Derivative Financial Instruments

9 Months Ended

Mar. 28, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

A significant portion of our operations are in foreign locations, which results in transactions occurring in currencies other than the U.S. Dollar. As a part of our risk management strategy, we use Mexican Peso forward contracts to hedge foreign currency fluctuations for a portion of our Mexican Peso denominated expenses. As of March 28, 2026, the Company had outstanding foreign currency forward contracts with a total notional amount of $19.5 million that mature through the third quarter of fiscal year 2027. During the three months ended March 28, 2026, the Company entered into $11.7 million of foreign currency forward contracts and settled $6.6 million of such contracts. During the same period of the previous year, the Company did not enter into foreign currency forward contracts and settled $8.1 million of such contracts.

During the nine months ended March 28, 2026, the Company entered into $27.0 million of foreign currency forward contracts and settled $20.4 million of such contracts. During the same periods of the previous year, the Company entered into $29.0 million of foreign currency forward contracts and settled $20.6 million of contracts.

Changes in the fair value of the forward contracts are recognized as a component of OCI and will be recognized in cost of sales when the hedged item affects earnings. The amount of net loss expected to be reclassified into earnings in the next 12 months is approximately $35,000.

The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of March 28, 2026 and June 28, 2025 (in thousands):

		Fair Value
Derivatives designated as hedging instruments under Subtopic 815-20	Balance Sheet Location	March 28, 2026		June 28, 2025
Foreign currency forward contracts	Other current assets	$	56	$	1,330

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the three months ended March 28, 2026 and March 29, 2025, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of December 27, 2025		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of March 28, 2026
Forward contracts	Cost of sales	$	(395)	$	794	$	(364)	$	35
Total		$	(395)	$	794	$	(364)	$	35
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of December 28, 2024		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of March 29, 2025
Forward contracts	Cost of sales	$	1,011	$	(1,274)	$	588	$	325
Total		$	1,011	$	(1,274)	$	588	$	325

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the nine months ended March 28, 2026 and March 29, 2025, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of June 28, 2025		Effective Portion Recorded In AOCI	Effective Portion Reclassified From AOCI Into Income	AOCI Balance as of March 28, 2026
Forward contracts	Cost of sales	(1,029)		3,217	(2,153)	35
		$	(1,029)	3,217	(2,153)	35
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of June 29, 2024		Effective Portion Recorded In AOCI	Effective Portion Reclassified From AOCI Into Income	AOCI Balance as of March 29, 2025
Forward contracts	Cost of sales	215		(1,276)	1,386	325
Total		$	215	(1,276)	1,386	325

As of March 28, 2026, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our lines of credit and foreign currency risk resulting from our China and Vietnam operations. The Company does not currently manage these risk exposures by using derivative instruments.