Note 15 - Leases and Lease Guarantees

12 Months Ended

Nov. 29, 2025

Lessee, Operating and Finance Leases [Text Block]

15.

Leases and Lease Guarantees

Leases

See “Leases” under Note 2 for a discussion of our accounting policies and elections under ASC Topic 842.

Supplemental balance sheet information related to our leases as of November 29, 2025 and November 30, 2024 is as follows:

	November 29, 2025		November 30, 2024
Operating leases:
Right of use assets	$	76,727	$	93,624
Lease liabilities, short-term		19,299		18,050
Lease liabilities, long-term		69,353		88,395

Finance leases:
Right of use assets (1)	$	696	$	263
Lease liabilities, short-term (2)		230		122
Lease liabilities, long-term (3)		510		153

(1)

Included in property & equipment, net in our consolidated balance sheet.

(2)

Included in other current liabilities and accrued expenses in our consolidated balance sheet.

(3)

Included in other long-term liabilities and accrued expenses in our consolidated balance sheet.

Our right-of-use assets under operating leases by segment as of November 29, 2025 and November 30, 2024 are as follows:

	November 29, 2025		November 30, 2024
Wholesale	$	5,013	$	6,861
Retail		71,714		86,763
Total right of use assets	$	76,727	$	93,624

The components of our lease cost for 2025, 2024 and 2023 were as follows:

	2025			2024			2023
Lease cost:
Operating lease cost	$	23,375		$	24,065		$	24,287
Financing lease cost:
Amortization of right-of-use assets		176			235			278
Interest on lease liabilities		33			20			22
Short-term lease cost		167			326			401
Variable lease cost (net of abatements received)		58			138			260
Sublease income		(1,011	)		(801	)		(1,093	)

Total lease cost	$	22,798		$	23,983		$	24,155

Supplemental lease disclosures as of November 29, 2025, November 30, 2024 and November 25, 2023 and for the fiscal years then ended are as follows:

	Operating			Financing

For the year ended November 25, 2023:
Cash paid for amounts included in the measurements of lease liabilities		26,854			301
Lease liabilities arising from new right-of-use assets		21,921			-

For the year ended November 30, 2024:
Cash paid for amounts included in the measurements of lease liabilities		26,558			287
Lease liabilities arising from new right-of-use assets		11,050			197

For the year ended November 29, 2025:
Cash paid for amounts included in the measurements of lease liabilities		26,142			178
Lease liabilities arising from new right-of-use assets		770			609

As of November 25, 2023:
Weighted average remaining lease terms (years)		5.5			1.4
Weighted average discount rates		5.78	%		4.72	%

As of November 30, 2024:
Weighted average remaining lease terms (years)		5.6			3.1
Weighted average discount rates		6.28	%		6.56	%

As of November 29, 2025:
Weighted average remaining lease terms (years)		5.0			3.2
Weighted average discount rates		6.51	%		7.37	%

Future payments under our leases and the present value of the obligations as of November 29, 2025 are as follows:

	Operating Leases		Financing Leases

Fiscal 2026	$	24,364	$	276
Fiscal 2027		22,929		272
Fiscal 2028		20,141		190
Fiscal 2029		13,586		83
Fiscal 2030		9,626		5
Thereafter		13,573		-
Total lease payments		104,219		826
Less: interest		15,567		86
Total lease obligations	$	88,652	$	740

We sublease a small number of our leased locations to certain of our licensees for operation as BHF network stores. The terms of these leases generally match those of the lease we have with the lessor. In addition, we sublease space in certain closed store and warehouse locations that are still under lease. Minimum future lease payments due to us under these subleases are as follows:

Fiscal 2026	$	810
Fiscal 2027		245
Fiscal 2028		-
Fiscal 2029		-
Fiscal 2030		-
Thereafter		-
Total minimum future rental income	$	1,055

Lease Commitments

At November 29, 2025, we had commitments for three leases of real property which are expected to commence during fiscal 2026. Together, these leases call for total annual rents averaging approximately $1,105 per year for an initial term of ten years. All three leases have two five-year renewal options.

Guarantees

As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators. The remaining term under these lease guarantees extends for six years. We were contingently liable under licensee lease obligation guarantees in the amount of $4,148 and $5,131 at November 29, 2025 and November 30, 2024, respectively.

In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement dealer, liquidating the collateral, and pursuing payment under the personal guarantees of the independent dealer. The proceeds of the above options are estimated to cover the maximum amount of our future payments under the guarantee obligations, net of reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at November 29, 2025 and November 30, 2024, were not material.