Income Taxes

3 Months Ended

Aug. 02, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, excluding zero rate jurisdictions, and adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in tax laws, the applicability of special tax regimes, changes in how we do business, and discrete items.

Provision for income taxes for the three months ended August 2, 2025 and August 3, 2024 was as follows (in thousands except percentages):

	Three Months Ended
	August 2, 2025			August 3, 2024			% Change
Provision for income taxes	$	1,289		$	622		207.2	%
Effective tax rate	2		%	(7)		%	9	%

The Company’s effective tax rate for the three months ended August 2, 2025 differs from the same period in the prior fiscal year primarily due to the Company generating consolidated net income in the three months ended August 2, 2025 as compared to a consolidated net loss in the same period in fiscal year 2025.

During the three months ended August 2, 2025, there were no material changes to the total amount of unrecognized tax benefits and the Company does not expect any significant changes in the next 12 months.

On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”), which changes or makes permanent certain tax laws for corporations. Currently, the Company does not expect the provisions of the OBBBA to have a material impact on its effective tax rate or total provision for income taxes.