LEASES

6 Months Ended

Jul. 31, 2025

LEASES

LEASES

NOTE 5 – LEASES

The Company leases retail stores, warehouses, distribution centers, office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases are for a term of one to ten years. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years. Several of the Company’s retail store leases include an option to terminate the lease based on failure to achieve a specified sales volume. The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor.

Certain of the Company’s lease agreements include contingent rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Contingent rent is accrued each period as the liabilities are incurred. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease assets and liabilities as of July 31, 2025, July 31, 2024 and January 31, 2025 consist of the following:

Leases	Classification	July 31, 2025		July 31, 2024		January 31, 2025
		(In thousands)
Assets
Operating	Operating lease assets	$	264,526	$	204,008	$	255,180
Liabilities
Current operating	Current operating lease liabilities	$	52,604	$	54,983	$	50,268
Noncurrent operating	Noncurrent operating lease liabilities		227,691		163,750		221,257
Total lease liabilities		$	280,295	$	218,733	$	271,525

The Company recorded lease costs of $17.8 million and $36.0 million during the three and six months ended July 31, 2025. The Company recorded lease costs of $18.0 million and $36.2 million during the three and six months ended July 31, 2024. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of income and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $4.4 million and $7.9 million for the three and six months ended July 31, 2025. The Company recorded variable lease costs and short-term lease costs of $5.8 million and $11.1 million for the three and six months ended July 31, 2024. Short-term lease costs are immaterial.

As of July 31, 2025, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2030 and thereafter are as follows:

Year Ending January 31,	Amount
	(In thousands)
2026	$	35,094
2027		66,114
2028		55,961
2029		44,330
2030		31,511
After 2030		111,803
Total lease payments	$	344,813
Less: Interest		64,518
Present value of lease liabilities	$	280,295

As of July 31, 2025, there are no material leases that are legally binding but have not yet commenced.

As of July 31, 2025, the weighted average remaining lease term related to operating leases is 6.5 years. The weighted average discount rate related to operating leases is 6.4%.

Cash paid for amounts included in the measurement of operating lease liabilities was $38.2 million and $38.0 million during the six months ended July 31, 2025 and 2024, respectively. Right-of-use assets obtained in exchange for lease obligations were $26.8 million and $16.1 million during the six months ended July 31, 2025 and 2024, respectively.