What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-06-11 compared with 2025-12-11 · 94 added, 159 removed, 357 unchanged (41% of the section changed)

5 unchanged sentences

Current assets:

Cash and cash equivalents

Cash, cash equivalents and restricted cash

$ 26,247 $ 26,755 $ 44,342

36 unchanged sentences

Preferred stock, par value $ 0.01 , Shares authorized:

No shares issued or outstanding at November 1, 2025, February 1, 2025 and November 2, 2024

No shares issued or outstanding at May 2, 2026, January 31, 2026 and May 3, 2025

Common stock, par value $ 0.01 , Shares authorized:

18 unchanged sentences

Thirteen weeks ended

Thirty-nine weeks ended

Net retail sales

21 unchanged sentences

(Dollars in thousands)

Thirty-nine weeks ended

Thirteen weeks ended

Cash flows provided by operating activities:

3 unchanged sentences

Provision/adjustments for doubtful accounts

(Gain)/Loss on disposal of property and equipment

Gain on disposal of property and equipment

Net change in film costs and advances

Deferred taxes

2 unchanged sentences

Receivables, net

IEEPA tariff refund receivable

Prepaid expenses and other assets

9 unchanged sentences

Purchases of common stock for employee equity awards, net of tax

Cash dividends paid

Cash dividends paid on vested participating securities

Purchases of Company’s common stock

1 unchanged sentence

Effect of exchange rates on cash

Decrease in cash, cash equivalents, and restricted cash

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

Cash, cash equivalents and restricted cash, beginning of period

11 unchanged sentences

Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States ("U.S.") generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations.

The condensed consolidated balance sheet of the Company as of February 1, 2025 , was derived from the Company’s audited consolidated balance sheet as of that date.

The condensed consolidated balance sheet of the Company as of January 31, 2026 , was derived from the Company’s audited consolidated balance sheet as of that date.

All other condensed consolidated financial statements contained herein are unaudited and reflect all adjustments which are, in the opinion of management, necessary to summarize fairly the financial position of the Company and the results of the Company’s operations and cash flows for the periods presented.

2 unchanged sentences

Because of the seasonal nature of the Company’s operations, results of operations of any single reporting period should not be considered as indicative of results for a full year.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended February 1, 2025 , which were included in the Company’s Annual Report on Form 10 -K filed with the SEC on April 17, 2025.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended January 31, 2026 , which were included in the Company’s Annual Report on Form 10 -K filed with the SEC on April 16, 2026, as amended by Amendment No.

1 filed with the SEC on April 17, 2026 ( the "2025 Form 10 -K").

Significant Accounting Policies

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.

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

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU 2025 - 05, Financial Instruments—Credit Losses (Topic 326 ):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.

ASU 2025 - 05 provides the option to apply a practical expedient to address implementation challenges related to the estimation of expected credit losses for current accounts receivable and current assets arising from transactions accounted for under revenue recognition (Topic 606 ) and assets acquired through business combinations.

The practical expedient allows entities to assume that current conditions as of the balance sheet date remain unchanged over the life of these assets when developing forecasts.

The guidance allows entities to bypass the requirement to incorporate macro-economic data into their forecast when such data is not expected to materially affect the estimate.

The Company adopted the guidance in ASU 2025 - 05 effective February 1, 2026 prospectively and applied the practical expedient.

The adoption of this new accounting standard did not have a material impact on the Company's condensed consolidated financial statements.

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 2025 .

The Company's direct-to-consumer reporting segment represents 91 % of consolidated revenue for the first quarter of fiscal 2026 .

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

The following is a description of principal activities from which the Company generates its revenue through three reportable segments.

The Company’s direct-to-consumer segment includes the operating activities of corporately-managed stores, and e-commerce demand (orders generated online to be fulfilled from either the Company's warehouse or its stores).

Direct-to-consumer revenue is recognized when control of the merchandise is transferred to the customer and for the Company's online sales, generally upon estimated delivery to the customer.

The Company’s direct-to-consumer segment includes the operating activities of corporately-managed stores, other retail-delivered operations and online sales.

Direct-to-consumer revenue is recognized when control of the merchandise is transferred to the customer and for the Company's online sales, control generally transfers upon delivery to the customer.

Revenue is measured as the amount of consideration, including any discounts or incentives, the Company expects to receive in exchange for transferring the merchandise.

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 consumers.

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

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

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.

Approximately 80 % of gift cards issued 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 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 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.

Following the reopening of stores after the pandemic, the Company experienced lower gift card redemption rates for all periods of outstanding activated cards compared to historical redemption patterns observed prior to fiscal year 2020, which impacted the gift card breakage rate.

Management believes that the redemption behavior observed during the pandemic was not indicative of long-term customer behavior and accordingly adjusted the historical redemption data used to calculate the breakage rate.

In more recent periods, gift card redemption patterns have generally returned to levels consistent with pre- 2020 experience.

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.

6 unchanged sentences

The revenue associated with the initial merchandise purchased is recognized immediately and the value assigned to the points is deferred until the points are redeemed, forfeited or expired.

Loyalty program points expire if there is no qualifying account activity for a period of 12 months.

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 United Kingdom (the "U.K.") 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.

The Company classifies contract liabilities related to the loyalty program as deferred revenue and other on the consolidated balance sheet.

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.

The Company classifies contract liabilities related to the loyalty program as deferred revenue and other on the condensed consolidated balance sheet.

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

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

The license agreements provide the customer with highly interrelated rights, including the Build-A-Bear retail operations proprietary process, 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.

If the contract includes a guaranteed minimum, the minimum guarantee is recognized on a straight-line basis over the guarantee term until such time as royalties earned through licensee sales exceed the minimum guarantee.

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 classifies these guaranteed minimum contract liabilities as deferred revenue and other on the condensed consolidated balance sheet.

Entertainment revenue is generated through the sale of entertainment assets directly to customers or through licensing agreements.

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.

2 unchanged sentences

If the contract includes an initial, one -time nonrefundable development fee, this fee is recognized on a straight-line basis over the term of the franchise agreement, which may extend for periods up to 25 years.

The Company classifies these initial, one -time nonrefundable franchise fee contract liabilities as deferred revenue on its consolidated balance sheet.

The Company classifies these initial, one -time nonrefundable franchise fee contract liabilities as deferred revenue and other on its condensed consolidated balance sheet.

Revenue from merchandise and fixture sales is recognized when control is transferred to the franchisee, which generally occurs upon delivery.

1 unchanged sentence

Accordingly, the Company’s policy is to capitalize any finder’s fee, as an incremental cost, and expense all other costs as incurred.

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 1, 2025 are not material to the financial statements.

The Company amortizes these capitalized costs into expense in the same pattern as the development fee as described previously.

These capitalized costs for the thirteen weeks ended May 2, 2026 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 1, 2025 and November 2, 2024 , the Company's accounts receivable are net of $ 7.1 million and $ 6.8 million, inclusive of the allowance for credit losses and the reserve for the UK's customs authority "HMRC" matter of $ 3.6 million and $ 3.4 million, respectively.

For the thirteen weeks ended May 2, 2026 and May 3, 2025 , the Company's accounts receivable are net of $ 4.1 million and $ 7.0 million, inclusive of the allowance for credit losses and the reserve for the UK's customs authority "HMRC" matter of $ 0.6 million and $ 3.6 million, respectively.

See Note 12 for further discussion of the HMRC matter.

On February 20, 2026, the U.S.

Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA").

Further, on March 4, 2026, the Court of International Trade ruled that U.S.

Customs and Border Protection must refund the IEEPA tariffs that were collected.

Based on these court rulings affirming the Company's legal right to recover IEEPA tariffs, the Company determined that it is entitled to a tariff refund of approximately $ 13.2 million, which was recorded in receivables, net on the condensed consolidated balance sheet.

For the thirteen weeks ended May 2, 2026, the Company recorded a $ 10.4 million benefit for these tariffs in cost of merchandise sold-retail on the condensed consolidated statements of operations and comprehensive income and reduced the carrying value of inventory by $ 2.8 million on the condensed consolidated balance sheet as of May 2, 2026.

The majority of the Company's leases relate to retail stores and corporate offices.

6 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 1, 2025 and November 2, 2024 (in thousands).

The table below presents certain information related to the lease costs for operating leases for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands).

Thirteen weeks ended

Thirty-nine weeks ended

November 1, 2025

November 2, 2024

November 1, 2025

November 2, 2024

Operating lease costs

1 unchanged sentence

Variable lease costs (1)

2,337 2,294 7,226 6,949

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 1, 2025 and November 2, 2024 (in thousands).

The table below presents supplemental cash flow information related to leases for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands).

Thirteen weeks ended

Thirty-nine weeks ended

November 1, 2025

November 2, 2024

November 1, 2025

November 2, 2024

Operating cash flows for operating leases

$ 11,062 $ 10,216

As of November 1, 2025 and November 2, 2024 , the weighted-average remaining operating lease term was 6.1 years and 5.7 years, respectively, and the weighted-average discount rate was 7.0 % and 7.2 %, respectively, for operating leases recognized on the Company's condensed consolidated balance sheets.

The value of our operating lease asset was $ 111.7 million and $ 91.3 million as of November 1, 2025 and November 2, 2024 , respectively.

As of May 2, 2026 and May 3, 2025 , the weighted-average remaining operating lease term was 6.3 years and 6.1 years, respectively, and the weighted-average discount rate was 6.9 % and 7.2 %, respectively, for operating leases recognized on the Company's condensed consolidated balance sheets.

The value of our operating lease asset was $ 119.6 million and $ 92.7 million as of May 2, 2026 and May 3, 2025 , 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 1, 2025 and the thirteen and thirty-nine weeks ended November 2, 2024 the Company incurred no impairment charges against its right-of-use operating lease assets.

For the thirteen weeks ended May 2, 2026 and the thirteen weeks ended May 3, 2025 the Company incurred no impairment charges against its right-of-use operating lease assets.

Undiscounted cash flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the balance sheet (in thousands).

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet (in thousands).

Operating Leases

4 unchanged sentences

Long-term lease obligations

As of May 2, 2026, the Company had additional executed leases that had not yet commenced with operating lease liabilities of $ 4.4 million.

These leases are expected to commence in the second quarter of fiscal 2026 with lease terms of 10 years.

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

4 unchanged sentences

Prepaid taxes (2)

253 1,512 579

Prepaid gift card fees

6 unchanged sentences

Other non-current assets consist of the following (in thousands):

Entertainment production asset (1)

Entertainment assets (1)

$ 4,164 $ 4,493 $ 4,251

2 unchanged sentences

$ 5,610 $ 6,008 $ 6,080

( 1 ) Entertainment production asset includes the direct costs, production overhead and development costs in producing entertainment assets such as films or music.

( 1 ) Entertainment assets includes the direct costs, production overhead and development costs in producing entertainment assets such as films or music.

Other consists primarily of deferred financing costs related to the Company's credit facility.

24 unchanged sentences

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 1, 2025 and November 2, 2024 , selling, general and administrative expense included stock-based compensation expense of $ 1.0 million and $ 0.7 million, respectively.

For the thirty-nine weeks ended November 1, 2025 and November 2, 2024 , selling, general, and administrative expense included stock-based compensation expense of $ 2.2 million and $ 1.7 million, respectively.

As of November 1, 2025 , there was $ 6.4 million of total unrecognized compensation expense related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.9 years.

As of November 1, 2025 , and, February 1, 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 thirty-nine weeks ended November 1, 2025 :

For the thirteen weeks ended May 2, 2026 and May 3, 2025, selling, general and administrative expense included stock-based compensation expense of $ 0.7 million and $ 0.5 million, respectively.

As of May 2, 2026 , there was $ 5.6 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 May 2, 2026 and January 31, 2026 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 2, 2026

Time-Based Restricted Stock

2 unchanged sentences

Weighted Average Grant Date Fair Value

Outstanding, February 1, 2025 (1)

Outstanding, January 31, 2026 (1)

73,588 $ 37.97 156,665 $ 32.82

6 unchanged sentences

Forfeited (1)

Outstanding, November 1, 2025 (1)

Outstanding, May 2, 2026 (1)

119,898 $ 36.44 206,187 $ 33.20

( 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 1, 2025 and November 2, 2024 was $ 2.5 million and $ 2.2 million, respectively.

The outstanding performance shares as of November 1, 2025 consist of the following:

The total fair value of shares vested during the thirteen weeks ended May 2, 2026 and May 3, 2025 was $ 0.8 million and $ 2.0 million, respectively.

The outstanding performance shares as of May 2, 2026 consist of the following:

Performance Shares

Unearned shares subject to performance-based restrictions at target:

2023 - 2025 consolidated pre-tax income growth objectives

2023 - 2025 consolidated revenue growth objectives

2024 - 2026 consolidated, cumulative EBITDA objectives

2024 - 2026 consolidated cumulative revenue objectives

2025 - 2027 consolidated revenue growth objectives

Performance shares outstanding, November 1, 2025

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA") was signed into law.

The Company has analyzed the legislation and expects that the OBBBA will have an immaterial impact on our FY25 and FY26 effective tax rate.

The Company is continuing to evaluate the impacts as additional information is provided.

The Company's effective tax rate was 24.3 % and 21.6 % for the thirteen and thirty-nine weeks ended November 1, 2025 compared to 24.5 % and 24.1 % for the thirteen and thirty-nine weeks ended November 2, 2024 .

The fiscal 2025 effective tax rate differed from the statutory rate of 21 % primarily due to state income tax expense offset by the tax impact of equity awards vesting, the foreign-derived intangible income deduction and discrete benefits related to settlement of a prior period tax position.

The fiscal 2024 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 third quarter of fiscal 2025 and 2024, the Company remains in a full valuation allowance in certain foreign jurisdictions.

2025 - 2027 consolidated, consolidated revenue growth objectives

2026 - 2028 consolidated, consolidated revenue growth objectives

Performance shares outstanding, May 2, 2026

The Company's effective tax rate was 23.4 % for the thirteen weeks ended May 2, 2026 compared to 22.0 % for the thirteen weeks ended May 3, 2025 .

In the first quarter of fiscal 2026, the effective tax rate differed from the statutory rate of 21 % primarily due to state income tax expense offset by the tax impact of equity awards vesting and the foreign-derived deduction eligible income (formerly foreign derived intangible income).

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 foreign derived intangible income.

In addition, in the first quarter of fiscal 2026 and 2025, 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 1, 2025 and November 2, 2024 (in thousands):

For the thirteen weeks ended November 1, 2025

For the thirteen weeks ended November 2, 2024

Balance, beginning

$ 132 $ 61,701 $ ( 11,304 ) $ 104,866 $ 155,395 $ 136 $ 62,831 $ ( 11,913 ) $ 74,737 $ 125,791

Stock-based compensation

426 426 346 346

Share repurchase

( 2 ) ( 788 ) ( 9,405 ) ( 10,195 ) ( 1 ) ( 666 ) ( 4,166 ) ( 4,833 )

Cash dividends

( 2,887 ) ( 2,887 ) ( 2,704 ) ( 2,704 )

Other comprehensive income (loss)

( 244 ) ( 244 ) 102 102

8,122 8,122 9,871 9,871

Balance, ending

$ 130 $ 61,339 $ ( 11,548 ) $ 100,696 $ 150,617 $ 135 $ 62,511 $ ( 11,811 ) $ 77,738 $ 128,573

( 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 1, 2025 and November 2, 2024 (in thousands):

For the thirty-nine weeks ended November 1, 2025

For the thirty-nine weeks ended November 2, 2024

The following table sets forth the changes in stockholders’ equity (in thousands) for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands).

For the thirteen weeks ended May 2, 2026

For the thirteen weeks ended May 3, 2025

Balance, beginning

10 unchanged sentences

( 2,894 ) ( 2,894 ) ( 2,891 ) ( 2,891 )

- - ( 39 ) ( 39 )

Other comprehensive income

5 unchanged sentences

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

During the thirteen and thirty-nine weeks ended November 1, 2025 , the Company utilized $ 10.1 million in cash to repurchase 168,456 shares and utilized $ 17.4 million in cash to repurchase 336,041 shares, respectively, under its $ 100 million dollar stock repurchase program that was authorized by the Board on September 11, 2024 ( the "September 2024 Stock Repurchase Program").

Between the end of the third fiscal quarter of 2025 and December 8, 2025, the Company utilized an additiona l $ 2.4 million in cash to repurchase 46,831 under the September 2024 Stock Repurchase Program, leaving the aggregate $ 71.8 million available for future repurchases under that plan.

For the thirteen and thirty-nine weeks ended November 1, 2025 , the Board authorized cash dividends to shareholders of $ 2.9 million and $ 8.7 million, respectively.

Additionally, on November 12, 2025, the Board declared a quarterly cash dividend of $ 0.22 per share on the issued and outstanding common stock of the company.

The dividend will be paid on January 8, 2026, to all stockholders of record as of November 26, 2025.

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 that 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 ash under the Company's $ 50.0 million program authorized by its Board of Directors on August 31, 2022 ( the "August 2022 Stock Repurchase Program").

For the thirteen and thirty-nine 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.

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.

During the thirteen weeks ended May 2, 2026 , the Company utilized $ 11.4 million in cash to repurchase 248,118 shares under its $ 100 million stock repurchase program that was authorized by the Board on September 11, 2024 ( the "September 2024 Stock Repurchase Program").

Between the end of the first fiscal quarter of 2026 and June 9, 2026, the Company utilized an additional $ 3.8 million in cash to repurchase 103,064 shares under the September 2024 Stock Repurchase Program, leaving an aggregate of $ 46.5 million available for future repurchases under that plan.

For the thirteen weeks ended May 2, 2026 , the Board authorized cash dividends to shareholders of $ 2.9 million on March 11, 2026, as the Board declared a quarterly cash dividend of $ 0.23 per share on the issued and outstanding common stock of the company.

The dividend was paid on April 9, 2026, to all stockholders of record as of March 26, 2026.

During the thirteen weeks ended May 3, 2025 , the Company utilized $ 4.2 million in cash to repurchase 108,502 shares under the September 2024 Stock Repurchase Program.

The Company's Board of Directors also declared a quarterly cash dividend of $ 0.22 per share that was paid on April 10, 2025, to shareholders of record as of March 27, 2025.

Income per Share

1 unchanged sentence

Thirteen weeks ended

Thirty-nine weeks ended

$ 18,299 $ 15,319

9 unchanged sentences

$ 1.45 $ 1.17

In calculating the diluted income per share for the thirteen and thirty-nine weeks ended November 1, 2025 , respectively, there were no and 23,753 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 and thirty-nine weeks ended November 2, 2024 , respectively, there were 1,141 and 29,288 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.

In calculating the diluted income per share for the thirteen weeks ended May 2, 2026 , there were 19,214 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 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.

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 1, 2025 and November 2, 2024 was comprised entirely of foreign currency translation.

For the thirteen weeks ended November 1, 2025 and November 2, 2024 , the Company had no reclassifications out of accumulated other comprehensive loss.

The accumulated other comprehensive loss balance on May 2, 2026 and May 3, 2025 was comprised entirely of foreign currency translation.

For the thirteen weeks ended May 2, 2026 and May 3, 2025 , 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 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 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 sales to our partner-operated locations.

The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, Puerto Rico, the Republic of 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 wholesale sales of merchandise, supplies and fixtures, licensing the Company's intellectual properties for third party use, and revenues generated from entertainment activities.

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 1, 2025

Total Revenue

$ 112,268 $ 8,942 $ 1,469 $ 122,679

Cost of Goods Sold

51,778 4,111 968 56,857

60,490 4,831 501 65,822

Selling, General & Administrative

36,080 103 - 36,183

Contribution Margin

24,410 4,728 501 29,639

Overhead Expenses (1)

Interest Income

Income before income taxes

Thirteen weeks ended November 2, 2024

Total Revenue

$ 109,503 $ 8,580 $ 1,347 $ 119,430

Cost of Goods Sold

50,116 3,669 1,005 54,790

59,387 4,911 342 64,640

Selling, General & Administrative

32,002 197 - 32,199

Contribution Margin

27,385 4,714 342 32,441

Overhead Expenses (1)

Interest Income

Income before income taxes

Thirty-nine weeks ended November 1, 2025

Thirteen weeks ended May 2, 2026

Total Revenue

10 unchanged sentences

Income before income taxes

Thirty-nine weeks ended November 2, 2024

Thirteen weeks ended May 3, 2025

Total Revenue

11 unchanged sentences

( 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:

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

International

Thirteen weeks ended November 1, 2025

Depreciation and amortization

2,632 32 - 1,035 3,699

Capital Expenditures

5,191 - 1,353 6,544

Thirteen weeks ended November 2, 2024

Depreciation and amortization

2,637 55 - 996 3,688

Capital Expenditures

2,618 - - 1,253 3,871

Thirty-nine weeks ended November 1, 2025

Thirteen weeks ended May 2, 2026

$ 258,483 $ 15,627 $ 1,446 $ 78,529 $ 354,085

3 unchanged sentences

5,411 - 1,458 6,869

Thirty-nine weeks ended November 2, 2024

Thirteen weeks ended May 3, 2025

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

7 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 1, 2025

Net sales to external customers

$ 102,690 $ 18,143 $ 1,846 $ 122,679

Thirteen weeks ended November 2, 2024

Net sales to external customers

$ 100,835 $ 16,080 $ 2,515 $ 119,430

Thirty-nine weeks ended November 1, 2025

Thirteen weeks ended May 2, 2026

Net sales to external customers

$ 107,498 $ 14,335 $ 3,437 $ 125,270

Property and equipment, net

57,587 4,700 62,287

Thirty-nine weeks ended November 2, 2024

Thirteen weeks ended May 3, 2025

Net sales to external customers

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

Property and equipment, net

50,585 3,913 54,498

For purposes of this table only:

18 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 1, 2025 , the Company had a gross receivable balance of $ 4.6 million and a reserve of $ 3.6 million, leaving a net receivable of $ 1.0 million.

During the first quarter of fiscal 2026, the Company received approximately $ 0.6 million from His Majesty's Revenue and Customs (HMRC).

Following this receipt, the Company reassessed the collectability of the related receivable and adjusted both the gross receivable balance and the associated reserve by $ 3.2 million, leaving a gross receivable balance of $ 0.8 million, a reserve of $ 0.6 million, and a net receivable of $ 0.2 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