What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-09-10 compared with 2026-06-11 · 180 added, 56 removed, 395 unchanged (37% of the section changed)

44 unchanged sentences

Preferred stock, par value $ 0.01 , Shares authorized:

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

No shares issued or outstanding at August 1, 2026, January 31, 2026 and August 2, 2025

Common stock, par value $ 0.01 , Shares authorized:

18 unchanged sentences

Thirteen weeks ended

Twenty-six weeks ended

Net retail sales

$ 106,544 $ 114,635 $ 220,010 $ 234,224

Commercial revenue

8,086 8,629 19,034 16,251

International franchising

661 983 1,517 2,167

Total revenues

115,291 124,247 240,561 252,642

Costs and expenses:

Cost of merchandise sold - retail

48,982 48,552 89,320 100,123

Cost of merchandise sold - commercial

3,383 3,419 7,802 6,433

Cost of merchandise sold - international franchising

437 765 1,078 1,588

Total cost of merchandise sold

52,802 52,736 98,200 108,144

Consolidated gross profit

62,489 71,511 142,361 144,498

Selling, general and administrative expense

51,410 56,399 107,536 109,955

Interest income, net

( 552 ) ( 206 ) ( 686 ) ( 406 )

Income before income taxes

11,631 15,318 35,511 34,949

Income tax expense

2,871 2,951 8,452 7,263

$ 8,760 $ 12,367 $ 27,059 $ 27,686

Foreign currency translation adjustment

( 193 ) ( 9 ) ( 372 ) 1,250

Comprehensive income

$ 8,567 $ 12,358 $ 26,687 $ 28,936

Income per common share:

$ 0.71 $ 0.94 $ 2.16 $ 2.11

$ 0.70 $ 0.94 $ 2.16 $ 2.11

Shares used in computing common per share amounts:

12,420,379 13,111,615 12,502,383 13,095,958

12,431,533 13,139,470 12,526,722 13,142,443

See accompanying notes to condensed consolidated financial statements.

3 unchanged sentences

(Dollars in thousands)

Thirteen weeks ended

Twenty-six weeks ended

Cash flows provided by operating activities:

$ 27,059 $ 27,686

Adjustments to reconcile net income to net cash provided by operating activities:

1 unchanged sentence

Share-based and performance-based stock compensation

( 189 ) 1,172

Provision/adjustments for doubtful accounts

( 44 ) ( 27 )

Gain on disposal of property and equipment

( 17 ) ( 17 )

Net change in film costs and advances

2 unchanged sentences

Inventories, net

881 ( 11,240 )

Receivables, net

IEEPA tariff refund receivable

Prepaid expenses and other assets

( 1,730 ) 2,950

Accounts payable and accrued expenses

( 9,813 ) 3,657

Operating leases

( 399 ) ( 481 )

Gift cards and customer deposits

( 1,482 ) ( 1,513 )

Deferred revenue

( 1,399 ) ( 83 )

Net cash provided by operating activities

26,146 32,017

Cash flows used in investing activities:

Purchases of property and equipment

( 15,421 ) ( 6,328 )

Net cash used in investing activities

( 15,421 ) ( 6,328 )

Cash flows used in financing activities:

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

( 453 ) ( 1,266 )

Cash dividends paid on vested participating securities

( 5,768 ) ( 5,836 )

Purchases of Company’s common stock

( 17,153 ) ( 7,323 )

Net cash used in financing activities

( 23,374 ) ( 14,425 )

Effect of exchange rates on cash

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

( 12,751 ) 11,350

Cash, cash equivalents and restricted cash, beginning of period

26,755 27,758

Cash, cash equivalents and restricted cash, end of period

$ 14,004 $ 39,108

Supplemental disclosure of cash flow information:

Cash and cash equivalents

$ 13,601 $ 38,707

Restricted cash from long-term deposits

Total cash, cash equivalents and restricted cash

$ 14,004 $ 39,108

Net cash paid during the period for income taxes

$ 11,212 $ 4,697

See accompanying notes to condensed consolidated financial statements.

23 unchanged sentences

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 91 % of consolidated revenue for the first quarter of fiscal 2026 .

The Company's direct-to-consumer reporting segment represents 92 % of consolidated revenue for the second 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.

4 unchanged sentences

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.

The Company has elected to exclude from revenue all collected sales, value-added, 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.

31 unchanged sentences

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.

These capitalized costs for the thirteen and twenty-six weeks ended August 1, 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 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.

For the twenty-six weeks ended August 1, 2026 and August 2, 2025 , the Company's accounts receivable are net of $ 4.2 million and $ 6.9 million, respectively, 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.

During the first quarter of fiscal 2026, following Supreme Court rulings regarding tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"), the Company determined that it was entitled to recover approximately $ 13.2 million of previously paid tariffs.

The Company recorded the related receivable, recognized a $ 10.4 million benefit in cost of merchandise sold-retail, including approximately $ 7.0 million related to prior fiscal year costs, and reduced the carrying value of inventory by approximately $ 2.8 million for tariffs attributable to inventory remaining on hand.

During the second quarter of fiscal 2026, the Company collected the refund including interest and recognized the remaining inventory-related benefit as the underlying inventory was sold.

As a result, the Company has substantially completed recognition of the financial statement impacts associated with the IEEPA tariff refund.

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 weeks ended May 2, 2026 and May 3, 2025 (in thousands).

The table below presents certain information related to the lease costs for operating leases for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 (in thousands).

Thirteen weeks ended

Twenty-six weeks ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Operating lease costs

1 unchanged sentence

Variable lease costs (1)

2,112 2,509 4,326 4,889

Short term lease costs

3 unchanged sentences

Other information

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).

The table below presents supplemental cash flow information related to leases for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 (in thousands).

Thirteen weeks ended

Twenty-six weeks ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Operating cash flows for operating leases

$ 11,153 $ 10,633 $ 22,215 $ 20,848

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.

As of August 1, 2026 and August 2, 2025 , the weighted-average remaining operating lease term was 6.2 years and 6.1 years, respectively, and the weighted-average discount rate was 6.9 % and 7.1 %, respectively, for operating leases recognized on the Company's condensed consolidated balance sheets.

The value of our operating lease asset was $ 119.8 million and $ 101.0 million as of August 1, 2026 and August 2, 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 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.

For the thirteen and twenty-six weeks ended August 1, 2026 and the thirteen and twenty-six weeks ended August 2, 2025 , 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 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.

As of August 1, 2026 , the Company had additional executed leases that had not yet commenced with operating lease liabilities of $ 0.9 million.

These leases are expected to commence in the third quarter of fiscal 2026 with lease terms of three to ten years.

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

12 unchanged sentences

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

Entertainment assets (1)

Entertainment production asset (1)

$ 3,726 $ 4,493 $ 4,336

2 unchanged sentences

$ 5,208 $ 6,008 $ 6,021

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

( 1 ) Entertainment production asset 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.

11 unchanged sentences

950 950 1,350

$ 14,731 $ 26,104 $ 19,110

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

11 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 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

For the thirteen weeks ended August 1, 2026 and August 2, 2025 , selling, general and administrative expense included stock-based compensation expense of $( 0.8 ) million and $ 0.7 million, respectively.

For the twenty-six weeks ended August 1, 2026 and August 2, 2025 selling, general and administrative expense included stock-based compensation expense of $( 0.1 ) million and $ 1.2 million, respectively.

As of August 1, 2026 , there was $ 5.4 million of total unrecognized compensation expense related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.0 years.

As of August 1, 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 twenty-six weeks ended August 1, 2026 :

Time-Based Restricted Stock

11 unchanged sentences

Forfeited (1)

Outstanding, May 2, 2026 (1)

( 23,336 ) 38.61 ( 70,549 ) 33.90

Outstanding, August 1, 2026 (1)

96,220 $ 37.76 146,149 $ 38.59

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

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:

The total fair value of shares vested during the twenty-six weeks ended August 1, 2026 and August 2, 2025 was $ 1.8 million and $ 2.5 million, respectively.

The outstanding performance shares as of August 1, 2026 consist of the following:

Performance Shares

2 unchanged sentences

2024 - 2026 consolidated, cumulative revenue objectives

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.

2025 - 2027 consolidated revenue growth objectives

2026 - 2028 consolidated revenue growth objectives

Performance shares outstanding, August 1, 2026

The Company's effective tax rate was 24.7 % and 23.8 % for the thirteen and twenty-six weeks ended August 1, 2026 , respectively, compared to 19.3 % and 20.8 % for the thirteen and twenty-six weeks ended August 2, 2025 , respectively.

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

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.

In addition, in the second 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 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

The following table sets forth the changes in stockholders’ equity (in thousands) for the thirteen weeks ended August 1, 2026 and August 2, 2025 (in thousands).

For the thirteen weeks ended August 1, 2026

For the thirteen weeks ended August 2, 2025

Balance, beginning

1 unchanged sentence

Shares issued under employee stock plans

Stock-based compensation

34 34 375 375

Shares withheld in lieu of tax withholdings

- ( 104 ) ( 104 ) -

Share repurchase

( 2 ) ( 734 ) ( 4,909 ) ( 5,645 ) ( 276 ) ( 2,839 ) ( 3,115 )

Cash dividends

( 2,874 ) ( 2,874 ) ( 2,905 ) ( 2,905 )

Other comprehensive income

(193 ) ( 193 ) ( 9 ) ( 9 )

8,760 8,760 12,367 12,367

Balance, ending

$ 126 $ 59,113 $ ( 11,132 ) $ 110,890 $ 158,997 $ 132 $ 61,701 $ ( 11,304 ) $ 104,866 $ 155,395

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

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

The following table sets forth the changes in stockholders’ equity for the twenty-six weeks ended August 1, 2026 and August 2, 2025 (in thousands).

For the twenty-six weeks ended August 1, 2026

For the twenty-six weeks ended August 2, 2025

Balance, beginning

$ 128 $ 60,821 $ ( 10,760 ) $ 104,839 $ 155,028 $ 133 $ 61,987 $ ( 12,554 ) $ 89,516 $ 139,082

Shares issued under employee stock plans

2 241 243 1,103 1,103

Stock-based compensation

13 unchanged sentences

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

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.

During the thirteen and twenty-six weeks ended August 1, 2026 , the Company utilized $ 5.6 million in cash to repurchase 155,118 shares and utilized $ 17.0 million in cash to repurchase 403,236 shares, respectively, 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 second fiscal quarter of 2026 and September 8, 2026, the Company utilized an additional $ 4.2 million in cash to repurchase 129,194 shares under the September 2024 Stock Repurchase Program, leaving an aggregate of $ 40.5 million available for future repurchases under that plan.

For the thirteen and twenty-six weeks ended August 1, 2026 , the Board authorized cash dividends to stockholders of $ 2.9 million and $ 5.8 million, respectively.

During the thirteen and twenty-six weeks ended August 2, 2025 , the Company utilized $ 3.1 million in cash to repurchase 59,083 shares and utilized $ 7.3 million to repurchase 167,585 shares, respectively, under the September 2024 Stock Repurchase Program.

For the thirteen and twenty-six weeks ended August 2, 2025 , the Company's Board of Directors authorized cash dividends to stockholders of $ 2.9 million and $ 5.8 million, respectively.

Income per Share

1 unchanged sentence

Thirteen weeks ended

Twenty-six weeks ended

$ 8,760 $ 12,367 $ 27,059 $ 27,686

9 unchanged sentences

$ 0.70 $ 0.94 $ 2.16 $ 2.11

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.

In calculating the diluted income per share for the thirteen and twenty-six weeks ended August 1, 2026 , respectively, there were 162,065 and 115,630 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 twenty-six weeks ended August 2, 2025 , respectively, there were 28,036 and 14,018 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 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.

The accumulated other comprehensive loss balance on August 1, 2026 and August 2, 2025 was comprised entirely of foreign currency translation.

For the thirteen weeks ended August 1, 2026 and August 2, 2025 , the Company had no reclassifications out of accumulated other comprehensive loss.

Segment Information

9 unchanged sentences

International

Thirteen weeks ended May 2, 2026

Thirteen weeks ended August 1, 2026

Total Revenue

10 unchanged sentences

Income before income taxes

Thirteen weeks ended May 3, 2025

Thirteen weeks ended August 2, 2025

Total Revenue

10 unchanged sentences

Income before income taxes

Twenty-six weeks ended August 1, 2026

Total Revenue

$ 220,010 $ 19,034 $ 1,517 $ 240,561

Cost of Goods Sold

89,320 7,802 1,078 98,200

130,690 11,232 439 142,361

Selling, General & Administrative

70,847 1,090 306 72,243

Contribution Margin

59,843 10,142 133 70,118

Overhead Expenses (1)

Interest Income

Income before income taxes

Twenty-six weeks ended August 2, 2025

Total Revenue

$ 234,224 $ 16,251 $ 2,167 $ 252,642

Cost of Goods Sold

100,123 6,433 1,588 108,144

134,101 9,818 579 144,498

Selling, General & Administrative

68,535 193 - 68,728

Contribution Margin

65,566 9,625 579 75,770

Overhead Expenses (1)

Interest Income

Income before income taxes

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

1 unchanged sentence

International

Thirteen weeks ended May 2, 2026

Thirteen weeks ended August 1, 2026

$ 243,692 $ 13,562 $ 1,336 $ 75,511 $ 334,101

3 unchanged sentences

7,690 - 862 8,552

Thirteen weeks ended May 3, 2025

Thirteen weeks ended August 2, 2025

$ 219,168 $ 11,466 $ 1,648 $ 85,956 $ 318,238

3 unchanged sentences

2,381 - - 984 3,365

Twenty-six weeks ended August 1, 2026

$ 243,692 $ 13,562 $ 1,336 $ 75,511 $ 334,101

Depreciation and amortization

5,235 825 - 2,054 8,114

Capital Expenditures

13,101 - - 2,320 15,421

Twenty-six weeks ended August 2, 2025

$ 219,168 $ 11,466 $ 1,648 $ 85,956 $ 318,238

Depreciation and amortization

5,425 74 - 1,869 7,368

Capital Expenditures

4,021 - - 2,307 6,328

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 May 2, 2026

Thirteen weeks ended August 1, 2026

Net sales to external customers

$ 101,011 $ 13,272 $ 1,008 $ 115,291

Thirteen weeks ended May 3, 2025

Thirteen weeks ended August 2, 2025

Net sales to external customers

$ 107,066 $ 15,775 $ 1,406 $ 124,247

Twenty-six weeks ended August 1, 2026

Net sales to external customers

$ 208,509 $ 27,607 $ 4,445 $ 240,561

Property and equipment, net

74,493 4,565 79,058

Twenty-six weeks ended August 2, 2025

Net sales to external customers

$ 218,339 $ 31,402 $ 2,901 $ 252,642

Property and equipment, net

54,121 4,683 58,804

For purposes of this table only:

19 unchanged sentences

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