Quarterly report [Sections 13 or 15(d)]

Segment Reporting (Tables)

v3.26.1
Segment Reporting (Tables)
 9 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Summary of Segment Expenses and Other Segment Items

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

July 4, 2026

 

 

June 28, 2025

 

 

July 4, 2026

 

 

June 28, 2025

 

Sales

 

$

458,493

 

 

$

500,347

 

 

$

790,365

 

 

$

852,709

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

      Cost of merchandise and services sold (1)

 

 

291,368

 

 

 

302,457

 

 

 

542,825

 

 

 

563,156

 

      Store labor and fringe

 

 

34,179

 

 

 

35,363

 

 

 

86,866

 

 

 

90,773

 

      Merchant fees

 

 

18,915

 

 

 

21,017

 

 

 

31,226

 

 

 

34,865

 

      Direct store expense

 

 

11,278

 

 

 

10,110

 

 

 

28,321

 

 

 

28,060

 

      Marketing

 

 

17,076

 

 

 

17,502

 

 

 

26,851

 

 

 

25,000

 

      Information technology

 

 

9,641

 

 

 

8,196

 

 

 

26,147

 

 

 

22,849

 

      Legal settlement gain

 

 

(17,504

)

 

 

—

 

 

 

(17,504

)

 

 

—

 

      Other segment expense (2)

 

 

32,787

 

 

 

37,384

 

 

 

102,340

 

 

 

107,766

 

      Impairment

 

 

(708

)

 

 

—

 

 

 

8,266

 

 

 

—

 

      Interest expense

 

 

14,145

 

 

 

15,764

 

 

 

42,045

 

 

 

47,425

 

      Income tax expense (benefit)

 

 

(478

)

 

 

30,824

 

 

 

656

 

 

 

6,969

 

Segment net income (loss)

 

$

47,794

 

 

$

21,730

 

 

$

(87,674

)

 

$

(74,154

)

 

(1)
Included within cost of merchandise and services sold and other segment expenses is depreciation and amortization expense of $4.6 million and $5.0 million for the three months ended July 4, 2026 and June 28, 2025, and $13.7 million and $14.3 million for the nine months ended July 4, 2026 and June 28, 2025, as described in Note 2—Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended October 4, 2025. Additionally, included in cost of merchandise and services sold is $(0.1) million of inventory impairment reserve adjustment for the three months ended July 4, 2026 and $5.4 million for the nine months ended July 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.