Leases

12 Months Ended

Dec. 31, 2025

Note 6: Leases

The Company leases its retail stores, certain distribution space, and office space. Leases generally have a term of ten to fifteen years, and contain renewal options. Assets acquired under operating leases are included in the Company’s right of use assets in the accompanying consolidated balance sheet. The depreciable life of assets and leasehold improvements is limited by the expected lease term.


Leases (in thousands)	Classification		December 31, 2025		December 31, 2024
Assets
Operating lease assets	Right of use asset	$	126,261	$	132,861
Total leased assets		$	126,261	$	132,861

Liabilities
Current
Operating	Current portion of lease liability	$	29,882	$	28,880
Noncurrent
Operating	Long-term lease liability, net		104,963		113,700
Total lease liabilities		$	134,845	$	142,580


			Year Ended December 31,
Lease cost (in thousands)	Classification		2025		2024
Operating lease cost	SG&A expenses	$	37,307	$	37,781
Variable lease cost⁽¹⁾	SG&A expenses		15,628		14,876
Short term lease cost	SG&A expenses		149		199
Sublease income	SG&A expenses		(731)		-
Net lease cost		$	52,353	$	52,856

⁽¹⁾Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for the Company’s leased facilities.


Maturity of Lease Liabilities (in thousands)	Operating Leases
2026	$	39,642
2027		35,247
2028		27,888
2029		20,741
2030		13,924
Thereafter		27,261
Total lease payments		164,703
Less: interest		(29,858)
Present value of lease liabilities	$	134,845

		Year Ended December 31,
Other Information (in thousands)		2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(39,997)	$	(39,184)
Lease right-of-use assets obtained or modified in exchange for lease obligations	$	21,259	$	30,691


Lease Term and Discount Rate	December 31, 2025		December 31, 2024
Weighted average remaining term (years)
Operating leases	5.3		5.2
Weighted average discount rate
Operating leases	7.29	%	7.45	%

During the second quarter of 2025, the Company entered into two sublease agreements for its distribution center space in New Jersey, which was closed in 2024. These sublease agreements commenced in the second quarter of 2025 and will expire in August 2026. During December 31, 2025, the Company recognized sublease income of $0.7 million which was classified as a reduction of selling, general and administrative expense. The Company anticipates an additional $1.0 million of sublease income in 2026. The Company’s lease of the distribution space in New Jersey terminates in September 2026.