What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-06-12 compared with 2024-12-12 · 97 added, 144 removed, 373 unchanged (39% of the section changed)

44 unchanged sentences

Preferred stock, par value $ 0.01 , Shares authorized:

No shares issued or outstanding at November 2, 2024, February 3, 2024 and October 28, 2023

No shares issued or outstanding at May 3, 2025, February 1, 2025 and May 4, 2024

Common stock, par value $ 0.01 , Shares authorized:

18 unchanged sentences

Thirteen weeks ended

Thirty-nine weeks ended

Net retail sales

1 unchanged sentence

Commercial revenue

8,580 6,020 21,858 17,685

International franchising

1,347 1,131 3,274 3,180

Total revenues

4 unchanged sentences

Cost of merchandise sold - commercial

3,669 2,675 9,210 8,458

Cost of merchandise sold - international franchising

1,005 703 2,236 2,042

Total cost of merchandise sold

10 unchanged sentences

$ 15,319 $ 11,459

$ 9,870 $ 7,586 $ 30,107 $ 30,532

Foreign currency translation adjustment

102 ( 302 ) 271 ( 45 )

Comprehensive income

11 unchanged sentences

(Dollars in thousands)

Thirty-nine weeks ended

Thirteen weeks ended

Cash flows provided by operating activities:

4 unchanged sentences

Provision/adjustments for doubtful accounts

Loss on disposal of property and equipment

( 111 ) ( 78 )

(Gain)/Loss on disposal of property and equipment

Deferred taxes

30 unchanged sentences

Effect of exchange rates on cash

Decrease in cash, cash equivalents, and restricted cash

Increase/(Decrease) in cash, cash equivalents, and restricted cash

16,584 ( 6,094 )

10 unchanged sentences

Net cash paid during the period for income taxes

$ 9,597 $ 16,785

See accompanying notes to condensed consolidated financial statements.

16 unchanged sentences

The Company's significant accounting policies are summarized in Note 2 to the consolidated financial statements included in its Form 10 -K for the year ended February 1, 2025.

Currently, most of the Company’s revenue is derived from retail sales (including from its e-commerce sites) and is recognized when control of the merchandise is transferred to the customer.

Currently, most of the Company’s revenue is derived from direct-to-consumer ("DTC") retail sales (including from its e-commerce sites) and is recognized when control of the merchandise is transferred to the customer.

The Company's disaggregated revenue is fully disclosed as net sales to external customers by reporting segment and by geographic area (See Note 11 — Segment Information for additional information).

The Company's direct-to-consumer reporting segment represents 92 % of consolidated revenue for the third quarter of fiscal 2024.

The Company's direct-to-consumer reporting segment represents 93 % of consolidated revenue for the first quarter of fiscal 2025 .

The majority of these sales transactions were single performance obligations that were recorded when control of merchandise was transferred to the customer.

4 unchanged sentences

Product returns have historically averaged less than one -half of one percent due to the personalized and interactive nature of its products, where consumers customize their own stuffed animal.

The Company has elected to exclude from revenue all collected sales, value added, and other taxes paid by its customers.

The Company has elected to exclude from revenue all collected sales, value added, and other taxes paid by its consumers.

For the Company’s gift cards, revenue is deferred for single transactions until redemption including any related gift card discounts.

Approximately 80 % of gift cards are redeemed within three years of issuance and over the last three years, approximately 65 % of gift cards issued have been redeemed within the first twelve months.

In addition, unredeemed gift cards or breakage revenue is recorded in proportion to the customers’ redemption pattern using an estimated breakage rate based on historical experience.

In addition, unredeemed gift cards or breakage revenue is recorded in proportion to the consumers’ redemption pattern using an estimated breakage rate based on historical experience.

Subsequent to stores reopening following shutdowns caused by the pandemic, the Company experienced lower redemptions of its gift cards for all periods of outstanding activated cards compared to pre-pandemic redemption patterns (fiscal year 2019 and earlier), which impacts the gift card breakage rate.

The Company does not believe that the redemption pattern experienced during the pandemic reflects the pattern in the future and has adjusted the historical redemption data used to calculate the breakage rate.

The Company continues to evaluate expected breakage annually and adjusts the breakage rates in the fourth quarter of each year, or at other times if significant changes in customer behavior are detected.

The Company continues to evaluate expected breakage annually and adjusts the breakage rates in the fourth quarter of each year, or at other times if significant changes in consumer behavior are detected.

Changes to breakage estimates impact revenue recognition prospectively.

6 unchanged sentences

The Company issues certificates daily to loyalty program members who have earned 100 or more points in North America and 50 points or more in the U.K.

with certificates historically expiring in six months if not redeemed.

with certificates historically expiring in four months if not redeemed.

The Company assesses the redemption rates of its certifications on a quarterly basis to update the rate at which loyalty program points turn into certifications and the rate that certifications are redeemed.

1 unchanged sentence

The Company’s commercial segment includes transactions with other businesses and is mainly comprised of licensing the Company’s intellectual properties for third -party use and wholesale sales of merchandise, including supplies and fixtures.

Revenue for wholesale sales is recognized when control of the merchandise or fixtures is transferred to the customer, which generally occurs upon delivery to the customer.

The license agreements provide the customer with highly interrelated rights that are not distinct in the context of the contract and therefore, have been accounted for as a single performance obligation and recognized as licensee sales occur.

1 unchanged sentence

The Company classifies these guaranteed minimum contract liabilities as deferred revenue on the consolidated balance sheet.

Revenue for wholesale sales is recognized when control of the merchandise or fixtures is transferred to the customer, which generally occurs upon delivery to the customer.

The Company’s international franchising segment includes the activities with franchisees who operate store locations in certain countries and includes development fees, sales-based royalties and merchandise, including supplies and fixture sales.

7 unchanged sentences

Additionally, the Company amortizes these capitalized costs into expense in the same pattern as the development fee's recording of revenue as described previously.

These capitalized costs for the thirteen and thirty-nine weeks ended November 2, 2024 are not material to the financial statements.

These capitalized costs for the thirteen weeks ended May 3, 2025 are not material to the financial statements.

The Company reserves for “expected” credit losses on financial instruments and other commitments to extend credit rather than the “incurred loss” model.

These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions and reasonable and supportable forecasts.

For the thirty-nine weeks ended November 2, 2024 and October 28, 2023 , the Company's accounts receivable are net of $ 6.8 million and $ 6.2 million, inclusive of the allowance for credit losses and the reserve for the UK's customs authority "HMRC" matter of $ 3.4 million and $ 3.5 million, respectively.

For the thirteen weeks ended May 3, 2025 and May 4, 2024 , the Company's accounts receivable are net of $ 7.0 million and $ 6.9 million, inclusive of the allowance for credit losses and the reserve for the UK's customs authority "HMRC" matter of $ 3.6 million and $ 3.7 million, respectively.

See Note 12 for further discussion of the HMRC matter.

7 unchanged sentences

Additionally, certain leases contain incentives, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property.

The table below presents certain information related to the lease costs for operating leases for the thirteen and thirty-nine weeks ended November 2, 2024 and October 28, 2023 (in thousands).

The table below presents certain information related to the lease costs for operating leases for the thirteen weeks ended May 3, 2025 and May 4, 2024 (in thousands).

Thirteen weeks ended

Thirty-nine weeks ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Operating lease costs

1 unchanged sentence

Variable lease costs (1)

2,294 2,134 6,949 6,374

Short term lease costs

3 unchanged sentences

Other information

The table below presents supplemental cash flow information related to leases for the thirteen and thirty-nine weeks ended November 2, 2024 and October 28, 2023 (in thousands).

The table below presents supplemental cash flow information related to leases for the thirteen weeks ended May 3, 2025 and May 4, 2024 (in thousands).

Thirteen weeks ended

Thirty-nine weeks ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Operating cash flows for operating leases

$ 10,216 $ 9,814

As of November 2, 2024 and October 28, 2023 , the weighted-average remaining operating lease term was 5.7 years and 4.0 years, respectively, and the weighted-average discount rate was 7.2 % and 6.5 %, respectively, for operating leases recognized on the Company's condensed consolidated balance sheets.

The value of our operating lease asset was $ 91.3 million and $ 67.8 million as of November 2, 2024 and October 28, 2023 , respectively.

As of May 3, 2025 and May 4, 2024 , the weighted-average remaining operating lease term was 6.1 years and 4.8 years, respectively, and the weighted-average discount rate was 7.2 % and 6.9 %, respectively, for operating leases recognized on the Company's condensed consolidated balance sheets.

The value of our operating lease asset was $ 92.7 million and $ 72.8 million as of May 3, 2025 and May 4, 2024 , respectively.

The increase was driven by the Company entering into leases for new stores as well as securing longer-term extensions for existing stores resulting in contracts with more favorable terms.

For the thirteen and thirty-nine weeks ended November 2, 2024 and the thirteen and thirty-nine weeks ended October 28, 2023 the Company incurred no impairment charges against its right-of-use operating lease assets.

For the thirteen weeks ended May 3, 2025 and the thirteen weeks ended May 4, 2024 the Company incurred no impairment charges against its right-of-use operating lease assets.

Undiscounted cash flows

6 unchanged sentences

Long-term lease obligations

As of November 2, 2024 , the Company had additional executed leases that had not yet commenced with operating lease liab ilities of $ 26.5 millio n.

These leases are expected to commence in fiscal 2024 and fiscal 2025 with lease terms of three to twenty years.

As of May 3, 2025 , the Company had additional executed leases that had not yet commenced with operating lease liab ilities of $ 28.4 millio n.

These leases are expected to commence in fiscal 2025 and fiscal 2026 with lease terms of two to twenty years.

Prepaid expenses and other current assets consist of the following (in thousands):

3 unchanged sentences

512 1,248 733

Prepaid taxes (2)

579 199 4,092

Prepaid gift card fees

Prepaid royalties

Prepaid taxes (2)

181 1,512 127

6,197 6,467 6,468

$ 12,156 $ 12,669 $ 12,046

Prepaid occupancy consists of prepaid expenses related to variable non-lease components.

13 unchanged sentences

$ 18,351 $ 13,268 $ 12,007

Sales and value added taxes payable

2,043 2,447 2,466

Current income taxes payable

2,921 580 4,891

Sales and value added taxes payable

2,219 1,359 1,617

Accrued rent and related expenses (1)

782 1,002 1,037

Accrued expense - other (2)

$ 24,273 $ 16,209 $ 19,552

Accrued rent and related expenses consist of accrued costs associated with non-lease components.

Accrued expense - other consists of accrued costs associated with a legal reserve accrual.

Stock-based Compensation

6 unchanged sentences

On June 8, 2023, at the Company’s 2023 Annual Meeting of Stockholders, the Company’s stockholders approved the Restated 2020 Incentive Plan.

The Restated 2020 Incentive Plan, which is administered by the Compensation and Development Committee of the Board, permits the grant of stock options (including both incentive and non-qualified stock options), stock appreciation rights, other stock-based awards, including restricted stock and restricted stock units, cash-based awards, and performance awards pursuant to the terms of the Restated 2020 Incentive Plan.

The Restated 2020 Incentive Plan, which is administered by the Compensation and Human Capital Committee of the Board, permits the grant of stock options (including both incentive and non-qualified stock options), stock appreciation rights, other stock-based awards, including restricted stock and restricted stock units, cash-based awards, and performance awards pursuant to the terms of the Restated 2020 Incentive Plan.

The Restated 2020 Incentive Plan will terminate on April 11, 2033, unless earlier terminated by the Board.

1 unchanged sentence

2017 Omnibus Incentive Plan (the “2017 Plan”) that on or after April 14, 2020, may be forfeited, expire or be settled for cash.

For the thirteen weeks ended November 2, 2024 and October 28, 2023 , selling, general and administrative expense included stock-based compensation expense of $ 0.7 million and $ 0.7 million, respectively.

For the thirty-nine weeks ended November 2, 2024 and October 28, 2023 , selling, general, and administrative expense included stock-based compensation expense of $ 1.7 million and $ 2.5 million, respectively.

As of November 2, 2024 , there was $ 3.4 million of total unrecognized compensation expense related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.8 years.

The following table is a summary of the balances and activity for stock options for the thirty-nine weeks ended November 2, 2024 :

Weighted Average Exercise Price

Outstanding, February 4, 2024

12,375 $ 17.84

( 12,375 ) 17.84

Canceled or expired

Outstanding, November 2, 2024

The following table is a summary of the balances and activity related to time-based and performance-based restricted stock for the thirty-nine weeks ended November 2, 2024 :

For the thirteen weeks ended May 3, 2025 and May 4, 2024 , selling, general and administrative expense included stock-based compensation expense of $ 0.5 million and $ 0.4 million, respectively.

As of May 3, 2025 , there was $ 2.1 million of total unrecognized compensation expense related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.6 years.

As of the end of the thirteen weeks ended May 3, 2025 , the Company had no outstanding stock options.

The following table is a summary of the balances and activity related to time-based and performance-based restricted stock for the thirteen weeks ended May 3, 2025 :

Time-Based Restricted Stock

11 unchanged sentences

Forfeited (1)

( 3,333 ) 24.75 ( 3,333 ) 24.75

Outstanding, November 2, 2024 (1)

Outstanding, May 3, 2025 (1)

58,390 $ 26.12 121,118 $ 26.35

( 1 ) Performance-based restricted stock outstanding, granted, and forfeited are presented at 100% of target.

The total fair value of shares vested during the thirty-nine weeks ended November 2, 2024 and October 28, 2023 was $ 2.2 million and $ 2.1 million, respectively.

The outstanding performance shares as of November 2, 2024 consist of the following:

The total fair value of shares vested during the thirteen weeks ended May 3, 2025 and May 4, 2024 was $ 2.0 million and $ 1.7 million, respectively.

The outstanding performance shares as of May 3, 2025 consist of the following:

Performance Shares

Unearned shares subject to performance-based restrictions at target:

2022 - 2024 consolidated, earnings before interest, taxes, depreciation and amortization (EBITDA) growth objectives

2022 - 2024 consolidated revenue growth objectives

2023 - 2025 consolidated pre-tax income growth objectives

2023 - 2025 consolidated revenue growth objectives

2024 - 2026 consolidated EBITDA objectives

2024 - 2026 consolidated, cumulative EBITDA objectives

2024 - 2026 consolidated, cumulative revenue objectives

Performance shares outstanding, November 2, 2024

The Company's effective tax rate was 24.5 % and 24.1 % for the thirteen and thirty-nine weeks ended November 2, 2024 , respectively, compared to 26.7 % and 24.0 % for the thirteen and thirty-nine weeks ended October 28, 2023 , respectively.

The 2024 and 2023 effective tax rates differed from the statutory rate of 21 % primarily due to state income tax expense partially offset by the tax impact of equity awards vesting.

In the fourth quarter of fiscal 2023, the Company reversed the valuation allowance on deferred tax assets expected to be realized in the U.K.

The Company remains in a full valuation in certain other foreign jurisdictions.

Performance shares outstanding, May 3, 2025

The Company's effective tax rate was 22.0 % for the thirteen weeks ended May 3, 2025 compared to 23.8 % for the thirteen weeks ended May 4, 2024 .

In the first quarter of fiscal 2025, the effective tax rate differed from the statutory rate of 21 % primarily due to state income tax expense partially offset by the tax impact of equity awards vesting and the foreign-derived intangible income deduction.

In the first quarter of fiscal 2024, the effective tax rate differed from the statutory rate of 21 % primarily due to state income tax expense partially offset by the tax impact of equity awards vesting.

In addition, in the first quarter of fiscal 2025 and 2024, the Company remains in a full valuation allowance in certain foreign jurisdictions.

Stockholders’ Equity

The following table sets forth the changes in stockholders’ equity (in thousands) for the thirteen weeks ended November 2, 2024 and October 28, 2023 (in thousands):

For the thirteen weeks ended November 2, 2024

For the thirteen weeks ended October 28, 2023

Balance, beginning

$ 136 $ 62,831 $ ( 11,913 ) $ 74,737 $ 125,791 $ 145 $ 66,773 $ ( 12,017 ) $ 52,965 $ 107,866

Shares issued under employee stock plans

Stock-based compensation

346 346 363 363

Shares withheld in lieu of tax withholdings

Share Repurchase

( 1 ) ( 666 ) ( 4,166 ) ( 4,833 ) ( 1 ) ( 670 ) ( 3,369 ) ( 4,040 )

Cash Dividends

( 2,704 ) ( 2,704 ) -

Other comprehensive income (loss)

102 102 ( 302 ) ( 302 )

9,871 9,871 7,586 7,586

Balance, ending

$ 135 $ 62,511 $ ( 11,811 ) $ 77,738 $ 128,573 $ 144 $ 66,641 $ ( 12,319 ) $ 57,182 $ 111,648

( 1 ) Additional paid-in capital (“APIC”)

( 2 ) Accumulated other comprehensive loss (“AOCI”)

The following table sets forth the changes in stockholders’ equity (in thousands) for the thirty-nine weeks ended November 2, 2024 and October 28, 2023 (in thousands):

For the thirty-nine weeks ended November 2, 2024

For the thirty-nine weeks ended October 28, 2023

The following table sets forth the changes in stockholders’ equity (in thousands) for the thirteen weeks ended May 3, 2025 and May 4, 2024 (in thousands):

For the thirteen weeks ended May 3, 2025

For the thirteen weeks ended May 4, 2024

Balance, beginning

$ 133 $ 61,987 $ ( 12,554 ) $ 89,516 $ 139,082 $ 142 $ 66,330 $ ( 12,082 ) $ 75,272 129,662

Adoption of new accounting standard

( 785 ) ( 785 )

$ 142 $ 66,330 $ ( 12,082 ) $ 75,272 $ 129,662 $ 148 $ 69,868 $ ( 12,274 ) $ 60,590 $ 118,332

Issuance of Restricted Stock

Shares issued under employee stock plans

6 unchanged sentences

( 1 ) ( 506 ) ( 3,701 ) ( 4,208 ) ( 4 ) ( 1,604 ) ( 7,591 ) ( 9,199 )

Cash Dividends

( 2,891 ) ( 2,891 ) ( 2,810 ) ( 2,810 )

7 unchanged sentences

( 2 ) Accumulated other comprehensive loss (“AOCI”)

During the thirteen and thirty-nine weeks ended November 2, 2024 , the Company utilized $ 4.8 million in cash to repurchase 147,917 shares and utilized $ 23.0 million in cash to repurchase 832,944 shares, respectively.

During the quarter, the Company repurchased shares under two separate stock repurchase programs.

For the thirteen weeks ending November 2, 2024, the company repurchased 73,274 shares utilizing $ 2.0 million in cash under the Company's $ 50.0 million stock repurchase program that was authorized by its Board of Directors on August 31, 2022 ( the "August 2022 Stock Repurchase Program").

On September 11, 2024, the Company announced that its Board of Directors terminated the August 2022 Stock Repurchase Program and authorized a new share repurchase program of up to $ 100 million (the “September 2024 Stock Repurchase Program”).

During the thirteen weeks ended November 2, 2024 , the Company utilized $ 2.8 million in cash to repurchase 74,643 shares under the September 2024 Stock Repurchase Program.

S ince the end of the third fiscal quarter, the Company utilized $ 0.2 million in cash to repurchase 5,288 shares leaving $ 97.0 million available under the September 2024 Stock Repurchase Program .

For the thirteen and thirty-nine weeks ended November 2, 2024 , the Company's Board of Directors authorized cash dividends to shareholders of $ 2.7 million and $ 8.3 million, respectively.

Additionally, on November 12, 2024, the Board of Directors declared a quarterly cash dividend of $ 0.20 per share on the issued and outstanding common stock of the company.

The dividend will be paid on January 9, 2025 , to all stockholders of record as of Novem ber 27, 2024 .

For the thirty-nine weeks ended October 28, 2023 , the Company recorded credit impairment charges of $ 0.8 million on trade receivables into retained earnings as a result of the adoption of ASC 326 - Credit Impairment.

During the thirteen and thirty-nine weeks ended October 28, 2023, the Company utilized $ 4.0 million in cash to repurchase 146,028 shares and the Company utilized $ 15.2 million in cash to repurchase 672,734 shares under the August 2022 Stock Repurchase Program.

The Company's Board of Directors also authorized a special cash dividend of $ 1.50 per share that was paid on April 6, 2023 , to all stockholders of record as of March 23, 2023 .

During the thirteen weeks ended May 3, 2025 , the Company utilized $ 4.2 million in cash to repurchase 108,502 shares under its $ 100 million dollar stock repurchase program that was authorized by the Board of Directors on September 11, 2024.

As of the end of the first quarter, there was $ 85.0 million available for future repurchases.

For the thirteen weeks ended May 3, 2025 , the Company's Board of Directors declared a $ 0.22 per share cash dividend that was paid on April 10, 2025 , to shareholders of record as of March 27, 2025 .

The cash dividend paid totaled $ 2.9 million.

During the thirteen weeks ended May 4, 2024 , the Company utilized $ 9.2 million in cash to repurchase 343,406 shares under the Company's previous $ 50.0 million stock repurchase program that was authorized by its Board of Directors on August 31, 2022.

The Company's Board of Directors also declared a quarterly cash dividend of $ 0.20 per share that was paid on April 11, 2024 , to all stockholders of record as of March 28, 2024 .

Income per Share

1 unchanged sentence

Thirteen weeks ended

Thirty-nine weeks ended

$ 15,319 $ 11,459

9 unchanged sentences

$ 1.17 $ 0.82

In calculating the diluted income per share for the thirteen and thirty-nine weeks ended November 2, 2024 , there were 1,141 and 29,288 shares of common stock, respectively, that were outstanding at the end of the period that were not included in the computation of diluted income per share due to their anti-dilutive effect.

For the thirteen and thirty-nine weeks ended October 28, 2023 , there were zero and 43,673 shares of common stock, respectively, that were outstanding at the end of the period that were not included in the computation of diluted income per share due to their anti-dilutive effect.

In calculating the diluted income per share for the thirteen weeks ended May 3, 2025 , there were zero shares of common stock that were outstanding at the end of the period that were not included in the computation of diluted income per share due to their anti-dilutive effect.

For the thirteen weeks ended May 4, 2024 , there were 8,199 of common stock that were outstanding at the end of the period that were not included in the computation of diluted income per share due to their anti-dilutive effect.

Comprehensive Income

The difference between comprehensive income or loss and net income or loss is the result of foreign currency translation adjustments on the balance sheets of subsidiaries whose functional currency is not the U.S.

The accumulated other comprehensive loss balance on November 2, 2024 and October 28, 2023 was comprised entirely of foreign currency translation.

For the thirteen weeks ended November 2, 2024 and October 28, 2023 , the Company had no reclassifications out of accumulated other comprehensive loss.

The accumulated other comprehensive loss balance on May 3, 2025 and May 4, 2024 was comprised entirely of foreign currency translation.

For the thirteen weeks ended May 3, 2025 and May 4, 2024 , the Company had no reclassifications out of accumulated other comprehensive loss.

Segment Information

The Company’s operations are conducted through three operating segments consisting of direct-to-consumer (“DTC”), commercial and international franchising.

The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, Ireland and the U.K., including the Company’s e-commerce sites and temporary stores.

The commercial segment includes the Company’s transactions with other businesses, mainly comprised of licensing the Company’s intellectual properties for third -party use and wholesale activities.

The Company’s operations are conducted through three operating segments consisting of DTC, commercial and international franchising.

The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, the Republic of Ireland and the U.K., including the Company’s e-commerce sites and temporary stores.

The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in select countries in Asia, Australia, the Middle East, Africa, and South America.

5 unchanged sentences

International

Thirteen weeks ended November 2, 2024

Net sales to external customers

Thirteen weeks ended May 3, 2025

Total Revenue

$ 119,589 $ 7,623 $ 1,183 $ 128,395

Cost of Goods Sold

51,571 3,014 824 55,409

68,018 4,609 359 72,986

Selling, General & Administrative

34,352 96 - 34,448

Contribution Margin

33,666 4,513 359 38,538

Overhead Expenses(1)

Interest Income

Income before income taxes

Capital expenditures

Depreciation and amortization

Thirteen weeks ended October 28, 2023

Net sales to external customers

Thirteen weeks ended May 4, 2024

Total Revenue

$ 107,868 $ 5,985 $ 877 $ 114,730

Cost of Goods Sold

49,415 2,533 617 52,565

58,453 3,452 260 62,165

Selling, General & Administrative

30,771 195 - 30,966

Contribution Margin

27,682 3,257 260 31,199

Overhead Expenses(1)

Interest Income

Income before income taxes

Capital expenditures

( 1 ) Overhead expenses contain selling, general and administrative expenses not attributable to a segment.

Total assets, depreciation and amortization, and capital expenditures for the Company's segments, as well as for Corporate and support, are as follows:

International

Thirteen weeks ended May 3, 2025

$ 209,280 $ 11,605 $ 1,831 $ 85,587 $ 308,303

Depreciation and amortization

Thirty-nine weeks ended November 2, 2024

Net sales to external customers

Income before income taxes

2,734 39 - 927 3,700

Capital Expenditures

1,354 - - 1,553 2,907

Thirteen weeks ended May 4, 2024

$ 185,505 $ 8,948 $ 1,377 $ 69,446 $ 265,276

Depreciation and amortization

Thirty-nine weeks ended October 28, 2023

Net sales to external customers

Income before income taxes

2,623 52 - 983 3,658

Capital Expenditures

Depreciation and amortization

Total Assets as of:

November 2, 2024

February 3, 2024

October 28, 2023

1,903 - - 527 2,430

The Company’s reportable segments are primarily determined by the types of products and services that they offer.

2 unchanged sentences

The following schedule is a summary of the Company’s sales to external customers and long-lived assets by geographic area (in thousands):

Thirteen weeks ended November 2, 2024

Net sales to external customers

Thirteen weeks ended October 28, 2023

Net sales to external customers

Thirty-nine weeks ended November 2, 2024

Thirteen weeks ended May 3, 2025

Net sales to external customers

Property and equipment, net

Thirty-nine weeks ended October 28, 2023

$ 111,273 $ 15,627 $ 1,495 $ 128,395

Thirteen weeks ended May 4, 2024

Net sales to external customers

Property and equipment, net

$ 99,451 $ 14,449 $ 830 $ 114,730

For purposes of this table only:

1 unchanged sentence

( 2 ) Europe includes corporately-managed locations in the U.K.

and Ireland and sales to wholesale customers in Europe.

and the Republic of Ireland and sales to wholesale customers in Europe.

( 3 ) Other includes franchise businesses outside of North America and Europe.

14 unchanged sentences

The Company maintains a provision against the related receivable, based on a current evaluation of collectability, using the latest facts available in the dispute.

As of November 2, 2024 , the Company had a gross receivable balance of $ 4.9 million and a reserve of $ 3.4 million, leaving a net receivable of $ 1.5 million.

As of May 3, 2025 , the Company had a gross receivable balance of $ 5.1 million and a reserve of $ 3.6 million, leaving a net receivable of $ 1.5 million.

The Company believes that the outcome of this dispute will not have a material adverse impact on the results of operations, liquidity, or financial position of the Company.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements