18 unchanged sentences
Current portion of long-term debt
+Added: Taxes withheld and accrued
Accrued employee compensation
10 unchanged sentences
Common stock – 400,000,000 shares of $ 0.01 par value authorized;
−Removed: 22,326,566 shares issued and outstanding at October 31, 2025, and 22,267,724 shares issued and outstanding at August 01, 2025
+Added: 22,350,789 shares issued and outstanding at January 30, 2026, and 22,267,724 shares issued and outstanding at August 01, 2025
Additional paid-in capital
8 unchanged sentences
Quarter Ended
+Added: Six Months Ended
Total revenue
23 unchanged sentences
Balances at October 31, 2025
+Added: Comprehensive Income:
+Added: Total comprehensive income
+Added: Cash dividends declared - $ 0.25 per share
+Added: Share-based compensation
+Added: Issuance of share-based compensation awards, net of shares withheld for employee taxes
+Added: Balances at January 30, 2026
Shareholders’
6 unchanged sentences
Balances at November 01, 2024
+Added: Comprehensive Income:
+Added: Total comprehensive income
+Added: Cash dividends declared - $ 0.25 per share
+Added: Share-based compensation
+Added: Issuance of share-based compensation awards, net of shares withheld for employee taxes
+Added: Balances at January 31, 2025
See Notes to unaudited Condensed Consolidated Financial Statements.
2 unchanged sentences
(Unaudited and in thousands)
−Removed: Three Months Ended
+Added: Six Months Ended
Cash flows from operating activities:
10 unchanged sentences
Accounts payable
−Removed: Accrued employee compensation
Other current liabilities
1 unchanged sentence
Other long-term assets and liabilities
−Removed: Net cash used in operating activities
+Added: Net cash provided by (used in) operating activities
Cash flows from investing activities:
8 unchanged sentences
Dividends on common stock
−Removed: Net cash provided by financing activities
+Added: Net cash provided by (used in) financing activities
Net decrease in cash and cash equivalents
33 unchanged sentences
Fair Value Measurements
−Removed: The Company’s assets measured at fair value on a recurring basis at October 31, 2025 were as follows:
+Added: The Company’s assets measured at fair value on a recurring basis at January 30, 2026 were as follows:
+Added: Total Fair
Cash equivalents*
10 unchanged sentences
The fair values of the Company’s accounts receivable and accounts payable approximate their carrying amounts because of their short duration.
−Removed: The Company did no t have any liabilities measured at fair value on a recurring basis at October 31, 2025 and August 01, 2025.
−Removed: The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at October 31, 2025 and August 01, 2025, respectively.
+Added: The Company did no t have any liabilities measured at fair value on a recurring basis at January 30, 2026 and August 01, 2025.
+Added: The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at January 30, 2026 and August 01, 2025, respectively.
The Company’s financial instruments that are not remeasured at fair value include the 0.625 % Convertible Senior Notes due 2026 (the “2026 Notes”) and the 1.75 % Convertible Senior Notes due 2030 (the “2030 Notes”).
1 unchanged sentence
The Company estimates the fair value of the 2026 and the 2030 Notes through consideration of quoted market prices of similar instruments, classified as Level 2.
−Removed: The estimated fair value of the 2026 Notes was $ 145,125 and $ 144,075 as of October 31, 2025 and August 01, 2025, respectively.
−Removed: The estimated fair value of the 2030 Notes was $ 283,386 and $ 374,246 as of October 31, 2025 and August 01, 2025, respectively.
+Added: The estimated fair value of the 2026 Notes was $ 146,813 and $ 144,075 as of January 30, 2026 and August 01, 2025, respectively.
+Added: The estimated fair value of the 2030 Notes was $ 277,401 and $ 374,246 as of January 30, 2026 and August 01, 2025, respectively.
Inventories were comprised of the following as of the dates indicated:
−Removed: October 31, 2025
+Added: January 30, 2026
August 01, 2025
5 unchanged sentences
On August 01, 2025, the Company had no borrowings under the 2025 Revolving Credit Facility.
−Removed: The Company’s outstanding borrowings under the 2025 Revolving Credit Facility were $ 65,000 on October 31, 2025.
−Removed: As of October 31, 2025, the Company had $ 8,703 of standby letters of credit, which reduce the Company’s borrowing availability under the 2025 Revolving Credit Facility (see Note 10 for more information on the Company’s standby letters of credit).
−Removed: As of October 31, 2025, the Company had $ 476,297 in borrowing availability under the 2025 Revolving Credit Facility.
+Added: The Company’s outstanding borrowings under the 2025 Revolving Credit Facility were $ 45,500 on January 30, 2026.
+Added: As of January 30, 2026, the Company had $ 8,703 of standby letters of credit, which reduce the Company’s borrowing availability under the 2025 Revolving Credit Facility (see Note 10 for more information on the Company’s standby letters of credit).
+Added: As of January 30, 2026, the Company had $ 495,797 in borrowing availability under the 2025 Revolving Credit Facility.
In accordance with the 2025 Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at (1) the Term Secured Overnight Financing Rate (SOFR), plus an applicable margin based on the Company’s consolidated total leverage ratio (the “Applicable Margin”) or (2) a base rate equal to the greatest of (i) the prime rate, (ii) a rate that is 0.5 % in excess of the Federal Funds Rate, and (iii) one-month Term SOFR plus 1.0 % , in each case, plus an Applicable Margin.
−Removed: At October 31, 2025, the weighted average interest rate on the Company’s outstanding borrowings on the 2025 Revolving Credit Facility was 6.31 % .
−Removed: The 2025 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total leverage ratio and a minimum consolidated interest coverage ratio.
−Removed: At October 31, 2025, the Company was in compliance with all financial covenants under the 2025 Revolving Credit Facility.
+Added: At January 30, 2026, the weighted average interest rate on the Company’s outstanding borrowings on the 2025 Revolving Credit Facility was 6.18 % .
+Added: The 2025 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated senior secured leverage ratio and a minimum consolidated interest coverage ratio.
+Added: Under the 2025 Revolving Credit Facility, the maximum consolidated total leverage ratio financial covenant applies unless the Company elects to implement the consolidated senior secured leverage ratio financial covenant in lieu of the consolidated total leverage ratio.
+Added: During the second quarter of 2026, the Company elected to implement the consolidated senior secured leverage ratio in accordance with the terms of the 2025 Revolving Credit Facility.
+Added: At January 30, 2026, the Company was in compliance with all financial covenants under the 2025 Revolving Credit Facility.
The 2025 Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase.
12 unchanged sentences
The conversion rate is subject to customary adjustments upon the occurrence of certain events, including the payment of dividends to holders of the Company’s common stock.
−Removed: As of October 31, 2025, the conversion rate, as adjusted, was 6.4358 shares of the Company’s common stock per $ 1,000 principal amount of the 2026 Notes.
+Added: As of January 30, 2026, the conversion rate, as adjusted, was 6.4811 shares of the Company’s common stock per $ 1,000 principal amount of the 2026 Notes.
In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
3 unchanged sentences
When a conversion notice is received, the Company has the option to pay or deliver the conversion amount entirely in cash or a combination of cash and shares of the Company’s common stock.
−Removed: As of October 31, 2025 and August 01, 2025, the 2026 Notes are classified as a current liability due to their maturity date in 2026.
+Added: As of January 30, 2026 and August 01, 2025, the 2026 Notes are classified as a current liability due to their maturity date in 2026.
The following table includes the outstanding principal amount and carrying value of the 2026 Notes as of the dates indicated:
−Removed: October 31, 2025
+Added: January 30, 2026
August 01, 2025
6 unchanged sentences
Quarter Ended
+Added: Six Months Ended
Coupon interest
11 unchanged sentences
The conversion rate is subject to customary adjustments upon the occurrence of certain events.
−Removed: On October 31, 2025, the conversion rate was 13.8455 shares of the Company’s common stock per $ 1,000 principal amount of the 2030 Notes.
+Added: On January 30, 2026, the conversion rate was 13.8455 shares of the Company’s common stock per $ 1,000 principal amount of the 2030 Notes.
In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
3 unchanged sentences
The following table includes the outstanding principal amount and carrying value of the 2030 Notes as of the period indicated:
−Removed: October 31, 2025
+Added: January 30, 2026
August 01, 2025
2 unchanged sentences
Net carrying amount
+Added: (2) Debt issuance costs are amortized to interest expense using the effective interest method over the expected life of the 2030 Notes.
The effective rate of the 2030 Notes over their expected life is 2.33 % .
−Removed: The following is a summary of interest expense for the 2030 Notes for the specified period:
+Added: The following is a summary of interest expense for the 2030 Notes for the quarter and first six months ended January 30, 2026:
Quarter Ended
+Added: Six Months Ended
Coupon interest
8 unchanged sentences
The strike price was initially $ 263.39 per share and is subject to certain adjustments under the terms of the Warrant Transactions.
−Removed: As of October 31, 2025, the strike price, as adjusted, of the Warrant Transactions was $ 217.53 per share as a result of dividends declared since the 2026 Notes were issued.
+Added: As of January 30, 2026, the strike price, as adjusted, of the Warrant Transactions was $ 216.01 per share as a result of dividends declared since the 2026 Notes were issued.
As these transactions meet certain accounting criteria, the Convertible Note Hedge Transactions and Warrant Transactions were recorded in shareholders’ equity within additional paid-in capital, not accounted for as derivatives and are not remeasured each reporting period.
24 unchanged sentences
Quarter Ended
+Added: Six Months Ended
Total revenue
11 unchanged sentences
Income (loss) before income taxes
−Removed: Income tax benefit
+Added: Provision for income taxes (income tax benefit)
Segment profit (loss) and consolidated net income (loss)
8 unchanged sentences
Quarter Ended
+Added: Six Months Ended
Total revenue
15 unchanged sentences
The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption.
−Removed: For the quarter ended October 31, 2025, gift card breakage was $ 7,851 .
−Removed: For the quarter ended November 01, 2024, gift card breakage was $ 9,189 .
−Removed: Deferred revenue related to the Company’s gift cards was $ 70,683 and $ 82,452 , respectively, at October 31, 2025 and August 01, 2025 and is included in other current liabilities on the Condensed Consolidated Balance Sheets.
−Removed: Revenue recognized in the Condensed Consolidated Statements of Income for the three months ended October 31, 2025 and November 01, 2024 for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $ 14,091 and $ 14,358 , respectively.
+Added: For the quarter and six months ended January 30, 2026, gift card breakage was $ 266 and $ 8,118 , respectively.
+Added: For the quarter and six months ended January 31, 2025, gift card breakage was $ 363 and $ 9,552 , respectively.
+Added: Deferred revenue related to the Company’s gift cards was $ 96,138 and $ 82,452 , respectively, at January 30, 2026 and August 01, 2025 and is included in other current liabilities on the Condensed Consolidated Balance Sheets.
+Added: Revenue recognized in the Condensed Consolidated Statements of Income for the six months ended January 30, 2026 and January 31, 2025 for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $ 22,714 and $ 23,865 , respectively.
Loyalty Program
7 unchanged sentences
Revenue is recognized for these performance obligations upon redemption of pegs or rewards earned by the customer.
−Removed: As of October 31, 2025 and August 01, 2025, deferred revenue related to the loyalty program was $ 6,091 and $ 5,419 , respectively, and is included in other current liabilities on the Condensed Consolidated Balance Sheets.
+Added: As of January 30, 2026 and August 01, 2025, deferred revenue related to the loyalty program was $ 8,144 and $ 5,419 , respectively, and is included in other current liabilities on the Condensed Consolidated Balance Sheets.
The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases.
25 unchanged sentences
Quarter Ended
+Added: Six Months Ended
Operating cash flow information:
2 unchanged sentences
Right-of-use assets obtained in exchange for new operating lease liabilities
−Removed: Lease modifications or reassessments increasing right-of-use assets
+Added: Lease modifications or reassessments increasing (decreasing) right-of-use assets
Lease modifications removing right-of-use assets
The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of dates indicated:
−Removed: October 31, 2025
−Removed: November 01, 2024
+Added: January 30, 2026
+Added: January 31, 2025
Weighted-average remaining lease term
Weighted-average discount rate
−Removed: The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of October 31, 2025:
+Added: The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of January 30, 2026:
Remainder of 2026
18 unchanged sentences
The principal amount of the 2026 and the 2030 Notes will be settled in cash with any excess conversion value settled in cash or shares of common stock.
−Removed: Accordingly, the 2026 Notes have been excluded from the computation of diluted consolidated net income (loss) per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion prices of $ 155.38 and $ 158.64 , respectively, as of October 31, 2025 and November 01, 2024.
−Removed: Similarly, the 2030 Notes have been excluded from the computation of diluted consolidated net income (loss) per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion price of $ 72.23 as of October 31, 2025.
−Removed: Warrants were excluded from the computation of diluted consolidated net income (loss) per share since the warrants’ strike prices of $ 217.53 and $ 222.10 , respectively, were greater than the average market price of the Company’s common stock during the period as of October 31, 2025 and November 01, 2024.
+Added: Accordingly, the 2026 Notes have been excluded from the computation of diluted consolidated net income (loss) per share because the average market price of the Company’s common stock during the reporting periods did not exceed the conversion prices of $ 154.29 and $ 157.95 , respectively, as of January 30, 2026 and January 31, 2025.
+Added: Similarly, the 2030 Notes have been excluded from the computation of diluted consolidated net income (loss) per share because the average market price of the Company’s common stock during the reporting periods did not exceed the conversion price of $ 72.23 as of January 30, 2026.
+Added: Warrants were excluded from the computation of diluted consolidated net income (loss) per share since the warrants’ strike prices of $ 216.01 and $ 221.13 , respectively, were greater than the average market price of the Company’s common stock during the reporting periods as of January 30, 2026 and January 31, 2025.
See Note 4 for additional information regarding the Company’s convertible senior notes.
1 unchanged sentence
Quarter Ended
+Added: Six Months Ended
Net income (loss) per share numerator
8 unchanged sentences
Related to its insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers.
−Removed: As of October 31, 2025, the Company had $ 8,703 of standby letters of credit related to securing reserved claims under workers’ compensation insurance.
+Added: As of January 30, 2026, the Company had $ 8,703 of standby letters of credit related to securing reserved claims under workers’ compensation insurance.
All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its 2025 Revolving Credit Facility.
3 unchanged sentences
The guarantees have varying terms with the latest expiring in March 2033.
−Removed: As of October 31, 2025, the likelihood of payment by the Company under the guarantees is considered remote.
−Removed: No liability has been recorded in the Condensed Consolidated Balance Sheet as of October 31, 2025.
+Added: As of January 30, 2026, the likelihood of payment by the Company under the guarantees is considered remote.
+Added: No liability has been recorded in the Condensed Consolidated Balance Sheet as of January 30, 2026.
The maximum aggregate potential future payments under the guarantees are estimated to be approximately $ 2,197 .
The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business.
−Removed: The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote that no such liability has been recorded in the Condensed Consolidated Balance Sheet as of October 31, 2025.
+Added: The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote that no such liability has been recorded in the Condensed Consolidated Balance Sheet as of January 30, 2026.
+Added: Subsequent Event
+Added: In March 2026, the Company expects to receive approximately $ 47,400 , net of legal fees, pursuant to a settlement agreement resolving interchange fee litigation.
+Added: The Company plans to record the proceeds in other income in the Consolidated Statement of Income (Loss) in the third quarter of 2026.
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.