Leases

12 Months Ended

Jan. 31, 2026

(4)

Leases

The Company generally leases its stores, offices, and distribution facilities under operating leases that expire at various dates through 2038. These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals based on a percentage of annual sales. A majority of the Company’s leases also require a payment for all or a portion of common-area maintenance, insurance, real estate taxes, water and sewer costs, and repairs, on a fixed or variable payment basis. Most of the leases contain options to renew for three to five successive five-year periods. Many of the Company’s lease agreements provide options to extend the lease term beyond the initial non-cancelable period. At lease commencement, the Company generally includes only the initial term in the lease liability and right-of-use asset, as it has determined that renewal options are not reasonably certain to be exercised. Renewal decisions are generally at the Company’s sole discretion. Upon renewal of an expiring lease, the Company reassesses the terms and includes in the lease term any extension periods that are reasonably certain to be exercised. For leases acquired through bankruptcy proceedings, the Company typically includes option periods in the lease term, as the economic penalty associated with the acquisition cost makes renewal reasonably certain. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement contains a lease at the inception of a contract. All of the Company’s leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Store and office lease costs are classified in SG&A and distribution center lease costs are classified in cost of sales on the consolidated statements of income.

The following table summarizes the maturity of the Company’s operating lease liabilities by fiscal year as of January 31, 2026:

	January 31, 2026
	(in thousands)
2026	$	125,797
2027		137,081
2028		121,845
2029		101,508
2030		78,195
Thereafter		267,503
Total undiscounted lease payments⁽¹⁾		831,929
Less: Imputed interest		(147,544	)
Total lease obligations		684,385
Less: Current obligations under leases		(108,854	)
Long-term lease obligations	$	575,531

⁽¹⁾

Lease obligations exclude $49.7 million of minimum lease payments for leases signed, but not commenced.

The following table summarizes other information related to the Company’s operating leases as of and for the respective periods:

	Fiscal Year Ended
	January 31, 2026			February 1, 2025			February 3, 2024
	(dollars in thousands)
Cash paid for operating leases	$	127,310		$	118,715		$	114,184
Operating lease cost		136,013			115,592			106,302
Variable lease cost		21,078			16,832			12,463
Non-cash right-of-use assets obtained in exchange for lease obligations		134,514			106,663			53,138
Weighted-average remaining lease term	8.04 years			7.38 years			6.52 years
Weighted-average discount rate		4.5	%		4.3	%		3.9	%