XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.25.2

Lease Accounting | 6 Months Ended
--- | ---
Aug. 02, 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 February 2030. 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 24%. During the six months ended August 3, 2024, the Company closed on the sale and leaseback of its U.S. distribution center. The lease payments escalate at a 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 the six months ended August 3, 2024. In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $39.8 million for leases where the Company has not yet taken possession of the underlying asset as of August 2, 2025. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s condensed consolidated balance sheets as of August 2, 2025. The components of leases are (in thousands):
| Aug 2, 2025 |  | Feb 1, 2025 |  |  |
Assets |  |  |  | Balance Sheet Location |  |
Operating | $ | 933,717 |  |  | $ | 839,879 |  | Operating lease right-of-use assets |  |
Finance | 5,538 |  |  | 7,042 |  | Property and equipment, net |  |
Total lease assets | $ | 939,255 |  |  | $ | 846,921 |  |  |  |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating | $ | 189,254 |  |  | $ | 176,972 |  | Current portion of operating lease liabilities |  |
Finance | 4,950 |  |  | 5,236 |  | Current portion of borrowings and finance lease obligations |  |
Noncurrent: |  |  |  |  |  |
Operating | 793,515 |  |  | 715,755 |  | Long-term operating lease liabilities |  |
Finance | 3,060 |  |  | 4,597 |  | Long-term debt and finance lease obligations |  |
Total lease liabilities | $ | 990,779 |  |  | $ | 902,560 |  |  |  |
The components of lease costs are (in thousands):
| Three Months Ended |  | Six Months Ended |
| Aug 2, 2025 |  | Aug 3, 2024 |  | Aug 2, 2025 |  | Aug 3, 2024 | Income Statement Location
Operating lease costs | $ | 56,648 |  |  | $ | 49,909 |  |  | $ | 111,028 |  |  | $ | 98,359 |  | Cost of product sales
Operating lease costs | 10,180 |  |  | 9,258 |  |  | 19,200 |  |  | 17,090 |  | Selling, general and administrative expenses
Operating lease costs 1 | — |  |  | — |  |  | (236) |  |  | — |  | Net gains on lease modifications
Finance lease costs |  |  |  |  |  |  |  |
Amortization of leased assets | 8 |  |  | 8 |  |  | 16 |  |  | 12 |  | Cost of product sales
Amortization of leased assets | 963 |  |  | 1,588 |  |  | 1,933 |  |  | 3,128 |  | Selling, general and administrative expenses
Interest on lease liabilities | 171 |  |  | 167 |  |  | 346 |  |  | 355 |  | Interest expense
Variable lease costs 2 | 26,986 |  |  | 24,962 |  |  | 51,109 |  |  | 49,533 |  | Cost of product sales
Variable lease costs | 1,123 |  |  | 1,216 |  |  | 2,126 |  |  | 2,315 |  | Selling, general and administrative expenses
Short-term lease costs | 133 |  |  | 106 |  |  | 316 |  |  | 229 |  | Cost of product sales
Short-term lease costs | 1,514 |  |  | 2,144 |  |  | 4,087 |  |  | 4,204 |  | Selling, general and administrative expenses
Total lease costs | $ | 97,726 |  |  | $ | 89,358 |  |  | $ | 189,925 |  |  | $ | 175,225 |  |
______________________________________________________________________ Notes: 1 During the six months ended August 2, 2025, net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to such early termination were included in cost of product sales. 2 During the three and six months ended August 2, 2025, variable lease costs included certain rent concessions of approximately $0.1 million and $0.3 million, respectively, received by the Company, primarily in Europe. During the three and six months ended August 3, 2024, variable lease costs included certain rent concessions of approximately $0.2 million and $0.4 million, respectively, received by the Company, primarily in Europe. Maturities of the Company’s operating and finance lease liabilities as of August 2, 2025 are (in thousands):
| Operating Leases |  |  |  |  |  |
Maturity of Lease Liabilities | Non-Related Parties |  | Related Parties |  | Finance Leases |  | Total |  |
Fiscal 2026 | $ | 105,613 |  |  | $ | 4,253 |  |  | $ | 3,214 |  |  | $ | 113,080 |  |  |
Fiscal 2027 | 205,908 |  |  | 9,776 |  |  | 3,366 |  |  | 219,050 |  |  |
Fiscal 2028 | 174,741 |  |  | 9,691 |  |  | 1,433 |  |  | 185,865 |  |  |
Fiscal 2029 | 154,456 |  |  | 10,567 |  |  | 325 |  |  | 165,348 |  |  |
Fiscal 2030 | 116,762 |  |  | 10,039 |  |  | 23 |  |  | 126,824 |  |  |
After fiscal 2030 | 302,608 |  |  | 73,661 |  |  | — |  |  | 376,269 |  |  |
Total lease payments | 1,060,088 |  |  | 117,987 |  |  | 8,361 |  |  | 1,186,436 |  |  |
Less: Interest | 160,591 |  |  | 34,715 |  |  | 351 |  |  | 195,657 |  |  |
Present value of lease liabilities | $ | 899,497 |  |  | $ | 83,272 |  |  | $ | 8,010 |  |  | $ | 990,779 |  |  |
Other supplemental information is (dollars in thousands):
Lease Term and Discount Rate | Aug 2, 2025 |  |  |  |  |  |
Weighted-average remaining lease term |  |  |  |  |  |  |
Operating leases | 6.8 years |  |  |  |  |  |
Finance leases | 1.9 years |  |  |  |  |  |
Weighted-average discount rate |  |  |  |  |  |  |
Operating leases | 5.4% |  |  |  |  |  |
Finance leases | 4.3% |  |  |  |  |  |
| Six Months Ended
Supplemental Cash Flow Information | Aug 2, 2025 |  | Aug 3, 2024
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 125,919 |  |  | $ | 108,179 |
New operating ROU assets obtained in exchange for lease liabilities | $ | 129,610 |  |  | $ | 121,705 |
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 February 2030. 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 24%. During the six months ended August 3, 2024, the Company closed on the sale and leaseback of its U.S. distribution center. The lease payments escalate at a 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 the six months ended August 3, 2024. In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $39.8 million for leases where the Company has not yet taken possession of the underlying asset as of August 2, 2025. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s condensed consolidated balance sheets as of August 2, 2025. The components of leases are (in thousands):
| Aug 2, 2025 |  | Feb 1, 2025 |  |  |
Assets |  |  |  | Balance Sheet Location |  |
Operating | $ | 933,717 |  |  | $ | 839,879 |  | Operating lease right-of-use assets |  |
Finance | 5,538 |  |  | 7,042 |  | Property and equipment, net |  |
Total lease assets | $ | 939,255 |  |  | $ | 846,921 |  |  |  |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating | $ | 189,254 |  |  | $ | 176,972 |  | Current portion of operating lease liabilities |  |
Finance | 4,950 |  |  | 5,236 |  | Current portion of borrowings and finance lease obligations |  |
Noncurrent: |  |  |  |  |  |
Operating | 793,515 |  |  | 715,755 |  | Long-term operating lease liabilities |  |
Finance | 3,060 |  |  | 4,597 |  | Long-term debt and finance lease obligations |  |
Total lease liabilities | $ | 990,779 |  |  | $ | 902,560 |  |  |  |
The components of lease costs are (in thousands):
| Three Months Ended |  | Six Months Ended |
| Aug 2, 2025 |  | Aug 3, 2024 |  | Aug 2, 2025 |  | Aug 3, 2024 | Income Statement Location
Operating lease costs | $ | 56,648 |  |  | $ | 49,909 |  |  | $ | 111,028 |  |  | $ | 98,359 |  | Cost of product sales
Operating lease costs | 10,180 |  |  | 9,258 |  |  | 19,200 |  |  | 17,090 |  | Selling, general and administrative expenses
Operating lease costs 1 | — |  |  | — |  |  | (236) |  |  | — |  | Net gains on lease modifications
Finance lease costs |  |  |  |  |  |  |  |
Amortization of leased assets | 8 |  |  | 8 |  |  | 16 |  |  | 12 |  | Cost of product sales
Amortization of leased assets | 963 |  |  | 1,588 |  |  | 1,933 |  |  | 3,128 |  | Selling, general and administrative expenses
Interest on lease liabilities | 171 |  |  | 167 |  |  | 346 |  |  | 355 |  | Interest expense
Variable lease costs 2 | 26,986 |  |  | 24,962 |  |  | 51,109 |  |  | 49,533 |  | Cost of product sales
Variable lease costs | 1,123 |  |  | 1,216 |  |  | 2,126 |  |  | 2,315 |  | Selling, general and administrative expenses
Short-term lease costs | 133 |  |  | 106 |  |  | 316 |  |  | 229 |  | Cost of product sales
Short-term lease costs | 1,514 |  |  | 2,144 |  |  | 4,087 |  |  | 4,204 |  | Selling, general and administrative expenses
Total lease costs | $ | 97,726 |  |  | $ | 89,358 |  |  | $ | 189,925 |  |  | $ | 175,225 |  |
______________________________________________________________________ Notes: 1 During the six months ended August 2, 2025, net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to such early termination were included in cost of product sales. 2 During the three and six months ended August 2, 2025, variable lease costs included certain rent concessions of approximately $0.1 million and $0.3 million, respectively, received by the Company, primarily in Europe. During the three and six months ended August 3, 2024, variable lease costs included certain rent concessions of approximately $0.2 million and $0.4 million, respectively, received by the Company, primarily in Europe. Maturities of the Company’s operating and finance lease liabilities as of August 2, 2025 are (in thousands):
| Operating Leases |  |  |  |  |  |
Maturity of Lease Liabilities | Non-Related Parties |  | Related Parties |  | Finance Leases |  | Total |  |
Fiscal 2026 | $ | 105,613 |  |  | $ | 4,253 |  |  | $ | 3,214 |  |  | $ | 113,080 |  |  |
Fiscal 2027 | 205,908 |  |  | 9,776 |  |  | 3,366 |  |  | 219,050 |  |  |
Fiscal 2028 | 174,741 |  |  | 9,691 |  |  | 1,433 |  |  | 185,865 |  |  |
Fiscal 2029 | 154,456 |  |  | 10,567 |  |  | 325 |  |  | 165,348 |  |  |
Fiscal 2030 | 116,762 |  |  | 10,039 |  |  | 23 |  |  | 126,824 |  |  |
After fiscal 2030 | 302,608 |  |  | 73,661 |  |  | — |  |  | 376,269 |  |  |
Total lease payments | 1,060,088 |  |  | 117,987 |  |  | 8,361 |  |  | 1,186,436 |  |  |
Less: Interest | 160,591 |  |  | 34,715 |  |  | 351 |  |  | 195,657 |  |  |
Present value of lease liabilities | $ | 899,497 |  |  | $ | 83,272 |  |  | $ | 8,010 |  |  | $ | 990,779 |  |  |
Other supplemental information is (dollars in thousands):
Lease Term and Discount Rate | Aug 2, 2025 |  |  |  |  |  |
Weighted-average remaining lease term |  |  |  |  |  |  |
Operating leases | 6.8 years |  |  |  |  |  |
Finance leases | 1.9 years |  |  |  |  |  |
Weighted-average discount rate |  |  |  |  |  |  |
Operating leases | 5.4% |  |  |  |  |  |
Finance leases | 4.3% |  |  |  |  |  |
| Six Months Ended
Supplemental Cash Flow Information | Aug 2, 2025 |  | Aug 3, 2024
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 125,919 |  |  | $ | 108,179 |
New operating ROU assets obtained in exchange for lease liabilities | $ | 129,610 |  |  | $ | 121,705 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration