Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 6 Months Ended
Apr. 04, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 15—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 Months Ended

 

 

Six Months Ended

 

 

 

April 4, 2026

 

 

March 29, 2025

 

 

April 4, 2026

 

 

March 29, 2025

 

Sales

 

$

184,744

 

 

$

177,134

 

 

$

331,872

 

 

$

352,362

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

      Cost of merchandise and services sold (1)

 

 

131,398

 

 

 

133,188

 

 

 

251,457

 

 

 

260,699

 

      Store labor and fringe

 

 

26,771

 

 

 

28,392

 

 

 

52,687

 

 

 

55,410

 

      Merchant fees

 

 

7,068

 

 

 

7,245

 

 

 

12,311

 

 

 

13,848

 

      Direct store expense

 

 

9,112

 

 

 

9,466

 

 

 

17,043

 

 

 

17,950

 

      Marketing

 

 

5,663

 

 

 

4,241

 

 

 

9,775

 

 

 

7,498

 

      Information technology

 

 

8,628

 

 

 

7,530

 

 

 

16,506

 

 

 

14,653

 

      Other segment expense (2)

 

 

34,964

 

 

 

35,451

 

 

 

69,553

 

 

 

70,382

 

      Impairment

 

 

(1,174

)

 

 

—

 

 

 

8,974

 

 

 

—

 

      Interest expense

 

 

14,364

 

 

 

15,897

 

 

 

27,900

 

 

 

31,661

 

      Income tax expense (benefit)

 

 

447

 

 

 

(12,956

)

 

 

1,134

 

 

 

(23,855

)

Segment net loss

 

$

(52,497

)

 

$

(51,320

)

 

$

(135,468

)

 

$

(95,884

)

 

(1)
Included within cost of merchandise and services sold and other segment expenses is depreciation and amortization expense of $4.4 million and $4.4 million for the three months ended April 4, 2026 and March 29, 2025, and $9.1 million and $9.3 million for the six months ended April 4, 2026 and March 29, 2025, as described in Note 2—Summary of Significant Accounting Policies. Additionally, included in cost of merchandise and services sold is $(0.9) million of inventory impairment reserve adjustment for the three months ended April 4, 2026 and $5.5 million for the six months ended April 4, 2026. There was no impairment in either of the prior year periods.
(2)
Included within other segment expense are items related to corporate payroll and bonus expense and general and regional administrative expenses.