Leases

3 Months Ended

Apr. 29, 2023

LEASESThe Company leases retail stores, a limited amount of office space and certain equipment under operating leases expiring in various years through the fiscal year ending 2033. All of our leases have been classified as operating leases and are recognized and measured as such.

Certain operating leases provide for renewal options that are at a pre-determined period and rental value. Furthermore, certain leases provide that we may cancel the lease if our retail sales at that location fall below an established level. In the normal course of business, operating leases are typically renewed or replaced by other leases.

Escalation of operating lease payments of certain leases depend on an existing index or rate, such as the consumer price index or the market interest rate. These are considered variable lease payments and are included in lease payments when the escalation is known.

Operating lease expense was as follows:


	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Operating lease cost (1)	$	56,489	$	53,415

(1) Includes approximately $13.3 million and $9.5 million in variable lease costs for the thirteen weeks ended April 29, 2023, and April 30, 2022, respectively.

Supplemental balance sheet information related to operating leases was as follows:


	April 29, 2023			January 28, 2023			April 30, 2022
Right of use assets	$	457,695		$	435,321		$	439,896

Current lease liabilities	$	156,494		$	153,202		$	150,476
Long-term lease liabilities	365,422			349,409			355,851
Total operating lease liabilities	$	521,916		$	502,611		$	506,327

Weighted Average Remaining Lease Term (years)	4.2			4.2			3.9

Weighted Average Discount Rate (1)	5.6		%	5.3		%	4.4		%

(1) The incremental borrowing rate used by the Company is based on the rate at which the Company could borrow funds using its credit rating for a collateralized loan of similar term to the lease. The weighted average discount rate represents a weighted average of the incremental borrowing rate for each lease weighted based on the remaining fixed lease obligations.

Supplemental cash flow information related to operating leases was as follows:


	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows	$	49,230	$	67,908
Right of use assets obtained in exchange for lease obligations, non-cash	61,640		14,786

Maturities of operating lease liabilities as of April 29, 2023 were as follows:


Fiscal Year Ending:
February 3, 2024	$	143,347
February 1, 2025	155,425
January 31, 2026	111,378
January 30, 2027	76,659
January 29, 2028	48,643
Thereafter	59,334
Total future minimum lease payments	$	594,786
Less imputed interest	(72,870)
Total	$	521,916