Leases

3 Months Ended

Mar. 29, 2026

Leases [Abstract]

Leases

Leases

The Company recognizes leases in its condensed consolidated balance sheets as a right-of-use ("ROU") asset and a lease liability. The Company has operating leases for its retail stores, distribution centers, corporate headquarters, and certain equipment under operating and finance leases that expire at various dates through 2041. Some of the leases include options to extend the lease term for up to 20 years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by the leases.

At March 29, 2026, the Company had 18 non-cancellable leases for retail stores and one non-cancellable lease for a regional distribution center of which none had commenced. The initial terms of these leases range from ten to fifteen years with options to extend for up to an additional twenty years. Upon lease commencement, the ROU asset and lease liability will be determined and recognized in the Company's condensed consolidated balance sheets. Lease liabilities at March 29, 2026 exclude undiscounted future lease payments of approximately $244.7 million associated with these leases. Subsequent to March 29, 2026, the Company's lease for one of its distribution centers was extended five years through September 2032, which will result in an additional increase to the lease liability of approximately $17.4 million.

The following table summarizes finance and operating lease assets and liabilities recognized in the Company's condensed consolidated balance sheets at March 29, 2026, and December 28, 2025:

(in thousands)	Classification	March 29, 2026		December 28, 2025
Assets
Finance leases	Property and equipment, net	$	51,201	$	48,755
Operating leases	Operating lease right-of-use assets	655,830		641,529
Total lease assets		$	707,031	$	690,284
Liabilities
Current
Finance leases	Finance lease liabilities, current portion	$	14,230	$	15,201
Operating leases	Operating lease liabilities, current portion	102,200		100,563
Noncurrent
Finance leases	Finance lease liabilities, noncurrent portion	47,266		44,254
Operating leases	Operating lease liabilities, noncurrent portion	696,250		678,800
Total lease liabilities		$	859,946	$	838,818

The following table summarizes lease expense recognized in the Company's condensed consolidated statements of operations and comprehensive income for the three-month fiscal periods ended March 29, 2026 and March 30, 2025:

	Three-Month Fiscal Period Ended
(in thousands)	March 29, 2026		March 30, 2025
Operating lease cost
Fixed	$	37,325	$	33,015
Variable	181		149
Finance lease cost
Amortization of assets	3,141		2,365
Interest on lease liabilities	875		578
Short-term lease cost	816		225
Total lease expense	$	42,338	$	36,332

Supplemental cash flow information related to leases is as follows:

	Three-Month Fiscal Period Ended
(in thousands)	March 29, 2026		March 30, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	40,140	$	35,824
Operating cash flows from finance leases	4,420		578
Financing cash flows from finance leases	3,545		2,574
Right-of-use assets obtained in exchange for lease obligations
Finance leases	5,586		—
Operating leases	34,606		24,120

The weighted average remaining lease term and weighted average discount rate for finance and operating leases at March 29, 2026, and March 30, 2025, were:

	March 29, 2026		March 30, 2025
Weighted average remaining lease term (in years)
Finance leases	4.8		4.0
Operating leases	7.5		6.9
Weighted average discount rate
Finance leases	5.8	%	5.6	%
Operating leases	8.6	%	8.9	%

The following table summarizes the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable leases with terms of more than one year that are recognized in the Company's condensed consolidated balance sheet at March 29, 2026:

(in thousands)	Operating Leases		Finance Leases
Remainder of 2026	$	124,494	$	14,925
2027	166,116		14,230
2028	156,764		11,106
2029	138,920		10,028
2030	120,463		9,298
2031	99,988		2,969
Thereafter	289,544		7,814
Total undiscounted future minimum	$	1,096,289	$	70,370
Less: Amount representing interest	297,839		8,874
Total present value of lease obligations	$	798,450	$	61,496

Leases

Leases

The Company recognizes leases in its condensed consolidated balance sheets as a right-of-use ("ROU") asset and a lease liability. The Company has operating leases for its retail stores, distribution centers, corporate headquarters, and certain equipment under operating and finance leases that expire at various dates through 2041. Some of the leases include options to extend the lease term for up to 20 years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by the leases.

At March 29, 2026, the Company had 18 non-cancellable leases for retail stores and one non-cancellable lease for a regional distribution center of which none had commenced. The initial terms of these leases range from ten to fifteen years with options to extend for up to an additional twenty years. Upon lease commencement, the ROU asset and lease liability will be determined and recognized in the Company's condensed consolidated balance sheets. Lease liabilities at March 29, 2026 exclude undiscounted future lease payments of approximately $244.7 million associated with these leases. Subsequent to March 29, 2026, the Company's lease for one of its distribution centers was extended five years through September 2032, which will result in an additional increase to the lease liability of approximately $17.4 million.

The following table summarizes finance and operating lease assets and liabilities recognized in the Company's condensed consolidated balance sheets at March 29, 2026, and December 28, 2025:

(in thousands)	Classification	March 29, 2026		December 28, 2025
Assets
Finance leases	Property and equipment, net	$	51,201	$	48,755
Operating leases	Operating lease right-of-use assets	655,830		641,529
Total lease assets		$	707,031	$	690,284
Liabilities
Current
Finance leases	Finance lease liabilities, current portion	$	14,230	$	15,201
Operating leases	Operating lease liabilities, current portion	102,200		100,563
Noncurrent
Finance leases	Finance lease liabilities, noncurrent portion	47,266		44,254
Operating leases	Operating lease liabilities, noncurrent portion	696,250		678,800
Total lease liabilities		$	859,946	$	838,818

The following table summarizes lease expense recognized in the Company's condensed consolidated statements of operations and comprehensive income for the three-month fiscal periods ended March 29, 2026 and March 30, 2025:

	Three-Month Fiscal Period Ended
(in thousands)	March 29, 2026		March 30, 2025
Operating lease cost
Fixed	$	37,325	$	33,015
Variable	181		149
Finance lease cost
Amortization of assets	3,141		2,365
Interest on lease liabilities	875		578
Short-term lease cost	816		225
Total lease expense	$	42,338	$	36,332

Supplemental cash flow information related to leases is as follows:

	Three-Month Fiscal Period Ended
(in thousands)	March 29, 2026		March 30, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	40,140	$	35,824
Operating cash flows from finance leases	4,420		578
Financing cash flows from finance leases	3,545		2,574
Right-of-use assets obtained in exchange for lease obligations
Finance leases	5,586		—
Operating leases	34,606		24,120

The weighted average remaining lease term and weighted average discount rate for finance and operating leases at March 29, 2026, and March 30, 2025, were:

	March 29, 2026		March 30, 2025
Weighted average remaining lease term (in years)
Finance leases	4.8		4.0
Operating leases	7.5		6.9
Weighted average discount rate
Finance leases	5.8	%	5.6	%
Operating leases	8.6	%	8.9	%

The following table summarizes the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable leases with terms of more than one year that are recognized in the Company's condensed consolidated balance sheet at March 29, 2026:

(in thousands)	Operating Leases		Finance Leases
Remainder of 2026	$	124,494	$	14,925
2027	166,116		14,230
2028	156,764		11,106
2029	138,920		10,028
2030	120,463		9,298
2031	99,988		2,969
Thereafter	289,544		7,814
Total undiscounted future minimum	$	1,096,289	$	70,370
Less: Amount representing interest	297,839		8,874
Total present value of lease obligations	$	798,450	$	61,496