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LEASES
 6 Months Ended
Jul. 05, 2025
Leases [Abstract]  
LEASES LEASES
The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments.
Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are
leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements.
The components of lease expense were as follows (in thousands):
Lease Cost Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location		For the 13 Weeks Ended July 5, 2025For the 13 Weeks Ended June 29, 2024For the 27 Weeks Ended July 5, 2025For the 26 Weeks Ended June 29, 2024
Operating lease cost(1)
SG&A$13,046 $15,869 $27,751 $32,178 
Short-term lease costSG&A$108 $240 $274 $526 
Variable lease costSG&A$5,162 $5,285 $8,963 $10,638 
_______________________________________________
(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		July 5, 2025December 28, 2024
Assets
OperatingOperating lease ROU assets $122,054 $121,389 
Liabilities
Current:
OperatingCurrent operating lease liabilities$33,890 $37,327 
Noncurrent:
OperatingLong-term operating lease liabilities$111,499 $113,658 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateJuly 5, 2025December 28, 2024
Weighted-average remaining lease term:
Operating leases 6.3 years6.3 years
Weighted-average discount rate:
Operating leases 15.2 %15.1 %

Future minimum lease payments by year as of July 5, 2025 were as follows (in thousands):
Fiscal YearOperating Leases
2025 (remaining)$29,667 
202649,739 
202735,028 
202822,506 
202920,949 
Thereafter75,376 
Total lease payments$233,265 
Less: Interest87,876 
Total lease obligations$145,389 
Supplemental cash flow information related to leases was as follows (in thousands):
For the 27 Weeks Ended July 5, 2025For the 26 Weeks Ended June 29, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$35,269 $38,818 
Leased assets obtained in exchange for new operating lease liabilities11,989 12,809 
As of July 5, 2025, the Company did not have any material operating or finance leases that have been signed but not commenced.
LEASES LEASES
The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments.
Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are
leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements.
The components of lease expense were as follows (in thousands):
Lease Cost Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location		For the 13 Weeks Ended July 5, 2025For the 13 Weeks Ended June 29, 2024For the 27 Weeks Ended July 5, 2025For the 26 Weeks Ended June 29, 2024
Operating lease cost(1)
SG&A$13,046 $15,869 $27,751 $32,178 
Short-term lease costSG&A$108 $240 $274 $526 
Variable lease costSG&A$5,162 $5,285 $8,963 $10,638 
_______________________________________________
(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		July 5, 2025December 28, 2024
Assets
OperatingOperating lease ROU assets $122,054 $121,389 
Liabilities
Current:
OperatingCurrent operating lease liabilities$33,890 $37,327 
Noncurrent:
OperatingLong-term operating lease liabilities$111,499 $113,658 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateJuly 5, 2025December 28, 2024
Weighted-average remaining lease term:
Operating leases 6.3 years6.3 years
Weighted-average discount rate:
Operating leases 15.2 %15.1 %

Future minimum lease payments by year as of July 5, 2025 were as follows (in thousands):
Fiscal YearOperating Leases
2025 (remaining)$29,667 
202649,739 
202735,028 
202822,506 
202920,949 
Thereafter75,376 
Total lease payments$233,265 
Less: Interest87,876 
Total lease obligations$145,389 
Supplemental cash flow information related to leases was as follows (in thousands):
For the 27 Weeks Ended July 5, 2025For the 26 Weeks Ended June 29, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$35,269 $38,818 
Leased assets obtained in exchange for new operating lease liabilities11,989 12,809 
As of July 5, 2025, the Company did not have any material operating or finance leases that have been signed but not commenced.