Other Charges

Thirteen and Twenty-Six Weeks Ended July 29, 2017

In the first quarter of fiscal 2018, the Company recognized $1.3 million ($0.8 million after the associated tax benefit) for severance charges primarily for the Company's former Chief Financial Officer. The severance charges are reflected in selling, general, and administrative expenses within corporate unallocated expenses.

In the second quarter of fiscal 2018, the Company recognized $3.8 million ($2.4 million after the associated tax benefit) of other charges (reflected in selling, general, and administrative expenses) consisting of the following:


•	$2.3 million ($1.5 million net of the associated tax benefit) for strategic consulting charges;


•	$1.2 million ($0.7 million net of the associated tax benefit) for a severance charge for the Company's former Chief Merchandising Officer; and


•	$0.3 million ($0.2 million net of the associated tax benefit) for a net lease termination charge.

The strategic consulting and severance charges are recognized within corporate unallocated expenses. The net lease termination charge is recognized within the Direct segment.

Vision 20/20

The Company is in the process of refining its strategic plan, which will involve a more aggressive approach to turn around its business over the next three years. This plan (or “Vision 20/20”) will primarily be focused on product and pricing, as well as selling, general, and administrative expense reductions. To begin this process, the Company engaged an outside consulting firm to review its business model and existing strategic plan. In the second quarter of fiscal 2018, the Company recognized charges of $2.3 million, as described above, for the outside consulting work.

Based upon preliminary assessments, the Company estimates to recognize pre-tax restructuring costs during the remainder of fiscal 2018 of approximately $12.5 million to $15.5 million consisting of non-cash charges of approximately $7.5 million to $9.5 million (including store impairment charges and inventory reserves) and cash charges of approximately $5.0 million to $6.0 million (including severance and additional strategic consulting) in connection with Vision 20/20. These estimates could materially change as a result of the finalization of the Vision 20/20 initiatives during the remainder of fiscal 2018.

Thirteen and Twenty-Six Weeks Ended July 30, 2016

In the second quarter of fiscal 2017, the Company recognized $0.9 million for an executive severance charge ($0.6 million after the associated tax benefit) reflected in selling, general, and administrative expenses within corporate unallocated expenses.