Leases

12 Months Ended

Feb. 03, 2024

(5) Leases

At the inception of the lease, the Company’s operating leases have remaining certain lease terms of up to 15 years, which typically includes multiple options for the Company to extend the lease which are not reasonably certain.

In the fiscal year ended February 3, 2024, the Company recorded a non-cash increase of $58,000, to ROU assets and operating lease liabilities resulting from lease remeasurements from the exercise of lease extension options, acquired leases, and new leases added.

The Company has certain retail locations at which the leases provide for variable payments for common area maintenance, property taxes, insurance and rental payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. The Company recognizes variable lease expense for these leases in the period incurred.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In accordance with ASC 842, total lease expense was comprised of the following:


	Fiscal Year Ended
	February 3,		January 28,		January 29,
	2024		2023		2022
Operating lease expense	$	66,213	$	58,562	$	56,293
Variable lease expense		22,632		18,740		17,252
Short-term lease expense		1,194		1,200		1,325
Total lease expense	$	90,039	$	78,502	$	74,870

In accordance with ASC 842, other information related to leases was as follows:


	Fiscal Year Ended
	February 3,			January 28,			January 29,
	2024			2023			2022
Operating cash flows from operating leases	$	(69,972	)	$	(63,783	)	$	(59,502	)
Cash paid for lease liabilities - operating leases		(69,972	)		(63,783	)		(59,502	)

	As of February 3,			As of January 28,			As of January 29,
	2024			2023			2022
Right-of-use assets obtained in exchange for new or remeasured operating lease liabilities	$	58,000		$	54,243		$	39,437
Terminated right-of-use assets and liabilities		—			—			—
Weighted-average remaining lease term - operating leases		5.85			5.75			5.83
Weighted-average discount rate - operating leases		7.72	%		7.96	%		8.29	%

In accordance with ASC 842, maturities of operating lease liabilities as of February 3, 2024 were as follows:


	Operating
Fiscal Year Endings:	Leases
2024	$	73,828
2025		69,327
2026		64,555
2027		57,027
2028		50,015
Thereafter		154,173
Undiscounted cash flows	$	468,925
Reconciliation of lease liabilities:
Present values	$	355,693
Lease liabilities - current		48,693
Lease liabilities - noncurrent		307,000
Lease liabilities - total	$	355,693
Difference between undiscounted and discounted cash flows	$	113,232

The Company has excluded in the table above approximately $13.8 million of leases (undiscounted basis) that were entered into as of April 4, 2024. These leases will commence in 2025 with lease terms of 10 years.