Revenues

3 Months Ended

May 04, 2024

Revenue from Contract with Customer [Abstract]

Revenues

3. Revenues

Disaggregation of Revenue

Net sales consist primarily of revenues, net of merchandise returns and discounts, generated from the sale of apparel and accessory merchandise through retail stores (“Retail”) and through our website and catalog orders (“Direct”). Net sales also include shipping and handling fees collected from customers, royalty revenues and marketing reimbursements related to our private label credit card agreement. Retail revenue is recognized at the time of sale and Direct revenue is recognized upon shipment of merchandise to the customer. The following table presents disaggregated revenues by source (in thousands):

	For the Thirteen Weeks Ended
	May 4, 2024		April 29, 2023
Retail	$	85,607	$	82,204
Direct		75,906		68,042
Net sales	$	161,513	$	150,246

Performance Obligations

The Company has a remaining performance obligation of $0.5 million related to an upfront payment to support the marketing and promotion of the private label credit card program. This upfront payment will be amortized to revenue evenly through January 2031.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to the customer. Total contract liabilities consisted of the following (in thousands):

	May 4, 2024		February 3, 2024
Contract liabilities:
Upfront Payment (1)		547		570
Unredeemed gift cards (2)		5,792		7,005
Total contract liabilities	$	6,339	$	7,575

(1)The short-term portion of the upfront payment is included in Accrued expenses and other current liabilities and the long-term portion of the upfront payment is included in Other long-term liabilities on the Company’s consolidated balance sheets.

(2)Revenue recognized for the thirteen weeks ended May 4, 2024 related to the contract liability balance as of February 3, 2024 was $1,988.

The Company recognized approximately $2.9 million of revenue related to gift card redemptions and breakage for the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively. Revenue recognized consists of gift cards that were part of the unredeemed gift card balance at the beginning of the period as well as gift cards that were issued and redeemed during the period.

Practical Expedients and Policy Elections

The Company excludes from its revenue all amounts collected from customers for sales taxes that are remitted to taxing authorities.

Shipping and handling activities that occur after control of related goods transfers to the customer are accounted for as fulfillment activities rather than assessing these activities as performance obligations.

The Company does not disclose remaining performance obligations that have an expected duration of one year or less.