Restructuring

3 Months Ended

Nov. 02, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In June 2022, we announced a restructuring plan (the “2022 Restructuring Plan”) to reduce our future fixed and variable operating costs and allow us to centralize key capabilities, strengthen decision-making to drive efficiencies, and ensure we are allocating resources to our most critical priorities. In fiscal 2022 and 2023, in furtherance of and as an expansion of the 2022 Restructuring Plan, we reduced our employee workforce, impaired a portion of our corporate office space, and announced intended closures of certain fulfillment centers. In fiscal 2024, in furtherance of and as an expansion of the 2022 Restructuring Plan, we closed certain fulfillment centers, implemented an organizational realignment which eliminated certain styling leadership and corporate positions, revised our compensation model for Stylists, and impaired a portion of our corporate office space in the fourth quarter of 2024 due to change in the use of the space.

During the three months ended November 2, 2024, we recorded $0.4 million related to the continued impact of our revised compensation model for Stylists, primarily consisting of severance and employee-related benefits. In furtherance of and as an expansion of the 2022 Restructuring Plan, in October 2024, we implemented an additional organizational realignment which further eliminated certain corporate positions. During the three months ended November 2, 2024, we recorded $0.6 million related to this action, primarily consisting of severance and employee-related benefits.

The components of total restructuring charges were as follows:

	For the Three Months Ended
(in thousands)	November 2, 2024		October 28, 2023
Cash restructuring charges:
Severance and employee-related benefits	$	971	$	2,462
Other	58		648
Non-cash restructuring charges:
Accelerated depreciation	—		4,178
Other	—		662
Total restructuring (1)	$	1,029	$	7,950

(1) Recorded in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss.

The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the condensed consolidated balance sheets:

(in thousands)	Severance and Employee Related Benefits and Other
Balance at August 3, 2024	$	3,260
Charges incurred	1,029
Cash payments	(3,748)
Balance at November 2, 2024	$	541

Related to the 2022 Restructuring Plan, we estimate we will incur an immaterial amount of additional cash restructuring charges over the next fiscal quarter, with substantially all of the cash payments to be completed by the end of the next fiscal quarter.