LEASES

3 Months Ended

Apr. 29, 2023

The Company has operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. The Company’s leases have remaining lease terms ranging from less than one year up to ten years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the lease early. The Company records all occupancy costs in Cost of sales, except costs for administrative office buildings, which are recorded in Selling, general, and administrative expenses. As of the periods presented, the Company’s finance leases were not material to the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows.

The following components of operating lease expense were recognized in the Company’s Consolidated Statements of Operations:


	Thirteen Weeks Ended
		April 29, 2023		April 30, 2022
		(in thousands)
Fixed operating lease cost		$	20,906	$	22,970
Variable operating lease cost (1)		14,697		15,118
Total operating lease cost		$	35,603	$	38,088

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(1)Includes short term leases with lease periods of less than 12 months.

As of April 29, 2023, the weighted-average remaining operating lease term was 3.6 years, and the weighted-average discount rate for operating leases was 5.1%. Cash paid for amounts included in the measurement of operating lease liabilities during the First Quarter 2023 was $20.9 million. ROU assets obtained in exchange for new operating lease liabilities were $10.6 million during the First Quarter 2023.

As of April 29, 2023, the maturities of operating lease liabilities were as follows:


	April 29, 2023
	(in thousands)
Remainder of 2023	$	69,063
2024	42,943
2025	19,283
2026	15,183
2027	13,052
Thereafter	17,932
Total operating lease payments	177,456
Less: imputed interest	(14,810)
Present value of operating lease liabilities	$	162,646