Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 29, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LESL | |
Entity Registrant Name | LESLIE’S, INC. | |
Entity Central Index Key | 0001821806 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 184,912,804 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39667 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8397425 | |
Entity Address, Address Line One | 2005 East Indian School Road | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85016 | |
City Area Code | 602 | |
Local Phone Number | 366-3999 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Current assets | |||
Cash and cash equivalents | $ 74,438 | $ 55,420 | $ 19,430 |
Accounts and other receivables, net | 45,817 | 29,396 | 49,263 |
Inventories | 302,209 | 311,837 | 436,557 |
Prepaid expenses and other current assets | 34,545 | 23,633 | 31,454 |
Total current assets | 457,009 | 420,286 | 536,704 |
Property and equipment, net | 94,135 | 90,285 | 85,396 |
Operating lease right-of-use assets | 282,556 | 251,460 | 250,378 |
Goodwill and other intangibles, net | 216,041 | 218,855 | 219,835 |
Deferred tax assets | 15,409 | 7,598 | 194 |
Other assets | 40,038 | 45,951 | 44,918 |
Total assets | 1,105,188 | 1,034,435 | 1,137,425 |
Current liabilities | |||
Accounts payable | 108,935 | 58,556 | 147,436 |
Accrued expenses and other current liabilities | 107,208 | 90,598 | 95,074 |
Operating lease liabilities | 61,638 | 62,794 | 61,342 |
Income taxes payable | 0 | 5,782 | 3,345 |
Current portion of long-term debt | 8,100 | 8,100 | 8,100 |
Total current liabilities | 285,881 | 225,830 | 315,297 |
Operating lease liabilities, noncurrent | 216,756 | 193,222 | 193,004 |
Revolving Credit Facility | 0 | 0 | 31,000 |
Long-term debt, net | 768,598 | 773,276 | 774,884 |
Other long-term liabilities | 2,110 | 3,469 | 3,050 |
Total liabilities | 1,273,345 | 1,195,797 | 1,317,235 |
Commitments and contingencies | |||
Stockholders’ deficit | |||
Common stock, $0.001 par value, 1,000,000,000 shares authorized and 184,912,804, 184,333,670, and 184,004,936 issued and outstanding as of June 29, 2024, September 30, 2023, and July 1, 2023, respectively. | 185 | 184 | 184 |
Additional paid in capital | 105,940 | 99,280 | 97,313 |
Retained deficit | (274,282) | (260,826) | (277,307) |
Total stockholders’ deficit | (168,157) | (161,362) | (179,810) |
Total liabilities and stockholders’ deficit | $ 1,105,188 | $ 1,034,435 | $ 1,137,425 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 184,912,804 | 184,333,670 | 184,004,936 |
Common stock, shares outstanding | 184,912,804 | 184,333,670 | 184,004,936 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Sales | $ 569,638 | $ 610,891 | $ 932,262 | $ 1,018,839 |
Cost of merchandise and services sold | 340,798 | 359,295 | 598,686 | 630,777 |
Gross profit | 228,840 | 251,596 | 333,576 | 388,062 |
Selling, general and administrative expenses | 131,145 | 135,789 | 302,879 | 324,427 |
Operating income | 97,695 | 115,807 | 30,697 | 63,635 |
Other expense: | ||||
Interest expense | 18,156 | 17,675 | 53,380 | 48,282 |
Total other expense | 18,156 | 17,675 | 53,380 | 48,282 |
Income (loss) before taxes | 79,539 | 98,132 | (22,683) | 15,353 |
Income tax expense (benefit) | 18,889 | 25,585 | (9,227) | 4,592 |
Net income (loss) | $ 60,650 | $ 72,547 | $ (13,456) | $ 10,761 |
Earnings per share: | ||||
Basic | $ 0.33 | $ 0.39 | $ (0.07) | $ 0.06 |
Diluted | $ 0.33 | $ 0.39 | $ (0.07) | $ 0.06 |
Weighted average shares outstanding: | ||||
Basic | 184,834 | 183,932 | 184,614 | 183,725 |
Diluted | 184,861 | 184,760 | 184,614 | 184,752 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Deficit |
Beginning Balance at Oct. 01, 2022 | $ (197,951) | $ 183 | $ 89,934 | $ (288,068) |
Beginning Balance, shares at Oct. 01, 2022 | 183,481 | |||
Issuance of common stock under the Plan | 1 | $ 1 | 0 | 0 |
Issuance of common stock under the Plan, shares | 643 | |||
Equity-based compensation | 9,159 | $ 0 | 9,159 | 0 |
Restricted stock units surrendered in lieu of withholding taxes | (1,780) | $ 0 | (1,780) | 0 |
Restricted stock units surrendered in lieu of withholding taxes, shares | (119) | |||
Net income (loss) | 10,761 | $ 0 | 0 | 10,761 |
Ending Balance at Jul. 01, 2023 | (179,810) | $ 184 | 97,313 | (277,307) |
Ending Balance, shares at Jul. 01, 2023 | 184,005 | |||
Beginning Balance at Apr. 01, 2023 | (254,965) | $ 184 | 94,705 | (349,854) |
Beginning Balance, shares at Apr. 01, 2023 | 183,843 | |||
Issuance of common stock under the Plan, shares | 166 | |||
Equity-based compensation | 2,649 | $ 0 | 2,649 | 0 |
Restricted stock units surrendered in lieu of withholding taxes | (41) | $ 0 | (41) | 0 |
Restricted stock units surrendered in lieu of withholding taxes, shares | (4) | |||
Net income (loss) | 72,547 | $ 0 | 0 | 72,547 |
Ending Balance at Jul. 01, 2023 | (179,810) | $ 184 | 97,313 | (277,307) |
Ending Balance, shares at Jul. 01, 2023 | 184,005 | |||
Beginning Balance at Sep. 30, 2023 | (161,362) | $ 184 | 99,280 | (260,826) |
Beginning Balance, shares at Sep. 30, 2023 | 184,334 | |||
Issuance of common stock under the Plan | 1 | $ 1 | 0 | 0 |
Issuance of common stock under the Plan, shares | 727 | |||
Equity-based compensation | 7,629 | $ 0 | 7,629 | 0 |
Restricted stock units surrendered in lieu of withholding taxes | (969) | $ 0 | (969) | 0 |
Restricted stock units surrendered in lieu of withholding taxes, shares | (148) | |||
Net income (loss) | (13,456) | $ 0 | 0 | (13,456) |
Ending Balance at Jun. 29, 2024 | (168,157) | $ 185 | 105,940 | (274,282) |
Ending Balance, shares at Jun. 29, 2024 | 184,913 | |||
Beginning Balance at Mar. 31, 2024 | (230,972) | $ 185 | 103,775 | (334,932) |
Beginning Balance, shares at Mar. 31, 2024 | 184,743 | |||
Issuance of common stock under the Plan, shares | 186 | |||
Equity-based compensation | 2,246 | $ 0 | 2,246 | 0 |
Restricted stock units surrendered in lieu of withholding taxes | (81) | $ 0 | (81) | 0 |
Restricted stock units surrendered in lieu of withholding taxes, shares | (16) | |||
Net income (loss) | 60,650 | $ 0 | 0 | 60,650 |
Ending Balance at Jun. 29, 2024 | $ (168,157) | $ 185 | $ 105,940 | $ (274,282) |
Ending Balance, shares at Jun. 29, 2024 | 184,913 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Operating Activities | ||
Net income (loss) | $ (13,456) | $ 10,761 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 24,420 | 25,569 |
Equity-based compensation | 7,629 | 9,159 |
Amortization of deferred financing costs and debt discounts | 1,647 | 1,541 |
Provision for doubtful accounts | 1,007 | 25 |
Deferred income taxes | (7,811) | 1,074 |
Loss on asset dispositions | 52 | 103 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (17,428) | (3,399) |
Inventories | 9,628 | (70,393) |
Prepaid expenses and other current assets | (10,912) | (9,614) |
Other assets | 6,561 | (8,864) |
Accounts payable | 50,379 | (9,019) |
Accrued expenses and other current liabilities | 14,428 | (12,827) |
Income taxes payable | (5,782) | (9,166) |
Operating lease assets and liabilities, net | 48 | 237 |
Net cash provided by (used in) operating activities | 60,410 | (74,813) |
Investing Activities | ||
Purchases of property and equipment | (34,324) | (26,733) |
Business acquisitions, net of cash acquired | 0 | (15,549) |
Proceeds from asset dispositions | 77 | 1,384 |
Net cash used in investing activities | (34,247) | (40,898) |
Financing Activities | ||
Borrowings on Revolving Credit Facility | 140,500 | 264,000 |
Payments on Revolving Credit Facility | (140,500) | (233,000) |
Repayment of long-term debt | (6,075) | (6,075) |
Payment of deferred financing costs | (101) | (297) |
Payments of employee tax withholdings related to restricted stock vesting | (969) | (1,780) |
Net cash (used in) provided by financing activities | (7,145) | 22,848 |
Net increase (decrease) in cash and cash equivalents | 19,018 | (92,863) |
Cash and cash equivalents, beginning of period | 55,420 | 112,293 |
Cash and cash equivalents, end of period | 74,438 | 19,430 |
Supplemental Information: | ||
Cash paid for interest | 51,762 | 46,413 |
Cash paid for income taxes, net of refunds received | $ 6,702 | $ 12,648 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | |||||
Net Income (Loss) | $ 60,650 | $ 60,650 | $ 72,547 | $ (13,456) | $ 10,761 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business and Operations
Business and Operations | 9 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Business and Operations | Note 1—Business and Operations Leslie’s, Inc. (“Leslie’s,” “we,” “our,” “us,” “its,” or the “Company”) is the leading direct-to-consumer pool and spa care brand. We market and sell pool and spa supplies and related products and services, which primarily consist of maintenance items such as chemicals, equipment and parts, and cleaning accessories, as well as safety, recreational, and fitness-related products. We currently market our products thr ough over 1,000 company-operated locations in 39 states and e -commerce websites. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The interim condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2023. Reclassification Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on our results of operations. Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to the three months ended June 29, 2024 and July 1, 2023 refer to the 13 weeks ended June 29, 2024 and July 1, 2023, respectively. References to the nine months ended June 29, 2024 and July 1, 2023 refer to the 26 weeks ended June 29, 2024 and July 1, 2023, respectively. Use of Estimates Management is required to make certain estimates and assumptions during the preparation of the condensed consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the condensed consolidated financial statements. They also impact the reported amount of net income (loss) during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying condensed consolidated financial statements include inventory reserves, lease assumptions, vendor rebate programs, our loyalty program, the determination of income taxes payable and deferred income taxes, sales returns reserve, self-insurance liabilities, the recoverability of intangible assets and goodwill, fair value of assets acquired in a business combination, and contingent consideration related to business combinations. Seasonality Our business is highly seasonal. Sales and earnings are highest during our third and fourth fiscal quarters, being April through September, which represent the peak months of swimming pool use. Sales are substantially lower during our first and second fiscal quarters. Summary of Other Significant Accounting Policies There have been no changes to our Significant Accounting Policies since our Annual Report on Form 10-K for the year ended September 30, 2023. For more information regarding our Significant Accounting Policies and Estimates, see Note 2—Summary of Significant Accounting Policies included in our Annual Report on Form 10-K for the year ended September 30, 2023. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We are currently evaluating the ASU to determine its impact on our disclosures; however, we do not expect there to be a material impact. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which require an entity to disclose the title and position of the Chief Operating Decision Maker (“CODM”) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. This update is effective for annual periods beginning after December 15, 2023 and interim disclosures beginning after December 15, 2024, though early adoption is permitted. This update is effective retrospectively upon adoption to all periods presented in the financial statements. We are currently evaluating the ASU to determine its impact on our disclosures; however, we do not expect there to be a material impact. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 9 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | Note 3 —Goodwill and Other Intangibles, Net Goodwill The following table details the changes in goodwill (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Balance at beginning of the period $ 180,698 $ 173,513 $ 173,513 Acquisitions, net of measurement period adjustments — 7,185 7,185 Balance at the end of the period $ 180,698 $ 180,698 $ 180,698 Other Intangible Assets Other intangible assets consisted of the following as of June 29, 2024 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.2 $ 22,100 $ ( 4,861 ) $ 17,239 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 4.6 2,260 ( 1,317 ) 943 Consumer relationships 6.8 15,400 ( 7,685 ) 7,715 Other intangibles 4.3 4,000 ( 3,904 ) 96 Total $ 53,110 $ ( 17,767 ) $ 35,343 Other intangible assets consisted of the following as of September 30, 2023 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.8 $ 26,740 $ ( 7,958 ) $ 18,782 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 5.4 8,683 ( 7,585 ) 1,098 Consumer relationships 7.4 24,100 ( 15,317 ) 8,783 Other intangibles 5.1 6,620 ( 6,476 ) 144 Total $ 75,493 $ ( 37,336 ) $ 38,157 Other intangible assets consisted of the following as of July 1, 2023 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 10.1 $ 26,740 $ ( 7,436 ) $ 19,304 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 5.6 8,683 ( 7,534 ) 1,149 Consumer relationships 7.6 24,100 ( 14,935 ) 9,165 Other intangibles 5.3 6,620 ( 6,451 ) 169 Total $ 75,493 $ ( 36,356 ) $ 39,137 Amortization expense was $ 0.9 million and $ 1.1 million for the three months ended June 29, 2024 and July 1, 2023, respectively. Amortization expense was $ 2.8 million and $ 3.4 million for the nine months ended June 29, 2024 and July 1, 2023, respectively. No impairment of goodwill or other intangible assets was recorded during the three and nine months ended June 29, 2024 and July 1, 2023. The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our condensed consolidated balance sheet as of June 29, 2024 (in thousands): Amount Remainder of fiscal 2024 $ 914 2025 3,632 2026 3,385 2027 3,262 2028 3,154 Thereafter 11,646 Total $ 25,993 |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 9 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 4—Accounts and Other Receivables, Net Accounts and other receivables, net consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Vendor and other rebates receivable $ 20,393 $ 6,818 $ 23,298 Customer receivables 21,592 18,334 21,175 Other receivables 6,031 5,900 6,436 Allowance for doubtful accounts ( 2,199 ) ( 1,656 ) ( 1,646 ) Total $ 45,817 $ 29,396 $ 49,263 |
Inventories
Inventories | 9 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5—Inventories Inventories consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Raw materials $ 4,787 $ 3,076 $ 8,342 Finished goods 297,422 308,761 428,215 Total $ 302,209 $ 311,837 $ 436,557 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jun. 29, 2024 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6—Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Prepaid insurance $ 3,449 $ 1,236 $ 3,629 Prepaid occupancy costs 2,173 1,967 1,955 Prepaid sales tax 6,788 4,060 7,679 Prepaid maintenance 5,038 4,426 2,492 Prepaid other 5,626 1,813 1,816 Income taxes receivable 2,337 — — Other current assets 9,134 10,131 13,883 Total $ 34,545 $ 23,633 $ 31,454 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Jun. 29, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 7—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Accrued payroll and employee benefits 12,484 18,558 14,437 Customer deposits 5,428 7,356 7,477 Interest 555 581 630 Inventory related accruals 14,323 13,843 23,635 Loyalty and deferred revenue 6,685 6,785 5,932 Sales tax 15,442 9,146 15,729 Self-insurance reserves 11,228 9,138 9,517 Other accrued liabilities 41,063 25,191 17,717 Total $ 107,208 $ 90,598 $ 95,074 As of June 29, 2024, September 30, 2023, and July 1, 2023, capital expenditures included in other accrued liabilities were $ 2.0 million, $ 1.5 million, and $ 0.9 million, respectively. |
Long-Term Debt, Net
Long-Term Debt, Net | 9 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | Note 8—Long-Term Debt, Net Our long-term debt, net consisted of the following (in thousands, except interest rates): Effective (1) June 29, 2024 September 30, 2023 July 1, 2023 Term Loan 8.19 % (2) $ 783,675 $ 789,750 $ 791,775 Revolving Credit Facility 6.72 % (3) — — 31,000 Total long-term debt 783,675 789,750 822,775 Less: current portion of long-term debt ( 8,100 ) ( 8,100 ) ( 8,100 ) Less: noncurrent Revolving Credit Facility — — ( 31,000 ) Less: unamortized discount ( 1,944 ) ( 2,316 ) ( 2,439 ) Less: deferred financing charges ( 5,033 ) ( 6,058 ) ( 6,352 ) Total long-term debt, net $ 768,598 $ 773,276 $ 774,884 (1) Effective interest rates as of June 29, 2024. (2) Carries interest at a specified margin over the Term Secured Overnight Financing Rate (“SOFR”) between 2.50 % and 2.75 % with a minimum SOFR of 0.50 % pl us a SOFR adjustment. (3) Carries interest at a specific margin between 0.25 % and 0.75 % with respect to base rate loans and between 1.25 % and 1.75 % with respect to Term SOFR loans, with a SOFR adjustment. Term Loan In June 2023, we entered into Amendment No. 1 (“Term Loan Amendment”) to our Amended and Restated Term Loan Credit Agreement (“Term Loan”). The Term Loan Amendment (i) replaced the existing LIBOR-based interest rate benchmark with a Term SOFR-based benchmark and (ii) amended certain other related terms and provisions, including the addition of a SOFR adjustment of (a) 0.11448 % per annum for one-month, (b) 0.26161 % per annum for three months, and (c) 0.42826 % per annum for six months. The other material terms of the Term Loan remained substantially unchanged. The Term Loan provides for an $ 810.0 million secured term loan facility with a maturity date of March 9, 2028 . Borrowings under the Term Loan have an initial applicable rate, at our option, of (i) 2.75 % for loans that are Term SOFR loans and (ii) 1.75 % for loans that are ABR loans (the “Applicable Rate”). The Applicable Rate of the Term Loan is based on our first lien leverage ratio as follows: (a) if the first lien leverage ratio is greater than 2.75 to 1.00 , the applicable rate will be 2.75 % for Term SOFR loans and 1.75 % for ABR loans and (b) if the first lien leverage ratio is less than or equal to 2.75 to 1.00 , the applicable rate will be 2.50 % for Term SOFR loans and 1.50 % for ABR loans. For Term SOFR loans, the loans will bear interest at the Term SOFR-based benchmark rate plus the Applicable Rate and the SOFR adjustment, as defined above. Revolving Credit Facility In March 2023, we entered into Amendment No. 6 to our $ 200.0 million credit facility (“Revolving Credit Facility”) maturing on August 13, 2025 (the “Amendment”). The Amendment (i) increased the revolving credit commitments under the Revolving Credit Facility in the amount of $ 50.0 million, such that the aggregate commitments are $ 250.0 million and (ii) replaced the existing LIBOR-based rate with a Term SOFR-based rate, as an interest rate benchmark. The Revolving Credit Facility has (i) an applicable margin on base rate loans with a range of 0.25 % to 0.75 %, (ii) an applicable margin on Term SOFR loans with a range of 1.25 % and 1.75 %, (iii) a SOFR Adjustment of 0.10 % for all borrowing periods, (iv) a floor of 0 % per annum, and (v) a commitment fee rate of 0.25 % per annum. The other material terms of the Revolving Credit Facility prior to the Amendment remained substantially unchanged. On April 3, 2024, we entered into Amendment No. 7 to our Revolving Credit Facility (the “2024 Amendment”). The 2024 Amendment (i) extended the maturity date to April 3, 2029 and (ii) revised the applicable margin on Term SOFR and base rate loans. The other material terms of the Revolving Credit Facility prior to the 2024 Amendment remained substantially unchanged. As of June 29, 2024 and September 30, 2023, no amounts were outstanding on the Revolving Credit Facility. The amount available under our Revolving Credit Facility was reduced by $ 10.9 million and $ 11.4 million of existing standby letters of credit as of June 29, 2024 and September 30, 2023, respectively. Representations and Covenants Substantially all of our assets are pledged as collateral to secure our indebtedness. The Term Loan does not require us to comply with any financial covenants. The Term Loan and the Revolving Credit Facility contain customary representations and warranties, covenants, and conditions to borrowing. No event of default occurred as of June 29, 2024, September 30, 2023, and July 1, 2023. Future Debt Maturities The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as o f June 29, 2024 (in thousands): Amount Remainder of fiscal 2024 $ 2,025 2025 10,125 2026 8,100 2027 8,100 2028 755,325 Thereafter — Total $ 783,675 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9—Income Taxes Our effective income tax rate was a benefit of 40.7 % for the nine months ended June 29, 2024, compared to 29.9 % for the nine months ended July 1, 2023. The difference between the statutory rate and our effective rate for the nine months ended June 29, 2024 and July 1, 2023 was primarily attributable to state taxes and net income tax expenses due to equity-based compensation awards. Our effective income tax rate can fluctuate due to factors including valuation allowances, changes in tax laws, federal and state audits, and the impact of other discrete items. |
Commitments & Contingencies
Commitments & Contingencies | 9 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | Note 10—Commitments & Contingencies Contingencies On September 8, 2023, a class action complaint for violation of federal securities laws was filed by West Palm Beach Police Pension Fund in the U.S. District Court for the District of Arizona against us, our Chief Executive Officer and our former Chief Financial Officer. On December 1, the court appointed lead plaintiff, and on February 20, 2024, the lead plaintiff filed an amended and consolidated complaint. The amended and consolidated complaint alleges that we violated federal securities laws by issuing materially false and misleading statements that failed to disclose adverse facts about our financial guidance, business operations and prospects, and seeks class certification, damages, interest, attorneys’ fees, and other relief. Due to the early stage of this proceeding, we cannot reasonably estimate the potential range of loss, if any. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. On March 13, 2024 and March 14, 2024, derivative actions were separately filed in the U.S. District Court for the District of Arizona and Delaware by John Clemens and Sally Flynn, on behalf of the Company, against our officers and directors. Both complaints include substantially the same allegations as those in the securities class action, and allege that the defendant directors and officers harmed the Company by either making false or misleading statements, or allowing false or misleading statements to be made. The complaints seek the award of damages, costs and attorneys’ fees, and other declaratory relief. The parties in both the Arizona and Delaware derivative actions have filed stipulations to stay the actions pending resolution of the securities class action. Due to the early stage of these proceedings, we cannot reasonably estimate the potential range of loss, if any. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. We are defendants in lawsuits or potential claims encountered in the normal course of business. When the potential liability from a matter can be estimated and the loss is considered probable, we record the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations and claims, the ultimate outcome may differ from the estimates. We do not expect that the resolutions of any of these matters will have a material effect on our condensed consolidated financial position or results of operations. We did not record any material loss contingencies as of June 29, 2024, September 30, 2023, and July 1, 2023. Our workers’ compensation insurance program, general liability insurance pr ogram, and employee group medical plan have self-insurance retention features of up to $ 0.4 million per event as of June 29, 2024, September 30, 2023, and July 1, 2023. We had standby letters of credit outstanding in the amount of $ 10.9 million as of June 29, 2024 for the purpose of securing such obligations under our workers’ compensation self-insurance programs. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 29, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11—Related Party Transactions On December 14, 2021, the Company entered into a share repurchase agreement with Bubbles Investor Aggregator, L.P. and Explorer Investment Pte. Ltd. (together, the “Selling Stockholders”), each a greater than 5 % beneficial owner of the Company’s common stock at the time of the transaction, providing for the repurchase by the Company from the Selling Stockholders of an aggregate of 7.5 million shares of common stock, conditioned on the closing of a contemporaneous secondary public offering (the “Offering”). The price per share of repurchased common stock paid by the Company was $ 20.25 , which represents the per share price at which shares of common stock were sold to the public in the Offering less the underwriting discount. The repurchase transaction closed on December 16, 2021. See Note 12—Share Repurchase Program for detailed information regarding our share repurchase program. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Share Repurchase Program | Note 12—Share Repurchase Program On December 3, 2021, the board of directors authorized a share repurchase program for up to an aggregate of $ 300 million of the Company’s outstanding shares of common stock over a period of three years , expiring December 31, 2024 . The amount, price, manner, and timing of repurchases are determined by the Company in its discretion and depends on a number of factors, including legal requirements, price, economic and market conditions, the Company’s financial condition, capital requirements, cash flows, results of operations, future business prospects, and other factors our management may deem relevant. The share repurchase program may be amended, suspended, or discontinued at any time. Shares may be repurchased from time-to-time using a variety of methods, including on the open market and/or in privately negotiated transactions, including under plans complying with Rule 10b5-1 under the Exchange Act, as part of accelerated share repurchases, and other methods. On December 16, 2021, the Company repurchased and retired 7.5 million shares of common stock at a price per share of $ 20.25 under the program. The Company paid $ 151.9 million ($ 152.1 million including offering costs) to fund the share repurchase using existing cash on hand. The Company accounted for the share repurchase and retirement of shares under the cost method by deducting its par value from common stock, reducing additional paid-in-capital by $ 127.5 million (using the share price when the shares were originally issued), and increasing retained deficit by the remaining excess cost of $ 24.4 million. As of June 29, 2024, approximately $ 147.7 million remained available for future purchases under our share repurchase program. The following table presents information about our repurchases of common stock under our share repurchase program (in thousands): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Total number of shares repurchased — — — 27 Total amount paid for shares repurchased $ — $ — $ — $ 419 |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 13—Equity-Based Compensation Equity-Based Compensation 2020 Omnibus Incentive Plan In October 2020, we adopted the Leslie’s, Inc. 2020 Omnibus Incentive Plan (the “Plan”). The Plan was most recently amended and restated in March 2024. The Plan provides for the grant of awards such as non-qualified stock options to purchase Leslie’s common stock (each, a “Stock Option”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) which may settle in Leslie’s, Inc. common stock to our directors, executives, and eligible employees of the Company. T he vesting of the Company’s outstanding and unvested Stock Options, RSUs, and PSUs is contingent upon each holder’s continued service through the date of each applicable vesting event. On March 15, 2024 the Company’s shareholders approved an amendment to the Plan increasing the shares of common stock available for future grants by 7.2 million shares. As of June 29, 2024, we had approximately 14.4 million shares of common stock available for future grants under the Plan. As of June 29, 2024, the aggregate unamortized value of all outstanding equity-based compensation awards was approximate ly $ 18.6 million, which is expected to be recognized over a weighted average perio d of approximately 2.5 years. Stock Options Stock Options granted under the Plan generally expire ten years from the date of grant and consist of Stock Options that vest upon the satisfaction of time-based requirements. The following tables summarizes our Stock Option activity under the Plan during the nine months ended June 29, 2024 (in thousands, except per share amounts): Number of Options Weighted Average Outstanding, Beginning as of October 1, 2023 3,308 $ 18.10 Granted — — Exercised — — Forfeited/Expired ( 1,165 ) 17.76 Balance, Ending as of June 29, 2024 2,143 $ 18.29 Vested and exercisable as of June 29, 2024 1,689 $ 18.31 As of June 29, 2024 Aggregate intrinsic value of options outstanding $ — Unamortized value of unvested stock options $ 1,060 Weighted average years that expense is expected to be recognized 0.5 Weighted average remaining contractual years outstanding 6.8 Restricted Stock Units and Performance Units RSUs represent grants that vest ratably upon the satisfaction of time-based requirements. PSUs represent grants potentially issuable in the future based upon the Company’s achievement of certain performance conditions. The fair value of our RSUs and PSUs are calculated based on the Company’s stock price on the date of the grant. The following table summarizes our RSU and PSU activity under the Plan during the nine months ended June 29, 2024 (in thousands, except per share amounts): Number of RSUs/PSUs Weighted Average Outstanding, Beginning as of October 1, 2023 2,084 $ 11.92 Granted 2,086 5.45 Vested ( 727 ) 9.23 Forfeited ( 467 ) 10.90 Balance, Ending June 29, 2024 2,976 $ 8.20 During the nine months ended June 29, 2024, 0.4 million PSUs were granted subject to the Company achieving certain adjusted net income and sales performance targets on a cumulative basis during fiscal years 2024 and 2025. The criteria are based on a range of these performance targets in which participants may earn between 0 % to 200 % of the base number of awards granted. The weighted average grant date fair value of the PSUs was $ 5.43 . The Company assesses the attainment of target payout rates each reporting period. Equity-based compensation expense is recognized for awards deemed probable of vesting. In December 2022, the Company granted 0.3 million PSUs subject to the Company achieving certain adjusted net income and sales performance targets on a cumulative basis during each of the fiscal years 2023, 2024, and 2025. The criteria are based on a range of these performance targets in which participants may earn between 0 % to 200 % of the base number of awards granted. As of June 29, 2024, the performance targets had not been met for the PSUs to vest, and no PSUs had vested as of such date. As of June 29, 2024 Unamortized value of unvested RSUs/PSUs $ 17,548 Weighted average period (years) expense is expected to be recognized 2.6 During the three months ended June 29, 2024 and July 1, 2023, equity-based compensation expense w as $ 2.2 million and $ 2.6 million, respectively. During the nine months ended June 29, 2024 and July 1, 2023, equity-based compensation expense was $ 7.6 million and $ 9.2 million, respectively. Equity-based compensation expense is reported in selling, general, & administrative expenses (“SG&A”) in our condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14—Earnings Per Share The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding ( in thousands, except per share amounts): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Numerator: Net income (loss) $ 60,650 $ 72,547 $ ( 13,456 ) $ 10,761 Denominator: Weighted average shares outstanding - basic 184,834 183,932 184,614 183,725 Effect of dilutive securities: Stock Options — — — — RSUs 27 828 — 1,027 Weighted average shares outstanding - diluted 184,861 184,760 184,614 184,752 Basic earnings per share $ 0.33 $ 0.39 $ ( 0.07 ) $ 0.06 Diluted earnings per share $ 0.33 $ 0.39 $ ( 0.07 ) $ 0.06 The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Stock Options 2,253 3,502 2,780 3,591 RSUs 2,351 1,587 1,459 778 Total 4,604 5,089 4,239 4,369 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The interim condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2023. |
Reclassification | Reclassification Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on our results of operations. |
Fiscal Periods | Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to the three months ended June 29, 2024 and July 1, 2023 refer to the 13 weeks ended June 29, 2024 and July 1, 2023, respectively. References to the nine months ended June 29, 2024 and July 1, 2023 refer to the 26 weeks ended June 29, 2024 and July 1, 2023, respectively. |
Use of Estimates | Use of Estimates Management is required to make certain estimates and assumptions during the preparation of the condensed consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the condensed consolidated financial statements. They also impact the reported amount of net income (loss) during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying condensed consolidated financial statements include inventory reserves, lease assumptions, vendor rebate programs, our loyalty program, the determination of income taxes payable and deferred income taxes, sales returns reserve, self-insurance liabilities, the recoverability of intangible assets and goodwill, fair value of assets acquired in a business combination, and contingent consideration related to business combinations. |
Seasonality | Seasonality Our business is highly seasonal. Sales and earnings are highest during our third and fourth fiscal quarters, being April through September, which represent the peak months of swimming pool use. Sales are substantially lower during our first and second fiscal quarters. |
Summary of Other Significant Accounting Policies | Summary of Other Significant Accounting Policies There have been no changes to our Significant Accounting Policies since our Annual Report on Form 10-K for the year ended September 30, 2023. For more information regarding our Significant Accounting Policies and Estimates, see Note 2—Summary of Significant Accounting Policies included in our Annual Report on Form 10-K for the year ended September 30, 2023. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We are currently evaluating the ASU to determine its impact on our disclosures; however, we do not expect there to be a material impact. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which require an entity to disclose the title and position of the Chief Operating Decision Maker (“CODM”) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. This update is effective for annual periods beginning after December 15, 2023 and interim disclosures beginning after December 15, 2024, though early adoption is permitted. This update is effective retrospectively upon adoption to all periods presented in the financial statements. We are currently evaluating the ASU to determine its impact on our disclosures; however, we do not expect there to be a material impact. |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following table details the changes in goodwill (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Balance at beginning of the period $ 180,698 $ 173,513 $ 173,513 Acquisitions, net of measurement period adjustments — 7,185 7,185 Balance at the end of the period $ 180,698 $ 180,698 $ 180,698 |
Summary of Other Intangible Assets | Other intangible assets consisted of the following as of June 29, 2024 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.2 $ 22,100 $ ( 4,861 ) $ 17,239 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 4.6 2,260 ( 1,317 ) 943 Consumer relationships 6.8 15,400 ( 7,685 ) 7,715 Other intangibles 4.3 4,000 ( 3,904 ) 96 Total $ 53,110 $ ( 17,767 ) $ 35,343 Other intangible assets consisted of the following as of September 30, 2023 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.8 $ 26,740 $ ( 7,958 ) $ 18,782 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 5.4 8,683 ( 7,585 ) 1,098 Consumer relationships 7.4 24,100 ( 15,317 ) 8,783 Other intangibles 5.1 6,620 ( 6,476 ) 144 Total $ 75,493 $ ( 37,336 ) $ 38,157 Other intangible assets consisted of the following as of July 1, 2023 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 10.1 $ 26,740 $ ( 7,436 ) $ 19,304 Trade name and trademarks (indefinite life) Indefinite 9,350 — 9,350 Non-compete agreements 5.6 8,683 ( 7,534 ) 1,149 Consumer relationships 7.6 24,100 ( 14,935 ) 9,165 Other intangibles 5.3 6,620 ( 6,451 ) 169 Total $ 75,493 $ ( 36,356 ) $ 39,137 |
Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets | The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our condensed consolidated balance sheet as of June 29, 2024 (in thousands): Amount Remainder of fiscal 2024 $ 914 2025 3,632 2026 3,385 2027 3,262 2028 3,154 Thereafter 11,646 Total $ 25,993 |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables, Net | Accounts and other receivables, net consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Vendor and other rebates receivable $ 20,393 $ 6,818 $ 23,298 Customer receivables 21,592 18,334 21,175 Other receivables 6,031 5,900 6,436 Allowance for doubtful accounts ( 2,199 ) ( 1,656 ) ( 1,646 ) Total $ 45,817 $ 29,396 $ 49,263 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Raw materials $ 4,787 $ 3,076 $ 8,342 Finished goods 297,422 308,761 428,215 Total $ 302,209 $ 311,837 $ 436,557 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Prepaid insurance $ 3,449 $ 1,236 $ 3,629 Prepaid occupancy costs 2,173 1,967 1,955 Prepaid sales tax 6,788 4,060 7,679 Prepaid maintenance 5,038 4,426 2,492 Prepaid other 5,626 1,813 1,816 Income taxes receivable 2,337 — — Other current assets 9,134 10,131 13,883 Total $ 34,545 $ 23,633 $ 31,454 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 29, 2024 September 30, 2023 July 1, 2023 Accrued payroll and employee benefits 12,484 18,558 14,437 Customer deposits 5,428 7,356 7,477 Interest 555 581 630 Inventory related accruals 14,323 13,843 23,635 Loyalty and deferred revenue 6,685 6,785 5,932 Sales tax 15,442 9,146 15,729 Self-insurance reserves 11,228 9,138 9,517 Other accrued liabilities 41,063 25,191 17,717 Total $ 107,208 $ 90,598 $ 95,074 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt, Net | Our long-term debt, net consisted of the following (in thousands, except interest rates): Effective (1) June 29, 2024 September 30, 2023 July 1, 2023 Term Loan 8.19 % (2) $ 783,675 $ 789,750 $ 791,775 Revolving Credit Facility 6.72 % (3) — — 31,000 Total long-term debt 783,675 789,750 822,775 Less: current portion of long-term debt ( 8,100 ) ( 8,100 ) ( 8,100 ) Less: noncurrent Revolving Credit Facility — — ( 31,000 ) Less: unamortized discount ( 1,944 ) ( 2,316 ) ( 2,439 ) Less: deferred financing charges ( 5,033 ) ( 6,058 ) ( 6,352 ) Total long-term debt, net $ 768,598 $ 773,276 $ 774,884 (1) Effective interest rates as of June 29, 2024. (2) Carries interest at a specified margin over the Term Secured Overnight Financing Rate (“SOFR”) between 2.50 % and 2.75 % with a minimum SOFR of 0.50 % pl us a SOFR adjustment. (3) Carries interest at a specific margin between 0.25 % and 0.75 % with respect to base rate loans and between 1.25 % and 1.75 % with respect to Term SOFR loans, with a SOFR adjustment. |
Schedule of Debt Maturities and Principal Repayments of Indebtedness | The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as o f June 29, 2024 (in thousands): Amount Remainder of fiscal 2024 $ 2,025 2025 10,125 2026 8,100 2027 8,100 2028 755,325 Thereafter — Total $ 783,675 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Schedule of Repurchases of Common Stock | The following table presents information about our repurchases of common stock under our share repurchase program (in thousands): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Total number of shares repurchased — — — 27 Total amount paid for shares repurchased $ — $ — $ — $ 419 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | The following tables summarizes our Stock Option activity under the Plan during the nine months ended June 29, 2024 (in thousands, except per share amounts): Number of Options Weighted Average Outstanding, Beginning as of October 1, 2023 3,308 $ 18.10 Granted — — Exercised — — Forfeited/Expired ( 1,165 ) 17.76 Balance, Ending as of June 29, 2024 2,143 $ 18.29 Vested and exercisable as of June 29, 2024 1,689 $ 18.31 As of June 29, 2024 Aggregate intrinsic value of options outstanding $ — Unamortized value of unvested stock options $ 1,060 Weighted average years that expense is expected to be recognized 0.5 Weighted average remaining contractual years outstanding 6.8 |
Summary of RSU and PSU Activity under Plan | The following table summarizes our RSU and PSU activity under the Plan during the nine months ended June 29, 2024 (in thousands, except per share amounts): Number of RSUs/PSUs Weighted Average Outstanding, Beginning as of October 1, 2023 2,084 $ 11.92 Granted 2,086 5.45 Vested ( 727 ) 9.23 Forfeited ( 467 ) 10.90 Balance, Ending June 29, 2024 2,976 $ 8.20 During the nine months ended June 29, 2024, 0.4 million PSUs were granted subject to the Company achieving certain adjusted net income and sales performance targets on a cumulative basis during fiscal years 2024 and 2025. The criteria are based on a range of these performance targets in which participants may earn between 0 % to 200 % of the base number of awards granted. The weighted average grant date fair value of the PSUs was $ 5.43 . The Company assesses the attainment of target payout rates each reporting period. Equity-based compensation expense is recognized for awards deemed probable of vesting. In December 2022, the Company granted 0.3 million PSUs subject to the Company achieving certain adjusted net income and sales performance targets on a cumulative basis during each of the fiscal years 2023, 2024, and 2025. The criteria are based on a range of these performance targets in which participants may earn between 0 % to 200 % of the base number of awards granted. As of June 29, 2024, the performance targets had not been met for the PSUs to vest, and no PSUs had vested as of such date. As of June 29, 2024 Unamortized value of unvested RSUs/PSUs $ 17,548 Weighted average period (years) expense is expected to be recognized 2.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding ( in thousands, except per share amounts): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Numerator: Net income (loss) $ 60,650 $ 72,547 $ ( 13,456 ) $ 10,761 Denominator: Weighted average shares outstanding - basic 184,834 183,932 184,614 183,725 Effect of dilutive securities: Stock Options — — — — RSUs 27 828 — 1,027 Weighted average shares outstanding - diluted 184,861 184,760 184,614 184,752 Basic earnings per share $ 0.33 $ 0.39 $ ( 0.07 ) $ 0.06 Diluted earnings per share $ 0.33 $ 0.39 $ ( 0.07 ) $ 0.06 |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Earnings Per Share | The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Stock Options 2,253 3,502 2,780 3,591 RSUs 2,351 1,587 1,459 778 Total 4,604 5,089 4,239 4,369 |
Business and Operations - Addit
Business and Operations - Additional Information (Details) | 9 Months Ended |
Jun. 29, 2024 Location State | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of company-operated locations | Location | 1,000 |
Number of states in which entity operates | State | 39 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles, Net - Summary of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | Sep. 30, 2023 | |
Goodwill [Roll Forward] | |||
Balance at beginning of the period | $ 180,698 | $ 173,513 | $ 173,513 |
Acquisitions, net of measurement period adjustments | 0 | 7,185 | 7,185 |
Balance at the end of the period | $ 180,698 | $ 180,698 | $ 180,698 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles, Net - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | Sep. 30, 2023 | |
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Total | $ 25,993 | ||
Gross Carrying Value | 53,110 | $ 75,493 | $ 75,493 |
Accumulated Amortization | (17,767) | (36,356) | (37,336) |
Net Carrying Amount | $ 35,343 | $ 39,137 | $ 38,157 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 9 years 2 months 12 days | 10 years 1 month 6 days | 9 years 9 months 18 days |
Gross Carrying Value, Finite Life | $ 22,100 | $ 26,740 | $ 26,740 |
Accumulated Amortization, Finite Life | (4,861) | (7,436) | (7,958) |
Total | $ 17,239 | $ 19,304 | $ 18,782 |
Non-compete Agreements | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 4 years 7 months 6 days | 5 years 7 months 6 days | 5 years 4 months 24 days |
Gross Carrying Value, Finite Life | $ 2,260 | $ 8,683 | $ 8,683 |
Accumulated Amortization, Finite Life | (1,317) | (7,534) | (7,585) |
Total | $ 943 | $ 1,149 | $ 1,098 |
Consumer Relationships | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 years 9 months 18 days | 7 years 7 months 6 days | 7 years 4 months 24 days |
Gross Carrying Value, Finite Life | $ 15,400 | $ 24,100 | $ 24,100 |
Accumulated Amortization, Finite Life | (7,685) | (14,935) | (15,317) |
Total | $ 7,715 | $ 9,165 | $ 8,783 |
Other Intangibles | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 4 years 3 months 18 days | 5 years 3 months 18 days | 5 years 1 month 6 days |
Gross Carrying Value, Finite Life | $ 4,000 | $ 6,620 | $ 6,620 |
Accumulated Amortization, Finite Life | (3,904) | (6,451) | (6,476) |
Total | $ 96 | $ 169 | $ 144 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Indefinite Life | Indefinite | Indefinite | Indefinite |
Net Carrying Amount, Indefinite Life | $ 9,350 | $ 9,350 | $ 9,350 |
Gross Carrying Value | $ 9,350 | $ 9,350 | $ 9,350 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 900,000 | $ 1,100,000 | $ 2,800,000 | $ 3,400,000 |
Impairment of goodwill or other intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles, Net - Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets (Details) $ in Thousands | Jun. 29, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of Fiscal 2024 | $ 914 |
2025 | 3,632 |
2026 | 3,385 |
2027 | 3,262 |
2028 | 3,154 |
Thereafter | 11,646 |
Total | $ 25,993 |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Schedule of Accounts and Other Receivables, Net (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Receivables [Abstract] | |||
Vendor and other rebates receivable | $ 20,393 | $ 6,818 | $ 23,298 |
Customer receivables | 21,592 | 18,334 | 21,175 |
Other receivables | 6,031 | 5,900 | 6,436 |
Allowance for doubtful accounts | (2,199) | (1,656) | (1,646) |
Total | $ 45,817 | $ 29,396 | $ 49,263 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 4,787 | $ 3,076 | $ 8,342 |
Finished goods | 297,422 | 308,761 | 428,215 |
Total | $ 302,209 | $ 311,837 | $ 436,557 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid insurance | $ 3,449 | $ 1,236 | $ 3,629 |
Prepaid occupancy costs | 2,173 | 1,967 | 1,955 |
Prepaid sales tax | 6,788 | 4,060 | 7,679 |
Prepaid maintenance | 5,038 | 4,426 | 2,492 |
Prepaid other | 5,626 | 1,813 | 1,816 |
Income taxes receivable | 2,337 | 0 | 0 |
Other current assets | 9,134 | 10,131 | 13,883 |
Total | $ 34,545 | $ 23,633 | $ 31,454 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Payables and Accruals [Abstract] | |||
Accrued payroll and employee benefits | $ 12,484 | $ 18,558 | $ 14,437 |
Customer deposits | 5,428 | 7,356 | 7,477 |
Interest | 555 | 581 | 630 |
Inventory related accruals | 14,323 | 13,843 | 23,635 |
Loyalty and deferred revenue | 6,685 | 6,785 | 5,932 |
Sales taxes | 15,442 | 9,146 | 15,729 |
Self-insurance reserves | 11,228 | 9,138 | 9,517 |
Other accrued liabilities | 41,063 | 25,191 | 17,717 |
Total | $ 107,208 | $ 90,598 | $ 95,074 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Payables and Accruals [Abstract] | |||
Capital expenditures included in other accrued liabilities | $ 2 | $ 1.5 | $ 0.9 |
Long-Term Debt, Net - Summary o
Long-Term Debt, Net - Summary of Long-Term Debt, Net (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 783,675 | $ 789,750 | $ 822,775 | ||
Less: current portion of long-term debt | (8,100) | (8,100) | (8,100) | ||
Less: noncurrent Revolving Credit Facility | 0 | 0 | (31,000) | ||
Less: unamortized discount | (1,944) | (2,316) | (2,439) | ||
Less: deferred financing charges | (5,033) | (6,058) | (6,352) | ||
Total long-term debt, net | $ 768,598 | 773,276 | 774,884 | ||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Effective Interest Rate | [1],[2] | 8.19% | |||
Total long-term debt | $ 783,675 | 789,750 | 791,775 | $ 810,000 | |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Effective Interest Rate | [2],[3] | 6.72% | |||
Total long-term debt | $ 0 | $ 0 | $ 31,000 | ||
[1] Carries interest at a specified margin over the Term Secured Overnight Financing Rate (“SOFR”) between 2.50 % and 2.75 % with a minimum SOFR of 0.50 % pl us a SOFR adjustment. Effective interest rates as of June 29, 2024. Carries interest at a specific margin between 0.25 % and 0.75 % with respect to base rate loans and between 1.25 % and 1.75 % with respect to Term SOFR loans, with a SOFR adjustment. |
Long-Term Debt, Net - Summary_2
Long-Term Debt, Net - Summary of Long-Term Debt, Net (Parenthetical) (Details) | 9 Months Ended |
Jun. 29, 2024 | |
SOFR | Term Loan | Maximum | |
Debt Instrument [Line Items] | |
Interest rate range | 2.75% |
SOFR | Term Loan | Minimum | |
Debt Instrument [Line Items] | |
Interest rate range | 2.50% |
Interest rate | 0.50% |
ABL Credit Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 0.75% |
ABL Credit Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 0.25% |
ABL Credit Facility | SOFR | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 1.75% |
ABL Credit Facility | SOFR | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 1.25% |
Long-Term Debt, Net - Term Loan
Long-Term Debt, Net - Term Loan - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 | |
Debt Instrument [Line Items] | ||||
Total long term debt | $ 783,675 | $ 789,750 | $ 822,775 | |
SOFR | One-month | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.11448% | |||
SOFR | Three-months | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.26161% | |||
SOFR | Six-months | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.42826% | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Total long term debt | $ 810,000 | $ 783,675 | $ 789,750 | $ 791,775 |
Debt instrument, maturity date | Mar. 09, 2028 | |||
Term Loan | Minimum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1% | |||
Term Loan | Minimum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1% | |||
Term Loan | Maximum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | Maximum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | SOFR | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | SOFR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | SOFR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.50% | |||
Term Loan | SOFR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | |||
Term Loan | ABR | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Term Loan | ABR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Term Loan | ABR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.50% |
Long-Term Debt, Net - Revolving
Long-Term Debt, Net - Revolving Credit Facility - Additional Information (Details) - Revolving Credit Facility - USD ($) | 1 Months Ended | |||
Apr. 03, 2024 | Mar. 31, 2023 | Jun. 29, 2024 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Apr. 03, 2029 | Aug. 13, 2025 | ||
Credit facility, current borrowing capacity | $ 0 | $ 0 | ||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||
Increased revolving credit commitments | 50,000,000 | |||
Aggregate commitments | $ 250,000,000 | |||
Amount of Letters of credit on credit facility | $ 10,900,000 | $ 11,400,000 | ||
Credit facility, commitment fee percentage | 0.25% | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.25% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | |||
SOFR | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.10% | |||
SOFR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.25% | |||
SOFR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Floor | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0% |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Debt Maturities and Principal Repayments of Indebtedness (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |||
Remainder of fiscal 2024 | $ 2,025 | ||
2025 | 10,125 | ||
2026 | 8,100 | ||
2027 | 8,100 | ||
2028 | 755,325 | ||
Thereafter | 0 | ||
Total long-term debt | $ 783,675 | $ 789,750 | $ 822,775 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate benefit | 40.70% | 29.90% |
Commitments & Contingencies - A
Commitments & Contingencies - Additional Information (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 |
Workers' Compensation Insurance Program | |||
Loss Contingencies [Line Items] | |||
Standby letters of credit outstanding amount | $ 10.9 | ||
General Liability Insurance Program | Maximum | |||
Loss Contingencies [Line Items] | |||
Self insurance retention amount | $ 0.4 | $ 0.4 | $ 0.4 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - $ / shares shares in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 14, 2021 | Dec. 16, 2021 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock, shares repurchased | 7,500 | 0 | 0 | 0 | 27 | |
Common stock repurchased, price per share | $ 20.25 | |||||
Bubbles Investor Aggregator, L.P. | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Beneficial ownership interest in common stock | 5% | |||||
Explorer Investment Pte. Ltd. | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Beneficial ownership interest in common stock | 5% | |||||
Bubbles Investor Aggregator, L.P. and Explorer Investment Pte. Ltd. | Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock, shares repurchased | 7,500 | |||||
Common stock repurchased, price per share | $ 20.25 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Details) - Common Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 03, 2021 | Dec. 16, 2021 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized amount under share repurchase program | $ 300,000 | |||||
Period during which shares can be repurchased under share repurchase program | 3 years | |||||
Expiration date of share repurchase program | Dec. 31, 2024 | |||||
Common stock, shares repurchased | 7,500 | 0 | 0 | 0 | 27 | |
Common stock repurchased, price per share | $ 20.25 | |||||
Repurchase of common stock | $ 151,900 | $ 0 | $ 0 | $ 0 | $ 419 | |
Repurchase and retirement of common stock including offering costs | 152,100 | |||||
Additional paid in capital | 127,500 | |||||
Increase in retained earnings | $ 24,400 | |||||
Remained available amount under share repurchase program | $ 147,700 | $ 147,700 |
Share Repurchase Program - Sche
Share Repurchase Program - Schedule of Repurchases of Common Stock (Details) - Common Stock - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 16, 2021 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock, shares repurchased | 7,500 | 0 | 0 | 0 | 27 |
Total amount paid for shares repurchased | $ 151,900 | $ 0 | $ 0 | $ 0 | $ 419 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 15, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Unamortized value of unvested stock options | $ 18,600 | $ 18,600 | |||
Weighted average period (years) that expense is expected to be recognized | 2 years 6 months | ||||
Selling, General and Administrative Expenses | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 2,200 | $ 2,600 | $ 7,600 | $ 9,200 | |
Common Stock | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Additional shares available for grant | 7.2 | ||||
Shares available for grant | 14.4 | 14.4 | |||
Employee Stock Option | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Option expiration period | 10 years | ||||
Unamortized value of unvested stock options | $ 1,060 | $ 1,060 | |||
Weighted average period (years) that expense is expected to be recognized | 6 months |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Stock Options Activity (Details) - Employee Stock Option | 9 Months Ended |
Jun. 29, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Options, Beginning Balance | 3,308,000 |
Number of Options, Granted | 0 |
Number of Options, Exercised | 0 |
Number of Options, Forfeited/Expired | (1,165,000) |
Number of Options, Ending Balance | 2,143,000 |
Number of Options, Vested | 1,689,000 |
Weighted Average Exercise Price, Balance, Beginning | $ / shares | $ 18.1 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Exercised | $ / shares | 0 |
Weighted Average Exercise Price, Forfeited/Expired | $ / shares | 17.76 |
Weighted Average Exercise Price, Balance, Ending | $ / shares | $ 18.29 |
Weighted Average Exercise Price, Vested | 18.31 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Stock Options Activity Additional Information (Details) $ in Thousands | 9 Months Ended |
Jun. 29, 2024 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unamortized value of unvested stock options | $ 18,600 |
Weighted average period (years) that expense is expected to be recognized | 2 years 6 months |
Employee Stock Option | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Aggregate intrinsic value of options outstanding | $ 0 |
Unamortized value of unvested stock options | $ 1,060 |
Weighted average period (years) that expense is expected to be recognized | 6 months |
Weighted average remaining contractual life (years) for options outstanding | 6 years 9 months 18 days |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of RSU and PSU Activity under Plan (Details) - Restricted Stock Units And Performance Units shares in Thousands | 9 Months Ended |
Jun. 29, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Beginning Balance | shares | 2,084 |
Granted | shares | 2,086 |
Vested | shares | (727) |
Forfeited | shares | (467) |
Ending Balance | shares | 2,976 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 11.92 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 5.45 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 9.23 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 10.9 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.2 |
Equity-Based Compensation - S_4
Equity-Based Compensation - Summary of RSU and PSU Activity under Plan (Parenthetical) (Details) - Performance Units - $ / shares shares in Millions | 1 Months Ended | 9 Months Ended |
Dec. 31, 2022 | Jun. 29, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Granted | 0.3 | 0.4 |
Weighted Average Grant Date Fair Value, Granted | $ 5.43 | |
Maximum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Percentage of shares granted | 200% | 200% |
Minimum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Percentage of shares granted | 0% | 0% |
Equity-Based Compensation - S_5
Equity-Based Compensation - Summary of RSU and PSU Activity under Plan Additional Information (Details) $ in Thousands | 9 Months Ended |
Jun. 29, 2024 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Weighted average period (years) that expense is expected to be recognized | 2 years 6 months |
Restricted Stock Units And Performance Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unamortized value of unvested RSUs/PSUs | $ 17,548 |
Weighted average period (years) that expense is expected to be recognized | 2 years 7 months 6 days |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator: | |||||
Net income (loss) | $ 60,650 | $ 60,650 | $ 72,547 | $ (13,456) | $ 10,761 |
Denominator: | |||||
Weighted average shares outstanding - basic | 184,834 | 183,932 | 184,614 | 183,725 | |
Effect of dilutive securities: | |||||
Stock Options | 0 | 0 | 0 | 0 | |
RSUs | 27 | 828 | 0 | 1,027 | |
Weighted average shares outstanding - diluted | 184,861 | 184,760 | 184,614 | 184,752 | |
Basic earnings per share | $ 0.33 | $ 0.39 | $ (0.07) | $ 0.06 | |
Diluted earnings per share | $ 0.33 | $ 0.39 | $ (0.07) | $ 0.06 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 4,604 | 5,089 | 4,239 | 4,369 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 2,253 | 3,502 | 2,780 | 3,591 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 2,351 | 1,587 | 1,459 | 778 |