Leases

12 Months Ended

Feb. 02, 2025

The Company has obligations under operating leases for its store and other retail locations, distribution centers, offices, and equipment. As of February 2, 2025, the initial lease terms of the various leases generally range from two to 15 years. The majority of the Company's leases include renewal options at the sole discretion of the Company. The lease term includes options to extend or terminate the lease when it is reasonably certain those options will be exercised.

The following table details the Company's net lease expense. Certain of the Company's leases include rent escalation clauses, rent holidays, and leasehold rental incentives. The majority of the Company's leases for store premises also include contingent rental payments based on sales volume. The variable lease expenses disclosed below include contingent rent payments and other non-fixed lease related costs, including common area maintenance, property taxes, and landlord's insurance.


	2024		2023		2022
	(In thousands)
Net lease expense:
Operating lease expense	$	338,756	$	282,888	$	245,767
Short-term lease expense	13,588		15,289		16,790
Variable lease expense	188,358		152,791		114,441
Sublease income	(2,805)		—		—
	$	537,897	$	450,968	$	376,998

The following table presents future minimum lease payments by fiscal year and the impact of discounting.


	February 2, 2025
	(In thousands)
2025	$	336,521
2026	314,027
2027	299,214
2028	243,199
2029	182,854
Thereafter	469,809
Future minimum lease payments	$	1,845,624
Impact of discounting	(269,833)
Present value of lease liabilities	$	1,575,791

Balance sheet classification:
Current lease liabilities	$	275,154
Non-current lease liabilities	1,300,637
	$	1,575,791

As of February 2, 2025, the Company's minimum lease commitment for distribution center operating leases which have been committed to, but not yet commenced, was $274.8 million, which is not reflected in the table above.

The weighted-average remaining lease terms and weighted-average discount rates were as follows:


	February 2, 2025		January 28, 2024
Weighted-average remaining lease term	6.68 years		6.95 years
Weighted-average discount rate	4.3	%	4.0	%