Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 26, 2024 | Jul. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-04321 | ||
Entity Registrant Name | Savers Value Village, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-4165683 | ||
Entity Address, Address Line One | 11400 S.E. 6th Street | ||
Entity Address, Address Line Two | Suite 125 | ||
Entity Address, City or Town | Bellevue | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98004 | ||
City Area Code | 425 | ||
Local Phone Number | 462-1515 | ||
Title of 12(b) Security | Common Stock, par value $0.000001 per share | ||
Trading Symbol | SVV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 161,363,892 | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the Annual Meeting of Shareholders to be held on June 5, 2024, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001883313 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Boise, Idaho |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 179,955 | $ 112,132 |
Trade receivables, net | 11,767 | 14,092 |
Inventories | 32,820 | 21,822 |
Prepaid expenses and other current assets | 25,691 | 35,647 |
Derivative assets – current | 7,691 | 8,625 |
Total current assets | 257,924 | 192,318 |
Property and equipment, net | 229,405 | 190,518 |
Right-of-use lease assets | 499,375 | 437,843 |
Goodwill | 687,368 | 681,447 |
Intangible assets, net | 166,681 | 170,651 |
Derivative assets - non-current | 23,519 | 31,077 |
Other assets | 3,133 | 3,961 |
Total assets | 1,867,405 | 1,707,815 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 92,550 | 80,748 |
Accrued payroll and related taxes | 65,096 | 62,046 |
Lease liabilities – current | 79,306 | 79,838 |
Current portion of long-term debt and short-term borrowings | 4,500 | 50,250 |
Total current liabilities | 241,452 | 272,882 |
Long-term debt, net | 784,593 | 783,347 |
Lease liabilities – non-current | 419,407 | 349,194 |
Deferred tax liabilities, net | 27,909 | 63,141 |
Other liabilities | 17,989 | 11,916 |
Total liabilities | 1,491,350 | 1,480,480 |
Commitments and contingencies (see Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.000001 par value, 100,000 and zero shares authorized; zero shares issued and outstanding | 0 | 0 |
Common stock, $0.000001 par value, 800,000 and 1,000,000 shares authorized; 160,453 and 141,590 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 593,109 | 226,327 |
Accumulated deficit | (247,541) | (38,443) |
Accumulated other comprehensive income | 30,487 | 39,451 |
Total stockholders’ equity | 376,055 | 227,335 |
Total liabilities and stockholders’ equity | $ 1,867,405 | $ 1,707,815 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized (in shares) | 100,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized (in shares) | 800,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 160,453,000 | 141,590,000 |
Common stock, shares, outstanding (in shares) | 160,453,000 | 141,590,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,500,249 | $ 1,437,229 | $ 1,204,124 |
Operating expenses: | |||
Cost of merchandise sold, exclusive of depreciation and amortization | 619,671 | 599,926 | 474,462 |
Salaries, wages and benefits | 366,189 | 273,587 | 239,806 |
Selling, general and administrative | 311,388 | 301,737 | 260,235 |
Depreciation and amortization | 61,144 | 55,753 | 47,385 |
Total operating expenses | 1,358,392 | 1,231,003 | 1,021,888 |
Operating income | 141,857 | 206,226 | 182,236 |
Other (expense) income: | |||
Interest expense, net | (88,500) | (64,744) | (53,565) |
Gain (loss) on foreign currency, net | 6,660 | (20,737) | 1,583 |
Other income (expense), net | 3,688 | 4,576 | (4,848) |
Loss on extinguishment of debt | (16,626) | (1,023) | (47,541) |
Other expense, net | (94,778) | (81,928) | (104,371) |
Income before income taxes | 47,079 | 124,298 | 77,865 |
Income tax (benefit) expense | (6,036) | 39,578 | (5,529) |
Net income | 53,115 | 84,720 | 83,394 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (995) | 6,514 | (161) |
Cash flow hedges | (7,969) | 18,473 | 2,542 |
Other comprehensive (loss) income | (8,964) | 24,987 | 2,381 |
Comprehensive income | $ 44,151 | $ 109,707 | $ 85,775 |
Net income per share, basic (in usd per share) | $ 0.35 | $ 0.60 | $ 0.59 |
Net income per share, diluted (in usd per share) | $ 0.34 | $ 0.58 | $ 0.57 |
Basic weighted average shares outstanding (in shares) | 151,027,000 | 141,561,000 | 141,545,000 |
Diluted weighted average shares outstanding (in shares) | 156,156,000 | 146,049,000 | 145,391,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Common stock Common A units | Common stock Common B units | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income |
Beginning balance (in shares) at Jan. 02, 2021 | 0 | 141,545 | 0 | ||||
Beginning balance at Jan. 02, 2021 | $ 173,925 | $ 0 | $ 223,379 | $ 565 | $ 0 | $ (62,102) | $ 12,083 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation expense | 732 | $ 732 | |||||
Dividends declared | (75,000) | (75,000) | |||||
Comprehensive income (loss) | 85,775 | 83,394 | 2,381 | ||||
Ending balance (in shares) at Jan. 01, 2022 | 0 | 141,545 | 0 | ||||
Ending balance at Jan. 01, 2022 | 185,432 | $ 0 | $ 223,379 | $ 1,297 | 0 | (53,708) | 14,464 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Corporate conversion of common units to common stock (in shares) | 141,545 | (141,545) | |||||
Corporate conversion of common units to common stock | 0 | $ (223,379) | $ (1,297) | 224,676 | |||
Stock-based compensation expense | 1,943 | 1,943 | |||||
Stock issued under stock incentive plans, net (in shares) | 45 | ||||||
Stock issued under stock incentive plan, net | (292) | (292) | |||||
Dividends declared | (69,455) | (69,455) | |||||
Comprehensive income (loss) | $ 109,707 | 84,720 | 24,987 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 141,590 | 141,590 | 0 | 0 | |||
Ending balance at Dec. 31, 2022 | $ 227,335 | $ 0 | $ 0 | $ 0 | 226,327 | (38,443) | 39,451 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Proceeds from initial public offering, net of underwriting fees and offering costs (in shares) | 18,750 | ||||||
Proceeds from initial public offering, net of underwriting fees and offering costs of $42,473 | 295,027 | 295,027 | |||||
Stock-based compensation expense | 72,604 | 72,604 | |||||
Stock issued under stock incentive plans, net (in shares) | 158 | ||||||
Stock issued under stock incentive plan, net | (150) | (150) | |||||
Repurchase of common stock (in shares) | (45) | ||||||
Repurchase of common stock prior to IPO | (699) | (699) | |||||
Dividends declared | (262,213) | (262,213) | |||||
Comprehensive income (loss) | $ 44,151 | 53,115 | (8,964) | ||||
Ending balance (in shares) at Dec. 30, 2023 | 160,453 | 160,453 | 0 | 0 | |||
Ending balance at Dec. 30, 2023 | $ 376,055 | $ 0 | $ 0 | $ 0 | $ 593,109 | $ (247,541) | $ 30,487 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in usd per share) | $ 1.32 | $ 0.35 | $ 0.38 |
Underwriting fees and issuance costs | $ 42,473 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 53,115 | $ 84,720 | $ 83,394 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 72,604 | 1,943 | 732 |
Amortization of debt issuance costs and debt discount | 6,051 | 4,005 | 4,444 |
Depreciation and amortization | 61,144 | 55,753 | 47,385 |
Operating lease expense | 119,908 | 114,788 | 0 |
Deferred income taxes, net | (35,249) | 20,261 | (21,870) |
Loss on extinguishment of debt | 16,626 | 1,023 | 47,541 |
Noncash interest expense | 0 | 0 | 3,417 |
Other items | (15,055) | 22,795 | 1,351 |
Changes in operating assets and liabilities: | |||
Trade receivables | 740 | (8,053) | 3,878 |
Inventories | (10,926) | 2,246 | 6,091 |
Prepaid expenses and other current assets | 3,659 | (16,928) | (17,998) |
Accounts payable and accrued liabilities | 8,154 | 6,887 | 2,732 |
Accrued payroll and related taxes | 2,428 | (12,632) | 17,984 |
Operating lease liabilities | (110,438) | (104,685) | 0 |
Other liabilities | 2,404 | (2,690) | (3,319) |
Net cash provided by operating activities | 175,165 | 169,433 | 175,762 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (91,743) | (110,173) | (40,544) |
Purchase of trade name | (650) | 0 | 0 |
Settlement of derivative instruments, net | 28 | (329) | (2,321) |
Acquisition of 2nd Ave, net of cash acquired | 0 | 0 | (220,307) |
Net cash used in investing activities | (92,365) | (110,502) | (263,172) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net | 529,247 | 0 | 817,149 |
Payment of debt issuance costs | (4,359) | (626) | (20,676) |
Advances on revolving line of credit | 42,000 | 102,000 | 0 |
Repayments of revolving line of credit | (84,000) | (60,000) | 0 |
Dividends paid | (262,235) | (69,433) | (75,000) |
Proceeds from initial public offering, net | 314,719 | 0 | 0 |
Payment of offering costs | (9,061) | 0 | 0 |
Repurchase of shares and shares withheld to cover taxes | (849) | (292) | 0 |
Settlement of derivative instrument, net | 8,601 | 147 | 0 |
Principal payments on finance lease liabilities | (1,526) | 0 | 0 |
Net cash (used in) provided by financing activities | (17,044) | (40,218) | 52,999 |
Effect of exchange rate changes on cash and cash equivalents | 2,067 | (4,496) | (5,533) |
Net change in cash and cash equivalents | 67,823 | 14,217 | (39,944) |
Cash and cash equivalents at beginning of period | 112,132 | 97,915 | 137,859 |
Cash and cash equivalents at end of period | 179,955 | 112,132 | 97,915 |
Supplemental disclosures of cash flow information: | |||
Interest paid on debt | 79,133 | 62,157 | 45,250 |
Income taxes paid, net | 22,480 | 31,168 | 29,654 |
Supplemental disclosure of noncash investing activities: | |||
Noncash capital expenditures | 5,276 | 6,414 | 2,891 |
Nonrelated Party | |||
Cash flows from financing activities: | |||
Principal payments on long-term debt | (547,931) | (10,991) | (422,755) |
Prepayment premium on extinguishment of debt | (1,650) | (1,023) | (14,687) |
Related Party | |||
Cash flows from financing activities: | |||
Principal payments on long-term debt | 0 | 0 | (222,910) |
Prepayment premium on extinguishment of debt | $ 0 | $ 0 | $ (8,122) |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of business Savers Value Village, Inc., a Washington State based company, together with its wholly owned subsidiaries (the “Company”, “we”, “us” or “our”), sells second-hand merchandise primarily in retail stores located in the United States (“U.S.”), Canada and Australia. Basis of presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements present the results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company reports on a fiscal year basis, which ends on the Saturday nearest December 31. Fiscal year 2023 consisted of the 52 weeks ended December 30, 2023, fiscal year 2022 consisted of the 52 weeks ended December 31, 2022 and fiscal year 2021 consisted of the 52 weeks ended January 1, 2022. All amounts in the Notes to the Consolidated Financial Statements, with the exception of per share amounts, are rounded to the nearest thousand unless otherwise indicated. Certain prior period information has been reclassified to conform to the current period presentation. The reclassification had no effect on the Company’s consolidated financial position or the consolidated results of operations as previously reported. Corporate Conversion On January 7, 2022, S-Evergreen Holding LLC converted into a Delaware corporation and the name of the Company was changed to Savers Value Village, Inc. (the “Corporate Conversion”). In the Corporate conversion, equityholders of S-Evergreen Holding LLC received one share of common stock of Savers Value Village, Inc. for each Class A Unit of S-Evergreen Holding, LLC and corresponding adjustments were made to the Company’s outstanding equity awards. Reverse stock split On May 26, 2023, in anticipation of the initial public offering (“IPO”), the Company effectuated a reverse stock split of its then-outstanding common stock, in which each share of pre-split common stock became 0.713506461319705 of a share of post-reverse split common stock (the “Reverse Stock Split”) and corresponding adjustments were made to the Company’s outstanding equity awards. All references to units, per unit, shares and per share amounts for all periods presented in these consolidated financial statements, including amounts in Note 12, have been retrospectively restated to give effect to the Reverse Stock Split. Initial public offering The registration statement related to our IPO was declared effective on June 28, 2023, and our common stock began trading on the New York Stock Exchange on June 29, 2023. On July 3, 2023, we completed our IPO for the sale of 18.8 million shares of our common stock, $0.000001 par value per share, at a public offering price of $18.00 per share. Net proceeds to the Company from the IPO were $295.0 million after deducting underwriting discounts and commissions of $22.8 million and offering expenses of $19.7 million. In addition to the 18.8 million shares sold by the Company, certain funds, investment vehicles or accounts managed or advised by the Private Equity Group of Ares Management Corporation (the “selling stockholders”) sold 6.9 million shares, including 3.3 million shares pursuant to the exercise of the underwriters’ over-allotment option. The Company did not receive any proceeds from sales made by the selling stockholders. Authorized shares In connection with the Company’s IPO, the Company filed an amended and restated certificate of incorporation (the “A&R Charter”) on June 29, 2023. The Company also amended and restated its bylaws, effective as of June 28, 2023. The A&R Charter authorized 800.0 million shares of common stock, par value $0.000001 per share, and 100.0 million shares of preferred stock, par value $0.000001 per share. Each share of common stock entitles its holder to one vote per share on all matters to be voted on by stockholders and to receive dividends when and as declared by the board of directors from legally available sources, subject to the prior rights of the holders of our preferred stock. Common stockholders are not entitled to preemptive rights and are therefore subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the board of directors may designate and issue in the future. In the event of a liquidation, dissolution or winding-up, the assets legally available for distribution to the Company’s stockholders would be distributable ratably among the holders of common stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, if any, on any outstanding shares of preferred stock and payment of claims of creditors. Impact of the COVID-19 pandemic In connection with the COVID-19 pandemic, the Company received wage subsidies from the Canadian and Australian governments, which were not loans to the Company. The Company did not receive any wage subsidies during fiscal years 2023 or 2022. During fiscal year 2021, we received a total of $21.7 million in wage subsidies, which are presented as reductions to cost of merchandise sold and salaries, wages and benefits in the Consolidated Statements of Operations and Comprehensive Income of $13.4 million and $8.3 million, respectively. There were no unfulfilled conditions or contingencies related to these subsidies. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. These estimates are based on available information and on various other assumptions that are believed to be reasonable under the circumstances. Certain items subject to such estimates and assumptions include, but are not limited to, the valuation of insurance reserves, the valuation of intangibles, the valuation of goodwill, income taxes and stock-based compensation. Actual results could vary from those estimates under different assumptions or conditions. Foreign currency The functional currency of the Company’s foreign entities is the local currency of the country in which the entity operates. Assets and liabilities of foreign operations are translated into U.S. dollars, the reporting currency of Savers Value Village, Inc., using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as a foreign currency translation adjustment and is included in other comprehensive (loss) income in the Consolidated Statements of Operations and Comprehe nsive Income and in accumulated other comprehensive income on the Consolidated Balance Sheets. Income and expense accounts of the Company’s foreign entities are translated into U.S. dollars using average rates of exchange during the reporting period. Transaction gains and losses realized upon settlement of foreign currency transactions and remeasurement gains and losses on unsettled foreign currency-denominated balances, as well as realized and unrealized gains and losses on cross currency swaps and forward contracts (see Note 10) a re included in gain (loss) on foreign currency, net in the Consolidated Statements of Operations and Comprehensive Income . Aggregate transaction gains ( losses) totaled $9.8 million in fiscal year 2023, $(30.0) million in fiscal year 2022 and $(10.4) million in fiscal year 2021. From time to time, the Company has intercompany loans issued by its foreign subsidiaries. Foreign currency gains and losses related to these intercompany loans are not eliminated during consolidation and are included in gain (loss) on foreign currency, net in the Consolidated Statements of Operations and Comprehensive Income. Revenue recognition Retail sales. Revenue is recorded for store sales upon the purchase of merchandise by customers. Sales taxes collected from customers are not considered revenue and are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets until remitted to the taxing authorities. Revenue is recorded net of coupons, promotional discounts and sales discounts under reward programs. Revenue from gift cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding gift card balances as a liability, net of estimated breakage. Gift card liabilities are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. The Company does not record a sales return reserve as no right of return exists for customers. Wholesale sales. Sales of residual products are recognized at the point of delivery with no right of return and exclude shipping and handling costs, which are paid by the customer. The Company does not have a significant financing component as customers pay within one year of title transfer. The following table disaggregates our revenue by retail and wholesale for fiscal years 2023, 2022 and 2021: (in thousands) Fiscal Year 2023 2022 2021 Retail sales $ 1,427,024 $ 1,365,109 $ 1,154,891 Wholesale sales 73,225 72,120 49,233 Total net sales $ 1,500,249 $ 1,437,229 $ 1,204,124 Cash and cash equivalents Cash and cash equivalents consist of cash, demand deposits with banks, proceeds due from credit and debit card transactions and money market funds with maturity dates of three months or less from the date of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. The Company’s cash deposits are maintained in accounts primarily with two major financial institutions in the U.S. and Canada. Substantially all the cash on deposit exceeds the federally insured limits for such deposits. Trade accounts receivable Trade accounts receivable are recorded at the invoiced amount, net of any allowances. Both trade accounts receivable and the allowance for credit losses relate to wholesale sales. Inventories Inventories consist almost entirely of used clothing and other household goods purchased from nonprofit partners. Inventory is valued at the lower of average purchase cost or net realizable value. As of December 30, 2023 and December 31, 2022, there was no allowance for obsolete or excess inventory. Property and equipment Property and equipment are stated at historical cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 3 to 15 years for furniture, fixtures and equipment. Leasehold improvements are amortized using the straight-line method over the shorter of 7 years or the remaining lease term. Intangible assets Intangible assets represent the Company’s trade names and charity licensing agreements. The Company’s trade names, which have indefinite lives, are not amortized, but rather, reviewed for impairment at least annually in the fourth quarter and whenever circumstances indicate the trade names might be impaired. Charity licensing agreements are amortized using the straight-line method over their estimated useful life of 15 years . For fiscal years 2023, 2022 and 2021, the Company did not identify any triggering events related to the potential impairment of its intangible assets. Long-lived assets The carrying value of long-lived assets, consisting of property and equipment, right-of-use lease assets and long-lived intangible assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. When testing for impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. We then assess the risk of impairment by comparing an estimate of the undiscounted cash flows expected to be generated by the asset group against the carrying value of the asset group. Impairment is indicated when the carrying value of the asset group exceeds the estimated future undiscounted cash flows generated by those assets. When impairment is indicated, the Company records an impairment charge for the difference between the carrying value of the asset group and its estimated fair value. Depending on the asset, estimated fair value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. For fiscal years 2023, 2022 and 2021, the Company did not identify any triggering events related to the potential impairment of its long-lived assets. Goodwill Goodwill is reviewed for impairment annually in the Company’s fourth quarter and whenever circumstances indicate goodwill might be impaired. The Company first performs a qualitative assessment, evaluating relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If not, no further impairment testing is performed. If the assessment indicates that it is more likely than not, the Company compares the carrying value of the reporting unit to the estimated fair value of the reporting unit, both as of the testing date. If the carrying value of the reporting unit exceeds the estimated fair value, the Company will recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value up to but not to exceed the total amount of goodwill allocated to the reporting unit. The Company’s reporting units are consistent with its operating segments, with goodwill balances allocated entirely to the U.S. Retail and Canada Retail reporting units. There has been no impairment identified during fiscal years 2023, 2022 and 2021. Insurance reserves The Company is self-insured for general liability, medical and workers’ compensation and regularly reviews the related insurance reserves and adjusts the balances as necessary. Self-insurance claims filed and claims incurred-but-not-reported are accrued based on management’s estimates of cost by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Additionally, the Company reviews specific large insurance claims to determine whether there is a need for any additional accruals. Changes in these assumptions could materially impact the required reserve balances and it is possible that the Company’s actual loss experience could differ materially from recorded insurance reserves. Current portions of insurance reserves of $3.2 million and $2.3 million are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets and $5.7 million and $5.4 million are included in accrued payroll and related taxes on the Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022, respectively. Non-current insurance reserves of $11.1 million and $8.6 million are included in other liabilities on the Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022, respectively. Advertising costs Advertising production costs and media placement costs are expensed the first time the advertisement takes place. Total advertising costs during fiscal years 2023, 2022 and 2021 were $9.0 million, $11.9 million and $10.7 million, respectively, and are included in selling, general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income. Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized based on the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred income tax assets to the amount more likely than not expected to be realized. Income tax expense represents the current expense incurred for the period plus or minus the change during the period in net deferred tax assets and liabilities. Section 382 of the Internal Revenue Code and similar state regulations, contain provisions that may limit the net operating loss (“NOL”) carryforwards and other tax attributes available to be used to offset income and tax liabilities in any given year upon the occurrence of certain events, including changes in ownership of more than 50%. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount of the benefit that is greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense, net and penalties in income tax (benefit) expense in the Consolidated Statements of Operations and Comprehensive Income. Stock-based compensation The Company’s stock-based incentive plan allows for the issuance of various types of stock-based awards, including time-based options, performance-based options and restricted stock units (“RSUs”). Options are generally granted with an exercise price equal to the fair value of our common stock. Prior to July 3, 2023, the date we completed our IPO, the fair value of our common stock was established by the Board at the date of the grant. Upon completion of our IPO, the fair value of our common stock is determined based on the closing quoted market price of our common stock on the New York Stock Exchange on the date of grant. We estimate the fair value of time-based options using the Black-Scholes option-pricing model. We also used the Black-Scholes option-pricing model to determine the grant-date fair value of performance-based options that were tied to the Company’s IPO and a Monte Carlo simulation under the option pricing framework to determine the grant-date fair value of performance-based options subject to market-specific conditions. We recognize expense for time-based options on a straight-line basis over the requisite service period of the awards. We recognize expense for performance-based options when it is probable that performance conditions will be achieved and recognize the expense on a straight-line basis over any remaining service period. The fair value of RSUs is estimated based on the fair value of our common stock on the date of grant which in turn is based on the New York Stock Exchange closing price on the date of grant. RSUs are recognized in compensation expense over the service period, which is generally the vesting period . For a more detailed discussion of stock-based compensation, see Note 13. Derivative instruments In the normal course of business, the Company uses derivative financial instruments, which may include interest rate swaps, cross currency swaps and foreign exchange forwards and swaps, to hedge against adverse fluctuations in interest rates or foreign exchange rates thereby reducing our exposure to variability in cash flows on our floating-rate debt or from foreign operations. Derivative instruments are measured at fair value and classified as assets or liabilities, current or non-current, depending on settlement dates of the individual contracts. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that are not designated as hedges are intended to economically hedge a portion of our interest rate and foreign exchange risks. Gains and losses from changes in fair value on these derivatives are recorded immediately in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income. For derivative instruments designated as cash flow hedges, gains and losses from changes in fair value are initially reported as a component of accumulated other comprehensive income on the Consolidated Balance Sheets and subsequently recognized in earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense, net in the Consolidated Statements of Operations and Comprehensive Income as interest payments are made on the Company’s variable-rate debt. Realized gains and losses on interest rate swaps with an other-than-insignificant financing element at inception are reported within cash flows from financing activities on the Consolidated Statements of Cash Flows. Realized gains and losses on interest rate swaps without an other-than-insignificant financing element at inception, cross currency swaps and forward contracts are reported within cash flows from investing activities on the Consolidated Statements of Cash Flows. The Company does not use derivative instruments for trading or speculative purposes and does not use any leveraged derivative financial instruments. Segment reporting Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. The Company has four operating segments, of which two were determined to be reportable segments: U.S. Retail and Canada Retail. Net income per share Basic net income p er share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potentially dilutive common equivalent shares outstanding for the period. Prior to the Corporate Conversion, the Company computed ne t income pe r share based on the number of common units outstanding. Leases The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“Topic 842”), as of January 2, 2022 and also adopted all subsequent ASUs related to Topic 842. The Company adopted ASU 2016-02 using the modified retrospective method and elected the transition package of practical expedients, which among other things, allowed it to carry forward the historical lease classification. The Company leases various real estate, including retail stores, warehouses and office space as well as vehicles. The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, lease liabilities—current and lease liabilities – non-current in our Consolidated Balance Sheets. As of December 30, 2023, finance leases of $5.3 million, $1.7 million and $3.6 million were included in property and equipment, net accounts payable and accrued liabilities other liabilities Our lease assets and liabilities are recognized at the lease commencement date based on the present value of fixed lease payments over the lease term. As an implicit rate is not provided for most of our leases, we use an incremental borrowing rate which represents the rate used for a secured borrowing of a similar term as the lease. Our real estate leases typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease costs and are excluded from the present value of our lease obligations. The Company’s leases have remaining lease terms of 1 to 16 years. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. The option periods are generally not included in the lease term used to measure our lease liabilities and lease assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and lease asset when we are reasonably certain to exercise a renewal option. The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments that replaces the existing incurred loss model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The Company adopted this guidance, and subsequent amendments to this guidance, as of January 1, 2023. The change to an expected credit loss model did not have a material effect on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . Topic 848 provides relief that, if elected, will ease the potential accounting burden when modifying contracts and hedging relationships that use the London Inter-Bank Offered Rate (“LIBOR”) as a reference rate. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. This ASU clarifies that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions under Topic 848. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Topic 848 allows for different elections to be made at different points in time. In accordance with the fallback provisions of our interest rate swap contracts and the discontinuation of LIBOR after June 30, 2023, the reference rate for our interest rate swaps transitioned from LIBOR to Fallback Rate (SOFR) with effect from July 1, 2023. The Company elected to apply the optional expedients under Topic 848 to this change in reference rate and therefore the modified instruments will be accounted for and presented in the same manner as the instruments existing before the modification. This change from LIBOR to Fallback Rate (SOFR) for our interest rate swaps did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require enhanced disclosures about significant expenses on an annual and interim basis for all public entities. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this Update require that public business entities on an annual basis disclose specific categories in the rate reconciliation table, provide additional information for reconciling items that meet a quantitative threshold and provide additional information about income taxes paid. The amendments in this Update are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently in the process of evaluating the effects of this pronouncement on its related disclosures. |
2nd Ave. Acquisition
2nd Ave. Acquisition | 12 Months Ended |
Dec. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
2nd Ave. Acquisition | 2nd Ave. Acquisition On November 8, 2021, the Company acquired 100% of the equity of Thrift Intermediate Holdings I, Inc. (“2nd Ave”) for cash consideration of $238.5 million (the “2nd Ave. Acquisition”). The Company financed the 2nd Ave. Acquisition with cash on hand and $225.0 million of additional borrowings under the Term Loan Facility. The 2nd Ave. Acquisition was accounted as a business combination in accordance with Topic 805, Business Combinations, and the purchase price has been allocated to the assets acquired and the liabilities assumed based on their fair value at the acquisition date. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. Goodwill was allocated to the U.S. Retail operating segment and reporting unit. The Company recognized deferred tax liabilities of $50.0 million relating to the difference between the book basis and the outside tax basis in the acquired partnerships in fiscal year 2021. During the fourth quarter of fiscal year 2022, the Company recognized a measurement period adjustment which reduced the amount of acquired deferred tax liabilities by $6.3 million. The measurement period adjustment is reflected as a reduction to goodwill during the period identified. In fiscal year 2021, the Company recorded $1.8 million of transaction costs in selling, general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income related to the 2nd Ave. Acquisition. Following the 2nd Ave. Acquisition, the Company recognized an incremental $15.5 million of net sales and $1.2 million of net income attributable to the 2nd Ave. business during fiscal year 2021. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following: (in thousands) December 30, 2023 December 31, 2022 Furniture, fixtures and equipment $ 293,041 $ 230,694 Leasehold improvements 116,158 88,739 Finance leases 5,285 — Total property and equipment 414,484 319,433 Less: accumulated depreciation 185,079 128,915 Total property and equipment, net $ 229,405 $ 190,518 Depreciation expense for fiscal years 2023, 2022 and 2021 was $56.0 million, $49.6 million and $38.1 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying value of goodwill by reportable segments were as follows: (in thousands) U.S. Canada Total Balance at January 1, 2022 $ 421,284 $ 282,494 $ 703,778 Measurement period adjustment (6,338) — (6,338) Foreign currency translation effect — (15,993) (15,993) Balance at December 31, 2022 414,946 266,501 681,447 Foreign currency translation effect — 5,921 5,921 Balance at December 30, 2023 $ 414,946 $ 272,422 $ 687,368 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The components of intangible assets were as follows: (in thousands) December 30, 2023 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,650 $ — $ 118,650 Charity licensing agreements 68,189 (20,158) 48,031 Total $ 186,839 $ (20,158) $ 166,681 (in thousands) December 31, 2022 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,000 $ — $ 118,000 Charity licensing agreements 68,309 (15,658) 52,651 Total $ 186,309 $ (15,658) $ 170,651 The amortization expense associated with intangible assets was $5.2 million, $6.1 million and $9.2 million for fiscal years 2023, 2022 and 2021, respectively. The estimated aggregate amortization expense of intangible assets for each of the five years commencing after December 30, 2023 is $4.5 million. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Long-term debt consisted of the following: (in thousands) December 30, 2023 December 31, 2022 Senior Secured Notes $ 495,000 $ — Term Loan Facility 321,756 814,687 Advances on Revolving Credit Facility — 42,000 Total face value of debt 816,756 856,687 Less: current portion of long-term debt and short-term borrowings 4,500 50,250 Less: unamortized debt issuance costs and debt discount 27,663 23,090 Long-term debt, net $ 784,593 $ 783,347 In 2023, the Company used the net proceeds from its IPO, the net proceeds from issuing $550.0 million aggregate principal amount of Senior Secured Notes and cash on hand to repay $485.8 million in outstanding borrowings on its Term Loan Facility and $55.0 million aggregate principal amount of its Senior Secured Notes (the “Notes”), and consequently recognized a loss on debt extinguishment of $16.6 million. A $47.5 million loss on debt extinguishment was recorded in 2021 when the Company refinanced its debt and entered into the Senior Secured Credit Facilities consisting of a term loan facility (“Term Loan Facility”) and a revolving credit facility (“Revolving Credit Facility”). Proceeds from the February 2023 Notes issuance were also used to pay a $262.2 million dividend and a $23.6 million one-time bonus to certain employees and directors participating in our management equity incentive plan who were unable to participate in the dividend. The bonus was recorded in salaries, wages and benefits in the Consolidated Statements of Operations and Comprehensive Income. Senior Secured Notes On February 6, 2023, the Company issued $550.0 million of Senior Secured Notes (the “Notes”) at a discount of 2.014%. The Notes bear interest at a fixed rate of 9.75%. Interest began accruing on the date of issuance and the first scheduled interest payment was made on August 15, 2023, with interest due every February 15 and August 15 thereafter through maturity. The Notes are due in full at maturity in April 2028, coterminous with the Term Loan Facility. The Company’s principal subsidiaries in the U.S. are issuers of the Notes. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by most of the Company’s U.S. and Canadian subsidiaries (other than the issuers). The Notes are secured by a first priority lien on substantially all assets of the issuers and guarantors, subject to certain exceptions, on an equal and ratable basis with indebtedness under the Term Loan Facility. The Notes rank pari passu with the Term Loan Facility in right of payment and are subordinated to our existing super-priority Revolving Credit Facility in right of payment. Prior to February 15, 2025, we may redeem the Notes at any time, in whole or in part, at a price equal to 100% of the principal amount of such Notes, plus a make-whole premium, plus accrued and unpaid interest. We may also redeem (a) up to an aggregate of 40% of the principal amount of the Notes with the proceeds of certain equity offerings at a redemption price of 109.750% of the principal amount of Notes redeemed, plus accrued and unpaid interest, and (b) up to 10% of the then outstanding aggregate principal amount of the Notes during each of the twelve-month periods ending after February 6, 2023, at a redemption price equal to 103% of the aggregate principal amount thereof, plus accrued and unpaid interest. On or after February 15, 2025, we may redeem the Notes in whole or in part at the redemption prices set forth below, plus accrued and unpaid interest: For the period Redemption Price February 15, 2025 through February 14, 2026 104.875 % February 15, 2026 through February 14, 2027 102.438 % On or after February 15, 2027 100.000 % If a change in control occurs, we will be required to repurchase the Notes at a purchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest. The indenture, pursuant to which the Notes were issued, contains customary affirmative and negative covenants, which are similar in scope to those in the Senior Secured Credit Facilities (see below), although there are no financial maintenance covenants in the indenture governing the Notes . Certain covenants may be suspended in the event the Notes are assigned an investment grade rating from two of three rating agencies. On March 4, 2024, the Company redeemed $49.5 million aggregate principal amount of Senior Secured Notes, equal to 10% of the outstanding balance at December 30, 2023. In addition to paying accrued interest, the Company paid a premium of 3%, or $1.5 million, on the partial redemption. This transaction resulted in a loss on extinguishment of debt of $3.4 million . Senior Secured Credit Facilities The Company’s principal subsidiaries in the U.S. and Canada are borrowers under the Senior Secured Credit Facilities and most of the Company’s U.S. and Canadian subsidiaries are guarantors. The Senior Secured Credit Facilities are secured by a first priority lien on substantially all assets of the borrowers and guarantors, subject to certain exceptions. The Revolving Credit Facility is senior to the Term Loan Facility in right of payment. The Senior Secured Credit Facilities have customary affirmative and negative covenants, including restrictions on our ability to incur additional indebtedness, incur liens, make investments, make restricted payments (including restrictions on the payment of dividends), make optional prepayments on junior financings, engage in transactions with affiliates and make asset sales, in each case subject to customary exceptions and baskets. The Senior Secured Credit Facilities also have a customary uncommitted incremental facility of (i) the greater of $136.0 million or EBITDA for the prior four fiscal quarters plus (ii) additional amounts based on the Company’s net leverage ratio or interest coverage ratio plus (iii) certain specific additional amounts. On January 30, 2024, the Company entered into an amendment (the “Third Amendment”) to its Senior Secured Credit Facilities. Among other things, the Third Amendment (i) removes the SOFR adjustment margin, (ii) reduces the margin on existing borrowings under the Term Loan Facility from a range of 4.25% to 5.50% to a range of 2.75% to 4.00%, (iii) revises the leverage-based pricing grid applicable to borrowings under the Term Loan Facility such that, among other things, a lower leverage ratio than was previously required is needed to obtain a 0.25% reduction in margin, (iv) provides for a 0.25% reduction of the margin applicable to term loan borrowings if the Company achieves certain public corporate family ratings and (v) increases the limit on the customary incremental uncommitted revolving credit facility that does not require consent of the required lenders to the greater of (a) $102.0 million and (b) 50% of EBITDA for the prior four quarters. On February 9, 2024, the Company achieved the public corporate family ratings required for a 0.25% reduction of the margin applicable to its term loan borrowings. Term Loan Facility The Term Loan Facility matures in April 2028. Total principal payments of $1.5 million are due quarterly. The Term Loan Facility bears interest at a variable rate equal to a reference rate plus a margin ranging from 4.25% to 5.50% based on loan type and our first lien net leverage ratio, plus a SOFR adjustment margin ranging from 0.11% to 0.43% based on the applicable interest period (one month, three months or six months). Beginning in 2023, the Company is required to prepay the Term Loan Facility with a percentage of the Company’s annual excess cash flow if the first lien net leverage ratio is greater than or equal to 3.50 to 1.00. The Company is also required to prepay the Term Loan Facility with a percentage of the net cash proceeds of certain asset sales, subject to customary reinvestment provisions, when the first lien net leverage ratio is greater than or equal to 3.50 to 1.00. The Company is able to prepay amounts outstanding under the Term Loan Facility without a prepayment premium. Revolving Credit Facility The Revolving Credit Facility matures in April 2026. The maximum available amount under the Revolving Credit Facility is $75.0 million, with $60.0 million available for letters of credit and a swingline sublimit of $10.0 million. As of December 30, 2023 , there were no advances on the Revolving Credit Facility, there were $1.2 million of letters of credit outstanding and $73.8 million was available to borrow. The interest rate on revolver draws is variable at a rate equal to the reference rate plus a margin of 2.00% or 3.00% based on loan type. The weighted average interest rate on borrowings outstanding under the Revolving Credit Facility at December 31, 2022 was 9.75%. A 0.5% commitment fee is payable quarterly on the unused portion of the Revolving Credit Facility. The Revolving Credit Facility is subject to a financial maintenance covenant that requires us to maintain a maximum first lien net leverage ratio, tested quarterly. The financial maintenance covenant is only applicable if the aggregate amount of revolving loans, swingline loans and letters of credit outstanding under the Revolving Credit Facility (excluding up to $20 million of undrawn letters of credit and certain other amounts) exceeds 35% of the committed amount. The Revolving Credit Facility provides for customary equity cure rights. Aggregate principal payments Aggregate minimum principal payments on debt as of December 30, 2023 are as follows: (in thousands) 2024 $ 4,500 2025 7,500 2026 6,000 2027 6,000 2028 792,756 $ 816,756 Related party debt All related party debt was paid off in April 2021. Prior to April 2021, the company had debt arrangements with the Ares Funds, a term we use to describe certain funds, investment vehicles or accounts managed or advised by the Private Equity Group of Ares Management Corporation (who, prior to our IPO, indirectly owned substantially all of our outstanding shares of common stock). Int erest expense on related party debt was $11.0 million in fiscal year 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company utilizes fair value measurements for its financial assets and financial liabilities and fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is based upon a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 inputs are inputs other than unadjusted quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement. The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 30, 2023: (in thousands) Fair Value Hierarchy Total Level 1 Level 2 Level 3 Assets: Money market funds $ 90,000 $ — $ — $ 90,000 Interest rate swaps — 10,379 — 10,379 Cross currency swaps — 20,831 — 20,831 Total $ 90,000 $ 31,210 $ — $ 121,210 Liabilities: Cross currency swaps $ — $ 466 $ — $ 466 Forward contracts — 384 — 384 Total $ — $ 850 $ — $ 850 The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 31, 2022: (in thousands) Fair Value Hierarchy Total Level 1 Level 2 Level 3 Assets: Interest rate swaps $ — $ 16,472 $ — $ 16,472 Cross currency swap — 22,993 — 22,993 Forward contracts — 237 — 237 Total $ — $ 39,702 $ — $ 39,702 Liabilities: Cross currency swaps $ — $ 66 $ — $ 66 Forward contracts — 14 — 14 Total $ — $ 80 $ — $ 80 Money market funds consist of short-term deposits with an original maturity of three months or less. Interest rate swaps, cross currency swaps and forward contracts are fair valued using independent pricing services and the Company obtains an understanding of the methods used in pricing. As such, these derivative instruments are classified within Level 2. There were no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3 for fiscal year 2023 or fiscal year 2022. As of December 30, 2023, the fair value of the Company’s Senior Secured Notes, based on Level 1 inputs, was $525.5 million. The fair value of borrowings under the Company’s Senior Secured Credit Facilities approximate their carrying value as the current rates approximate rates on similar debt and were based on rate notices provided by the Administrative Agent (Level 2 inputs) at December 30, 2023 and December 31, 2022 (see Note 7) . |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of total lease costs, net, consisted of the following: Fiscal Year (in thousands) 2023 2022 Operating lease costs $ 119,908 $ 114,788 Short-term and variable lease costs 41,559 48,812 Sublease income (2,703) (2,510) Finance lease costs: Amortization of lease assets 1,152 — Interest on lease obligations 247 — Total lease costs, net $ 160,163 $ 161,090 Rent expense, prior to the adoption of Topic 842, was $95.3 million for fiscal year 2021. The maturities of our lease obligations at December 30, 2023 were as follows: (in thousands) Operating Leases Finance Leases Total 2024 $ 108,706 $ 1,655 $ 110,361 2025 120,085 1,304 121,389 2026 97,402 1,002 98,404 2027 81,526 837 82,363 2028 61,908 774 62,682 Thereafter 208,164 1,187 209,351 Total undiscounted payments 677,791 6,759 684,550 Less: Interest 179,078 1,474 180,552 Present value of lease obligations $ 498,713 $ 5,285 $ 503,998 Weighted average remaining lease term (years) 6.94 1.50 Weighted average discount rate 8.53 % 5.16 % Supplemental cash flow information related to leases is as follows: Fiscal Year (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease obligations Operating cash flows for operating leases $ 112,139 $ 105,359 Operating cash flows for finance leases 247 — Financing cash flows for finance leases 1,526 — Noncash investing activities Assets obtained in exchange for new operating lease obligations $ 145,206 $ 70,425 Assets obtained in exchange for new finance lease obligations 3,517 — |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As a result of its operating and financing activities, the Company is exposed to market risks from changes in interest and foreign currency exchange rates. These market risks may adversely affect the Company’s operating results, cash flows and financial position. The Company seeks to manage risk from changes in interest and foreign currency exchange rates through the use of derivative financial instruments. Derivative contracts are not collateralized and are entered into with large, reputable financial institutions that are monitored for counterparty risk. Refer to Note 8 for information on the fair value of our derivative instruments. Foreign currency contracts The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company uses derivative financial instruments to manage its exposure to foreign currency exchange rate risk, specifically U.S. Dollar (“USD”) – Canadian Dollar (“CAD”) cross currency swaps and forward sales of CAD. These instruments lock in the exchange rate for a portion of the estimated cash flows of the Company’s Canadian operations. As of December 30, 2023 and December 31, 2022, cross currency swaps with notional amounts of $275.0 million were outstanding. Additionally, as of December 30, 2023 and December 31, 2022, the Company’s forward contracts had USD equivalent gross notional amounts of $33.2 million and $42.1 million, respectively. Interest rate swap contracts The Company’s market risk is affected by changes in interest rates. The Company’s Senior Secured Credit Facilities bear interest based on market rates plus an applicable spread. Because the interest rate on the Company’s floating-rate debt is tied to market rates, the Company manages its exposure to interest rate movements by effectively converting a portion of its floating-rate debt to fixed-rate debt. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. The Company has agreements with each of its derivative counterparties that contain a provision whereby the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on its indebtedness. At December 30, 2023 and December 31, 2022, interest rate swaps with notional amounts of $275.0 million were outstanding. The fair values of cross currency swap contracts, forward contracts and interest rate swap contracts were as follows: (in thousands) Balance Sheet Location December 30, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Forward contracts Derivative asset – current $ — $ 237 Cross currency swaps Derivative asset – current — 6 Cross currency swaps Derivative asset – non-current 20,831 22,987 Total derivatives in an asset position $ 20,831 $ 23,230 Forward contracts Accounts payable and accrued liabilities $ 384 $ 14 Cross currency swaps Accounts payable and accrued liabilities 466 66 Total derivatives in a liability position $ 850 $ 80 Derivatives designated as hedging instruments: Interest rate swaps Derivative asset – current $ 7,691 $ 8,382 Interest rate swaps Derivative asset – non-current 2,688 8,090 Total derivatives in an asset position $ 10,379 $ 16,472 Total deferred gain Accumulated other comprehensive income $ 13,045 $ 21,014 The impact of derivative financial instruments on the Consolidated Statements of Operations and Comprehensive Income were as follows: (in thousands) Fiscal Year 2023 2022 2021 (Loss) gain on forward contracts recognized in gain (loss) on foreign currency, net $ (373) $ 802 $ (575) (Loss) gain on cross currency swaps recognized in gain (loss) on foreign currency, net $ (2,770) $ 8,416 $ 12,594 Gain (loss) on interest rate swaps recognized in interest expense, net $ 11,110 $ 2,169 $ (214) The table below presents the effect of cash flow hedge accounting on other comprehensive (loss) income, net of tax: (in thousands) Fiscal Year 2023 2022 2021 Amount of gain recognized in other comprehensive (loss) income $ 3,141 $ 20,678 $ 1,994 Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 11,110 $ 2,205 $ (548) Amounts reclassified from accumulated other comprehensive income into income are recognized in interest expense, net in the Consolidated Statements of Operations and Comprehensive Income. Within the next 12 months, the Company estimates that an additional $10.1 million of gains recognized within accumulated other comprehensive income will be reclassified as a decrease in interest expense. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments, U.S. Retail and Canada Retail. In addition to its two reportable segments, the Company has retail stores in Australia and wholesale operations, both of which are classified within Other. The Company evaluates the performance of its segments based on Segment Profit, which it defines as operating income, exclusive of corporate overhead and allocations, asset impairments as applicable, and certain separately disclosed unusual or infrequent items. Segment Profit, as defined herein, may not be comparable to similarly titled measures used by other entities. These measures should not be considered as alternatives to our GAAP measures of Operating income, Net income, or cash flows from operating activities as an indicator of the Company’s performance or as a measure of its liquidity. Our segment results were as follows: Fiscal Year (in thousands) 2023 2022 2021 Net sales: U.S. Retail $ 780,126 $ 747,397 $ 644,182 Canada Retail 605,630 582,944 481,559 Other 114,493 106,888 78,383 Total net sales $ 1,500,249 $ 1,437,229 $ 1,204,124 Segment profit: U.S. Retail $ 198,146 $ 181,664 $ 166,988 Canada Retail 189,899 173,917 148,137 Other 39,572 33,395 16,235 Total segment profit 427,617 388,976 331,360 General corporate expenses 224,616 126,997 101,739 Depreciation and amortization 61,144 55,753 47,385 Operating income 141,857 206,226 182,236 Interest expense (88,500) (64,744) (53,565) Gain (loss) on foreign currency, net 6,660 (20,737) 1,583 Other income (expense), net 3,688 4,576 (4,848) Loss on extinguishment of debt (16,626) (1,023) (47,541) Income before income taxes 47,079 124,298 77,865 Income tax (benefit) expense (6,036) 39,578 (5,529) Net income $ 53,115 $ 84,720 $ 83,394 We do not separately present assets, depreciation expense or amortization expense for our reportable segments because the Company’s CODM does not review these amounts on a regular basis and because depreciation expense and amortization expense are excluded from segment profit. The Company’s long-lived assets are primarily located in the U.S. and Canada, with a portion located in Australia. The locations of our long-lived assets consisted of the following: (in thousands) December 30, 2023 December 31, 2022 U.S. $ 453,446 $ 381,151 Canada 302,322 275,091 Australia 21,043 24,770 Total long-lived assets $ 776,811 $ 681,012 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic and diluted net income per share were as follows: Fiscal Year (in thousands, except per share data) 2023 2022 2021⁽¹⁾ Numerator Net income $ 53,115 $ 84,720 $ 83,394 Denominator Basic weighted average common shares outstanding 151,027 141,561 141,545 Dilutive effect of employee stock options and awards 5,129 4,488 3,846 Diluted weighted average common shares outstanding (1) 156,156 146,049 145,391 Net income per share Basic $ 0.35 $ 0.60 $ 0.59 Diluted $ 0.34 $ 0.58 $ 0.57 ________________________________________ (1) Prior to the Corporate Conversion in January 2022, net income per share is computed based on the number of common units outstanding. (2) For fiscal year 2023, the calculation of diluted net income per share excludes the effect of 790 potential shares of common stock relating to awards of stock options and restricted stock units that, if exercised, would have been antidilutive. For fiscal year 2022, the calculation of diluted net income per share excludes the effect of 636 potential shares of common stock relating to awards of stock options that, if exercised, would have been antidilutive. For fiscal year 2021 there were no stock-based awards that would have had an antidilutive impact. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation 2019 Management Incentive Plan On March 28, 2019, the Company adopted the 2019 Management Incentive Plan (the “2019 Plan”) which allows for the issuance of stock options to directors, officers, key employees and other key individuals. Stock options awarded under the 2019 Plan contain both service and performance conditions. Awards issued under the 2019 Plan have a 10-year contractual term. In connection with the adoption of the Omnibus Incentive Compensation Plan (as defined below), the Company ceased issuing awards under the 2019 Plan. As a result, no shares remain available for issuance under the 2019 Plan; however, the 2019 Plan continues to govern awards that are outstanding under it. As of December 30, 2023, 15.5 million shares remain outstanding under the 2019 Plan. Omnibus Incentive Plan In connection with the IPO, the Company’s Board of Directors approved the Omnibus Incentive Compensation Plan (the “Omnibus Incentive Plan”), which became effective on June 28, 2023, the date the SEC declared our IPO registration statement on Form S-1 effective. The Omnibus Incentive Plan allows for issuance of up to 15.0 million new shares of common stock. In addition, should any awards under the 2019 Plan expire, terminate or be canceled, the shares of common stock underlying those awards will become available for issuance under the Omnibus Incentive Plan. Awards under the Omnibus Incentive Plan may be in the form of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, stock units, other stock based awards and cash awards. Awards issued under the Omnibus Incentive Plan have a maximum contractual term of 10 years. As of December 30, 2023, there were 14.4 million shares available for future issuance under the Omnibus Incentive Plan. Stock-based compensation The Company classifies stock-based compensation expense in salaries, wages and benefits expense in the Consolidated Statements of Operations and Comprehensive Income. The Company recognized stock-based compensation expense of $72.6 million, $1.9 million and $0.7 million during fiscal years 2023, 2022 and 2021, respectively. The total tax benefit associated with stock-based compensation for fiscal years 2023, 2022 and 2021 was $7.2 million, $0.4 million and $0.3 million, respectively. Time-based options Stock option awards containing only a service condition (“time-based options”) generally vest in equal annual installments over five years from the date of grant, provided the participant continues to be employed by, or provide service to, the Company through each vesting date. Stock-based compensation cost for time-based options is measured at the grant date based on the fair value of the award using the Black-Scholes-Merton option pricing model and is recognized on a straight-line basis over the requisite service period of the award. The Company accounts for forfeitures of time-based options as they occur. The following assumptions apply to time-based options awarded during fiscal year 2023, 2022 and 2021 under the Black-Scholes-Merton option pricing model: Fiscal Year 2023 2022 2021 Expected volatility 35.4% to 35.7% 32.7% to 39.8% 31.3% to 36.2% Risk-free interest rate 3.4% to 4.2% 1.8% to 3.6% 0.5% to 0.6% Expected term (in years) 6.5 6.5 6.5 The dividend yield assumption is zero. Although the Company paid a cash dividend in February 2023, December 2022 and November 2021, the Company has no history of making regular dividends, nor does it anticipate paying any cash dividends in the foreseeable future. The weighted average grant-date fair value of time-based stock options awarded during fiscal year 2023, 2022 and 2021 was $6.01 , $5.70 and $1.22, respectively. Expected volatility is based on historic share price volatilities of comparable publicly traded companies consistent with the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant, which corresponds to the expected term of the stock options. Based upon limited exercise history, the Company has elected to use the simplified method for estimating the expected term.The expected term of options granted represents the period of time that options are expected to be outstanding. The following table summarizes activity related to time-based options: (in thousands, except per share amounts and remaining term) Number of Weighted Weighted average remaining contractual term (in years) Aggregate Outstanding at December 31, 2022 6,976 $ 4.99 7.66 $ 60,229 Granted 933 13.96 Exercised (186) 1.52 Forfeited or expired (193) 13.00 Outstanding at December 30, 2023 7,530 5.99 6.93 85,774 Exercisable at December 30, 2023 4,063 3.04 6.16 58,280 The total intrinsic value of time-based options exercised during fiscal years 2023 and 2022 was $2.6 million and $0.9 million, respectively. There were no options exercised during fiscal year 2021. A s of December 30, 2023, unrecognized compensation expense related to outstanding time-based options was $11.8 million, which is expected to be recognized over a weighted average remaining vesting period of 3.64 years . Performance-based options Stock option awards containing a performance condition (“performance-based options”) vest in 25% increments as performance conditions are achieved through the term of the options. Twenty-five percent of outstanding performance-based options vested upon completion of the Company’s IPO, with the remainder scheduled to vest in equal increments over three years starting on June 30, 2024, provided market-specific conditions are achieved. Performance-based options are subject to continued employment through the vesting date. In October 2022, May 2023 and on July 2, 2023, the Company modified the vesting terms of its performance-based options to reflect the vesting terms above. The Company determined that the modified vesting terms constituted modifications under Topic 718 and thus remeasured the fair value of the outstanding performance-based options as of their respective modification dates. Forty-one grantees were affected by the modifications that occurred in October 2022, May 2023 and on July 2, 2023. Compensation expense for performance-based options is recognized when it is probable that performance conditions will be achieved. The Company accounts for forfeitures of performance-based options as they occur. A Black-Scholes-Merton option pricing model was used to determine the grant-date fair value of the performance-based options that were tied to the Company’s IPO and a Monte Carlo simulation under the option pricing framework was used to determine the grant-date fair value of the performance-based options subject to market-specific conditions. Upon completion of our IPO on July 3, 2023, we commenced recognition of stock-based compensation for our performance-based options as the underlying performance-based condition was satisfied. During fiscal year 2023, we recognized $28.0 million of expense related to performance-based options that vested upon completion of our IPO and $38.8 million of expense related to amortization of the remaining outstanding performance-based options that are recognized on a graded vesting basis over their expected vesting period. Black-Scholes-Merton Option Pricing Model The following assumptions were used to remeasure the fair value of performance-based options resulting from the October 2022 and May 2023 modifications under the Black-Scholes-Merton option pricing model: Fiscal Year 2023 2022 Expected volatility 35.5% 35.1% Risk-free interest rate 3.5% 3.8% Expected term (in years) 6.5 6.5 The dividend yield assumption is zero. Although the Company paid a cash dividend in February 2023, December 2022 and November 2021, the Company has no history of making regular dividends, nor does it anticipate paying any cash dividends in the foreseeable future. The weighted average grant-date fair value of performance-based stock options modified during fiscal years 2023 and 2022 was $16.32 and $13.51, respectively. Expected volatility is based on historic share price volatilities of comparable publicly traded companies consistent with the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant, which corresponds to the expected term of the stock options. Based upon limited exercise history, the Company has elected to use the simplified method for estimating the expected term. The expected term of options granted represents the period of time that options are expected to be outstanding. Monte Carlo Simulation The following assumptions were used to remeasure the fair value of performance-based options resulting from the July 2023 modifications under the Monte Carlo simulation: Fiscal Year 2023 Expected volatility 35.0% Risk-free interest rate 3.55% to 3.74% Expected term (in years) 3.1 to 6.6 The dividend yield assumption is zero. Although the Company paid a cash dividend in February 2023, December 2022 and November 2021, the Company has no history of making regular dividends, nor does it anticipate paying any cash dividends in the foreseeable future. The weighted average grant-date fair value of performance-based stock options modified during July 2023 was $21.18. Expected volatility is based on historic share price volatilities of comparable publicly traded companies consistent with the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant, which corresponds to the expected term of the stock options. Based upon limited exercise history, the Company has elected to use the simplified method for estimating the expected term. The expected term of options granted represents the period of time that options are expected to be outstanding. The following table summarizes activity related to performance-based options: (in thousands, except per share amounts and remaining term) Number of Weighted Weighted average remaining contractual term Aggregate Outstanding at December 31, 2022 7,948 $ 2.05 7.02 $ 90,339 Outstanding at December 30, 2023 7,948 2.05 5.78 121,750 Exercisable at December 30, 2023 1,987 2.05 5.78 30,438 No performance-based options were exercised during fiscal years 2023, 2022 and 2021. The Company did not award performance-based options during fiscal years 2023 and 2022 . As of December 30, 2023, unrecognized compensation expense related to outstanding performance-based options was $87.5 million, which is expected to be recognized over a weighted average remaining vesting period of 2.50 years . Restricted Stock Units Restricted stock units (“RSUs”) containing only a service condition generally vest in equal annual installments over a one-year or three-year period from the date of grant, provided the participant continues to be employed by, or provide service to, the Company through each vesting date. The fair value of the RSUs is determined by using the closing price of the Company’s common stock on the date of the grant. All RSUs were granted after the Company’s common stock commenced trading on June 29, 2023. The following table summarizes activity related to RSUs as of December 30, 2023 : (in thousands, except per share amounts) Number of units Weighted average Unvested at December 31, 2022 — $ — Granted 562 22.82 Forfeited or expired (15) 22.91 Unvested at December 30, 2023 547 22.81 As of December 30, 2023 , unrecognized compensation expense related to outstanding RSUs was $10.1 million, which is expected to be recognized over a weighted average remaining vesting period of 2.40 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes consisted of the following: Fiscal Year (in thousands) 2023 2022 2021 U.S. operations $ (2,940) $ 103,902 $ 86,828 Foreign operations 50,019 20,396 (8,963) Income before income taxes $ 47,079 $ 124,298 $ 77,865 Components of income tax (benefit) expense are summarized as follows: Fiscal Year (in thousands) 2023 2022 2021 Current: U.S. - federal $ 8,280 $ 354 $ (21) U.S. - state 6,232 3,279 4,661 Foreign 14,838 15,401 11,701 Deferred: U.S. - federal (19,480) 16,934 (7,257) U.S. - state (13,156) 4,074 (7,223) Foreign (2,750) (464) (7,390) Income tax (benefit) expense $ (6,036) $ 39,578 $ (5,529) The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows for the consolidated taxable entities at December 30, 2023 and December 31, 2022: (in thousands) December 30, 2023 December 31, 2022 Deferred tax assets: Net operating loss carryforwards $ 1,142 $ 2,197 Lease liability 129,486 106,270 Insurance reserves 4,935 4,235 Employment tax credits — 3,208 Deferred interest 16,116 17,392 Deferred payroll 13,062 6,572 Sec. 267 Deferred Basis 8,493 8,776 Unrealized foreign exchange loss 4,033 6,957 Other 6,547 7,143 Deferred tax assets, exclusive of valuation allowance 183,814 162,750 Less: valuation allowance 5,927 8,923 Deferred tax assets, net 177,887 153,827 Deferred tax liabilities: Property and equipment depreciation and amortization 19,407 16,636 Leasehold interests 3,856 3,930 Charity licensing agreements 12,418 11,695 Trade names and trademarks 28,753 23,902 Partnership tax deferral 2,037 5,075 ROU asset 125,937 103,297 Unrealized foreign exchange gain 4,405 4,909 Partnership basis — 41,985 Inventory 3,116 — Other 5,867 5,539 Deferred tax liabilities 205,796 216,968 Deferred tax liabilities, net $ 27,909 $ 63,141 As of December 30, 2023 and December 31, 2022, the Company did not have U.S. federal net operating loss carryforwards and had $10.0 million and $24.6 million, respectively, of U.S. state net operating loss carryforwards. These net operating loss carryforwards expire bet ween 2024 and 2041. As of December 30, 2023, the Company had $0.3 million of federal foreign tax credit, no federal R&D credits and no other federal tax credits. As of December 31, 2022, the Company had no federal foreign tax credit, no federal R&D tax credits and $3.2 million of other federal tax credits that expire between 2039 and 2042. Section 382 of the Internal Revenue Code and similar state regulations, contain provisions that may limit the NOL carryforwards available to be used to offset income in any given year upon the occurrence of certain events, including changes in the ownership within the meaning of Section 382. The Company reduced its tax attributes (NOLs and tax credits) and generated a limitation on utilization of such attributes resulting from the restructuring of its equity in March 2019 and the purchase by the Ares Funds of all of the Company’s outstanding equity in April 2021. The Company maintains a valuation allowance of $2.7 million and $3.2 million related to its Canadian and Australian operations, respectively. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more-likely-than-not expected to be realized. Management evaluates and weighs all available positive and negative evidence such as historic results, projected future taxable income, future reversals of existing deferred tax liabilities, as well as prudent and feasible tax-planning strategies. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are utilizable, we believe it is more likely than not that the Company will realize the net benefits of its deferred tax assets, other than the deferred tax assets related to the unrealized foreign exchange loss in Canada and deferred tax assets in Australia for which a valuation allowance has been maintained due to uncertainties relating to their realization.. The differences between income taxes expected by applying the 21% U.S. federal statutory tax rate and the amount of income taxes provided for are as follows: Fiscal Year (in thousands) 2023 2022 2021 Tax expense at statutory rate $ 9,887 $ 26,103 $ 16,352 Increase (decrease) in income taxes resulting from: State taxes net of federal benefit 4,519 5,844 8,828 Tax impact of restructuring (1) (31,340) — 24,779 GILTI/FDII (1,603) (1,114) 2,438 Foreign rate differential 2,623 — — Change in valuation allowance (2,996) 4,068 (59,527) Canada Revenue Agency Settlement — — 973 Other 5,386 7,248 4,868 Section 162(m) limitation 11,229 — — Tax Credits (3,741) (2,571) (4,240) Income tax (benefit) expense $ (6,036) $ 39,578 $ (5,529) ________________________________________ (1) In October 2023 the Company underwent an internal legal entity restructuring and in April 2021 the Company restructured its debt. The following table summarizes the activity related to the Company’s unrecognized tax benefits: Fiscal Year (in thousands) 2023 2022 2021 Beginning gross unrecognized tax benefits $ 1,912 $ 1,912 $ 1,545 Increase related to prior year tax position — — 367 Ending gross unrecognized tax benefits $ 1,912 $ 1,912 $ 1,912 In the normal course of business, the Company is subject to examination by taxing authorities in the countries in which it operates. The Company is currently under audit by several taxing jurisdictions, federal and state. Although the outcome of tax audits is always uncertain, the Company has assessed the probable outcomes and potential exposure and believes that it has provided adequate amounts of tax, interest and penalties for any adjustments that may arise from these open tax years. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense in the Consolidated Statements of Operations and Comprehensive Income. On December 9, 2020, the Company signed a settlement agreement with Canada Revenue Agency to resolve certain income and nonresident withholding tax disputes with respect to tax years 2012–2019. Pursuant to the settlement, the Company had accrued tax and interest of CAD $28.1 million as of January 1, 2022, of which CAD $26.2 million was paid in fiscal year 2021 and CAD $1.9 million was paid in fiscal year 2022. In October 2023, the Company went through an internal legal entity restructuring. As a result of the restructuring, the Company’s deferred tax liability on the outside basis difference in these partnerships was reduced from $42.0 million as of December 31, 2022, to zero as of December 30, 2023. As of December 30, 2023, the Company adjusted its deferred tax assets and liabilities to account for the basis differences related to the assets it received in the distribution noted above, including Internal Revenue Code Section 732 basis adjustments to the distributed property. Deferred taxes are not recorded for the distributed non-deductible goodwill. As of December 30, 2023, the Company recognized a deferred tax benefit of $31.3 million for the reduction of the partnership outside basis difference deferred tax liability, combined with any deferred tax assets and deferred tax liabilities recognized on the distributed property. As of December 30, 2023, the Company had not recognized a deferred tax liability on the excess of the amount for financial reporting over the tax basis in the stock of certain foreign subsidiaries that is essentially permanent in duration. This amount becomes taxable upon a repatriation of assets from the subsidiaries or a disposal of the subsidiaries. It is not practicable to determine the amount of the related unrecognized deferred income tax liability. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and regulatory matters The Company is involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. The Company may enter into discussions regarding settlement of these matters and may enter into settlement agreements, if in the best interest of the Company. From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. There are no pending significant legal proceedings to which the Company is a party for which management believes the ultimate outcome would have a material adverse effect on the Company’s financial position. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 53,115 | $ 84,720 | $ 83,394 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 30, 2023 shares | Dec. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mark Walsh [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Mark Walsh, our CEO and a member of our Board of Directors, entered into a pre-arranged stock trading plan pursuant to Rule 10b5-1 on November 17, 2023. Mr. Walsh’s plan provides for the potential exercise of vested stock options and the associated sale of up to 612,000 shares of Savers common stock. The plan expires on November 22, 2024, or upon earlier completion of all authorized transactions under the plan. | |
Name | Mark Walsh | |
Title | CEO and a member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 17, 2023 | |
Arrangement Duration | 371 days | |
Aggregate Available | 612,000 | 612,000 |
Mindy Geisser [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Mindy Geisser, Chief People Services Officer, amended a previously adopted Rule 10b5-1 Plan on November 29, 2023. As of the date of amendment, no shares of common stock had been sold pursuant to the plan. The original plan provided for the sale of up to 104,000 shares of Savers common stock and was set to expire on December 31, 2024, or upon earlier completion of all authorized transactions under the plan. The amended plan, which will become effective only after the required cooling-off period, also provides for the sale of up to 104,000 shares of Savers common stock and has an expiration date of December 31, 2024, or upon earlier completion of all authorized transactions under the plan. | |
Name | Mindy Geisser | |
Title | Chief People Services Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 29, 2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 104,000 | 104,000 |
Richard Medway [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Richard Medway, General Counsel, Chief Compliance Officer and Secretary , amended a previously adopted Rule 10b5-1 Plan on November 20, 2023. As of the date of amendment, no shares of common stock had been sold pursuant to the plan. The original plan provided for the sale of up to 160,004 shares of Savers common stock and was set to expire on December 31, 2024, or upon earlier completion of all authorized transactions under the plan. The amended plan, which will become effective only after the required cooling-off period, also provides for the sale of up to 160,004 shares of Savers common stock and has an expiration date of December 31, 2024, or upon earlier completion of all authorized transactions under the plan. | |
Name | Richard Medway | |
Title | General Counsel, Chief Compliance Officer and Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 20, 2023 | |
Arrangement Duration | 407 days | |
Aggregate Available | 160,004 | 160,004 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements present the results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company reports on a fiscal year basis, which ends on the Saturday nearest December 31. Fiscal year 2023 consisted of the 52 weeks ended December 30, 2023, fiscal year 2022 consisted of the 52 weeks ended December 31, 2022 and fiscal year 2021 consisted of the 52 weeks ended January 1, 2022. All amounts in the Notes to the Consolidated Financial Statements, with the exception of per share amounts, are rounded to the nearest thousand unless otherwise indicated. Certain prior period information has been reclassified to conform to the current period presentation. The reclassification had no effect on the Company’s consolidated financial position or the consolidated results of operations as previously reported. |
Use of estimates | Use of estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. These estimates are based on available information and on various other assumptions that are believed to be reasonable under the circumstances. Certain items subject to such estimates and assumptions include, but are not limited to, the valuation of insurance reserves, the valuation of intangibles, the valuation of goodwill, income taxes and stock-based compensation. Actual results could vary from those estimates under different assumptions or conditions. |
Foreign currency | Foreign currency The functional currency of the Company’s foreign entities is the local currency of the country in which the entity operates. Assets and liabilities of foreign operations are translated into U.S. dollars, the reporting currency of Savers Value Village, Inc., using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as a foreign currency translation adjustment and is included in other comprehensive (loss) income in the Consolidated Statements of Operations and Comprehe nsive Income and in accumulated other comprehensive income on the Consolidated Balance Sheets. Income and expense accounts of the Company’s foreign entities are translated into U.S. dollars using average rates of exchange during the reporting period. Transaction gains and losses realized upon settlement of foreign currency transactions and remeasurement gains and losses on unsettled foreign currency-denominated balances, as well as realized and unrealized gains and losses on cross currency swaps and forward contracts (see Note 10) a re included in gain (loss) on foreign currency, net in the Consolidated Statements of Operations and Comprehensive Income . Aggregate transaction gains ( losses) totaled $9.8 million in fiscal year 2023, $(30.0) million in fiscal year 2022 and $(10.4) million in fiscal year 2021. From time to time, the Company has intercompany loans issued by its foreign subsidiaries. Foreign currency gains and losses related to these intercompany loans are not eliminated during consolidation and are included in gain (loss) on foreign currency, net in the Consolidated Statements of Operations and Comprehensive Income. |
Revenue recognition | Revenue recognition Retail sales. Revenue is recorded for store sales upon the purchase of merchandise by customers. Sales taxes collected from customers are not considered revenue and are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets until remitted to the taxing authorities. Revenue is recorded net of coupons, promotional discounts and sales discounts under reward programs. Revenue from gift cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding gift card balances as a liability, net of estimated breakage. Gift card liabilities are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. The Company does not record a sales return reserve as no right of return exists for customers. Wholesale sales. Sales of residual products are recognized at the point of delivery with no right of return and exclude shipping and handling costs, which are paid by the customer. The Company does not have a significant financing component as customers pay within one year of title transfer. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash, demand deposits with banks, proceeds due from credit and debit card transactions and money market funds with maturity dates of three months or less from the date of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. The Company’s cash deposits are maintained in accounts primarily with two major financial institutions in the U.S. and Canada. Substantially all the cash on deposit exceeds the federally insured limits for such deposits. |
Trade accounts receivable | Trade accounts receivable Trade accounts receivable are recorded at the invoiced amount, net of any allowances. Both trade accounts receivable and the allowance for credit losses relate to wholesale sales. |
Inventories | Inventories |
Property and equipment | Property and equipment Property and equipment are stated at historical cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 3 to 15 years for furniture, fixtures and equipment. Leasehold improvements are amortized using the straight-line method over the shorter of 7 years or the remaining lease term. |
Intangible assets | Intangible assets Intangible assets represent the Company’s trade names and charity licensing agreements. The Company’s trade names, which have indefinite lives, are not amortized, but rather, reviewed for impairment at least annually in the fourth quarter and whenever circumstances indicate the trade names might be impaired. Charity licensing agreements are amortized using the straight-line method over their estimated useful life of 15 years . |
Long-lived assets | Long-lived assets The carrying value of long-lived assets, consisting of property and equipment, right-of-use lease assets and long-lived intangible assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. When testing for impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. We then assess the risk of impairment by comparing an estimate of the undiscounted cash flows expected to be generated by the asset group against the carrying value of the asset group. Impairment is indicated when the carrying value of the asset group exceeds the estimated future undiscounted cash flows generated by those assets. When impairment is indicated, the Company records an impairment charge for the difference between the carrying value of the asset group and its estimated fair value. Depending on the asset, estimated fair value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. |
Goodwill | Goodwill Goodwill is reviewed for impairment annually in the Company’s fourth quarter and whenever circumstances indicate goodwill might be impaired. The Company first performs a qualitative assessment, evaluating relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If not, no further impairment testing is performed. If the assessment indicates that it is more likely than not, the Company compares the carrying value of the reporting unit to the estimated fair value of the reporting unit, both as of the testing date. If the carrying value of the reporting unit exceeds the estimated fair value, the Company will recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value up to but not to exceed the total amount of goodwill allocated to the reporting unit. |
Insurance reserves | Insurance reserves The Company is self-insured for general liability, medical and workers’ compensation and regularly reviews the related insurance reserves and adjusts the balances as necessary. Self-insurance claims filed and claims incurred-but-not-reported are accrued based on management’s estimates of cost by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Additionally, the Company reviews specific large insurance claims to determine whether there is a need for any additional accruals. Changes in these assumptions could materially impact the required reserve balances and it is possible that the Company’s actual loss experience could differ materially from recorded insurance reserves. |
Advertising costs | Advertising costs |
Income taxes | Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized based on the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred income tax assets to the amount more likely than not expected to be realized. Income tax expense represents the current expense incurred for the period plus or minus the change during the period in net deferred tax assets and liabilities. Section 382 of the Internal Revenue Code and similar state regulations, contain provisions that may limit the net operating loss (“NOL”) carryforwards and other tax attributes available to be used to offset income and tax liabilities in any given year upon the occurrence of certain events, including changes in ownership of more than 50%. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount of the benefit that is greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense, net and penalties in income tax (benefit) expense in the Consolidated Statements of Operations and Comprehensive Income. |
Stock-based compensation | Stock-based compensation The Company’s stock-based incentive plan allows for the issuance of various types of stock-based awards, including time-based options, performance-based options and restricted stock units (“RSUs”). Options are generally granted with an exercise price equal to the fair value of our common stock. Prior to July 3, 2023, the date we completed our IPO, the fair value of our common stock was established by the Board at the date of the grant. Upon completion of our IPO, the fair value of our common stock is determined based on the closing quoted market price of our common stock on the New York Stock Exchange on the date of grant. We estimate the fair value of time-based options using the Black-Scholes option-pricing model. We also used the Black-Scholes option-pricing model to determine the grant-date fair value of performance-based options that were tied to the Company’s IPO and a Monte Carlo simulation under the option pricing framework to determine the grant-date fair value of performance-based options subject to market-specific conditions. We recognize expense for time-based options on a straight-line basis over the requisite service period of the awards. We recognize expense for performance-based options when it is probable that performance conditions will be achieved and recognize the expense on a straight-line basis over any remaining service period. The fair value of RSUs is estimated based on the fair value of our common stock on the date of grant which in turn is based on the New York Stock Exchange closing price on the date of grant. RSUs are recognized in compensation expense over the service period, which is generally the vesting period . For a more detailed discussion of stock-based compensation, see Note 13. |
Derivative instruments | Derivative instruments In the normal course of business, the Company uses derivative financial instruments, which may include interest rate swaps, cross currency swaps and foreign exchange forwards and swaps, to hedge against adverse fluctuations in interest rates or foreign exchange rates thereby reducing our exposure to variability in cash flows on our floating-rate debt or from foreign operations. Derivative instruments are measured at fair value and classified as assets or liabilities, current or non-current, depending on settlement dates of the individual contracts. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that are not designated as hedges are intended to economically hedge a portion of our interest rate and foreign exchange risks. Gains and losses from changes in fair value on these derivatives are recorded immediately in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income. For derivative instruments designated as cash flow hedges, gains and losses from changes in fair value are initially reported as a component of accumulated other comprehensive income on the Consolidated Balance Sheets and subsequently recognized in earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense, net in the Consolidated Statements of Operations and Comprehensive Income as interest payments are made on the Company’s variable-rate debt. Realized gains and losses on interest rate swaps with an other-than-insignificant financing element at inception are reported within cash flows from financing activities on the Consolidated Statements of Cash Flows. Realized gains and losses on interest rate swaps without an other-than-insignificant financing element at inception, cross currency swaps and forward contracts are reported within cash flows from investing activities on the Consolidated Statements of Cash Flows. The Company does not use derivative instruments for trading or speculative purposes and does not use any leveraged derivative financial instruments. |
Segment reporting | Segment reporting Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. The Company has four operating segments, of which two were determined to be reportable segments: U.S. Retail and Canada Retail. |
Net income per share | Net income per share Basic net income p er share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potentially dilutive common equivalent shares outstanding for the period. Prior to the Corporate Conversion, the Company computed ne t income pe r share based on the number of common units outstanding. |
Leases | Leases The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“Topic 842”), as of January 2, 2022 and also adopted all subsequent ASUs related to Topic 842. The Company adopted ASU 2016-02 using the modified retrospective method and elected the transition package of practical expedients, which among other things, allowed it to carry forward the historical lease classification. The Company leases various real estate, including retail stores, warehouses and office space as well as vehicles. The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, lease liabilities—current and lease liabilities – non-current in our Consolidated Balance Sheets. As of December 30, 2023, finance leases of $5.3 million, $1.7 million and $3.6 million were included in property and equipment, net accounts payable and accrued liabilities other liabilities Our lease assets and liabilities are recognized at the lease commencement date based on the present value of fixed lease payments over the lease term. As an implicit rate is not provided for most of our leases, we use an incremental borrowing rate which represents the rate used for a secured borrowing of a similar term as the lease. Our real estate leases typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease costs and are excluded from the present value of our lease obligations. The Company’s leases have remaining lease terms of 1 to 16 years. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. The option periods are generally not included in the lease term used to measure our lease liabilities and lease assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and lease asset when we are reasonably certain to exercise a renewal option. The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements not yet adopted | Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments that replaces the existing incurred loss model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The Company adopted this guidance, and subsequent amendments to this guidance, as of January 1, 2023. The change to an expected credit loss model did not have a material effect on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . Topic 848 provides relief that, if elected, will ease the potential accounting burden when modifying contracts and hedging relationships that use the London Inter-Bank Offered Rate (“LIBOR”) as a reference rate. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. This ASU clarifies that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions under Topic 848. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Topic 848 allows for different elections to be made at different points in time. In accordance with the fallback provisions of our interest rate swap contracts and the discontinuation of LIBOR after June 30, 2023, the reference rate for our interest rate swaps transitioned from LIBOR to Fallback Rate (SOFR) with effect from July 1, 2023. The Company elected to apply the optional expedients under Topic 848 to this change in reference rate and therefore the modified instruments will be accounted for and presented in the same manner as the instruments existing before the modification. This change from LIBOR to Fallback Rate (SOFR) for our interest rate swaps did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require enhanced disclosures about significant expenses on an annual and interim basis for all public entities. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this Update require that public business entities on an annual basis disclose specific categories in the rate reconciliation table, provide additional information for reconciling items that meet a quantitative threshold and provide additional information about income taxes paid. The amendments in this Update are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently in the process of evaluating the effects of this pronouncement on its related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by retail and wholesale for fiscal years 2023, 2022 and 2021: (in thousands) Fiscal Year 2023 2022 2021 Retail sales $ 1,427,024 $ 1,365,109 $ 1,154,891 Wholesale sales 73,225 72,120 49,233 Total net sales $ 1,500,249 $ 1,437,229 $ 1,204,124 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, and Equipment, Net | Property and equipment, net, consisted of the following: (in thousands) December 30, 2023 December 31, 2022 Furniture, fixtures and equipment $ 293,041 $ 230,694 Leasehold improvements 116,158 88,739 Finance leases 5,285 — Total property and equipment 414,484 319,433 Less: accumulated depreciation 185,079 128,915 Total property and equipment, net $ 229,405 $ 190,518 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill by reportable segments were as follows: (in thousands) U.S. Canada Total Balance at January 1, 2022 $ 421,284 $ 282,494 $ 703,778 Measurement period adjustment (6,338) — (6,338) Foreign currency translation effect — (15,993) (15,993) Balance at December 31, 2022 414,946 266,501 681,447 Foreign currency translation effect — 5,921 5,921 Balance at December 30, 2023 $ 414,946 $ 272,422 $ 687,368 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The components of intangible assets were as follows: (in thousands) December 30, 2023 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,650 $ — $ 118,650 Charity licensing agreements 68,189 (20,158) 48,031 Total $ 186,839 $ (20,158) $ 166,681 (in thousands) December 31, 2022 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,000 $ — $ 118,000 Charity licensing agreements 68,309 (15,658) 52,651 Total $ 186,309 $ (15,658) $ 170,651 |
Schedule of Finite-Lived Intangible Assets | The components of intangible assets were as follows: (in thousands) December 30, 2023 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,650 $ — $ 118,650 Charity licensing agreements 68,189 (20,158) 48,031 Total $ 186,839 $ (20,158) $ 166,681 (in thousands) December 31, 2022 Gross carrying Accumulated Net carrying Trade names and trademarks $ 118,000 $ — $ 118,000 Charity licensing agreements 68,309 (15,658) 52,651 Total $ 186,309 $ (15,658) $ 170,651 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following: (in thousands) December 30, 2023 December 31, 2022 Senior Secured Notes $ 495,000 $ — Term Loan Facility 321,756 814,687 Advances on Revolving Credit Facility — 42,000 Total face value of debt 816,756 856,687 Less: current portion of long-term debt and short-term borrowings 4,500 50,250 Less: unamortized debt issuance costs and debt discount 27,663 23,090 Long-term debt, net $ 784,593 $ 783,347 |
Debt Instrument Redemption | On or after February 15, 2025, we may redeem the Notes in whole or in part at the redemption prices set forth below, plus accrued and unpaid interest: For the period Redemption Price February 15, 2025 through February 14, 2026 104.875 % February 15, 2026 through February 14, 2027 102.438 % On or after February 15, 2027 100.000 % |
Schedule of Maturities of Long-Term Debt | Aggregate minimum principal payments on debt as of December 30, 2023 are as follows: (in thousands) 2024 $ 4,500 2025 7,500 2026 6,000 2027 6,000 2028 792,756 $ 816,756 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 30, 2023: (in thousands) Fair Value Hierarchy Total Level 1 Level 2 Level 3 Assets: Money market funds $ 90,000 $ — $ — $ 90,000 Interest rate swaps — 10,379 — 10,379 Cross currency swaps — 20,831 — 20,831 Total $ 90,000 $ 31,210 $ — $ 121,210 Liabilities: Cross currency swaps $ — $ 466 $ — $ 466 Forward contracts — 384 — 384 Total $ — $ 850 $ — $ 850 The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 31, 2022: (in thousands) Fair Value Hierarchy Total Level 1 Level 2 Level 3 Assets: Interest rate swaps $ — $ 16,472 $ — $ 16,472 Cross currency swap — 22,993 — 22,993 Forward contracts — 237 — 237 Total $ — $ 39,702 $ — $ 39,702 Liabilities: Cross currency swaps $ — $ 66 $ — $ 66 Forward contracts — 14 — 14 Total $ — $ 80 $ — $ 80 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of total lease costs, net, consisted of the following: Fiscal Year (in thousands) 2023 2022 Operating lease costs $ 119,908 $ 114,788 Short-term and variable lease costs 41,559 48,812 Sublease income (2,703) (2,510) Finance lease costs: Amortization of lease assets 1,152 — Interest on lease obligations 247 — Total lease costs, net $ 160,163 $ 161,090 |
Lessee, Operating Lease, Liability, to be Paid, Maturity | The maturities of our lease obligations at December 30, 2023 were as follows: (in thousands) Operating Leases Finance Leases Total 2024 $ 108,706 $ 1,655 $ 110,361 2025 120,085 1,304 121,389 2026 97,402 1,002 98,404 2027 81,526 837 82,363 2028 61,908 774 62,682 Thereafter 208,164 1,187 209,351 Total undiscounted payments 677,791 6,759 684,550 Less: Interest 179,078 1,474 180,552 Present value of lease obligations $ 498,713 $ 5,285 $ 503,998 Weighted average remaining lease term (years) 6.94 1.50 Weighted average discount rate 8.53 % 5.16 % |
Leases, Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows: Fiscal Year (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease obligations Operating cash flows for operating leases $ 112,139 $ 105,359 Operating cash flows for finance leases 247 — Financing cash flows for finance leases 1,526 — Noncash investing activities Assets obtained in exchange for new operating lease obligations $ 145,206 $ 70,425 Assets obtained in exchange for new finance lease obligations 3,517 — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cross Currency Swap Contracts, Forward Contracts, and Interest Rate Swaps | The fair values of cross currency swap contracts, forward contracts and interest rate swap contracts were as follows: (in thousands) Balance Sheet Location December 30, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Forward contracts Derivative asset – current $ — $ 237 Cross currency swaps Derivative asset – current — 6 Cross currency swaps Derivative asset – non-current 20,831 22,987 Total derivatives in an asset position $ 20,831 $ 23,230 Forward contracts Accounts payable and accrued liabilities $ 384 $ 14 Cross currency swaps Accounts payable and accrued liabilities 466 66 Total derivatives in a liability position $ 850 $ 80 Derivatives designated as hedging instruments: Interest rate swaps Derivative asset – current $ 7,691 $ 8,382 Interest rate swaps Derivative asset – non-current 2,688 8,090 Total derivatives in an asset position $ 10,379 $ 16,472 Total deferred gain Accumulated other comprehensive income $ 13,045 $ 21,014 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The impact of derivative financial instruments on the Consolidated Statements of Operations and Comprehensive Income were as follows: (in thousands) Fiscal Year 2023 2022 2021 (Loss) gain on forward contracts recognized in gain (loss) on foreign currency, net $ (373) $ 802 $ (575) (Loss) gain on cross currency swaps recognized in gain (loss) on foreign currency, net $ (2,770) $ 8,416 $ 12,594 Gain (loss) on interest rate swaps recognized in interest expense, net $ 11,110 $ 2,169 $ (214) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of cash flow hedge accounting on other comprehensive (loss) income, net of tax: (in thousands) Fiscal Year 2023 2022 2021 Amount of gain recognized in other comprehensive (loss) income $ 3,141 $ 20,678 $ 1,994 Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 11,110 $ 2,205 $ (548) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results were as follows: Fiscal Year (in thousands) 2023 2022 2021 Net sales: U.S. Retail $ 780,126 $ 747,397 $ 644,182 Canada Retail 605,630 582,944 481,559 Other 114,493 106,888 78,383 Total net sales $ 1,500,249 $ 1,437,229 $ 1,204,124 Segment profit: U.S. Retail $ 198,146 $ 181,664 $ 166,988 Canada Retail 189,899 173,917 148,137 Other 39,572 33,395 16,235 Total segment profit 427,617 388,976 331,360 General corporate expenses 224,616 126,997 101,739 Depreciation and amortization 61,144 55,753 47,385 Operating income 141,857 206,226 182,236 Interest expense (88,500) (64,744) (53,565) Gain (loss) on foreign currency, net 6,660 (20,737) 1,583 Other income (expense), net 3,688 4,576 (4,848) Loss on extinguishment of debt (16,626) (1,023) (47,541) Income before income taxes 47,079 124,298 77,865 Income tax (benefit) expense (6,036) 39,578 (5,529) Net income $ 53,115 $ 84,720 $ 83,394 |
Long-Lived Assets by Geographic Areas | The locations of our long-lived assets consisted of the following: (in thousands) December 30, 2023 December 31, 2022 U.S. $ 453,446 $ 381,151 Canada 302,322 275,091 Australia 21,043 24,770 Total long-lived assets $ 776,811 $ 681,012 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income per Share | Basic and diluted net income per share were as follows: Fiscal Year (in thousands, except per share data) 2023 2022 2021⁽¹⁾ Numerator Net income $ 53,115 $ 84,720 $ 83,394 Denominator Basic weighted average common shares outstanding 151,027 141,561 141,545 Dilutive effect of employee stock options and awards 5,129 4,488 3,846 Diluted weighted average common shares outstanding (1) 156,156 146,049 145,391 Net income per share Basic $ 0.35 $ 0.60 $ 0.59 Diluted $ 0.34 $ 0.58 $ 0.57 ________________________________________ (1) Prior to the Corporate Conversion in January 2022, net income per share is computed based on the number of common units outstanding. (2) For fiscal year 2023, the calculation of diluted net income per share excludes the effect of 790 potential shares of common stock relating to awards of stock options and restricted stock units that, if exercised, would have been antidilutive. For fiscal year 2022, the calculation of diluted net income per share excludes the effect of 636 potential shares of common stock relating to awards of stock options that, if exercised, would have been antidilutive. For fiscal year 2021 there were no stock-based awards that would have had an antidilutive impact. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The following assumptions apply to time-based options awarded during fiscal year 2023, 2022 and 2021 under the Black-Scholes-Merton option pricing model: Fiscal Year 2023 2022 2021 Expected volatility 35.4% to 35.7% 32.7% to 39.8% 31.3% to 36.2% Risk-free interest rate 3.4% to 4.2% 1.8% to 3.6% 0.5% to 0.6% Expected term (in years) 6.5 6.5 6.5 The following assumptions were used to remeasure the fair value of performance-based options resulting from the October 2022 and May 2023 modifications under the Black-Scholes-Merton option pricing model: Fiscal Year 2023 2022 Expected volatility 35.5% 35.1% Risk-free interest rate 3.5% 3.8% Expected term (in years) 6.5 6.5 The following assumptions were used to remeasure the fair value of performance-based options resulting from the July 2023 modifications under the Monte Carlo simulation: Fiscal Year 2023 Expected volatility 35.0% Risk-free interest rate 3.55% to 3.74% Expected term (in years) 3.1 to 6.6 |
Share-Based Payment Arrangement, Option, Activity | The following table summarizes activity related to time-based options: (in thousands, except per share amounts and remaining term) Number of Weighted Weighted average remaining contractual term (in years) Aggregate Outstanding at December 31, 2022 6,976 $ 4.99 7.66 $ 60,229 Granted 933 13.96 Exercised (186) 1.52 Forfeited or expired (193) 13.00 Outstanding at December 30, 2023 7,530 5.99 6.93 85,774 Exercisable at December 30, 2023 4,063 3.04 6.16 58,280 |
Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes activity related to performance-based options: (in thousands, except per share amounts and remaining term) Number of Weighted Weighted average remaining contractual term Aggregate Outstanding at December 31, 2022 7,948 $ 2.05 7.02 $ 90,339 Outstanding at December 30, 2023 7,948 2.05 5.78 121,750 Exercisable at December 30, 2023 1,987 2.05 5.78 30,438 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes activity related to RSUs as of December 30, 2023 : (in thousands, except per share amounts) Number of units Weighted average Unvested at December 31, 2022 — $ — Granted 562 22.82 Forfeited or expired (15) 22.91 Unvested at December 30, 2023 547 22.81 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax Expense (Benefit) | Income before income taxes consisted of the following: Fiscal Year (in thousands) 2023 2022 2021 U.S. operations $ (2,940) $ 103,902 $ 86,828 Foreign operations 50,019 20,396 (8,963) Income before income taxes $ 47,079 $ 124,298 $ 77,865 |
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax (benefit) expense are summarized as follows: Fiscal Year (in thousands) 2023 2022 2021 Current: U.S. - federal $ 8,280 $ 354 $ (21) U.S. - state 6,232 3,279 4,661 Foreign 14,838 15,401 11,701 Deferred: U.S. - federal (19,480) 16,934 (7,257) U.S. - state (13,156) 4,074 (7,223) Foreign (2,750) (464) (7,390) Income tax (benefit) expense $ (6,036) $ 39,578 $ (5,529) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows for the consolidated taxable entities at December 30, 2023 and December 31, 2022: (in thousands) December 30, 2023 December 31, 2022 Deferred tax assets: Net operating loss carryforwards $ 1,142 $ 2,197 Lease liability 129,486 106,270 Insurance reserves 4,935 4,235 Employment tax credits — 3,208 Deferred interest 16,116 17,392 Deferred payroll 13,062 6,572 Sec. 267 Deferred Basis 8,493 8,776 Unrealized foreign exchange loss 4,033 6,957 Other 6,547 7,143 Deferred tax assets, exclusive of valuation allowance 183,814 162,750 Less: valuation allowance 5,927 8,923 Deferred tax assets, net 177,887 153,827 Deferred tax liabilities: Property and equipment depreciation and amortization 19,407 16,636 Leasehold interests 3,856 3,930 Charity licensing agreements 12,418 11,695 Trade names and trademarks 28,753 23,902 Partnership tax deferral 2,037 5,075 ROU asset 125,937 103,297 Unrealized foreign exchange gain 4,405 4,909 Partnership basis — 41,985 Inventory 3,116 — Other 5,867 5,539 Deferred tax liabilities 205,796 216,968 Deferred tax liabilities, net $ 27,909 $ 63,141 |
Schedule of Effective Income Tax Reconciliation | The differences between income taxes expected by applying the 21% U.S. federal statutory tax rate and the amount of income taxes provided for are as follows: Fiscal Year (in thousands) 2023 2022 2021 Tax expense at statutory rate $ 9,887 $ 26,103 $ 16,352 Increase (decrease) in income taxes resulting from: State taxes net of federal benefit 4,519 5,844 8,828 Tax impact of restructuring (1) (31,340) — 24,779 GILTI/FDII (1,603) (1,114) 2,438 Foreign rate differential 2,623 — — Change in valuation allowance (2,996) 4,068 (59,527) Canada Revenue Agency Settlement — — 973 Other 5,386 7,248 4,868 Section 162(m) limitation 11,229 — — Tax Credits (3,741) (2,571) (4,240) Income tax (benefit) expense $ (6,036) $ 39,578 $ (5,529) ________________________________________ (1) |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the activity related to the Company’s unrecognized tax benefits: Fiscal Year (in thousands) 2023 2022 2021 Beginning gross unrecognized tax benefits $ 1,912 $ 1,912 $ 1,545 Increase related to prior year tax position — — 367 Ending gross unrecognized tax benefits $ 1,912 $ 1,912 $ 1,912 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Jul. 03, 2023 USD ($) $ / shares shares | May 26, 2023 | Dec. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Jan. 01, 2022 USD ($) | Jun. 28, 2023 vote $ / shares shares | Jan. 07, 2022 shares | |
Class of Stock [Line Items] | |||||||
Reverse stock split, conversion ratio | 0.713506461319705 | ||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||
Common stock, shares authorized (in shares) | shares | 800,000,000 | 1,000,000,000 | 800,000,000 | ||||
Preferred stock, shares authorized (in shares) | shares | 100,000 | 0 | 100,000,000 | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||
Votes per share | vote | 1 | ||||||
Reduction to cost of merchandise sold | $ (619,671) | $ (599,926) | $ (474,462) | ||||
Reduction to salaries, wages and benefits | $ (366,189) | $ (273,587) | (239,806) | ||||
Corporate Conversion | |||||||
Class of Stock [Line Items] | |||||||
Conversion of stock, ratio of shares received (in shares) | shares | 1 | ||||||
COVID-19 Pandemic | Government Subsidies | |||||||
Class of Stock [Line Items] | |||||||
Wage subsidy | 21,700 | ||||||
Reduction to cost of merchandise sold | 13,400 | ||||||
Reduction to salaries, wages and benefits | $ 8,300 | ||||||
Selling Stockholders | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 6,900,000 | ||||||
IPO | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 18,800,000 | ||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.000001 | ||||||
Sale of stock, price per share (in usd per share) | $ / shares | $ 18 | ||||||
Consideration received on transaction | $ 295,000 | ||||||
Underwriting discounts and commissions | 22,800 | ||||||
Offering expenses | $ 19,700 | ||||||
Over-Allotment Option | Selling Stockholders | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 3,300,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Foreign currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies [Abstract] | |||
Aggregate foreign currency translation gain (loss) | $ 9.8 | $ (30) | $ (10.4) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,500,249 | $ 1,437,229 | $ 1,204,124 |
Retail sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,427,024 | 1,365,109 | 1,154,891 |
Wholesale sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 73,225 | $ 72,120 | $ 49,233 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and cash equivalents (Details) | Dec. 30, 2023 financial_institution |
Accounting Policies [Abstract] | |
Number of financial institutions | 2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) | Dec. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Allowance for obsolete or excess inventory | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and equipment (Details) | Dec. 30, 2023 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Intangible Assets (Details) | Dec. 30, 2023 |
Accounting Policies [Abstract] | |
Intangible assets, useful life | 15 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies [Abstract] | |||
Goodwill, impairment | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Insurance reserves (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Accounts payable and accrued liabilities | ||
Insurance Reserve [Line Items] | ||
Insurance reserve, current | $ 3.2 | $ 2.3 |
Accrued Payroll and Related Taxes | ||
Insurance Reserve [Line Items] | ||
Insurance reserve, current | 5.7 | 5.4 |
Other Liabilities | ||
Insurance Reserve [Line Items] | ||
Insurance reserve, noncurrent | $ 11.1 | $ 8.6 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Advertising costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 9 | $ 11.9 | $ 10.7 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 30, 2023 reportable_segment operating_segment | |
Accounting Policies [Abstract] | |
Number of operating segments | operating_segment | 4 |
Number of reportable segments | reportable_segment | 2 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Leases (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Finance lease, right-of-use asset, after accumulated amortization | $ 5.3 |
Finance lease, liability, current | 1.7 |
Finance lease, liability, noncurrent | $ 3.6 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 16 years |
2nd Ave. Acquisition (Details)
2nd Ave. Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 08, 2021 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Business Acquisition [Line Items] | |||||
Net sales | $ 1,500,249 | $ 1,437,229 | $ 1,204,124 | ||
Net income | $ 53,115 | $ 84,720 | 83,394 | ||
2nd. Ave Acquisition | |||||
Business Acquisition [Line Items] | |||||
Percentage of business acquired | 100% | ||||
Cash consideration to acquire business | $ 238,500 | ||||
Deferred tax liabilities | 50,000 | ||||
Reduction in acquired deferred tax liabilities | $ 6,300 | ||||
Net sales | 15,500 | ||||
Net income | 1,200 | ||||
2nd. Ave Acquisition | Selling, General and Administrative Expenses | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | $ 1,800 | ||||
2nd. Ave Acquisition | Term Loan Facility | Line of Credit | |||||
Business Acquisition [Line Items] | |||||
Additional borrowings | $ 225,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property, and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Finance leases | $ 5,285 | $ 0 |
Total property and equipment | 414,484 | 319,433 |
Less: accumulated depreciation | 185,079 | 128,915 |
Total property and equipment, net | 229,405 | 190,518 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 293,041 | 230,694 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 116,158 | $ 88,739 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 56 | $ 49.6 | $ 38.1 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 681,447 | $ 703,778 |
Measurement period adjustment | (6,338) | |
Foreign currency translation effect | 5,921 | (15,993) |
Goodwill, ending balance | 687,368 | 681,447 |
U.S. Retail | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 414,946 | 421,284 |
Measurement period adjustment | (6,338) | |
Foreign currency translation effect | 0 | 0 |
Goodwill, ending balance | 414,946 | 414,946 |
Canada Retail | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 266,501 | 282,494 |
Measurement period adjustment | 0 | |
Foreign currency translation effect | 5,921 | (15,993) |
Goodwill, ending balance | $ 272,422 | $ 266,501 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Indefinite and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (20,158) | $ (15,658) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 186,839 | 186,309 |
Accumulated amortization | (20,158) | (15,658) |
Net carrying amount | 166,681 | 170,651 |
Trade names and trademarks | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 118,650 | 118,000 |
Charity licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 68,189 | 68,309 |
Accumulated amortization | (20,158) | (15,658) |
Net carrying amount | 48,031 | 52,651 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated amortization | $ (20,158) | $ (15,658) |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense, long-lived intangible assets | $ 5.2 | $ 6.1 | $ 9.2 |
Estimated aggregate amortization expense of long-lived intangible assets, 2024 | 4.5 | ||
Estimated aggregate amortization expense of long-lived intangible assets, 2025 | 4.5 | ||
Estimated aggregate amortization expense of long-lived intangible assets, 2026 | 4.5 | ||
Estimated aggregate amortization expense of long-lived intangible assets, 2027 | 4.5 | ||
Estimated aggregate amortization expense of long-lived intangible assets, 2028 | $ 4.5 |
Indebtedness - Schedule of Debt
Indebtedness - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total face value of debt | $ 816,756 | $ 856,687 |
Less: current portion of long-term debt and short-term borrowings | 4,500 | 50,250 |
Less: unamortized debt issuance costs and debt discount | 27,663 | 23,090 |
Long-term debt, net | 784,593 | 783,347 |
Senior Secured Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Total face value of debt | 495,000 | 0 |
Line of Credit | Term Loan Facility | Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Total face value of debt | 321,756 | 814,687 |
Line of Credit | Revolving Credit Facility | Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Total face value of debt | $ 0 | $ 42,000 |
Indebtedness - Long-term Debt (
Indebtedness - Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Feb. 06, 2023 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 16,626 | $ 1,023 | $ 47,541 | |
Dividends paid | 262,235 | $ 69,433 | 75,000 | |
One-time bonus | 23,600 | |||
Senior Secured Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | 550,000 | $ 550,000 | ||
Repayments of senior debt | 55,000 | |||
Senior Secured Notes | Term Loan Facility | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 485,800 | |||
Senior Secured Credit Facilities | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 47,500 |
Indebtedness - Senior-Secured N
Indebtedness - Senior-Secured Notes (Details) $ in Thousands | 12 Months Ended | ||||
Mar. 04, 2024 USD ($) | Feb. 06, 2023 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Debt Instrument, Redemption [Line Items] | |||||
Loss on extinguishment of debt | $ 16,626 | $ 1,023 | $ 47,541 | ||
Senior Secured Notes | |||||
Debt Instrument, Redemption [Line Items] | |||||
Debt discount percentage | 2.014% | ||||
Senior Secured Notes | Senior Secured Notes | |||||
Debt Instrument, Redemption [Line Items] | |||||
Face amount | $ 550,000 | $ 550,000 | |||
Interest rate | 9.75% | ||||
Senior Secured Notes | Senior Secured Notes | Subsequent Event | |||||
Debt Instrument, Redemption [Line Items] | |||||
Principal amount, percentage | 10% | ||||
Debt instrument, repurchased face amount | $ 49,500 | ||||
Debt instrument, redemption, premium | 0.03 | ||||
Repayments of debt, premium | $ 1,500 | ||||
Loss on extinguishment of debt | $ 3,400 | ||||
Senior Secured Notes | Senior Secured Notes | Debt Instrument, Redemption, Period One | |||||
Debt Instrument, Redemption [Line Items] | |||||
Redemption price, percentage | 100% | ||||
Senior Secured Notes | Senior Secured Notes | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument, Redemption [Line Items] | |||||
Redemption price, percentage | 109.75% | ||||
Principal amount, percentage | 40% | ||||
Senior Secured Notes | Senior Secured Notes | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument, Redemption [Line Items] | |||||
Redemption price, percentage | 103% | ||||
Principal amount, percentage | 10% | ||||
Senior Secured Notes | Senior Secured Notes | Debt Instrument, Redemption, Period Four | |||||
Debt Instrument, Redemption [Line Items] | |||||
Redemption price, percentage | 101% |
Indebtedness - Schedule of Seni
Indebtedness - Schedule of Senior-Secured Notes (Details) | 12 Months Ended |
Dec. 30, 2023 | |
February 15, 2025 through February 14, 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 104.875% |
February 15, 2026 through February 14, 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.438% |
On or after February 15, 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
Indebtedness - Senior Secured C
Indebtedness - Senior Secured Credit Facilities (Details) $ in Thousands | Feb. 09, 2024 | Jan. 30, 2024 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Total face value of debt | $ 816,756 | $ 856,687 | ||
Term Loan Facility | Uncommitted Incremental Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 136,000 | |||
Term Loan Facility | Uncommitted Incremental Facility | Line of Credit | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, covenant, maximum borrowing capacity that does not require lender consent | $ 102,000 | |||
Debt instrument, covenant, EBITDA ratio | 0.50 | |||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total face value of debt | $ 321,756 | $ 814,687 | ||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate, reduction in margin | 0.0025 | 0.0025 | ||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.25% | |||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | Minimum | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4% | |||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | |||
Term Loan Facility | Senior Secured Credit Facilities | Line of Credit | Maximum | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% |
Indebtedness - Term Loan Facili
Indebtedness - Term Loan Facility (Details) - Term Loan Facility - Senior Secured Credit Facilities - Line of Credit $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Principal payments of lines of credit, quarterly | $ 1.5 |
Debt instrument, covenant, leverage ratio, maximum | 3.50 |
Minimum | Base Rate | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 4.25% |
Minimum | Secured Overnight Financing Rate (SOFR) | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.11% |
Maximum | Base Rate | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 5.50% |
Maximum | Secured Overnight Financing Rate (SOFR) | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.43% |
Indebtedness - Revolving Credit
Indebtedness - Revolving Credit Facility (Details) - The Revolving Credit Facility - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 75 | |
Line of credit facility, remaining borrowing capacity | $ 73.8 | |
Weighted average effective interest rate on borrowings outstanding | 9.75% | |
Commitment fee percentage, payable quarterly | 0.50% | |
Financial maintenance covenant, committed amount threshold | 35% | |
Revolving Credit Facility | Line of Credit | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2% | |
Revolving Credit Facility | Line of Credit | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 3% | |
Letter of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 60 | |
Letters of credit outstanding, amount | 1.2 | |
Undrawn letters of credit excluded from financial maintenance covenant | 20 | |
Swingline Sublimit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 10 |
Indebtedness - Schedule of Matu
Indebtedness - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 4,500 |
2025 | 7,500 |
2026 | 6,000 |
2027 | 6,000 |
2028 | 792,756 |
Principal payments on long-term debt | $ 816,756 |
Indebtedness - Related party de
Indebtedness - Related party debt (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2022 USD ($) | |
Related Party | |
Debt Instrument [Line Items] | |
Interest expense | $ 11 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total | $ 121,210 | $ 39,702 |
Liabilities: | ||
Total | 850 | 80 |
Level 1 | ||
Assets: | ||
Total | 90,000 | 0 |
Liabilities: | ||
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Total | 31,210 | 39,702 |
Liabilities: | ||
Total | 850 | 80 |
Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 0 | 0 |
Interest rate swaps | ||
Assets: | ||
Derivative assets | 10,379 | 16,472 |
Interest rate swaps | Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Interest rate swaps | Level 2 | ||
Assets: | ||
Derivative assets | 10,379 | 16,472 |
Interest rate swaps | Level 3 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Cross currency swaps | ||
Assets: | ||
Derivative assets | 20,831 | 22,993 |
Liabilities: | ||
Derivative liabilities | 466 | 66 |
Cross currency swaps | Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Cross currency swaps | Level 2 | ||
Assets: | ||
Derivative assets | 20,831 | 22,993 |
Liabilities: | ||
Derivative liabilities | 466 | 66 |
Cross currency swaps | Level 3 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Forward contracts | ||
Assets: | ||
Derivative assets | 237 | |
Liabilities: | ||
Derivative liabilities | 384 | 14 |
Forward contracts | Level 1 | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Forward contracts | Level 2 | ||
Assets: | ||
Derivative assets | 237 | |
Liabilities: | ||
Derivative liabilities | 384 | 14 |
Forward contracts | Level 3 | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | $ 0 |
Money market funds | ||
Assets: | ||
Cash equivalents | 90,000 | |
Money market funds | Level 1 | ||
Assets: | ||
Cash equivalents | 90,000 | |
Money market funds | Level 2 | ||
Assets: | ||
Cash equivalents | 0 | |
Money market funds | Level 3 | ||
Assets: | ||
Cash equivalents | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Level 1 | Senior Secured Notes | Senior Secured Notes | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Fair value | $ 525.5 |
Leases - Lease, Cost (Details)
Leases - Lease, Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 119,908 | $ 114,788 |
Short-term and variable lease costs | 41,559 | 48,812 |
Sublease income | (2,703) | (2,510) |
Amortization of lease assets | 1,152 | 0 |
Interest on lease obligations | 247 | 0 |
Total lease costs, net | $ 160,163 | $ 161,090 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2022 USD ($) | |
Leases [Abstract] | |
Rent expense, prior to adoption of 842 | $ 95.3 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease, Liability, to be Paid, Maturity (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Operating Leases | |
2024 | $ 108,706 |
2025 | 120,085 |
2026 | 97,402 |
2027 | 81,526 |
2028 | 61,908 |
Thereafter | 208,164 |
Total undiscounted payments | 677,791 |
Less: Interest | 179,078 |
Present value of lease obligations | $ 498,713 |
Weighted average remaining lease term (years) | 6 years 11 months 8 days |
Weighted average discount rate | 8.53% |
Finance Leases | |
2024 | $ 1,655 |
2025 | 1,304 |
2026 | 1,002 |
2027 | 837 |
2028 | 774 |
Thereafter | 1,187 |
Total undiscounted payments | 6,759 |
Less: Interest | 1,474 |
Present value of lease obligations | $ 5,285 |
Weighted average remaining lease term (years) | 1 year 6 months |
Weighted average discount rate | 5.16% |
Total | |
2024 | $ 110,361 |
2025 | 121,389 |
2026 | 98,404 |
2027 | 82,363 |
2028 | 62,682 |
Thereafter | 209,351 |
Total undiscounted payments | 684,550 |
Less: Interest | 180,552 |
Present value of lease obligations | $ 503,998 |
Leases - Leases, Supplemental C
Leases - Leases, Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid for amounts included in the measurement of lease obligations | |||
Operating cash flows for operating leases | $ 112,139 | $ 105,359 | |
Operating cash flows for finance leases | 247 | 0 | |
Principal payments on finance lease liabilities | 1,526 | 0 | $ 0 |
Noncash investing activities | |||
Assets obtained in exchange for new operating lease obligations | 145,206 | 70,425 | |
Assets obtained in exchange for new finance lease obligations | $ 3,517 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains that will be reclassified within 12 months | $ 10.1 | |
Cross currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 275 | $ 275 |
Forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 33.2 | 42.1 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 275 | $ 275 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Cross Currency Swap (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total deferred gain | $ 13,045 | $ 21,014 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 20,831 | 23,230 |
Total derivatives in a liability position | 850 | 80 |
Not Designated as Hedging Instrument | Forward contracts | Derivative asset – current | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 0 | 237 |
Not Designated as Hedging Instrument | Forward contracts | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in a liability position | 384 | 14 |
Not Designated as Hedging Instrument | Cross currency swaps | Derivative asset – current | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 0 | 6 |
Not Designated as Hedging Instrument | Cross currency swaps | Derivative asset – non-current | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 20,831 | 22,987 |
Not Designated as Hedging Instrument | Cross currency swaps | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in a liability position | 466 | 66 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 10,379 | 16,472 |
Designated as Hedging Instrument | Interest rate swaps | Derivative asset – current | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | 7,691 | 8,382 |
Designated as Hedging Instrument | Interest rate swaps | Derivative asset – non-current | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives in an asset position | $ 2,688 | $ 8,090 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Forward contracts | Foreign Currency Gain (Loss) | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on derivative instruments recognized in (loss) gain on foreign currency, net | $ (373) | $ 802 | $ (575) |
Cross currency swaps | Foreign Currency Gain (Loss) | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on derivative instruments recognized in (loss) gain on foreign currency, net | (2,770) | 8,416 | 12,594 |
Interest rate swaps | Interest Expense | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on interest rate swaps recognized in interest expense, net | $ 11,110 | $ 2,169 | $ (214) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Cash Flow Hedge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of gain recognized in other comprehensive (loss) income | $ 3,141 | $ 20,678 | $ 1,994 |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ 11,110 | $ 2,205 | $ (548) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 30, 2023 reportable_segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Segment R
Segment Information - Segment Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 1,500,249 | $ 1,437,229 | $ 1,204,124 |
Total segment profit | 427,617 | 388,976 | 331,360 |
General corporate expenses | 224,616 | 126,997 | 101,739 |
Depreciation and amortization | 61,144 | 55,753 | 47,385 |
Operating income | 141,857 | 206,226 | 182,236 |
Interest expense | (88,500) | (64,744) | (53,565) |
Gain (loss) on foreign currency, net | 6,660 | (20,737) | 1,583 |
Other income (expense), net | 3,688 | 4,576 | (4,848) |
Loss on extinguishment of debt | (16,626) | (1,023) | (47,541) |
Income before income taxes | 47,079 | 124,298 | 77,865 |
Income tax (benefit) expense | (6,036) | 39,578 | (5,529) |
Net income | 53,115 | 84,720 | 83,394 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 114,493 | 106,888 | 78,383 |
Total segment profit | 39,572 | 33,395 | 16,235 |
U.S. Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 780,126 | 747,397 | 644,182 |
Total segment profit | 198,146 | 181,664 | 166,988 |
Canada Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 605,630 | 582,944 | 481,559 |
Total segment profit | $ 189,899 | $ 173,917 | $ 148,137 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 776,811 | $ 681,012 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 453,446 | 381,151 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 302,322 | 275,091 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 21,043 | $ 24,770 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Numerator | |||
Net income | $ 53,115 | $ 84,720 | $ 83,394 |
Denominator | |||
Basic weighted average shares outstanding (in shares) | 151,027,000 | 141,561,000 | 141,545,000 |
Dilutive effect of employee stock options and awards (in shares) | 5,129,000 | 4,488,000 | 3,846,000 |
Diluted weighted average common shares outstanding (in shares) | 156,156,000 | 146,049,000 | 145,391,000 |
Net (loss) income per share | |||
Basic (in usd per share) | $ 0.35 | $ 0.60 | $ 0.59 |
Diluted (in usd per share) | $ 0.34 | $ 0.58 | $ 0.57 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 790 | 636 | 0 |
Stock-based Compensation - 2019
Stock-based Compensation - 2019 Management Incentive Plan (Details) - Options - 2019 Management Incentive Plan - shares | Mar. 28, 2019 | Dec. 30, 2023 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award requisite service period | 10 years | |
Number of options available for issuance (in shares) | 0 | |
Outstanding (in shares) | 15,500,000 |
Stock-based Compensation - Omni
Stock-based Compensation - Omnibus Incentive Plan (Details) shares in Millions | 12 Months Ended |
Dec. 30, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 15 |
Common stock reserved for future issuance (in shares) | 14.4 |
Omnibus Incentive Plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award requisite service period | 10 years |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 72.6 | $ 1.9 | $ 0.7 |
Stock-based compensation expense, tax benefit | $ 7.2 | $ 0.4 | $ 0.3 |
Stock-based Compensation - Time
Stock-based Compensation - Time-based options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized share-based compensation cost, period of recognition | 3 years 7 months 20 days | ||
Time-Based Options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Dividend yield assumption | 0% | ||
Weighted average grant date fair value of stock options awarded (in dollars per share) | $ 6.01 | $ 5.70 | $ 1.22 |
Options exercised | $ 2.6 | $ 0.9 | |
Unrecognized compensation expense, options | $ 11.8 |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Assumptions for Time-based Options (Details) - Time-Based Options | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility, minimum | 35.40% | 32.70% | 31.30% |
Expected volatility, maximum | 35.70% | 39.80% | 36.20% |
Risk-free interest rate, minimum | 3.40% | 1.80% | 0.50% |
Risk-free interest rate, maximum | 4.20% | 3.60% | 0.60% |
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Time-Based Options | ||
Number of options | ||
Beginning, Outstanding (in shares) | 6,976 | |
Granted (in shares) | 933 | |
Exercised (in shares) | (186) | |
Forfeited or expired (in shares) | (193) | |
Ending, Outstanding (in shares) | 7,530 | 6,976 |
Options exercisable, Number of options (in shares) | 4,063 | |
Weighted average exercise price per share | ||
Beginning, Options outstanding, Weighted average exercise price per share (in usd per share) | $ 4.99 | |
Granted, Weighted average exercise price per share (in usd per share) | 13.96 | |
Options exercised, Weighted average exercise price per share (in usd per share) | 1.52 | |
Options forfeited or expired, Weighted average exercise price per share (in usd per share) | 13 | |
Ending, Options outstanding, Weighted average exercise price per share (in usd per share) | 5.99 | $ 4.99 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 3.04 | |
Stock Options Additional Disclosures | ||
Weighted average remaining contractual term (in years) | 6 years 11 months 4 days | 7 years 7 months 28 days |
Options exercisable, Weighted average remaining contractual term | 6 years 1 month 28 days | |
Aggregate intrinsic value | $ 85,774 | $ 60,229 |
Options exercisable, Aggregate intrinsic value | $ 58,280 | |
Performance based options | ||
Number of options | ||
Beginning, Outstanding (in shares) | 7,948 | |
Ending, Outstanding (in shares) | 7,948 | 7,948 |
Options exercisable, Number of options (in shares) | 1,987 | |
Weighted average exercise price per share | ||
Beginning, Options outstanding, Weighted average exercise price per share (in usd per share) | $ 2.05 | |
Ending, Options outstanding, Weighted average exercise price per share (in usd per share) | 2.05 | $ 2.05 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 2.05 | |
Stock Options Additional Disclosures | ||
Weighted average remaining contractual term (in years) | 5 years 9 months 10 days | 7 years 7 days |
Options exercisable, Weighted average remaining contractual term | 5 years 9 months 10 days | |
Aggregate intrinsic value | $ 121,750 | $ 90,339 |
Options exercisable, Aggregate intrinsic value | $ 30,438 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance-based options (Details) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 03, 2023 USD ($) | Jul. 31, 2023 $ / shares | Dec. 30, 2023 USD ($) | Jul. 02, 2023 grantee | Dec. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Jan. 01, 2022 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 72,600,000 | $ 1,900,000 | $ 700,000 | ||||
Unrecognized share-based compensation cost, period of recognition | 3 years 7 months 20 days | ||||||
Performance based options | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting rights through term | 25% | ||||||
Number of grantees affected by modified vesting terms | grantee | 41 | ||||||
Options exercised | $ 0 | $ 0 | $ 0 | ||||
Unrecognized compensation expense, options | $ 87,500,000 | $ 87,500,000 | |||||
Unrecognized share-based compensation cost, period of recognition | 2 years 6 months | ||||||
Performance based options | Black-Scholes-Merton Option Pricing Model | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Dividend yield assumption | 0% | ||||||
Weighted average grant date fair value of stock options modified (in dollars per share) | $ / shares | $ 16.32 | $ 13.51 | |||||
Performance based options | Monte Carlo Simulation | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Dividend yield assumption | 0% | ||||||
Weighted average grant date fair value of stock options modified (in dollars per share) | $ / shares | $ 21.18 | ||||||
Performance based options | Share-Based Payment Arrangement, Tranche Two | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Performance based options | IPO Vesting | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 28,000,000 | ||||||
Performance based options | Graded Vesting Basis | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 38,800,000 | ||||||
Performance based options | IPO | Share-Based Payment Arrangement, Tranche One | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting rights through term | 25% |
Stock-based Compensation - We_2
Stock-based Compensation - Weighted Average Assumptions for Performance-based Options (Details) - Performance based options | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Black-Scholes-Merton Option Pricing Model | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected volatility | 35.50% | 35.10% |
Risk-free interest rate | 3.50% | 3.80% |
Expected term (in years) | 6 years 6 months | 6 years 6 months |
Monte Carlo Simulation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected volatility | 35% | |
Risk-free interest rate, minimum | 3.55% | |
Risk-free interest rate, maximum | 3.74% | |
Minimum | Monte Carlo Simulation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 1 month 6 days | |
Maximum | Monte Carlo Simulation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 7 months 6 days |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized share-based compensation cost, period of recognition | 3 years 7 months 20 days |
Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation expense, excluding options | $ | $ 10.1 |
Unrecognized share-based compensation cost, period of recognition | 2 years 4 months 24 days |
Number of units | |
Beginning, Outstanding (in shares) | shares | 0 |
Granted (in shares) | shares | 562 |
Forfeited or expired (in shares) | shares | (15) |
Ending, Outstanding (in shares) | shares | 547 |
Weighted average grant-date fair value per share | |
Beginning, Outstanding, Weighted average grant date fair value (in usd per share) | $ / shares | $ 0 |
Granted, Weighted average grant date fair value (in usd per share) | $ / shares | 22.82 |
Forfeited, Weighted average grant date fair value (in usd per share) | $ / shares | 22.91 |
Ending, Outstanding, Weighted average grant date fair value (in usd per share) | $ / shares | $ 22.81 |
Restricted Stock Units | Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 1 year |
Restricted Stock Units | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 3 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Income before income taxes | $ 47,079 | $ 124,298 | $ 77,865 |
U.S. | |||
Operating Loss Carryforwards [Line Items] | |||
U.S. operations | (2,940) | 103,902 | 86,828 |
Foreign operations | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign operations | $ 50,019 | $ 20,396 | $ (8,963) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current: | |||
U.S. - federal | $ 8,280 | $ 354 | $ (21) |
U.S. - state | 6,232 | 3,279 | 4,661 |
Foreign | 14,838 | 15,401 | 11,701 |
Deferred: | |||
U.S. - federal | (19,480) | 16,934 | (7,257) |
U.S. - state | (13,156) | 4,074 | (7,223) |
Foreign | (2,750) | (464) | (7,390) |
Income tax (benefit) expense | $ (6,036) | $ 39,578 | $ (5,529) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,142,000 | $ 2,197,000 |
Lease liability | 129,486,000 | 106,270,000 |
Insurance reserves | 4,935,000 | 4,235,000 |
Employment tax credits | 0 | 3,208,000 |
Deferred interest | 16,116,000 | 17,392,000 |
Deferred payroll | 13,062,000 | 6,572,000 |
Sec. 267 Deferred Basis | 8,493,000 | 8,776,000 |
Unrealized foreign exchange loss | 4,033,000 | 6,957,000 |
Other | 6,547,000 | 7,143,000 |
Deferred tax assets, exclusive of valuation allowance | 183,814,000 | 162,750,000 |
Less: valuation allowance | 5,927,000 | 8,923,000 |
Deferred tax assets, net | 177,887,000 | 153,827,000 |
Deferred tax liabilities: | ||
Property and equipment depreciation and amortization | 19,407,000 | 16,636,000 |
Leasehold interests | 3,856,000 | 3,930,000 |
Charity licensing agreements | 12,418,000 | 11,695,000 |
Trade names and trademarks | 28,753,000 | 23,902,000 |
Partnership tax deferral | 2,037,000 | 5,075,000 |
ROU asset | 125,937,000 | 103,297,000 |
Unrealized foreign exchange gain | 4,405,000 | 4,909,000 |
Partnership basis | 0 | 41,985,000 |
Inventory | 3,116,000 | 0 |
Other | 5,867,000 | 5,539,000 |
Deferred tax liabilities | 205,796,000 | 216,968,000 |
Deferred tax liabilities, net | $ 27,909,000 | $ 63,141,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Jan. 01, 2022 USD ($) | Jan. 01, 2022 CAD ($) | |
Income Tax Examination [Line Items] | |||||
Federal foreign tax credit | $ 300,000 | $ 0 | |||
Federal R&D tax credit | 0 | 0 | |||
Other federal tax credit | 0 | 3,200,000 | |||
Valuation allowance | 5,927,000 | 8,923,000 | |||
Partnership basis | 0 | 41,985,000 | |||
Tax impact of restructuring | 31,340,000 | 0 | $ (24,779,000) | ||
Deferred tax liability, amount not recognized | 0 | ||||
Canada Revenue Agency | 2012-2019 | |||||
Income Tax Examination [Line Items] | |||||
Accrued tax and interest | $ 28.1 | ||||
Accrued tax and interest, payment | $ 1.9 | $ 26.2 | |||
Canada | |||||
Income Tax Examination [Line Items] | |||||
Valuation allowance | 2,700,000 | ||||
Australia | |||||
Income Tax Examination [Line Items] | |||||
Valuation allowance | 3,200,000 | ||||
U.S. State | |||||
Income Tax Examination [Line Items] | |||||
Net operating loss carryforwards | $ 10,000,000 | $ 24,600,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ 9,887 | $ 26,103 | $ 16,352 |
Increase (decrease) in income taxes resulting from: | |||
State taxes net of federal benefit | 4,519 | 5,844 | 8,828 |
Tax impact of restructuring | (31,340) | 0 | 24,779 |
GILTI/FDII | (1,603) | (1,114) | 2,438 |
Foreign rate differential | 2,623 | 0 | 0 |
Change in valuation allowance | (2,996) | 4,068 | (59,527) |
Canada Revenue Agency Settlement | 0 | 0 | 973 |
Other | 5,386 | 7,248 | 4,868 |
Section 162(m) limitation | 11,229 | 0 | 0 |
Tax Credits | (3,741) | (2,571) | (4,240) |
Income tax (benefit) expense | $ (6,036) | $ 39,578 | $ (5,529) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning gross unrecognized tax benefits | $ 1,912 | $ 1,912 | $ 1,545 |
Increase related to prior year tax position | 0 | 0 | 367 |
Ending gross unrecognized tax benefits | $ 1,912 | $ 1,912 | $ 1,912 |