ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Aug. 02, 2025

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consisted of the following:

	AUGUST 2,		FEBRUARY 1,
	2025		2025
	(in thousands)
Accounts payable	$	189,863	$	245,260
Accrued compensation		61,323		50,689
Accrued sales and use tax		31,584		27,685
Accrued occupancy		27,338		24,992
Accrued freight and duty		23,475		18,030
Accrued professional fees		11,772		5,281
Accrued legal contingencies(1)		2,361		3,029
Other accrued expenses		32,817		38,440
Total accounts payable and accrued expenses	$	380,533	$	413,406

(1) Refer to Note 14¾Commitments and Contingencies.

Other current liabilities consisted of the following:

	AUGUST 2,		FEBRUARY 1,
	2025		2025
	(in thousands)
Allowance for sales returns	$	25,835	$	23,512
Current portion of term loans		25,000		25,000
Finance lease liabilities		22,337		21,135
Unredeemed gift card and merchandise credit liability		16,837		19,546
Federal tax payable		12,261		3,242
Foreign tax payable		1,846		1,980
Other current liabilities		11,884		4,546
Total other current liabilities	$	116,000	$	98,961

Contract Liabilities

We defer revenue associated with merchandise delivered via the home-delivery channel. We expect that substantially all of the deferred revenue and customer deposits as of August 2, 2025 will be recognized within the next six months as the performance obligations are satisfied. In addition, we defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards. During the three months ended August 2, 2025 and August 3, 2024, we recognized $5.2 million and $4.3 million, respectively, of revenue related to previous deferrals related to our gift cards. During the six months ended August 2, 2025 and August 3, 2024, we recognized $12 million and $10 million, respectively, of revenue related to previous deferrals related to our gift cards. We expect that approximately 75 percent of the remaining gift card liabilities will be recognized when the gift cards are redeemed by customers.

Supplier Finance Program

We facilitate a voluntary supply chain financing program (the “Financing Program”) with a third-party financial institution (the “Bank”) to provide participating suppliers with the opportunity to receive early payment on invoices, net of a discount charged to the supplier by the Bank. As of August 2, 2025 and February 1, 2025, we had $20 million and $35 million, respectively, of payment obligations outstanding under the Financing Program included in accounts payable and accrued expenses on the condensed consolidated balance sheets.

Reorganization

We implemented and completed a restructuring in the fourth quarter of fiscal 2024 and in the second quarter of fiscal 2025 that included workforce and expense reductions in order to improve and simplify our organizational structure, streamline certain aspects of our business operations and better position us for further growth. The workforce reduction associated with these initiatives included the elimination of numerous leadership and other positions throughout the organization. During the three and six months ended August 2, 2025, we incurred total charges relating to the reorganization of $1.2 million, consisting primarily of severance costs and related taxes. As of August 2, 2025 and February 1, 2025, we had accruals of $1.3 million and $3.4 million, respectively, included within accounts payable and accrued expenses on the condensed consolidated balance sheets related to the reorganizations.