XML 26 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Restructuring | 6 Months Ended
--- | ---
Jan. 27, 2024
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring In June 2022, we announced a restructuring plan (the “2022 Restructuring Plan”) to reduce our future fixed and variable operating costs and allow us to centralize key capabilities, strengthen decision-making to drive efficiencies, and ensure we are allocating resources to our most critical priorities. In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2023, we implemented a plan of termination (“January 2023 Reduction in Force”). The January 2023 Reduction in Force reduced our then-current employee workforce by approximately 6%, including approximately 20% of our then-salaried positions. During fiscal 2023, we recorded an aggregate $36.4 million of restructuring charges related to this action, primarily consisting of severance and employee-related benefits; impairment related to a portion of our corporate office space; and accelerated depreciation expense related to assets at our Salt Lake City fulfillment center, which were not transferred to other fulfillment centers in our network and for which we did not have immediate plans to use. In furtherance of and as an expansion of the 2022 Restructuring Plan, in June 2023, we announced the intended closures of our fulfillment centers in Bethlehem, Pennsylvania and Dallas, Texas (the “Bethlehem and Dallas Closures”). The Bethlehem, Pennsylvania location ceased operations during the three months ended October 28, 2023, and we expect the Dallas, Texas location to cease operations in the three months ending April 27, 2024. During fiscal 2023, we recorded an aggregate $2.6 million related to this action, primarily consisting of severance and employee-related benefits, and accelerated depreciation expense and other restructuring costs. During the three and six months ended January 27, 2024, we recorded $6 million and $14 million of restructuring charges related to the Bethlehem and Dallas closures, primarily consisting of severance and employee-related benefits, and accelerated depreciation expense and other restructuring costs. In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2024, we implemented an organization realignment that resulted in the further elimination of styling leadership and corporate positions. During the three and six months ended January 27, 2024, we recorded $2.2 million related to this action, primarily consisting of severance and employee-related benefits. The components of total restructuring charges were as follows:
|  | For the Three Months Ended |  | For the Six Months Ended
(in thousands) |  | January 27, 2024 |  | January 28, 2023 |  | January 27, 2024 |  | January 28, 2023
Cash restructuring charges: |  |  |  |  |  |  |  |
Severance and employee-related benefits |  | $ | 3,827 |  |  | $ | 15,571 |  |  | $ | 6,289 |  |  | $ | 16,498 |
Other |  | 1,157 |  |  | 135 |  |  | 1,805 |  |  | 135 |
Non-cash restructuring charges: |  |  |  |  |  |  |  |
Asset impairments (2) |  | — |  |  | 16,874 |  |  | — |  |  | 16,874 |
Accelerated depreciation |  | 3,159 |  |  | 1,755 |  |  | 7,337 |  |  | 1,755 |
Other |  | 251 |  |  | 232 |  |  | 913 |  |  | 232 |
Total restructuring (1) |  | $ | 8,394 |  |  | $ | 34,567 |  |  | $ | 16,344 |  |  | $ | 35,494 |
(1) Recorded in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. (2) Includes impairments of both operating lease right-of-use assets and property and equipment. The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the condensed consolidated balance sheets:
(in thousands) |  | Severance and Employee Related Benefits and Other |  |  |  |
Balance at July 29, 2023 |  | $ | 1,923 |  |  |  |  |
Charges incurred |  | 8,094 |  |  |  |  |
Cash payments |  | (5,011) |  |  |  |  |
Balance at January 27, 2024 |  | $ | 5,006 |  |  |  |  |
In January 2024, we revised our compensation model for full-time stylists to move to a part-time only model, whereby stylists who will opt to continue with the company will be paid one-time restructuring bonuses over the next three quarters to continue to serve the Company. Related to the 2022 Restructuring Plan and stylist compensation restructuring, we estimate we will incur between $4 million and $5 million of additional cash restructuring charges over the next three fiscal quarters, with substantially all of the cash payments to be completed by the end of the first quarter of fiscal 2025. We estimate that we will also incur between $1 million and $2 million in additional accelerated depreciation expense for fixed assets at the Dallas, Texas fulfillment center over the next fiscal quarter.

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

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration