Note 6 - Inventories

12 Months Ended

Nov. 25, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

6. Inventories

Inventories consist of the following:

	November 25, 2023			November 26, 2022
Wholesale finished goods	$	27,521		$	46,607
Work in process		637			620
Raw materials and supplies		18,655			22,859
Retail merchandise		33,090			32,974
Total inventories on first-in, first-out method		79,903			103,060
LIFO adjustment		(11,738	)		(12,416	)
Reserve for excess and obsolete inventory		(5,183	)		(5,167	)
	$	62,982		$	85,477

We source a significant amount of our wholesale product from other countries. During 2023, 2022 and 2021, purchases from our three largest vendors located in Vietnam and China were $13,498, $33,253 and $34,658 respectively.

We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily driven by the normal product life cycle. As products mature and sales volumes decline, we rationalize our product offerings to respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required. In determining reserves, we calculate separate reserves on our wholesale and retail inventories. Our wholesale inventories tend to carry the majority of the reserves for excess quantities and obsolete inventory due to the nature of our distribution model. These wholesale reserves primarily represent design and style obsolescence. Typically, product is not shipped to our retail warehouses until a consumer has ordered and paid a deposit for the product. We do not typically hold retail inventory for stock purposes. Consequently, floor sample inventory and inventory for delivery to customers account for the majority of our inventory at retail. Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses.

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows:

	Wholesale Segment			Retail Segment			Total
Balance at November 27, 2021	$	3,683		$	1,133		$	4,816
Additions charged to expense		2,577			1,071			3,648
Write-offs		(2,157	)		(1,140	)		(3,297	)
Balance at November 26, 2022		4,103			1,064			5,167
Additions charged to expense		3,876			750			4,626
Write-offs		(3,834	)		(776	)		(4,610	)
Balance at November 25, 2023	$	4,145		$	1,038		$	5,183