Commitments and Contingencies |
3 Months Ended | ||||||
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Mar. 31, 2026 | |||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||
| Commitments and Contingencies |
LITIGATION
The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities. Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows.
TARIFFS On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unconstitutional. Subsequently, the U.S. Court of International Trade ("CIT") ruled that the collected tariffs in question shall be refunded in accordance with the law. The U.S. Customs and Border Protection ("CBP") has issued an official notice and launched a special tariff refund program to facilitate such refunds. The Company has begun the process of requesting refunds of IEEPA tariffs paid. At the time the IEEPA tariffs were ruled unconstitutional, the Company had already paid approximately $80 million of IEEPA tariffs. As of March 31, 2026, approximately $55 million of that amount has been realized through cost of sales, with the remainder in inventory. However, as of March 31, 2026, the Company did not recognize any tariff refunds in its unaudited condensed consolidated financial statements as it was unable to assert loss recovery is probable due to the uncertainty surrounding the tariff refund program. As of the date of this report, the Company has not received any portion of the IEEPA tariff refunds which it requested. The Company continues to monitor these developments and assess their potential impact on the Company's operations and unaudited condensed consolidated financial statements.
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