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Income Taxes (Tables) | 12 Months Ended
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Jun. 29, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Provision | Significant components of the income tax provision are as follows:
| Years Ended
| June 29, 2025 |  | June 30, 2024 |  | July 2, 2023
| (in thousands)
Current provision (benefit): |  |  |  |  |
Federal | $ | (1,942) |  |  | $ | 11,774 |  |  | $ | 976 |
State | 1,125 |  |  | 161 |  |  | 1,572 |
Foreign | 176 |  |  | — |  |  | — |
Current income tax (benefit) expense | (641) |  |  | 11,935 |  |  | 2,548 |
Deferred provision (benefit): |  |  |  |  |
Federal | (12,880) |  |  | (14,246) |  |  | (3,145) |
State | 131 |  |  | 2,514 |  |  | (1,463) |
Foreign | 26 |  |  | — |  |  | — |
Deferred income tax benefit | (12,723) |  |  | (11,732) |  |  | (4,608) |
Income tax (benefit) expense | $ | (13,364) |  |  | $ | 203 |  |  | $ | (2,060) |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
| Years Ended
| June 29, 2025 |  | June 30, 2024 |  | July 2, 2023
Tax at U.S. statutory rates | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 3.4 |  |  | (8.1) |  |  | (0.2) |
Non-deductible impairment charge | (1.4) |  |  | - |  |  | (16.8) |
Valuation allowance change | (16.8) |  |  | (28.5) |  |  | (0.2) |
Non-deductible compensation | (0.1) |  |  | (0.6) |  |  | (2.1) |
Excess tax benefit/shortfalls from stock-based compensation | (0.2) |  |  | (11.9) |  |  | (1.7) |
Tax credits | 0.3 |  |  | 16.9 |  |  | 2.7 |
Enhanced deductions | - |  |  | 11.8 |  |  | 2.6 |
Other, net | 0.1 |  |  | (4.0) |  |  | (0.9) |
Effective tax rate | 6.3 | % |  | (3.4 | %) |  | 4.4 | %
Schedule of Deferred Income Tax Assets (Liabilities) | The significant components of the Company's deferred income tax assets (liabilities) are as follows:
| June 29, 2025 |  | June 30, 2024
| (in thousands)
Deferred income tax assets: |  |  |
Loss and carryforwards | $ | 17,508 |  |  | $ | 8,096 |
Accrued expenses and reserves | 4,949 |  |  | 3,146 |
Inventory | 4,366 |  |  | 5,417 |
Stock-based compensation | 2,613 |  |  | 1,767 |
Deferred compensation | 7,242 |  |  | 6,815 |
Operating lease liability | 29,002 |  |  | 30,763 |
Other intangibles | 20,604 |  |  | — |
Gross deferred income tax assets | 86,284 |  |  | 56,004 |
Less: Valuation allowance | (40,581) |  |  | (4,868) |
Deferred tax assets, net | 45,703 |  |  | 51,136 |
Deferred income tax liabilities: |  |  |
Other intangibles | — |  |  | (10,693) |
Tax in excess of book depreciation | (25,409) |  |  | (31,206) |
Operating lease right-of-use asset | (26,973) |  |  | (28,639) |
Deferred tax liabilities | (52,382) |  |  | (70,538) |
Net deferred income tax liabilities | $ | (6,679) |  |  | $ | (19,402) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Years Ended
| June 29, 2025 |  | June 30, 2024 |  | July 2, 2023
| (in thousands)
Beginning balance | $ | 2,780 |  |  | $ | 1,724 |  |  | $ | 1,374 |
Increases on tax positions for prior years | 72 |  |  | 1,100 |  |  | 30 |
Increases on tax positions for current year | 209 |  |  | 387 |  |  | 320 |
Settlements | (166) |  |  | - |  |  | - |
Statute of limitation expirations | (135) |  |  | (431) |  |  | - |
Ending balance | $ | 2,760 |  |  | $ | 2,780 |  |  | $ | 1,724 |

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