LEASES

3 Months Ended

May 04, 2024

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 13 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
	May 4, 2024		April 29, 2023
	(in thousands)
Fixed operating lease cost	$	22,502	$	20,906
Variable operating lease cost (1)	7,846		14,697
Total operating lease cost	$	30,348	$	35,603

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

As of May 4, 2024, the weighted-average remaining operating lease term was 4.4 years, and the weighted-average discount rate for operating leases was 7.6%. Cash paid for amounts included in the measurement of operating lease liabilities during the First Quarter 2024 was $19.7 million. ROU assets obtained in exchange for new operating lease liabilities were $22.1 million during the First Quarter 2024.

As of May 4, 2024, the maturities of operating lease liabilities were as follows:


	May 4, 2024
	(in thousands)
Remainder of 2024	$	66,253
2025	59,954
2026	31,507
2027	16,113
2028	13,931
Thereafter	40,603
Total operating lease payments	228,361
Less: imputed interest	(39,330)
Present value of operating lease liabilities	$	189,031