Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.4
Segment Reporting
 3 Months Ended
Jan. 03, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 14—Segment Reporting

We manage our business activities on a consolidated basis and operate as a single operating segment. We derive our revenue in the United States by providing pool related goods and services to our customers through a variety of channels. The accounting policies of our operating segment are the same as those that are described in Note 2—Summary of Significant Accounting Policies.

Our chief operating decision maker (“CODM”) is our chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net income to assess financial performance and allocate resources. The CODM does not review assets in evaluating the results of our operating segment, and therefore such information is not presented.

The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM (in thousands):

 

 

 

Three Month Ended

 

 

 

January 3, 2026

 

 

December 28, 2024

 

Sales

 

$

147,128

 

 

$

175,228

 

Less:

 

 

 

 

 

 

      Cost of merchandise and services sold (1)

 

 

120,059

 

 

 

127,511

 

      Store labor and fringe

 

 

25,916

 

 

 

27,018

 

      Merchant fees

 

 

5,243

 

 

 

6,603

 

      Direct store expense

 

 

7,931

 

 

 

8,484

 

      Marketing

 

 

4,112

 

 

 

3,257

 

      Information technology

 

 

7,878

 

 

 

7,123

 

      Other segment expense (2)

 

 

34,589

 

 

 

34,932

 

      Impairment

 

 

10,148

 

 

 

—

 

      Interest expense

 

 

13,536

 

 

 

15,763

 

      Income tax expense (benefit)

 

 

687

 

 

 

(10,899

)

Segment net loss

 

$

(82,971

)

 

$

(44,564

)

 

(1)
Included within cost of merchandise and services sold and other segment expenses is depreciation and amortization expense of $4.7 million and $4.9 million for the three months ended January 3, 2026 and December 28, 2024, as described in Note 2—Summary of Significant Accounting Policies. Additionally, included in cost of merchandise and services sold is $6.4 million of inventory impairment for the three months ended January 3, 2026. There was no impairment as of December 28, 2024.
(2)
Included within other segment expense are items related to corporate payroll and bonus expense and general and regional administrative expenses.