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RESTRUCTURING | 6 Months Ended
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Jul. 05, 2025
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING In fiscal 2024, the Company announced a plan to return to profitable growth (the "Turnaround Plan"). The Turnaround Plan is centered on three key areas: (i) refocusing on the core, (ii) rightsizing the cost structure, and (iii) strengthening the balance sheet. The Company expects to achieve selling, general and administrative ("SG&A") cost savings of approximately $100 million in fiscal 2025 as compared to fiscal 2024 through a series of initiatives including a strategic reduction in force which occurred in late February 2025, reduced costs associated with the transition of smaller international markets to a distributor model, and the closing of underperforming retail stores. The Company closed 34 retail stores in the Year To Date Period and plans to close an additional 10 to 15 stores in the second half of fiscal year 2025. The Company will seek to identify additional cost-reduction opportunities, which may generate incremental savings in fiscal 2025. The Company estimates approximately $50 million in total charges in connection with the Turnaround Plan, with approximately $7 million incurred in fiscal 2024 and the remainder expected to be incurred during fiscal 2025. The following table shows a summary of Turnaround Plan charges (in thousands):
| For the 13 Weeks Ended July 5, 2025 |  |  | For the 27 Weeks Ended July 5, 2025
Restructuring expenses | 7,295 |  |  |  | 23,116 |
Consolidated | $ | 7,295 |  |  |  | $ | 23,116 |
Turnaround Plan restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended July 5, 2025 |  | For the 27 Weeks Ended July 5, 2025 |  |
Americas | $ | 394 |  |  | $ | 992 |  |  |
Europe | 1,634 |  |  | 3,645 |  |  |
Asia | 643 |  |  | 1,085 |  |  |
Corporate | 4,624 |  |  | 17,394 |  |  |
Consolidated | $ | 7,295 |  |  | $ | 23,116 |  |  |
The following table shows a rollforward of the accrued liability related to the Company’s Turnaround Plan (in thousands):
| For the 13 Weeks Ended July 5, 2025
| Liabilities |  |  |  |  |  |  |  | Liabilities
| April 5, 2025 |  | Charges |  | Cash Payments |  |  |  | July 5, 2025
Professional services | 5,340 |  |  | 4,556 |  |  | 3,920 |  |  |  |  | 5,976 |
Severance and employee-related benefits | 7,343 |  |  | 2,739 |  |  | 4,003 |  |  |  |  | 6,079 |
Total | $ | 12,683 |  |  | $ | 7,295 |  |  | $ | 7,923 |  |  |  |  | $ | 12,055 |
| For the 27 Weeks Ended July 5, 2025
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 28, 2024 |  | Charges |  | Cash Payments |  | Non-cash Items |  | July 5, 2025
Store closures | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |
Professional services | — |  |  | 11,042 |  |  | 5,066 |  |  | — |  |  | 5,976 |
Severance and employee-related benefits | — |  |  | 12,064 |  |  | 5,936 |  |  | 49 |  |  | 6,079 |
Total | $ | — |  |  | $ | 23,116 |  |  | $ | 11,002 |  |  | $ | 59 |  |  | $ | 12,055 |
In fiscal year 2024, the Company concluded its Transform and Grow plan ("TAG") as it transitioned to initiatives under the Turnaround Plan. TAG was launched in early 2023 to reduce operating costs, improve operating margins, and advance the Company’s commitment to profitable growth. The Company had expanded the scope and duration of TAG to focus on a more comprehensive review of its global business operations. The expansion of TAG put greater emphasis on initiatives aimed at restructuring or optimizing operations, exiting or minimizing certain product offerings, brands and distribution channels, strengthening gross margins through improvements in sourcing and improving working capital efficiency. Under the expanded TAG plan, the Company achieved annualized operating income benefits of $280 million over the two-year period. The following table shows a summary of TAG plan charges (in thousands):
|  |  | For the 13 Weeks Ended June 29, 2024 |  | For the 26 Weeks Ended June 29, 2024
Cost of sales |  |  | $ | — |  |  | $ | (241) |
Restructuring expenses |  |  | 16,673 |  |  | 26,726 |
Total |  |  | $ | 16,673 |  |  | $ | 26,485 |
TAG plan restructuring charges by operating segment were as follows (in thousands):
| For the 13 Weeks Ended June 29, 2024 |  | For the 26 Weeks Ended June 29, 2024
Americas | $ | 262 |  |  | $ | 626 |
Europe | 1,869 |  |  | 5,426 |
Asia | 93 |  |  | 1,056 |
Corporate | 14,449 |  |  | 19,377 |
Consolidated | $ | 16,673 |  |  | $ | 26,485 |
The following table shows a rollforward of the accrued liability related to the Company’s TAG plan (in thousands):
| For the 13 Weeks Ended July 5, 2025
| Liabilities |  |  |  |  |  |  |  | Liabilities
| April 5, 2025 |  |  |  | Cash Payments |  |  |  | July 5, 2025
Store closures | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | — |
Professional services | 2,972 |  |  |  |  | 2,972 |  |  |  |  | — |
Severance and employee-related benefits | 629 |  |  |  |  | 629 |  |  |  |  | — |
Charges related to exits of certain product offerings | 300 |  |  |  |  | 175 |  |  |  |  | 125 |
Total | $ | 3,901 |  |  |  |  | $ | 3,776 |  |  |  |  | $ | 125 |
| For the 13 Weeks Ended June 29, 2024
| Liabilities |  |  |  |  |  |  |  | Liabilities
| March 30, 2024 |  | Charges |  | Cash Payments |  | Non-cash Items |  | June 29, 2024
Store closures | $ | 1 |  |  | $ | 36 |  |  | $ | 1 |  |  | $ | 36 |  |  | $ | — |
Professional services | 211 |  |  | 11,568 |  |  | 460 |  |  | — |  |  | 11,319 |
Severance and employee-related benefits | 8,479 |  |  | 5,069 |  |  | 4,834 |  |  | 365 |  |  | 8,349 |
Charges related to exits of certain product offerings | 750 |  |  | — |  |  | 450 |  |  | — |  |  | 300 |
Total | $ | 9,441 |  |  | $ | 16,673 |  |  | $ | 5,745 |  |  | $ | 401 |  |  | $ | 19,968 |
| For the 27 Weeks Ended July 5, 2025
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 28, 2024 |  |  |  | Cash Payments |  |  |  | July 5, 2025
Store closures | $ | 1 |  |  |  |  | $ | 1 |  |  |  |  | $ | — |
Professional services | 9,501 |  |  |  |  | 9,501 |  |  |  |  | $ | — |
Severance and employee-related benefits | 7,341 |  |  |  |  | 7,341 |  |  |  |  | — |
Charges related to exits of certain product offerings | 300 |  |  |  |  | 175 |  |  |  |  | 125 |
Total | $ | 17,143 |  |  |  |  | $ | 17,018 |  |  |  |  | $ | 125 |
| For the 26 Weeks Ended June 29, 2024
| Liabilities |  |  |  |  |  |  |  | Liabilities
| December 30, 2023 |  | Charges |  | Cash Payments |  | Non-cash Items |  | June 29, 2024
Store closures | $ | — |  |  | $ | 143 |  |  | $ | 7 |  |  | $ | 136 |  |  | $ | — |
Professional services | 117 |  |  | 14,052 |  |  | 2,850 |  |  | — |  |  | 11,319 |
Severance and employee-related benefits | 8,117 |  |  | 12,531 |  |  | 11,934 |  |  | 365 |  |  | 8,349 |
Charges related to exits of certain product offerings | 3,821 |  |  | (241) |  |  | 3,280 |  |  | — |  |  | 300 |
Total | $ | 12,055 |  |  | $ | 26,485 |  |  | $ | 18,071 |  |  | $ | 501 |  |  | $ | 19,968 |

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- 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 S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
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