Leases

9 Months Ended

Nov. 04, 2025

We currently lease the vast majority of the buildings or sites for our stores, store support center, and warehouse space under facility operating leases. These leases typically have initial terms ranging from ten to twenty years and include one or more options to renew. When determining the lease term, we include option periods for which renewal is reasonably certain. Most of the leases require us to pay property taxes, insurance, and maintenance of the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases also include certain equipment leases that have a term in excess of one year. Certain facility leases also have provisions for additional variable contingent rentals based on revenues.

Operating lease cost, variable lease cost and short-term lease cost related primarily to our facilities is included in “Other store operating expenses” for our operating stores, “Pre-opening costs” for our stores not yet operating, or “General and administrative expenses” for our store support center and warehouse, in the Consolidated Statements of Comprehensive Income.

The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, were as follows for the periods presented:


	Three Months Ended				Nine Months Ended
	November 4, 2025		November 5, 2024		November 4, 2025		November 5, 2024
Operating lease cost	$	50.0	$	50.3	$	153.6	$	151.3
Variable lease cost	10.0		10.1		31.2		31.6
Short-term lease cost	0.6		0.8		2.5		1.6
Total	$	60.6	$	61.2	$	187.3	$	184.5

Operating lease payments in the table above include minimum lease payments for future sites for which the leases have commenced. As of November 4, 2025, the Company had signed lease agreements with total lease payments of $160.9 related to eight facility leases, which had not yet commenced. Fixed minimum lease payments related to these facilities were not included in the right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of November 4, 2025.

Sale-leaseback transactions

In fiscal 2025, the Company entered into sale and master lease agreements (“sale-leaseback transactions”) with an unrelated third party. Under these agreements:

•The Company sold two of its open store properties, including land, buildings and certain improvements, and then leased the assets back through these sale-leaseback transactions.

•The Company sold certain store properties, including land, buildings and certain improvements, and then leased the assets back through these sale-leaseback transactions. The locations sold were in varying states of development, or will begin development in fiscal 2025, and are scheduled to open through fiscal 2026. The Company expects to receive incremental proceeds in the amount of remaining capital expenditures incurred related to the construction of these stores prior to opening.

•Total proceeds related to these sale and master lease agreements as of November 4, 2025 were $96.2, net of certain closing costs.

The sale-leaseback transactions were accounted for as failed sale leasebacks based on GAAP under ASC 842, Leases. As a result, the store property assets remain on the Consolidated Balance Sheet at their historical cost and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received, net of certain transactions costs. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.

As of November 4, 2025, the current outstanding financing liability of $0.7 was included in Accrued liabilities on the Consolidated Balance Sheet and the long-term outstanding financing liability of $358.0 was included in Other long-term liabilities on the Consolidated Balance Sheet for the transactions noted above, as well as failed sale leaseback transactions entered into prior to fiscal 2025.

Finance Leases

In fiscal 2025, the Company amended leases related to three existing properties with an unrelated third party. The Company received $4.5 in proceeds related to these extensions. As a result of the amendment, the Company reclassified these leases as finance leases.

As of November 4, 2025, the Company had finance lease liabilities related to three properties. The current outstanding finance lease liability of $0.4 was included in Accrued liabilities on the Consolidated Balance Sheet and the long-term outstanding finance lease liability of $32.8 was included in Other long-term liabilities on the Consolidated Balance Sheet.