Revenues and Segment Reporting

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenues and Segment Reporting

Revenues and Segment Reporting

We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the customer. We record customer deposits when payments are received in advance of the delivery of merchandise. Such deposits totaled $42.8 million and $40.7 million at March 31, 2025 and December 31, 2024, respectively. Of the customer deposit liabilities at December 31, 2024, approximately $2.0 million have not been recognized through net sales in the three months ended March 31, 2025.

The following table presents our revenues disaggregated by each major product category and service:

(In thousands)	Three Months Ended March 31,
	2025				2024
	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Merchandise:
Case Goods
Bedroom Furniture	$	27,176	15.0	%	$	25,862	14.1	%
Dining Room Furniture	17,957		9.9		19,016		10.3
Occasional	12,919		7.1		14,207		7.7
	58,052		32.0		59,085		32.1
Upholstery	81,415		44.8		82,935		45.1
Mattresses	15,804		8.7		16,600		9.0
Accessories and Other (1)	26,296		14.5		25,377		13.8
	$	181,567	100.0	%	$	183,997	100.0	%

(1) Includes delivery charges and product protection.

We operate within a single reportable segment. We use a market area approach for both financial and

operational decision making. Each of these market areas are considered individual operating segments. The

individual operating segments all have similar economic characteristics. The retail stores within the market

areas are similar in size and carry substantially identical products selected for the same target customer. We

also use the same distribution methods chain-wide.

Our chief operating decision maker (CODM) is an executive committee that includes the Chief Executive Officer, Executive Chairman, and Chief Financial Officer. Segment information is prepared on the same basis as our CODM manages our operating segments and evaluates results. The measure used by our CODM to assess performance and make operating decisions is income before income taxes as reported on our condensed consolidated statements of comprehensive income. Asset information is provided to the CODM on a consolidated basis.

The following table present significant segment expenses and other segment items regularly reviewed by our CODM:

	Three Months Ended March 31,
(in 000's)	2025		2024
Net Sales	$	181,567	$	183,997
Less:
Cost of goods sold (exclusive of depreciation and amortization)	70,484		72,978
Selling, general, and administrative
Advertising and marketing	11,077		12,172
Selling	25,712		27,738
Occupancy	25,472		23,843
Warehouse, delivery, and transportation	14,914		16,624
General and administrative	30,027		28,979
Total selling, general and administrative(a)	107,202		109,356
Other segment items(b)	158		(23)
Interest income	1,294		1,595
Interest expense	(40)		(40)
Income before income taxes	5,293		3,195
Income tax expense	1,515		802
Consolidated net income	$	3,778	$	2,393

(a) Depreciation and amortization expense included in selling, general and administrative expense was $5.9 million and $4.9 million for March 31, 2025 and 2024, respectively.

(b) Other segment items include gains (losses) on asset disposals and miscellaneous income (expense).