Restructuring

6 Months Ended

Jul. 29, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

During the second quarter of Fiscal 2024, the Company initiated a plan to rationalize its store footprint across the Company, as well as to reorganize certain centralized functions within its North America and UK support centers (collectively, the “Plan”). The store footprint reduction is expected to include the closure of up to 150 underperforming stores across both the North America and International reportable segments through the end of Fiscal 2025 and will result in costs primarily for severance and asset disposals or impairment. The reorganization of the support centers includes the elimination of certain roles resulting in expenses primarily related to severance and other employee-related costs. Actions related to the reorganization are expected to be substantially completed by the end of Fiscal 2024.

Total estimated costs related to the Plan are expected to range from $12 million to $17 million, including $6 million to $8 million of estimated non-cash charges for asset disposals and impairments. During the second quarter of Fiscal 2024, the Company recorded charges related to the Plan of $7.7 million, of which $3.6 million was for employee-related costs, $0.6 million for store closure costs related to asset disposals and $3.5 million for asset impairments. These costs are recorded within other operating expense, net, in the condensed consolidated statements of operations.