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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, 2025Feb 1, 2025
AssetsBalance Sheet Location
Operating$933,717 $839,879 Operating lease right-of-use assets
Finance5,538 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
Finance4,950 5,236 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating793,515 715,755 Long-term operating lease liabilities
Finance3,060 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 EndedSix Months Ended
Aug 2, 2025Aug 3, 2024Aug 2, 2025Aug 3, 2024Income Statement Location
Operating lease costs$56,648 $49,909 $111,028 $98,359 Cost of product sales
Operating lease costs10,180 9,258 19,200 17,090 Selling, general and administrative expenses
Operating lease costs1
— — (236)— Net gains on lease modifications
Finance lease costs
Amortization of leased assets8 8 16 12 Cost of product sales
Amortization of leased assets963 1,588 1,933 3,128 Selling, general and administrative expenses
Interest on lease liabilities171 167 346 355 Interest expense
Variable lease costs2
26,986 24,962 51,109 49,533 Cost of product sales
Variable lease costs1,123 1,216 2,126 2,315 Selling, general and administrative expenses
Short-term lease costs133 106 316 229 Cost of product sales
Short-term lease costs1,514 2,144 4,087 4,204 Selling, general and administrative expenses
Total lease costs$97,726 $89,358 $189,925 $175,225 
______________________________________________________________________
Notes:
1During 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.
2During 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 PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$105,613 $4,253 $3,214 $113,080 
Fiscal 2027205,908 9,776 3,366 219,050 
Fiscal 2028174,741 9,691 1,433 185,865 
Fiscal 2029154,456 10,567 325 165,348 
Fiscal 2030116,762 10,039 23 126,824 
After fiscal 2030302,608 73,661 — 376,269 
Total lease payments1,060,088 117,987 8,361 1,186,436 
Less: Interest160,591 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 RateAug 2, 2025
Weighted-average remaining lease term
Operating leases6.8 years
Finance leases1.9 years
Weighted-average discount rate
Operating leases5.4%
Finance leases4.3%
Six Months Ended
Supplemental Cash Flow InformationAug 2, 2025Aug 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, 2025Feb 1, 2025
AssetsBalance Sheet Location
Operating$933,717 $839,879 Operating lease right-of-use assets
Finance5,538 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
Finance4,950 5,236 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating793,515 715,755 Long-term operating lease liabilities
Finance3,060 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 EndedSix Months Ended
Aug 2, 2025Aug 3, 2024Aug 2, 2025Aug 3, 2024Income Statement Location
Operating lease costs$56,648 $49,909 $111,028 $98,359 Cost of product sales
Operating lease costs10,180 9,258 19,200 17,090 Selling, general and administrative expenses
Operating lease costs1
— — (236)— Net gains on lease modifications
Finance lease costs
Amortization of leased assets8 8 16 12 Cost of product sales
Amortization of leased assets963 1,588 1,933 3,128 Selling, general and administrative expenses
Interest on lease liabilities171 167 346 355 Interest expense
Variable lease costs2
26,986 24,962 51,109 49,533 Cost of product sales
Variable lease costs1,123 1,216 2,126 2,315 Selling, general and administrative expenses
Short-term lease costs133 106 316 229 Cost of product sales
Short-term lease costs1,514 2,144 4,087 4,204 Selling, general and administrative expenses
Total lease costs$97,726 $89,358 $189,925 $175,225 
______________________________________________________________________
Notes:
1During 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.
2During 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 PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$105,613 $4,253 $3,214 $113,080 
Fiscal 2027205,908 9,776 3,366 219,050 
Fiscal 2028174,741 9,691 1,433 185,865 
Fiscal 2029154,456 10,567 325 165,348 
Fiscal 2030116,762 10,039 23 126,824 
After fiscal 2030302,608 73,661 — 376,269 
Total lease payments1,060,088 117,987 8,361 1,186,436 
Less: Interest160,591 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 RateAug 2, 2025
Weighted-average remaining lease term
Operating leases6.8 years
Finance leases1.9 years
Weighted-average discount rate
Operating leases5.4%
Finance leases4.3%
Six Months Ended
Supplemental Cash Flow InformationAug 2, 2025Aug 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