Revenue Recognition and Receivables

9 Months Ended

Nov. 01, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Receivables

Revenue Recognition and Receivables:

Our revenue consists of direct to consumer sales, including our retail store, e-commerce and food & beverage operations, and wholesale sales, as well as royalty income, which is included in royalties and other operating income in our consolidated statements of operations. We recognize revenue when performance obligations under the terms of the contracts with our customers are satisfied. Our accounting policies related to revenue recognition for each type of contract with customers are described in the significant accounting policies in our Fiscal 2024 Form 10-K.

The table below quantifies net sales by distribution channel (in thousands) for each period presented.

	Third Quarter				First Nine Months
	Fiscal 2025		Fiscal 2024		Fiscal 2025		Fiscal 2024
Retail	$	118,008	$	116,420	$	434,767	$	445,113
E-commerce	105,618		101,048		368,914		373,799
Food & Beverage	24,281		23,522		87,155		87,291
Wholesale	59,514		67,107		212,739		220,122
Other	(77)		(72)		(227)		(230)
Net sales	$	307,344	$	308,025	$	1,103,348	$	1,126,095

An estimated sales return liability of $6 million, $10 million and $7 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheets as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. As of November 1, 2025, February 1, 2025, and November 2, 2024, prepaid expenses and other current assets included $2 million, $3 million and $2 million, respectively, relating to the estimated value of inventory for expected direct to consumer and wholesale sales returns.

Substantially all amounts recognized in receivables, net represent trade receivables related to contracts with customers. In the ordinary course of our wholesale operations, we offer discounts, allowances and cooperative advertising support to and accept returns from certain of our wholesale customers for certain products. As of November 1, 2025, February 1, 2025, and November 2, 2024, reserve balances recorded as a reduction to receivables related to these items were $3 million, $3 million and $3 million, respectively. As of November 1, 2025, February 1, 2025, and November 2, 2024, our provision for credit losses related to receivables included in our consolidated balance sheets was $1 million, $1 million and $1 million, respectively.

Contract liabilities for gift cards purchased by consumers and merchandise credits received by customers but not yet redeemed, less any breakage income recognized to date, is included in accrued expenses and other liabilities in our consolidated balance sheets and totaled $20 million, $22 million and $20 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively.