Note 11. Leases
We have entered into operating lease agreements for retail, distribution and office space; and vehicles and equipment, under primarily non-cancelable leases with terms ranging from approximately one to 16 years. Our lease costs reflected in the tables below include minimum base rents, CAM charges and HVAC charges. We recognize such lease costs in the applicable expense category in either cost of goods sold or selling, general and administrative expenses in the consolidated statements of comprehensive (loss) income.
Our lease costs consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended |
| January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Fixed operating lease cost | $ | 47,151 | | | $ | 53,109 | | | $ | 54,446 | |
| Short-term lease cost | 102 | | | 129 | | | 143 | |
| Variable lease cost | 21,380 | | | 19,821 | | | 19,147 | |
| Total lease cost | $ | 68,633 | | | $ | 73,059 | | | $ | 73,736 | |
Maturities of operating lease liabilities are as follows as of January 31, 2026 (in thousands):
| | | | | |
| Fiscal Year Ending | |
| 2026 | $ | 41,369 | |
| 2027 | 30,706 | |
| 2028 | 23,157 | |
| 2029 | 17,567 | |
| 2030 | 13,380 | |
| Thereafter | 49,133 | |
| Total undiscounted future cash flows | $ | 175,312 | |
| Less: Imputed interest | (42,257) | |
| Total operating lease liabilities | $ | 133,055 | |
| Less: Current portion of operating lease liabilities | (32,171) | |
| Noncurrent operating lease liabilities | $ | 100,884 | |
Other supplementary information related to our leases are as follows (in thousands except lease term and discount rate):
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended |
| January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for operating leases | $ | 53,227 | | | $ | 60,475 | | | $ | 61,360 | |
| ROU assets obtained in exchange for new operating lease liabilities | $ | 8,252 | | | $ | 12,126 | | | $ | 25,822 | |
| (Decrease) increase in right-of-use assets resulting from operating lease terminations or remeasurements | $ | (8,435) | | | $ | 8,373 | | | $ | 837 | |
| Weighted average remaining lease term - operating leases | 7 years | | 7 years | | 6 years |
| Weighted average discount rate - operating leases | 8 | % | | 8 | % | | 7 | % |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.