Segments

3 Months Ended

Mar. 29, 2025

Segment Reporting [Abstract]

Segments

Segments

The Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), assesses segment performance and makes resource allocation decisions based on the geographies in which it conducts its retail operations, and separately for its wholesale operations, each of which represents an operating segment. For disclosure purposes, U.S. Retail and Canada Retail were determined to be reportable segments. Neither the Company’s retail operations in Australia nor its wholesale operations meet the quantitative thresholds to be reported separately and since they do not share similar economic characteristics, they have been combined and disclosed within Other Profit. We do not separately present assets for our reportable segments because the Company’s CODM is not provided these amounts.

General corporate expenses include unallocated corporate overhead recorded in salaries, wages and benefits, and selling, general and administrative in the unaudited interim Condensed Consolidated Statements of Operations and Comprehensive Loss.

Beginning in the first quarter of fiscal year 2025, the Company revised its calculation of segment profit to include, among other things, lease expense as recognized under Topic 842, consistent with the information provided to the CODM. Previously, segment profit included cash-basis rent. Prior period amounts have been recast to reflect this change, resulting in a decrease in segment profit of $1.2 million for the U.S. Retail segment and $0.8 million for the Canada Retail segment for the thirteen weeks ended March 30, 2024.

Segment profit may not be comparable to similarly titled measures used by other entities. These measures should not be considered as alternatives to our GAAP measures of operating income, net loss or cash flows from operating activities as an indicator of the Company’s performance or as a measure of its liquidity.

Our segment results are presented in the tables below. In each table, “Other profit” is attributable to the Australia Retail and Wholesale operating segments which have been combined.

	Thirteen Weeks Ended March 29, 2025
(in thousands)	U.S. Retail		Canada Retail		Total
Segment sales	$	210,765	$	128,635	$	339,400
Segment expenses:
Cost of merchandise sold, exclusive of depreciation and amortization	97,833		56,118		153,951
Salaries, wages and benefits	31,744		17,369		49,113
Selling, general and administrative	42,190		29,832		72,022
Total segment expenses	171,767		103,319		275,086
Segment profit	$	38,998	$	25,316	64,314
Reconciliation of profit
Other profit					8,690
General corporate expenses					43,243
Depreciation and amortization					19,358
Operating income					10,403
Interest expense, net					14,814
Gain on foreign currency, net					(1,631)
Other expense, net					166
Loss on extinguishment of debt					2,718
Loss before income taxes					$	(5,664)

	Thirteen Weeks Ended March 30, 2024
(in thousands)	U.S. Retail		Canada Retail		Total
Segment sales	$	192,580	$	134,119	$	326,699
Segment expenses:
Cost of merchandise sold, exclusive of depreciation and amortization	88,072		57,829		145,901
Salaries, wages and benefits	28,028		16,028		44,056
Selling, general and administrative	35,859		25,549		61,408
Total segment expenses	151,959		99,406		251,365
Segment profit	$	40,621	$	34,713	75,334
Reconciliation of profit
Other profit					8,656
General corporate expenses					49,422
Depreciation and amortization					18,301
Operating income					16,267
Interest expense, net					16,076
Loss on foreign currency, net					956
Other expense, net					106
Loss on extinguishment of debt					4,088
Loss before income taxes					$	(4,959)