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Lease Accounting
 9 Months Ended
Nov. 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 August 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 26%.
During the nine months ended November 2, 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 nine months ended November 2, 2024.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $34.1 million for leases where the Company has not yet taken possession of the underlying asset as of November 1, 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 November 1, 2025.
The components of leases are (in thousands):
Nov 1, 2025Feb 1, 2025
AssetsBalance Sheet Location
Operating$927,868 $839,879 Operating lease right-of-use assets
Finance4,734 7,042 Property and equipment, net
Total lease assets$932,602 $846,921 
Liabilities
Current:
Operating$183,094 $176,972 Current portion of operating lease liabilities
Finance3,280 5,236 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating795,308 715,755 Long-term operating lease liabilities
Finance2,528 4,597 Long-term debt and finance lease obligations
Total lease liabilities$984,210 $902,560 
The components of lease costs are (in thousands):
Three Months EndedNine Months Ended
Nov 1, 2025Nov 2, 2024Nov 1, 2025Nov 2, 2024Income Statement Location
Operating lease costs$58,162 $53,293 $169,190 $151,652 Cost of product sales
Operating lease costs10,358 7,730 29,558 24,820 Selling, general and administrative expenses
Operating lease costs1
231 (718)(5)(718)Net (gains) losses on lease modifications
Finance lease costs
Amortization of leased assets8 8 24 20 Cost of product sales
Amortization of leased assets928 753 2,861 3,881 Selling, general and administrative expenses
Interest on lease liabilities151 120 497 475 Interest expense
Variable lease costs2
26,288 25,361 77,397 74,894 Cost of product sales
Variable lease costs1,065 932 3,191 3,247 Selling, general and administrative expenses
Short-term lease costs212 129 528 358 Cost of product sales
Short-term lease costs2,522 2,071 6,609 6,275 Selling, general and administrative expenses
Total lease costs$99,925 $89,679 $289,850 $264,904 
______________________________________________________________________
Notes:
1During the three and nine months ended November 1, 2025, net (gains) losses 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 nine months ended November 1, 2025, variable lease costs included certain rent concessions of a minimal amount and approximately $0.3 million, respectively, received by the Company, primarily in Europe. During the three and nine months ended November 2, 2024, variable lease costs included certain rent concessions of approximately $0.2 million and $0.5 million, respectively, received by the Company, primarily in Europe.
Maturities of the Company’s operating and finance lease liabilities as of November 1, 2025 are (in thousands):
Operating Leases
Maturity of Lease Liabilities Non-Related PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$55,477 $1,767 $881 $58,125 
Fiscal 2027215,930 9,766 3,369 229,065 
Fiscal 2028181,703 9,685 1,444 192,832 
Fiscal 2029161,539 10,561 339 172,439 
Fiscal 2030122,881 10,033 39 132,953 
After fiscal 2030314,913 73,649 17 388,579 
Total lease payments1,052,443 115,461 6,089 1,173,993 
Less: Interest156,027 33,475 281 189,783 
Present value of lease liabilities$896,416 $81,986 $5,808 $984,210 
Other supplemental information is (dollars in thousands):
Lease Term and Discount RateNov 1, 2025
Weighted-average remaining lease term
Operating leases6.7 years
Finance leases1.9 years
Weighted-average discount rate
Operating leases5.4%
Finance leases4.8%
Nine Months Ended
Supplemental Cash Flow InformationNov 1, 2025Nov 2, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$187,416 $163,728 
New operating ROU assets obtained in exchange for lease liabilities$170,460 $192,543 
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 August 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 26%.
During the nine months ended November 2, 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 nine months ended November 2, 2024.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $34.1 million for leases where the Company has not yet taken possession of the underlying asset as of November 1, 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 November 1, 2025.
The components of leases are (in thousands):
Nov 1, 2025Feb 1, 2025
AssetsBalance Sheet Location
Operating$927,868 $839,879 Operating lease right-of-use assets
Finance4,734 7,042 Property and equipment, net
Total lease assets$932,602 $846,921 
Liabilities
Current:
Operating$183,094 $176,972 Current portion of operating lease liabilities
Finance3,280 5,236 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating795,308 715,755 Long-term operating lease liabilities
Finance2,528 4,597 Long-term debt and finance lease obligations
Total lease liabilities$984,210 $902,560 
The components of lease costs are (in thousands):
Three Months EndedNine Months Ended
Nov 1, 2025Nov 2, 2024Nov 1, 2025Nov 2, 2024Income Statement Location
Operating lease costs$58,162 $53,293 $169,190 $151,652 Cost of product sales
Operating lease costs10,358 7,730 29,558 24,820 Selling, general and administrative expenses
Operating lease costs1
231 (718)(5)(718)Net (gains) losses on lease modifications
Finance lease costs
Amortization of leased assets8 8 24 20 Cost of product sales
Amortization of leased assets928 753 2,861 3,881 Selling, general and administrative expenses
Interest on lease liabilities151 120 497 475 Interest expense
Variable lease costs2
26,288 25,361 77,397 74,894 Cost of product sales
Variable lease costs1,065 932 3,191 3,247 Selling, general and administrative expenses
Short-term lease costs212 129 528 358 Cost of product sales
Short-term lease costs2,522 2,071 6,609 6,275 Selling, general and administrative expenses
Total lease costs$99,925 $89,679 $289,850 $264,904 
______________________________________________________________________
Notes:
1During the three and nine months ended November 1, 2025, net (gains) losses 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 nine months ended November 1, 2025, variable lease costs included certain rent concessions of a minimal amount and approximately $0.3 million, respectively, received by the Company, primarily in Europe. During the three and nine months ended November 2, 2024, variable lease costs included certain rent concessions of approximately $0.2 million and $0.5 million, respectively, received by the Company, primarily in Europe.
Maturities of the Company’s operating and finance lease liabilities as of November 1, 2025 are (in thousands):
Operating Leases
Maturity of Lease Liabilities Non-Related PartiesRelated PartiesFinance LeasesTotal
Fiscal 2026$55,477 $1,767 $881 $58,125 
Fiscal 2027215,930 9,766 3,369 229,065 
Fiscal 2028181,703 9,685 1,444 192,832 
Fiscal 2029161,539 10,561 339 172,439 
Fiscal 2030122,881 10,033 39 132,953 
After fiscal 2030314,913 73,649 17 388,579 
Total lease payments1,052,443 115,461 6,089 1,173,993 
Less: Interest156,027 33,475 281 189,783 
Present value of lease liabilities$896,416 $81,986 $5,808 $984,210 
Other supplemental information is (dollars in thousands):
Lease Term and Discount RateNov 1, 2025
Weighted-average remaining lease term
Operating leases6.7 years
Finance leases1.9 years
Weighted-average discount rate
Operating leases5.4%
Finance leases4.8%
Nine Months Ended
Supplemental Cash Flow InformationNov 1, 2025Nov 2, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$187,416 $163,728 
New operating ROU assets obtained in exchange for lease liabilities$170,460 $192,543