CREDIT FACILITY

6 Months Ended

Jan. 31, 2026

Debt Disclosure [Abstract]

CREDIT FACILITY

5. CREDIT FACILITY

On December 4, 2023, we entered into a first lien credit agreement (the “Credit Agreement”) with Citibank, N.A., as agent and lender, which provides for a $50.0 million revolving credit facility (the “Credit Facility”), with a maturity date of December 4, 2026. The Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $30.0 million. Availability of the Credit Facility is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable, credit card receivables, and inventory as reduced by certain reserves, if any. On December 11, 2025, we entered into a First Amendment (the “Amendment”) to the Credit Agreement, which extended the maturity date to December 11, 2028. Except as otherwise noted herein, the terms of the Credit Agreement were not materially modified by the Amendment.

Our borrowing availability based on balances as of January 31, 2026, was $50.0 million, and our excess availability was $33.1 million as a result of outstanding letters of credit, and no outstanding borrowing.

The Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee equal to 0.30% based on the average daily undrawn portion of the Credit Facility, payable quarterly.

The interest rate applicable to the Credit Facility will be, at our option, either (a) the Adjusted Term SOFR rate for the applicable interest period (subject to a 0.00% floor), plus a margin of 2.00% or (b) the Base Rate plus a margin of 2.00%. The Base Rate is the highest of (a) the federal funds rate plus 0.50%, (b) the Wall Street Journal prime rate, or (c) the Adjusted Term SOFR rate for a one-month interest period plus 1.00%.

Debt under the Credit Agreement is guaranteed by substantially all of our material domestic subsidiaries and is secured by substantially all of our and such subsidiaries’ assets. The Credit Agreement contains affirmative and negative covenants, indemnification provisions, and events of default. The Credit Agreement also contains financial covenants that require us to maintain a minimum liquidity level and, if applicable, a minimum total consolidated fixed charge coverage ratio during the periods set forth in the Credit Agreement. As of January 31, 2026, we were in compliance with all financial covenants.