Revenue and Segment Information

3 Months Ended

Mar. 29, 2026

The following table details revenue by source and significant segment expenses for the Company's one reportable segment:


	Three-Month Fiscal Period Ended
(in thousands)	March 29, 2026		March 30, 2025
Retail	$	484,442	$	450,245
eCommerce	93,654		82,519
Net revenues	578,096		532,764
Less: Significant and other segment expenses
Cost of sales(1)	317,852		292,531
Depreciation and amortization	18,615		16,758
Store and corporate expenses	180,522		167,994
Advertising expenses	38,257		32,799
Pre-opening expenses(2)	2,904		1,795
Other segment items(3)	2,656		3,187
Interest expense(4)	15,304		903
Interest income	(197)		(400)
Other income, net	—		(574)
Income tax (benefit) expense	(334)		4,626
Net income	$	2,517	$	13,145

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(1)Cost of sales excludes depreciation and amortization of $3.7 million and $3.6 million for the three-month fiscal periods ended March 29, 2026 and March 30, 2025, respectively.

(2) Pre-opening expenses exclude advertising expenses of $1.8 million and $1.2 million for the three-month fiscal periods ended March 29, 2026 and March 30, 2025, respectively.

(3)Other segment items include (gain) loss on disposal of fixed assets, impairment of long-lived assets, restructuring charges, insurance recoveries, stock-based compensation expense, and other items.

(4)Interest expense in the three-month fiscal period ended March 29, 2026 includes an acceleration of amortization of debt issuance costs of $10.7 million in connection with the repayment of the $350.0 million Term Loan.

Contract Liabilities

The Company defers revenue when cash payments are received in advance of performance for unsatisfied gift cards and customer deposit obligations. Gift card liabilities included in accrued expenses in the Company's condensed consolidated balance sheets were $7.3 million and $7.5 million at March 29, 2026, and December 28, 2025, respectively. Customer deposit liabilities were $82.4 million and $70.7 million at March 29, 2026 and December 28, 2025, respectively. The Company believes the majority of the contract liabilities outstanding at March 29, 2026 will be recognized as revenue within fiscal year 2026 as the performance obligations are satisfied.

The Company recognizes gift card and customer deposit breakage proportional to historical gift card and customer deposit redemption rates. Gift card and customer deposit breakage recognized as revenue in the three-month fiscal periods ended March 29, 2026 and March 30, 2025 were $0.5 million and $0.4 million, respectively.