Our cost actions, including organizational simplification, workforce reductions, and tighter expense management are beginning to benefit the business.

Jan 29, 2026 / receipt, needs a key / James Langrock, CFO | earnings call 2026-01-29 | transcript 69021c74-8f54-4751-9c6c-08a561e7b609 | chars 7701-7851 | segment 7

Gross margins declined in fiscal 2026, ending at 38.0%; a 70-basis point decrease over fiscal 2025, primarily due to deleveraging on the sales decline, partially offset by the Company’s cost reduction and operational efficiency initiatives.

filing / Sep 11, 2026 / receipt

The Company’s business and operating results are subject to economic conditions and their impact on consumer discretionary spending.

filing / Sep 11, 2026 / receipt

General and administrative expense increased 18.9% during fiscal 2026, primarily due to higher severance costs related to the enterprise reductions in workforce, increased consulting costs, and changes in the value of the Company’s NQDC investments - refer to equal offset in “Other income, net”.

filing / Sep 11, 2026 / receipt

An increase in the number of employees working remotely has amplified certain risks to the Company’s business and increased demand on the Company’s information technology resources and systems .

filing / Sep 11, 2026 / receipt

Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have each concluded that the Company’s disclosure controls and procedures were effective as of June 28, 2026.

filing / Sep 11, 2026 / receipt

Severance and restructuring charges During the years ended June 28, 2026 and June 29, 2025, the Company recorded severance and restructuring charges of $ 12.3 million and $ 5.8 million, respectively, primarily related to an enterprise reduction in workforce focused on reducing costs and streamlining the organization.

filing / Sep 11, 2026 / receipt

~$50 million of total run-rate savings expected across FY26 - FY27

ir_statement / Sep 14, 2026 / receipt

Advancing cost reduction initiatives across supply chain and procurement to optimize spend and improve vendor economics

ir_statement / Sep 14, 2026 / receipt

Driving operational efficiency improvements across core processes to enhance productivity and margin profile

ir_statement / Sep 14, 2026 / receipt

Streamlined the cost structure through workforce actions and leadership realignment

ir_statement / Sep 14, 2026 / receipt

Transitioned to a Function-Based Organization Structure to Accelerate Change, and Increase Efficiency and Accountability

ir_statement / Sep 14, 2026 / receipt

Leaner cost structure aligned with revenue scale

ir_statement / Sep 14, 2026 / receipt