XML 20 R13.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Leases | 3 Months Ended
--- | ---
May 04, 2024
Leases [Abstract] |
Leases | 4. Leases The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 years to 10 years, with options that usually permit renewal for additional five-year periods. The initial term of the lease for the corporate headquarters is for 20 years, with the opportunity to extend for six additional consecutive periods of five years, beginning in fiscal 2026. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The Company is generally obligated for the cost of property taxes, insurance and common area maintenance fees relating to its leases, which are considered variable lease costs and are expensed as incurred. ASC 842 requires the assessment of any lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied. Lease modification accounting requires the recalculation of the ROU asset, lease liability and lease expense over the respective lease term. As of May 4, 2024, the Company’s operating leases liabilities represent the present value of the remaining future minimum lease payments updated based on concessions and lease modifications. Lease costs related to store locations are included in cost of goods sold including occupancy costs on the Consolidated Statements of Operations, and expenses and lease costs related to the corporate headquarters and equipment leases are included in selling, general and administrative expenses on the Consolidated Statements of Operations. The following table is a summary of the Company’s components of net lease cost for the three months ended May 4, 2024 and April 29, 2023:
|  | For the three months ended |
|  | May 4, 2024 |  |  | April 29, 2023 |
(in thousands) |  |  |  |  |  |
Operating lease cost |  | $ | 11,477 |  |  | $ | 10,666 |
Variable lease costs(1) |  |  | 3,393 |  |  |  | 3,166 |
Total lease costs |  | $ | 14,870 |  |  | $ | 13,832 |
(1) Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to leases. Supplemental cash flow and balance sheet information related to leases for the first three months ended May 4, 2024 and April 29, 2023 was as follows:
(dollars in thousands) |  | For the three months ended |
Cash paid for amounts included in the measurement of lease liabilities: |  | May 4, 2024 |  |  | April 29, 2023 |
Operating cash flows for operating leases (1) |  | $ | 12,966 |  |  | $ | 12,753 |
Non-cash operating activities: |  |  |  |  |  |
Right-of-use assets obtained in exchange for operating lease liabilities |  | $ | 26,370 |  |  | $ | 9,250 |
Weighted average remaining lease term |  | 5.2 yrs. |  |  | 4.3 yrs. |
Weighted average discount rate |  |  | 6.45 | % |  |  | 6.39 | %
(1) The cash paid for the first three months of fiscal 2024 and fiscal 2023 included prepaid rent of $4.3 million and $4.2 million, respectively. The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of May 4, 2024:
(in thousands) |  |  |
2024 (remaining) |  | $ | 31,965 |
2025 |  |  | 47,074 |
2026 |  |  | 35,037 |
2027 |  |  | 28,001 |
2028 |  |  | 19,978 |
Thereafter |  |  | 39,695 |
Total minimum lease payments |  | $ | 201,750 |
Less: amount of lease payments representing interest |  |  | 32,523 |
Present value of future minimum lease payments |  | $ | 169,227 |
Less: current obligations under leases |  |  | 34,644 |
Long-term lease obligations |  | $ | 134,583 |
As of May 4, 2024, the Company had entered into four ten-year store leases that have not yet commenced with aggregated estimated future lease payments of approximately $6.3 million, which are not included in the above table. The leases are expected to commence during the second and third quarters of fiscal 2024.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration