LEASES

12 Months Ended

Aug. 02, 2025


4.			LEASES

Our leasing portfolio includes lease arrangements for our corporate offices and fulfillment centers. Such leases generally have original lease terms between five years and eleven years, and often include one or more options to renew. We have not considered any of our renewal options reasonably certain to be exercised at lease commencement and do not have residual value guarantees associated with our leases.

As of August 2, 2025, the Company subleases certain office and warehouse space to third parties. These subleases have total original lease terms ranging from approximately two years to eight years that will expire at various dates by fiscal year 2032, one of which includes an option to extend the sublease for an additional two years.

The future lease payments as of August 2, 2025, were as follows:


(in thousands)	August 2, 2025
2026	$	27,102
2027	26,342
2028	22,544
2029	9,170
2030	9,409
Thereafter	10,188
Total undiscounted future minimum lease payments(1)	104,755
Less: imputed interest	11,244
Total discounted future minimum lease payments	$	93,511

(1) Total future minimum lease payments have not been reduced by minimum sublease income of approximately $27.3 million.

The weighted average remaining term for our leases as of August 2, 2025, and August 3, 2024, was 4.4 years and 5.1 years, respectively. The weighted average discount rate for our leases as of August 2, 2025, and August 3, 2024, was 5.2%.

SUPPLEMENTAL CASH FLOW INFORMATION


	For the Fiscal Year Ended
(in thousands)	August 2, 2025		August 3, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	29,966	$	35,461
Operating lease right-of-use assets obtained in exchange for operating lease liabilities, net of impairments and other reductions (1)	—		(21,055)

(1) In fiscal 2024, we recorded an impairment charge related to a portion of our corporate office space of $16.6 million. Refer to Note 14, “Restructuring” for further details on the impairment charge. In addition, in fiscal 2024, we entered into an early termination of our lease at our Dallas warehouse, resulting in removal of the right-of-use asset which was included in the $1.5 million loss on lease termination, recorded within selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss.

OPERATING LEASE COST

Operating lease cost is recorded on a straight-line basis over the lease term. For impaired operating leases, the right-of-use asset is depreciated on a straight-line basis over the remaining lease term. Certain leases contain variable payments, which are expensed as incurred and not included in our operating lease right-of-use assets and operating lease liabilities. These amounts primarily include payments for maintenance, utilities, taxes, and insurance on our office and fulfillment center leases.

The components of our rent expense, which are recorded in selling, general, and administrative expense in the consolidated statement of operations and comprehensive loss, were as follows:


	For the Fiscal Year Ended
(in thousands)	August 2, 2025		August 3, 2024
Operating lease cost	$	18,206	$	26,949
Variable lease costs	7,253		8,807
Short-term lease costs	3		13
Operating lease impairment (1)	—		16,562
Loss on early termination	—		1,465
Sublease income (2)	(9,044)		(8,216)
Total	$	16,418	$	45,580

(1) Refer to Note 14, “Restructuring” for more details.

(2) During fiscal 2025 and fiscal 2024, we had subleases for certain portions of fulfillment centers and our corporate offices due to the reduction in square footage needs for current operations. We continue to seek sublease arrangements for corporate office space.