalance Sheet Location
Operating$839,879 $667,031 Operating lease right-of-use assets
Finance7,042 15,132 Property and equipment, net
Total lease assets$846,921 $682,163 
Liabilities
Current:
Operating$176,972 $166,451 Current portion of operating lease liabilities
Finance5,236 5,573 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating715,755 542,392 Long-term operating lease liabilities
Finance4,597 9,857 Long-term debt and finance lease obligations
Total lease liabilities$902,560 $724,273 
Year Ended
Feb 1, 2025Feb 3, 2024Jan 28, 2023
Income Statement Location
Operating lease costs$203,942 $181,760 $175,752 Cost of product sales
Operating lease costs33,654 26,771 24,845 Selling, general and administrative expenses
Operating lease costs1
(718)(1,662)(2,267)Net gains on lease modifications
Finance lease costs
Amortization of leased assets27 69 81 Cost of product sales
Amortization of leased assets4,831 6,412 6,177 Selling, general and administrative expenses
Interest on lease liabilities569 769 965 Interest expense
Variable lease costs2
105,537 101,056 92,331 Cost of product sales
Variable lease costs2
3,774 4,732 3,335 Selling, general and administrative expenses
Short-term lease costs493 316 351 Cost of product sales
Short-term lease costs8,612 6,005 6,141 Selling, general and administrative expenses
Total lease costs$360,721 $326,228 $307,711 
______________________________________________________________________
1During fiscal 2025, fiscal 2024 and fiscal 2023 net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales.
2During fiscal 2025, fiscal 2024 and fiscal 2023 variable lease costs included certain rent concessions received by the Company, primarily in Europe, of approximately $0.7 million, $1.7 million and $5.2 million, respectively.
Maturities of the Company’s operating and finance lease liabilities as of February 1, 2025 are as follows (in thousands):
Operating Leases
Maturity of Lease LiabilitiesNon-Related PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$210,316 $7,723 $5,550 $223,589 
Fiscal 2027179,021 7,732 3,109 189,862 
Fiscal 2028151,345 7,665 1,342 160,352 
Fiscal 2029131,558 8,431 319 140,308 
Fiscal 203098,648 8,026 23 106,697 
Thereafter234,289 4,265 — 238,554 
Total lease payments1,005,177 43,842 10,343 1,059,362 
Less: Interest148,487 7,805 510 156,802 
Present value of lease liabilities$856,690 $36,037 $9,833 $902,560 
Other supplemental information is as follows (in thousands):
Lease Term and Discount RateFeb 1, 2025
Weighted-average remaining lease term (years)
Operating leases6.3 years
Finance leases2.4 years
Weighted-average discount rate
Operating leases5.3%
Finance leases4.1%
Year Ended
Supplemental Cash Flow InformationFeb 1, 2025Feb 3, 2024Jan 28, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$219,082 $207,575 $220,767 
New operating lease ROU assets obtained in exchange for lease liabilities$294,397 $165,889 $131,363 
Lease Accounting Lease Accounting
The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through August 2044. The Company also leases some of its equipment as well as computer hardware and software under operating and finance lease agreements expiring on various dates through December 2029.
The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 26%, when specific sales volumes
are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume which averages approximately 25%.
During fiscal 2025, the Company closed on the sale and leaseback of its U.S. distribution center. The lease payments escalate at fixed percentage rate annually for the first ten years. After the initial lease term, the Company has the option to renew the lease for two five-year extension periods. The transaction met the criteria for sale-leaseback accounting and, as such, a net gain of $13.8 million was recognized on the sale of the assets during fiscal 2025.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $33.2 million for leases where the Company has not yet taken possession of the underlying asset as of February 1, 2025. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s consolidated balance sheets as of February 1, 2025.
The components of leases are as follows (in thousands):
Feb 1, 2025Feb 3, 2024
AssetsBalance Sheet Location
Operating$839,879 $667,031 Operating lease right-of-use assets
Finance7,042 15,132 Property and equipment, net
Total lease assets$846,921 $682,163 
Liabilities
Current:
Operating$176,972 $166,451 Current portion of operating lease liabilities
Finance5,236 5,573 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating715,755 542,392 Long-term operating lease liabilities
Finance4,597 9,857 Long-term debt and finance lease obligations
Total lease liabilities$902,560 $724,273 
Year Ended
Feb 1, 2025Feb 3, 2024Jan 28, 2023
Income Statement Location
Operating lease costs$203,942 $181,760 $175,752 Cost of product sales
Operating lease costs33,654 26,771 24,845 Selling, general and administrative expenses
Operating lease costs1
(718)(1,662)(2,267)Net gains on lease modifications
Finance lease costs
Amortization of leased assets27 69 81 Cost of product sales
Amortization of leased assets4,831 6,412 6,177 Selling, general and administrative expenses
Interest on lease liabilities569 769 965 Interest expense
Variable lease costs2
105,537 101,056 92,331 Cost of product sales
Variable lease costs2
3,774 4,732 3,335 Selling, general and administrative expenses
Short-term lease costs493 316 351 Cost of product sales
Short-term lease costs8,612 6,005 6,141 Selling, general and administrative expenses
Total lease costs$360,721 $326,228 $307,711 
______________________________________________________________________
1During fiscal 2025, fiscal 2024 and fiscal 2023 net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales.
2During fiscal 2025, fiscal 2024 and fiscal 2023 variable lease costs included certain rent concessions received by the Company, primarily in Europe, of approximately $0.7 million, $1.7 million and $5.2 million, respectively.
Maturities of the Company’s operating and finance lease liabilities as of February 1, 2025 are as follows (in thousands):
Operating Leases
Maturity of Lease LiabilitiesNon-Related PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$210,316 $7,723 $5,550 $223,589 
Fiscal 2027179,021 7,732 3,109 189,862 
Fiscal 2028151,345 7,665 1,342 160,352 
Fiscal 2029131,558 8,431 319 140,308 
Fiscal 203098,648 8,026 23 106,697 
Thereafter234,289 4,265 — 238,554 
Total lease payments1,005,177 43,842 10,343 1,059,362 
Less: Interest148,487 7,805 510 156,802 
Present value of lease liabilities$856,690 $36,037 $9,833 $902,560 
Other supplemental information is as follows (in thousands):
Lease Term and Discount RateFeb 1, 2025
Weighted-average remaining lease term (years)
Operating leases6.3 years
Finance leases2.4 years
Weighted-average discount rate
Operating leases5.3%
Finance leases4.1%
Year Ended
Supplemental Cash Flow InformationFeb 1, 2025Feb 3, 2024Jan 28, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$219,082 $207,575 $220,767 
New operating lease ROU assets obtained in exchange for lease liabilities$294,397 $165,889 $131,363