Revenue Recognition

3 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale in our stores or when products are shipped for e-commerce orders. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data.

Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, were as follows (in thousands):

	Three Months Ended December 31,
	2024			2023
Beginning Balance	$	11,493		$	14,038
Loyalty points and gift cards issued but not redeemed, net of estimated breakage		3,644			9,494
Revenue recognized from beginning liability		(2,487	)		(7,942	)
Ending Balance	$	12,650		$	15,590

See Note 12, Segment Reporting, for additional information regarding the disaggregation of our sales revenue.