LEASES

12 Months Ended

Dec. 31, 2025

LEASES

LEASES

7. LEASES

We lease retail shoe stores, as well as several office and distribution facilities worldwide. The leases have original lease periods expiring between 2026 and 2031.  Many leases include one or more options to renew. We do not assume renewals in our determination of the

lease term unless the renewals are deemed to be reasonably assured at lease commencement.  Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of our operating lease costs were as follows:

	Twelve Months Ended December 31,
	2025		2024
	(Dollars in thousands)
Operating lease costs	$	4,648	$	4,421
Total lease costs	$	4,648	$	4,421

Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts. In 2025, variable lease costs were $2.2 million.

Short-term lease costs, which were excluded from the above table, are not material to our financial statements.

The following is a schedule of maturities of operating lease liabilities as of December 31, 2025:

	Operating Leases
	(Dollars in thousands)
2026	$	4,712
2027		3,005
2028		1,941
2029		1,362
2030		450
Thereafter		24
Total lease payments		11,494
Less: imputed interest		(703)
Present value of operating lease liabilities	$	10,791

The operating lease liabilities were classified in the Consolidated Balance Sheets as follows:

	December 31,		December 31,
		2025		2024
	(Dollars in thousands)
Operating lease liabilities - current	$	4,354	$	4,033
Operating lease liabilities - non-current		6,437		7,034
Total	$	10,791	$	11,067

We determined the present value of our lease liabilities using a weighted-average discount rate of 4.90% and 4.67% in 2025 and 2024, respectively.  As of December 31, 2025 and 2024, our leases had a weighted-average remaining lease term of 3.0 years and 3.1 years, respectively.

Supplemental cash flow information related to our operating leases is as follows:

	Twelve Months Ended December 31,
	2025		2024
	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	5,185	$	4,725
Right-of-use assets obtained in exchange for new lease liabilities (noncash)	$	3,763	$	2,533