0000930413-18-002883.txt : 20180918 0000930413-18-002883.hdr.sgml : 20180918 20180918140452 ACCESSION NUMBER: 0000930413-18-002883 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20180804 FILED AS OF DATE: 20180918 DATE AS OF CHANGE: 20180918 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS WORLD ENTERTAINMENT CORP CENTRAL INDEX KEY: 0000795212 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL- COMPUTER & PRERECORDED TAPE STORES [5735] IRS NUMBER: 141541629 STATE OF INCORPORATION: NY FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14818 FILM NUMBER: 181075321 BUSINESS ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 BUSINESS PHONE: 5184521242 MAIL ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD MUSIC CORP DATE OF NAME CHANGE: 19920703 10-Q 1 c91990_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 4, 2018
  OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT FOR THE TRANSITION PERIOD FROM  _______________ TO __________________

 

COMMISSION FILE NUMBER: 0-14818

 

TRANS WORLD ENTERTAINMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

New York   14-1541629
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer
    Identification Number)

 

38 Corporate Circle

Albany, New York 12203

(Address of principal executive offices, including zip code)

 

(518) 452-1242

(Registrant’s telephone number, including area code)

 

Indicate by a check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x No  o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o   Accelerated filer  o   Non-accelerated filer  o
Smaller reporting company  x        

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 450 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934

(§240.12b-1 of this chapter). 

Emerging growth company     o

 

Indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  o No  x

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Common Stock, $.01 par value,

36,225,824 shares outstanding as of August 4, 2018

 

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

INDEX TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

  Form 10-Q
  Page No.
PART I. FINANCIAL INFORMATION  
   
Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)  
Condensed Consolidated Balance Sheets at August 4, 2018, February 3, 2018 and July 29, 2017 3
   
Condensed Consolidated Statements of Operations – Thirteen and Twenty-Six Weeks Ended August 4, 2018 and July 29, 2017 4
   
Condensed Consolidated Statements of Comprehensive Loss – Thirteen and Twenty-Six Weeks Ended August 4, 2018 and July 29, 2017 5
   
Condensed Consolidated Statements of Cash Flows – Twenty-Six Weeks Ended August 4, 2018 and July 29, 2017 6
   
Notes to Interim Condensed Consolidated Financial Statements 7
   
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
   
Item 3 – Quantitative and Qualitative Disclosures about Market Risk 25
   
Item 4 – Controls and Procedures 25
   
PART II.  OTHER INFORMATION  
   
Item 1 – Legal Proceedings 26
   
Item 1A- Risk Factors 26
   
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 26
   
Item 3 – Defaults Upon Senior Securities 26
   
Item 4 – Mine Safety Disclosures 26
   
Item 5 – Other Information 26
   
Item 6 – Exhibits 27
   
Signatures 28
2

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

PART 1. FINANCIAL INFORMATION

Item 1 – Interim Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share and share amounts)

(unaudited)

 

   August 4,   February 3,   July 29, 
   2018   2018   2017 
ASSETS               
CURRENT ASSETS               
Cash and cash equivalents  $4,477   $31,326   $13,985 
Restricted cash   4,116    1,505    1,502 
Accounts receivable   6,509    4,469    6,445 
Merchandise inventory   114,920    109,377    126,687 
Prepaid expenses and other assets   8,937    6,976    7,024 
Total current assets   138,959    153,653    155,643 
                
Restricted cash   6,147    10,675    10,682 
Fixed assets, net   12,648    13,546    43,876 
Goodwill   39,191    39,191    39,191 
Intangible assets, net   22,023    23,967    25,914 
Other assets   6,119    7,139    8,033 
TOTAL ASSETS  $225,087   $248,171   $283,339 
                
LIABILITIES               
CURRENT LIABILITIES               
Accounts payable  $34,200   $41,780   $37,169 
Short-term borrowings   6,341         
Accrued expenses and other current liabilities   9,508    11,038    9,688 
Deferred revenue   6,810    8,464    7,732 
Total current liabilities   56,859    61,282    54,589 
                
Contingent consideration           2,115 
Other long-term liabilities   26,533    29,131    29,175 
TOTAL LIABILITIES   83,392    90,413    85,879 
                
SHAREHOLDERS’ EQUITY               
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)            
Common stock ($0.01 par value; 200,000,000 shares authorized; 64,386,671, 64,305,171 and 64,255,171 shares issued, respectively)   644    643    643 
Additional paid-in capital   342,710    341,103    339,624 
Treasury stock at cost (28,160,847, 28,156,601 and 28,138,116 shares, respectively)   (230,149)   (230,145)   (230,145)
Accumulated other comprehensive loss   (1,008)   (998)   (793)
Retained earnings   29,498    47,155    88,131 
TOTAL SHAREHOLDERS’ EQUITY   141,695    157,758    197,460 
TOTAL LIABILITIES AND EQUITY  $225,087   $248,171   $283,339 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

3

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
   2018   2017   2018   2017 
                 
Net sales  $101,039   $100,914   $196,271   $201,665 
Other revenue   1,135    1,565    2,506    2,781 
Total revenue   102,174    102,479    198,777    204,446 
                     
Cost of sales   70,001    67,309    134,916    132,971 
Gross profit   32,173    35,170    63,861    71,475 
Selling, general and administrative expenses   41,562    40,539    81,409    82,051 
Loss from operations   (9,389)   (5,369)   (17,548)   (10,576)
                     
Interest expense   103    59    166    115 
Loss (gain) on insurance proceeds       129        (8,706)
Other income   (49)   (43)   (128)   (57)
Loss before income tax expense   (9,443)   (5,514)   (17,586)   (1,928)
Income tax expense   67    51    71    105 
Net loss  $(9,510)  $(5,565)  $(17,657)  $(2,033)
                     
BASIC AND DILUTED LOSS PER COMMON SHARE:                    
Basic and diluted loss per common share  $(0.26)  $(0.15)  $(0.49)  $(0.06)
                     
Weighted average number of common shares outstanding – basic and diluted   36,352    36,179    36,295    36,179 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

4

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
   2018   2017   2018   2017 
                 
Net loss  ($9,510)  ($5,565)  ($17,657)  ($2,033)
                     
Amortization of pension loss   (5)   (5)   (10)   (10)
                     
Comprehensive loss  ($9,515)  ($5,570)  ($17,667)  ($2,043)

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

5

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

   Twenty-six Weeks Ended 
   August 4,   July 29, 
   2018   2017 
OPERATING ACTIVITIES:          
Net loss  ($17,657)  ($2,033)
Adjustments to reconcile net loss to net cash used in operating activities:          
           
Depreciation of fixed assets   2,563    4,932 
Amortization of intangible assets   1,944    1,943 
Stock based compensation   1,603    1,550 
Adjustment to contingent consideration       (1,437)
Loss on disposal of fixed assets   135    448 
Change in cash surrender value   (44)   (137)
Gain on life insurance asset       (8,706)
Changes in operating assets and liabilities that provide (use) cash:          
Accounts receivable   (2,040)   640 
Merchandise inventory   (5,543)   (683)
Prepaid expenses and other current assets   (1,961)   1,247 
Other long-term assets   (73)   (720)
Accounts payable   (7,580)   (15,138)
Accrued expenses and other current liabilities   (30)   (1,010)
Deferred revenue   (1,654)   (1,497)
Other long-term liabilities   (2,607)   98 
Net cash used in operating activities   (32,944)   (20,503)
           
INVESTING ACTIVITIES:          
Purchases of fixed assets   (1,800)   (4,166)
Proceeds from company owned life insurance       14,336 
Investment in joint venture       (2,575)
Capital distributions from joint venture   1,137     
Net cash (used in) provided by investing activities   (663)   7,595 
           
FINANCING ACTIVITIES:          
Proceeds from short term borrowings   6,341     
Payments to etailz shareholders   (1,500)   (5,000)
Net cash provided by (used in) financing activities   4,841    (5,000)
           
Net decrease in cash, cash equivalents, and restricted cash   (28,766)   (17,908)
Cash, cash equivalents, and restricted cash, beginning of period   43,506    44,077 
Cash, cash equivalents, and restricted cash, end of period  $14,740   $26,169 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

6

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

August 4, 2018 and July 29, 2017

 

Note 1. Nature of Operations

 

Trans World Entertainment Corporation and subsidiaries (“the Company”) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of August 4, 2018, the fye segment operated 241 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.

 

Liquidity and Cash Flows:

 

The Company’s primary sources of working capital are cash provided by operations and borrowing capacity under its revolving credit facility. The Company’s cash flows fluctuate from quarter to quarter due to various items, including seasonality of sales and earnings, merchandise inventory purchases and returns, the related terms on the purchases and capital expenditures. Management believes it will have adequate resources to fund its cash needs including its capital spending, its seasonal increase in merchandise inventory and other operating cash requirements and commitments and anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.

 

In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.

 

Note 2. Basis of Presentation

 

The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”), Record Town’s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation.

 

The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.

7

The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended February 3, 2018 contained in the Company’s Annual Report on Form 10-K filed May 4, 2018. The results of operations for the thirteen and twenty-six weeks ended August 4, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019. 

 

The Company’s significant accounting policies are described in Note 1 to the Company’s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018.

 

There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures.

 

Recently Adopted Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.

 

Note 3. Recently Issued Accounting Pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company’s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.

 

Note 4. Goodwill and Other Intangible Assets

 

Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable. 

 

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.

8

The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

 

Identifiable intangible assets as of August 4, 2018 consisted of the following ($ in thousands):

 

   August 4, 2018 
   Weighted
Average
Amortization
Period
(in months)
   Original
Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                 
Vendor relationships   120   $19,100   $3,442   $15,658 
Technology   60    6,700    2,408    4,292 
Trade names and trademarks   60    3,200    1,127    2,073 
        $29,000   $6,977   $22,023 

 

The changes in net intangibles and goodwill from February 3, 2018 to August 4, 2018 were as follows:

   

($ in thousands)       February 3,
2018
   Amortization   August 4,
2018
 
                     
Amortized intangible assets:                    
Vendor relationships       $16,612   $954   $15,658 
Technology        4,962    670    4,292 
Trade names and trademarks        2,393    320    2,073 
Net amortized intangible assets       $23,967   $1,944   $22,023 
                     
Unamortized intangible assets:                    
Goodwill       $39,191   $   $39,191 
Total unamortized intangible assets       $39,191   $   $39,191 

 

Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $470   $954   $953 
Technology   335    335    670    670 
Trade names and trademarks   160    160    320    320 
Total amortization expense  $972   $965   $1,944   $1,943 
9

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

 

Year   Annual Amortization 
($ in thousands)      
2018   $1,946 
2019    3,890 
2020    3,890 
2021    3,325 
2022    1,910 
2023    1,910 
Thereafter    5,152 

 

Note 5. Depreciation and Amortization

 

Depreciation and amortization included in the condensed consolidated statements of operations is as follows:

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
                     
Cost of sales  $   $157   $   $311 
Selling, general and administrative expenses   2,274    3,341    4,507    6,564 
Total  $2,274   $3,498   $4,507   $6,875 

 

Note 6. Segment Data

 

As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Total Revenue                    
fye  $50,545   $58,958   $104,608   $123,902 
etailz   51,629    43,521    94,169    80,544 
Total Company  $102,174   $102,479   $198,777   $204,446 
                     
Gross Profit                    
fye  $20,634   $25,085   $42,905   $51,995 
etailz   11,539    10,085    20,956    19,480 
Total Company  $32,173   $35,170   $63,861   $71,475 
                     
Income (Loss) From Operations                    
fye  $(6,629)  $(5,467)  $(12,001)  $(9,853)
etailz   (2,760)   98    (5,547)   (723)
Total Company  $(9,389)  $(5,369)  $(17,548)  $(10,576)
                     
Total Assets As of August 4, 2018 and As of July 29, 2017  
                     
             August 4,
2018
   July 29,
2017
 
fye            $121,750   $184,250 
etailz             103,337    99,089 
Total Company            $225,087   $283,339 
10

Note 7. Restricted Cash

 

As of August 4, 2018, the Company had restricted cash of $4.1 million and $6.2 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of July 29, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.

 

In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of August 4, 2018 on the accompanying interim condensed consolidated balance sheet.

 

In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $6.2 million is classified as restricted cash in other assets of August 4, 2018 on the accompanying interim condensed consolidated balance sheet.

 

A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):

 

   August 4,   February 3,   July 29, 
   2018   2018   2017 
Cash and cash equivalents  $4,477   $31,326   $13,985 
Restricted cash   10,263    12,180    12,184 
Total cash, cash equivalents and restricted cash  $14,740   $43,506   $26,169 

 

During the twenty-six weeks ended August 4, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement.

 

Note 8. Short Term Borrowings

 

In January 2017, the Company entered into a $50 million asset based credit facility (“Credit Facility”) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.

 

The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of August 4, 2018, the Company was compliant with all covenants.

 

Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the

11

Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.

 

As of August 4, 2018, borrowings under the credit facility were $6.3 million. There were no borrowings under the credit facility as of July 29, 2017. The Company had $29.9 million and $37.0 million available for borrowing as of August 4, 2018 and July 29, 2017, respectively.

 

As of August 4, 2018, the Company had $1.1 million in outstanding letters of credit related to an import purchase. As of July 29, 2017 the Company did not have any outstanding letters of credit.

 

The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.

 

Note 9. Stock Based Compensation

 

As of August 4, 2018, there was approximately $2.2 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.8 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 2.4 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 4.0 years; and $1.2 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next six months.

 

The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the “New Plan”). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans or the 1990 Plan.

 

Equity awards authorized for issuance under the New Plan total 5.0 million. As of August 4, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.6 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at August 4, 2018 were 4.4 million.

 

The following table summarizes stock award activity during the twenty-six weeks ended August 4, 2018:

 

   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other
Share
Awards (1)
   Weighted
Average
Grant Fair
Value
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22 
Granted   505,000    0.98    10.0    135,484    0.98 
Forfeited                    
Canceled   (110,000)   3.29             
Exercised               (17,500)   3.53 
Balance August 4, 2018   2,980,914   $2.70    7.3    301,411   $2.35 
Exercisable August 4, 2018   1,584,539   $3.25    5.9    128,911   $2.85 

 

(1)Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.

 

As of August 4, 2018, all stock awards outstanding and exercisable had a grant price higher than the market price of the stock and had no intrinsic value.

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In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and twenty-six weeks ended August 4, 2018, the Company recognized $0.6 million and $1.2 million of compensation cost related to these shares, respectively. As of August 4, 2018, there was approximately $1.2 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next six months.

 

Note 10. Accumulated Other Comprehensive Loss

 

Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company’s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension costs associated with Company’s defined benefit plan for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017.

 

Note 11. Defined Benefit Plan

 

The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the twenty-six weeks ended August 4, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.

 

The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.

 

The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
         
Service cost  $14   $16   $28   $32 
Interest cost   140    139    280    278 
Amortization of pension costs       4        8 
Amortization of net gain (1)   (5)   (9)   (10)   (18)
Net periodic pension cost  $149   $150   $298   $300 

 

(1) The amortization of net gain is related to a director retirement plan previously provided by the Company.

 

Note 12. Basic and Diluted Loss Per Share

 

Basic income per share is calculated by dividing net income by the weighted average common shares outstanding for the period. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and

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additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company’s common stock awards from the Company’s Stock Award Plans.

 

For the thirteen and twenty-six week periods ended August 4, 2018 and July 29, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and twenty-six weeks ended August 4, 2018 were approximately 3.1 million shares and 2.9 million shares, respectively, as compared to 3.1 million shares and 2.7 million shares, respectively, for the thirteen and twenty-six weeks ended July 29, 2017.

 

Note 13. Income Taxes

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company’s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company’s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company’s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.

 

Note 14. Commitments and Contingencies

 

Legal Proceedings

 

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.

 

Store Manager Class Actions

Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager).

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Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.

 

On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.

 

Legal matters are defended and handled in the ordinary course of business. The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.

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TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

PART 1. FINANCIAL INFORMATION

Item 2 - Management’s Discussion and Analysis of Financial Condition and

Results of Operations

August 4, 2018 and July 29, 2017

 

Overview

Management’s Discussion and Analysis of Financial Condition and Results of Operations provides information that the Company’s management believes necessary to achieve an understanding of its financial statements and results of operations. To the extent that such analysis contains statements which are not of a historical nature, such statements are forward-looking statements, which involve risks and uncertainties. These risks include, but are not limited to, changes in the competitive environment, availability of new products, change in vendor policies or relationships, general economic factors in markets where the Company’s merchandise is sold; and other factors discussed in the Company’s filings with the Securities and Exchange Commission. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the interim condensed consolidated financial statements and related notes included elsewhere in this report and the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018.

 

The Company operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of August 4, 2018, the fye segment operated 241 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. fye stores offer predominantly entertainment products. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, for both segments, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.

 

The Company’s results have been, and will continue to be, contingent upon management’s ability to understand trends and to manage the business in response to those trends and general economic trends. Management monitors a number of key performance indicators to evaluate its performance, including:

 

Net sales and comparable store net sales: The fye segment measures the rate of comparable store net sales change. A store is included in comparable store net sales calculations at the beginning of its thirteenth full month of operation. Stores relocated, expanded or downsized are excluded from comparable store sales if the change in square footage is greater than 20% until the thirteenth full month following relocation, expansion or downsizing. Closed stores that were open for at least thirteen months are included in comparable store sales through the month immediately preceding the month of closing. The fye segment further analyzes net sales by store format and by product category. The etailz segment measures total year over year sales growth by product category and evaluates product sales by supplier.

 

Cost of Sales and Gross Profit: Gross profit is calculated based on the cost of product in relation to its retail selling value. Changes in gross profit are impacted primarily by net sales levels, mix of products sold, vendor discounts and allowances, shrinkage, obsolescence and distribution costs. Distribution expenses include those costs associated with receiving, inspecting & warehousing merchandise, Amazon fulfillment fees, and costs associated with product returns to vendors.

 

Selling, General and Administrative (“SG&A”) Expenses: Included in SG&A expenses are payroll and related costs, occupancy charges, general operating and overhead expenses and depreciation charges (excluding

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those related to distribution operations, see Note 5 to the Condensed Consolidated Financial Statements in this Form 10-Q). SG&A expenses also include fixed assets write-offs associated with store closures, if any, and miscellaneous income and expense items, other than interest.

 

Balance Sheet and Ratios: The Company views cash, net inventory investment (merchandise inventory less accounts payable) and working capital (current assets less current liabilities) as relevant indicators of its financial position. See Liquidity and Capital Resources for further discussion of these items.

17

RESULTS OF OPERATIONS

 

Thirteen and Twenty-six Weeks Ended August 4, 2018

Compared to the Thirteen and Twenty-six Weeks Ended July 29, 2017

 

Segment Highlights ($ in thousands):

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
                 
   August 4, 2018   July 29, 2017   August 4, 2018   July 29, 2017 
Total Revenue                    
fye  $50,545   $58,958   $104,608   $123,902 
etailz   51,629    43,521    94,169    80,544 
Total Company  $102,174   $102,479   $198,777   $204,446 
                     
Gross Profit                    
fye  $20,634   $25,085   $42,905   $51,995 
etailz   11,539    10,085    20,956    19,480 
Total Company  $32,173   $35,170   $63,861   $71,475 
                     
Income (Loss) From Operations                    
fye  $(6,629)  $(5,467)  $(12,001)  $(9,853)
etailz   (2,760)   98    (5,547)   (723)
Total Company  $(9,389)  $(5,369)  $(17,548)  $(10,576)
                     
Reconciliation of etailz Income (Loss) from Operations to etailz Adjusted Income (Loss) from Operations
etailz income (loss) fom operations  $(2,760)  $98   $(5,547)  $(723)
Acquisition related intangibles amortization   972    965    1,944    1,943 
Acquisition related compensation expense, net of contingency benefit   1,118    (319)   2,240    583 
etailz adjusted income (loss) from operations (1)  $(670)  $744   $(1,363)  $1,803 

 

(1) In addition to the results of operations determined in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), we reported non-GAAP adjusted operating income for the etailz segment as shown above.

 

Total Revenue. The following table sets forth a year-over-year comparison of the Company’s total revenue:

 

   Thirteen Weeks Ended   Change    Twenty-six Weeks Ended   Change  
                                 
   August 4,
2018
   July 29,
2017
   $   %   August 4,
2018
   July 29, 
2017
   $   % 
($ in thousands)                                
fye revenue  $50,545    58,958   $(8,413)   -14.3%  $104,608    123,902   $(19,294)   -15.6%
etailz revenue   51,629    43,521    8,108    18.6%   94,169    80,544    13,625    16.9%
Total revenue  $102,174   $102,479   $(305)   -0.3%  $198,777   $204,446   $(5,669)   -2.8%

 

Total revenue decreased 0.3% and 2.8% for the thirteen and twenty-six weeks ended August 4, 2018 as compared to the same period last year.

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fye Segment

The following table sets forth a period over period comparison of net fye sales by merchandise category:

 

   Thirteen Weeks Ended    Change        Twenty-six Weeks Ended    Change      
   August 4,
2018
  July 29, 
2017
   $   %   Comp
Store Net
Sales
   August 4,
2018
  July 29,
2017
     $   %   Comp
Store Net
Sales
 
($ in thousands)                                        
fye net sales  $49,410   $57,393   $(7,983)   -13.9%   -6.7%  $102,102   $121,121   $(19,019)   -15.7%   -7.6%
Other revenue   1,135    1,565    (430)   -27.5%        2,506    2,781    (275)   -9.9%     
Total revenue  $50,545   $58,958   $(8,413)   -14.3%       $104,608   $123,902   $(19,294)   -15.6%     
                                                   
As a % of fye net sales                                            
Trend/Lifestyle   40.9%   37.0%             -1.7%   39.3%   34.6%             0.4%
Video (1)   29.0%   31.2%             -9.9%   30.5%   33.6%             -12.6%
Music   18.4%   20.6%             -14.4%   18.5%   21.1%             -17.4%
Electronics   11.7%   11.2%             1.4%   11.7%   10.7%             2.3%
    100.0%   100.0%                  100.0%   100.0%               
                                                   
Store Count:                            241    269    (28)   -10.4%     
                                                      
Total Square footage                               1,338,638    1,497,500    (158,862)   -10.6%     

 

(1)Includes Video Games category, which represented 0.1% of fye fiscal second quarter net sales. Fiscal 2017 data was adjusted to include this immaterial reclassification.

 

Net sales. Net sales decreased 13.9% and 15.7% during the thirteen weeks and twenty-six weeks ended August 4, 2018 as compared to the same period last year. The decline in net sales resulted from a 10.4% decline in total stores in operation and a 6.7% and 7.6% decline in comparable store net sales for the thirteen and twenty-six weeks ended August 4, 2018, respectively.

 

Trend/Lifestyle:

Comparable store net sales in the trend/lifestyle category decreased 1.7% during the thirteen weeks ended August 4, 2018 and increased 0.4% for the twenty-six weeks ended August 4, 2018, impacted by fidget spinners sales which represented 4% of sales in the second quarter last year. Trend/lifestyle products represented 40.9% and 39.3% of total net sales for the thirteen and twenty-six weeks ended August 4, 2018, respectively, compared to 37.0% and 34.6% in the comparable periods last year. The Company continues to take advantage of opportunities to strengthen its selection and shift product mix to growing categories of entertainment-related merchandise.

 

Video:

Comparable store sales in the video category decreased 9.9% and 12.6% during the thirteen and twenty-six week periods ended August 4, 2018, respectively. The video category represented 29.0% and 30.5% of total net sales for the thirteen and twenty-six weeks ended August 4, 2018, respectively, compared to 31.2% and 33.6% in the comparable periods last year due to continued industry-wide decline in physical media sales

 

Music:

During the thirteen and twenty-six weeks ended August 4, 2018, music sales in comparable stores decreased 14.4% and 17.4%, respectively, versus the thirteen and twenty-six weeks ended July 29, 2017. The music category represented 18.4% and 18.5% of total net sales for the thirteen and twenty-six weeks ended August 4, 2018, respectively, compared to 20.6% and 21.1% for the thirteen and twenty-six weeks ended July 29, 2017 due to continued industry-wide decline in physical media sales.

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Electronics:

Comparable store net sales in the electronics category increased 1.4% and 2.3% during the thirteen and twenty-six weeks ended August 4, 2018, respectively. Electronics net sales represented 11.7% of total net sales for both the thirteen and twenty-six weeks ended August 4, 2018, compared to 11.2% and 10.7% in the comparable periods last year.

 

Other Revenue. Other revenue, which was primarily related to commissions and fees earned from third parties, was approximately $1.1 million and $2.5 million for the thirteen and twenty-six weeks ended August 4, 2018, respectively, compared to $1.6 million and $2.8 million in the comparable periods last year. The decline in other revenue was primarily due to lower number of stores in operation.

 

etailz Segment

etailz reported sales of $51.6 million and $94.2 million for the thirteen and twenty-six weeks ended August 4, 2018, respectively compared to $43.5 million and $80.5 million sales for the thirteen and twenty-six weeks ended July 29, 2017. etailz generates revenue across a broad array of product lines primarily through the Amazon Marketplace. Categories include: apparel, baby, beauty, electronics, health & personal care, home/kitchen/grocery, pets, sporting goods, toys & art. During the twenty-six weeks ended August 4, 2018, etailz sold approximately 31,000 SKUs from approximately 2,200 suppliers, compared to approximately 21,000 SKUs from approximately 1,700 suppliers during the twenty-six weeks ended July 29, 2017.

 

Gross Profit. The following table sets forth a year-over-year comparison of the Company’s Gross Profit:

 

   Thirteen Weeks Ended    Change    Twenty-six Weeks Ended    Change  
             
   August 4, 2018  July 29, 2017    $  %    August 4, 2018  July 29, 2017    $  %  
($ in thousands)                        
fye gross profit  $20,634   $25,085   $(4,451)   -17.7%  $42,905   $51,995   $(9,090)   -17.5%
etailz gross profit   11,539    10,085    1,454    14.4%   20,956    19,480    1,476    7.6%
Total gross profit  $32,173   $35,170   $(2,997)   -8.5%  $63,861   $71,475   $(7,614)   -10.7%
                                         
fye gross profit as a % of fye revenue   40.8%   42.5%             41.0%   42.0%          
etailz gross profit as a % of etailz revenue   22.3%   23.2%             22.3%   24.2%          
Total gross profit as a % of total revenue   31.5%   34.3%             32.1%   35.0%          
                                         

Gross profit decreased 8.5% to $32.2 million for the thirteen weeks ended August 4, 2018 compared to $35.2 million for the thirteen weeks ended July 29, 2017. For the twenty-six weeks ended August 4, 2018, gross profit decreased 10.7% to $63.9 million compared to $71.5 million for the comparable period last year.

 

fye Segment

fye gross profit as a percentage of total revenue for the thirteen and twenty-six weeks ended August 4, 2018 was 40.8% and 41.0%, respectively, compared to 42.5% and 42.0% for the comparable periods last year. The decline in rate was primarily driven by a higher number of closing stores during the quarter this year, and higher gross margin related to fidget spinners last year.

 

etailz Segment

etailz gross profit as a percentage of total revenue for both the thirteen and twenty-six weeks ended August 4, 2018 was 22.3%, compared to 23.2% and 24.2% for the comparable periods last year. The decline in the gross profit rate was primarily due to higher marketplace fulfillment and warehousing fees.

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SG&A Expenses. The following table sets forth a period over period comparison of the Company’s SG&A expenses:

 

   Thirteen Weeks Ended    Change    Twenty-six Weeks Ended    Change  
($ in thousands)  August 4,
2018
 July 29,
2017
   $%    August 4,
2018
July 29,
2017
   $%  
                      
fye SG&A, excluding depreciation and amortization  $26,103   $28,226   ($2,123)   -7.5%  $52,592   $57,321   ($4,729)   -8.3%
As a % of total fye revenue   51.6%   47.9%             50.3%   46.3%          
                                         
etailz SG&A, excluding depreciation and amortization   13,185    8,972    4,213    47.0%   24,310    18,166    6,144    33.8%
As a % of total etailz revenue   25.2%   20.6%             25.9%   21.8%          
                                         
Depreciation and amortization   2,274    3,341    (1,067)   -31.9%   4,507    6,564    (2,057)   -31.3%
                                         
Total SG&A  $41,562   $40,539   $1,023    2.5%  $81,409   $82,051   ($642)   -0.8%
                                         
As a % of total revenue   40.5%   39.6%             41.0%   40.1%          

 

SG&A expenses increased $1.0 million and decreased $0.6 million for the thirteen and twenty-six weeks ended August 4, 2018, respectively.

 

fye Segment

fye SG&A, excluding depreciation and amortization expenses, decreased $2.1 million, or 7.5%, and $4.7 million, or 8.3%, for the thirteen and twenty-six weeks ended August 4, 2018, respectively. As a percentage of fye revenue, SG&A expenses in the fye segment for the thirteen and twenty-six weeks ended August 4, 2018 were 51.6% and 50.3%, respectively, compared to 47.9% and 46.3% for the same period last year. The decline in SG&A expenses was due to fewer stores in operation. The increase in the rate was primarily due to the comparable sales decline.

 

etailz Segment

etailz SG&A, excluding depreciation and amortization expenses, increased $4.2 million and $6.1 million for the thirteen and twenty-six weeks ended August 4, 2018, respectively. As a percentage of etailz revenue, SG&A expenses in the etailz segment for the thirteen and twenty-six weeks ended August 4, 2018 were 25.2% and 25.9%, respectively, compared to 20.6% and 21.8% for the same period last year. The increase in SG&A expenses was due to investments in product identification and sourcing, technology, platform diversification, in addition to higher marketplace commissions on the higher sales.

 

Depreciation and amortization. Consolidated depreciation and amortization expense decreased $1.1 million and $2.1 million for the thirteen and twenty-six weeks ended August 4, 2018, respectively, primarily due to the $29.1 million net decrease in carrying value of fixed assets, resulting from impairment charges recorded for the fye segment, during the fourth quarter of fiscal 2017. For a discussion of the Company’s impairment charges, see “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018.

 

Income from Joint Venture. Income from joint venture was $83 thousand during the twenty-six weeks ended August 4, 2018.

 

Interest Expense. Interest expense was $103 thousand and $166 thousand during the thirteen and twenty-six weeks ended August 4, 2018, respectively. Interest expense consisted primarily of unused commitment fees and the amortization of fees related to the Company’s credit facility. Interest expense during the thirteen and twenty-six weeks ended July 29, 2017 was $59 thousand and $115 thousand, respectively. The increase in

21

interest expense was due to borrowings under the credit facility as discussed in Note 8 to the condensed consolidated financial statements.

 

Gain on Insurance Proceeds. During the twenty-six weeks ended July 29, 2017, the fye segment recorded an $8.7 million gain on insurance proceeds related to the death of the Company’s former Chairman.

 

Other Income. Other income was $49 thousand and $128 thousand during the thirteen and twenty-six weeks ended August 4, 2018, respectively, compared to $43 thousand and $57 thousand for the same periods last year.

 

Income Tax Expense. Based on available objective evidence, management concluded that a full valuation allowance should be recorded against the Company’s deferred tax assets. There were insignificant tax expense amounts recorded during the thirteen and twenty-six weeks ended August 4, 2018 and comparative periods last year due to the losses recognized each period.

 

Net Loss. The following table sets forth a period over period comparison of the Company’s net loss:

 

   Thirteen Weeks ended   Twenty-six Weeks ended 
   August 4,   July 29,       August 4,   July 29,     
 ($ in thousands)   2018   2017   Change   2018   2017   Change 
                         
Loss before income tax  $(9,443)  $(5,514)  $(3,929)  $(17,586)  $(1,928)  $(15,658)
Income tax expense   67    51    16    71    105    (34)
Net loss  $(9,510)  $(5,565)  $(3,945)  $(17,657)  $(2,033)  $(15,624)
                               

LIQUIDITY

 

Liquidity and Cash Flows:

 

The Company’s primary sources of working capital are cash provided by operations and borrowing capacity under its revolving credit facility. The Company’s cash flows fluctuate from quarter to quarter due to various items, including seasonality of sales and earnings, merchandise inventory purchases and returns, the related terms on the purchases and capital expenditures. Management believes it will have adequate resources to fund its cash needs for the foreseeable future, including its capital spending, its seasonal increase in merchandise inventory and other operating cash requirements and commitments.

 

Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.

 

In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.

22

The following table sets forth a summary of key components of cash flow and working capital:

 

      As of or for the     
      Twenty-six Weeks Ended    Change  
      August 4,    July 29,     
  ($ in thousands)   2018    2017    $  
  Operating Cash Flows    (32,944)   (20,503)   (12,441)
  Investing Cash Flows    (663)   7,595    (8,258)
  Financing Cash Flows    4,841    (5,000)   9,841 
                   
  Capital Expenditures (1)  (1,800)   (4,166)   2,366 
  Cash, Cash Equivalents, and Restricted Cash (2)  14,740    26,169    (11,429)
  Merchandise Inventory    114,920    126,687    (11,767)
  Working Capital    82,100    101,054    (18,954)
                   
(1) Included in Investing Cash Flows                
                   
(2) Cash and cash equivalents per interim condensed consolidated balance sheets   $4,477   $13,985   $(9,508)
  Add: restricted cash    10,263    12,184    (1,921)
                   
  Cash, cash equivalents, and restricted cash   $14,740   $26,169   $(11,429)

 

Cash used in operations was $32.9 million for the twenty-six weeks ended August 4, 2018, primarily due to a net loss of $17.7 million, adding back depreciation and amortization of $4.5 million and non-cash compensation of $1.6 million, less $2.0 million increase in accounts receivable, $5.5 million seasonal increase in inventory, $2.0 million increase in prepaid expenses, and reductions in accounts payable, deferred revenue, and other long-term liabilities of $7.6 million, $1.7 million, and $2.6 million, respectively. The Company’s merchandise inventory and accounts payable are influenced by the seasonality of its business. A significant reduction of accounts payable occurs annually in the fiscal first quarter, reflecting payments for merchandise inventory purchased during the prior year’s holiday season.

 

Cash used in investing activities was $0.7 million for the twenty-six weeks ended August 4, 2018, which consisted of $1.8 million in capital expenditures, offset by $1.1 million of capital distributions from the joint venture.

 

Cash provided by financing activities for the twenty-six weeks ended August 4, 2018, was comprised of $6.3 million proceeds from short-term borrowings, offset by a $1.5 million payment to the etailz shareholders as per the original etailz acquisition share purchase agreement.

 

Capital Expenditures. During the thirteen and twenty-six weeks ended August 4, 2018, respectively, the Company made capital expenditures of $0.9 million and $1.8 million, respectively. The Company currently plans to spend approximately $3.0 million for capital expenditures during fiscal 2018.

 

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

 

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires that management apply accounting policies and make estimates and assumptions that affect results of operations and the reported amounts of assets and liabilities in the financial statements. Management continually evaluates its estimates and judgments including those related to merchandise inventory and return costs and income taxes. Management bases its estimates and judgments on

23

historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Form 10-K for the year ended February 3, 2018 includes a summary of the critical accounting policies and methods used by the Company in the preparation of its interim condensed consolidated financial statements. There have been no material changes or modifications to the policies since February 3, 2018.

 

Recent Accounting Pronouncements:

 

The information set forth under Note 2, Recently Adopted Accounting Pronouncements section, and Note 3, Recently Issued Accounting Pronouncements, contained in Item 1, “Notes to Interim Condensed Consolidated Financial Statements”, is incorporated herein by reference.

 

Non-GAAP Measures:

 

This Form 10-Q contains certain non-GAAP metrics, including: etailz adjusted income (loss) from operations and SG&A excluding depreciation and amortization, expenses for each reporting segment. A non-GAAP measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for SG&A expenses, operating earnings, net earnings from continuing operations or cash flows from operating activities, as determined in accordance with GAAP. Non-GAAP items are provided because management believes that, when reconciled from the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance.

 

The Company calculates etailz adjusted income (loss) from operations to evaluate its own operating performance and as an integral part of its planning process. The Company presents etailz adjusted income (loss) from operations as a supplemental measure because it believes such a measure provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.

 

The Company calculates SG&A, excluding depreciation and amortization expenses for each reporting segment, to evaluate its own operating performance and as an integral part of its planning process. The Company presents SG&A, excluding depreciation and amortization expenses, as a supplemental measure because it believes such a measure provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.

24

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

 

PART I – FINANCIAL INFORMATION

 

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

 

The Company does not hold any financial instruments that expose it to significant market risk and does not engage in hedging activities. To the extent the Company borrows under its revolving credit facility, the Company is subject to risk resulting from interest rate fluctuations since interest on the Company’s borrowings under its credit facility can be variable. If interest rates on the Company’s revolving credit facility were to increase by 25 basis points, and to the extent borrowings were outstanding, for every $1,000,000 outstanding on the facility, income before income taxes would be reduced by $2,500 per year. For a discussion of the Company’s accounting policies for financial instruments and further disclosures relating to financial instruments, see “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018.

 

Item 4 – Controls and Procedures

 

(a) Evaluation of disclosure controls and procedures. The Company’s Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of August 4, 2018, have concluded that as of such date the Company’s disclosure controls and procedures were effective and designed to ensure that (i) information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

(b) Changes in internal controls. There have been no changes in the Company’s internal controls over financial reporting that occurred during the fiscal quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

25

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

 

PART II - OTHER INFORMATION

 

Item 1 – Legal Proceedings

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.

 

Store Manager Class Actions

Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager.)

 

Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.

 

On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.

 

Item 1A – Risk Factors

Risks relating to the Company’s business and Common Stock are described in detail in Item 1A of the Company’s most recently filed Annual Report on Form 10-K for the year ended February 3, 2018.

 

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

 

Item 3 – Defaults Upon Senior Securities

None.

 

Item 4 – Mine Safety Disclosure

Not Applicable.

 

Item 5 – Other Information

None.

26

Item 6 - Exhibits

 

(A) Exhibits -  
Exhibit No. Description
31.1 Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2 Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32 Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
   
101.INS XBRL Instance Document (furnished herewith)
   
101.SCH XBRL Taxonomy Extension Schema (furnished herewith)
   
101.CAL XBRL Taxonomy Extension Calculation Linkbase (furnished herewith)
   
101.DEF XBRL Taxonomy Extension Definition Linkbase (furnished herewith)
   
101.LAB XBRL Taxonomy Extension Label Linkbase (furnished herewith)
   
101.PRE XBRL Taxonomy Extension Presentation Linkbase (furnished herewith)
27

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TRANS WORLD ENTERTAINMENT CORPORATION

 

September 18, 2018   By: /s/ Michael Feurer  
    Michael Feurer  
    Chief Executive Officer  
    (Principal Executive Officer)  
       
September 18, 2018   By: /s/ John Anderson  
    John Anderson  
    Chief Financial Officer  
    (Principal and Chief Accounting Officer)
28
EX-31.1 2 c91990_ex31-1.htm

Exhibit 31.1

 

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT 2002

 

I, Michael Feurer certify that:

 

(1)I have reviewed this report on Form 10–Q of the Registrant;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated:   September 18, 2018

 

    /s/ Michael Feurer  
  Michael Feurer  
  Chief Executive Officer  
  Trans World Entertainment Corporation  
 
EX-31.2 3 c91990_ex31-2.htm

Exhibit 31.2

 

CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT 2002

 

I, John Anderson, Chief Financial Officer of Trans World Entertainment Corporation (the “Registrant”), certify that:

 

(1)I have reviewed this report on Form 10–Q of the Registrant;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated:   September 18, 2018

 

    /s/ John Anderson  
  John Anderson  
  Chief Financial Officer  
  Trans World Entertainment Corporation  
 
EX-32 4 c91990_ex32.htm

Exhibit 32

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Trans World Entertainment Corporation (the “Company”) on Form 10-Q for the period ending August 4, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Michael Feurer, Chief Executive Officer of the Company and John Anderson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

 

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  /s/ Michael Feurer     /s/ John Anderson  
Michael Feurer   John Anderson  
Chief Executive Officer   Chief Financial Officer  
September 18, 2018   September 18, 2018  
 
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Nature of Operations</b></font> </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Trans World Entertainment Corporation and subsidiaries (&#x201c;the Company&#x201d;) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, <b>www.fye.com </b>and <b>www.secondspin.com</b>. As of August 4, 2018, the fye segment operated 241 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company&#x2019;s business is seasonal in nature, with the peak selling period being the holiday season which falls in the Company&#x2019;s fourth fiscal quarter. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Liquidity and Cash Flows:</i></b></p><br/><p style="font: 10pt CG Times (W1); margin: 0pt 0; text-align: justify; text-indent: 0pt">The Company&#x2019;s primary sources of working capital are cash provided by operations and borrowing capacity under its revolving credit facility. The Company&#x2019;s cash flows fluctuate from quarter to quarter due to various items, including seasonality of sales and earnings, merchandise inventory purchases and returns, the related terms on the purchases and capital expenditures. Management believes it will have adequate resources to fund its cash needs, including its capital spending, its seasonal increase in merchandise inventory and other operating cash requirements and commitments and anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company&#x2019;s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company&#x2019;s ability to continue as a&#xa0;going&#xa0;concern&#xa0;for a period of one year following the date that these financial statements are issued.</p><br/> 2 241 1300000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 2. Basis of Presentation</b></p><br/><p style="font: 10pt CG Times (W1),serif; margin: 0pt 0; text-align: left">The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (&#x201c;Record Town&#x201d;), Record Town&#x2019;s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (&#x201c;U.S. GAAP&#x201d;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended&#xa0;February 3, 2018&#xa0;contained in the Company&#x2019;s Annual Report on Form 10-K filed&#xa0;May&#xa0;4, 2018. The results of operations for the thirteen and twenty-six weeks ended&#xa0;August 4, 2018&#xa0;are not necessarily indicative of the results to be expected for the entire fiscal year ending&#xa0;February&#xa0;2, 2019.&#xa0;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Company&#x2019;s significant accounting policies are described in Note 1 to the Company&#x2019;s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Recently Adopted Accounting Pronouncements</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2014, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued Accounting Standard Update (&#x201c;ASU&#x201d;) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.</p><br/> 500000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3. Recently Issued Accounting Pronouncements</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, &#x201c;Leases&#x201d;, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity&#x2019;s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company&#x2019;s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company&#x2019;s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company&#x2019;s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities. </p><br/> In February 2016, the FASB issued ASU No. 2016-02, &#x201c;Leases&#x201d;,which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity shouldrecognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative andspecific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understandmore about the nature of an entity&#x2019;s leasing activities, including significant judgments and changes in judgments. The newstandard will be effective for the Company&#x2019;s fiscal year beginning February 3, 2019, and requires the modified retrospectivemethod of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company&#x2019;sConsolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company&#x2019;s home office,distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities. <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4. Goodwill and Other Intangible Assets</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable.&#xa0;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Identifiable intangible assets as of&#xa0;August 4, 2018&#xa0;consisted of the following ($ in thousands):</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Amortization<br /> Period <br /> (in months)</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Original<br /> Gross<br /> Carrying<br /> Amount</td><td style="border-bottom: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="border-bottom: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Net&#xa0;Carrying<br /> Amount</td><td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 38%; text-align: left; text-indent: -10pt; padding-left: 10pt">Vendor relationships</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: center">120</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,100</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">3,442</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">15,658</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -10pt; padding-left: 10pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">60</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,700</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,408</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,292</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">60</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,200</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,127</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,073</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">29,000</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">6,977</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">22,023</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table><br/><p style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">The changes in net intangibles and goodwill from February 3, 2018 to August 4, 2018 were as follows:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left; padding-bottom: 1px">($ in thousands)</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>February 3, </b><br /> <b>2018</b></td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Amortization</b></td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /> <b>2018</b></td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 38%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: center; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 12%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Vendor relationships</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">16,612</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">954</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">15,658</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,962</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,292</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,393</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,073</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net amortized intangible assets</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">23,967</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">1,944</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">22,023</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Unamortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Goodwill</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Total unamortized intangible assets</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table><br/><p style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><font style="text-decoration:underline">($ in thousands)</font></td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 29, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 29, <br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 48%; text-align: left; text-indent: -10pt; padding-left: 20pt">Vendor relationships</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">477</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">470</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">954</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">953</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">335</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">335</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">160</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">160</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total amortization expense</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">972</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">965</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,944</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,943</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 72pt"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; border-top: Black 1px solid; text-align: left; vertical-align: top">Year</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">Annual Amortization</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td colspan="2">($ in thousands)</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 44%; text-align: left">2018</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 43%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,946</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2019</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,890</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2020</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,890</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2021</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,325</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2022</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2023</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">5,152</td><td style="text-align: left">&#xa0;</td></tr> </table><br/> Identifiable intangible assets as of August 4, 2018 consisted of the following ($ in thousands):<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Amortization<br /> Period <br /> (in months)</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Original<br /> Gross<br /> Carrying<br /> Amount</td><td style="border-bottom: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="border-bottom: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid">Net&#xa0;Carrying<br /> Amount</td><td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 38%; text-align: left; text-indent: -10pt; padding-left: 10pt">Vendor relationships</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: center">120</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,100</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">3,442</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">15,658</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -10pt; padding-left: 10pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">60</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,700</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,408</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,292</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">60</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,200</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,127</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,073</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">29,000</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">6,977</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">22,023</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table> P120M 19100000 3442000 15658000 P60M 6700000 2408000 4292000 P60M 3200000 1127000 2073000 29000000 6977000 22023000 The changes in net intangibles and goodwill from February 3, 2018 to August 4, 2018 were as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left; padding-bottom: 1px">($ in thousands)</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>February 3, </b><br /> <b>2018</b></td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Amortization</b></td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /> <b>2018</b></td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 38%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: center; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 12%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Vendor relationships</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">16,612</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">954</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">15,658</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,962</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4,292</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,393</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,073</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net amortized intangible assets</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">23,967</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">1,944</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">22,023</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Unamortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: center">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Goodwill</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Total unamortized intangible assets</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">39,191</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table> 16612000 954000 15658000 4962000 670000 4292000 2393000 320000 2073000 1944000 39191000 39191000 Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><font style="text-decoration:underline">($ in thousands)</font></td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 29, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">August 4, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 29, <br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 48%; text-align: left; text-indent: -10pt; padding-left: 20pt">Vendor relationships</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">477</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">470</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">954</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">953</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Technology</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">335</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">335</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">670</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">Trade names and trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">160</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">160</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">320</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total amortization expense</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">972</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">965</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,944</td><td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,943</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 477000 470000 953000 335000 335000 670000 160000 160000 320000 972000 965000 Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 72pt"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; border-top: Black 1px solid; text-align: left; vertical-align: top">Year</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">Annual Amortization</td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td colspan="2">($ in thousands)</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 44%; text-align: left">2018</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 43%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,946</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2019</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,890</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2020</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,890</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2021</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,325</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2022</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2023</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">5,152</td><td style="text-align: left">&#xa0;</td></tr> </table> 1946000 3890000 3890000 3325000 1910000 1910000 5152000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5. Depreciation and Amortization </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation and amortization included in the condensed consolidated statements of operations is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font: italic 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">($ in thousands)</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font: 10pt Univers; text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; font: 10pt Times New Roman, Times, Serif; text-indent: -10pt; padding-left: 10pt">Cost of sales</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">&#x2014;</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">157</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">&#x2014;</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">311</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Selling, general and administrative expenses</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,274</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,341</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,507</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">6,564</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,274</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,498</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,507</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">6,875</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table><br/> Depreciation and amortization included in the condensed consolidated statements of operations is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font: italic 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">($ in thousands)</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font: 10pt Univers; text-indent: -10pt; padding-left: 10pt">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers">&#xa0;</td> <td style="font: 10pt Univers; text-align: left">&#xa0;</td><td style="font: 10pt Univers; text-align: right">&#xa0;</td><td style="font: 10pt Univers; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; font: 10pt Times New Roman, Times, Serif; text-indent: -10pt; padding-left: 10pt">Cost of sales</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">&#x2014;</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">157</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">&#x2014;</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">311</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Selling, general and administrative expenses</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,274</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,341</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,507</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">6,564</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,274</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,498</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,507</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">6,875</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table> 157000 311000 2274000 3341000 4507000 6564000 2274000 3498000 4507000 6875000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt"><b>Note 6. Segment Data</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="6" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>Thirteen Weeks Ended</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="6" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>Twenty-six Weeks Ended</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; text-align: left; padding-left: 10pt">($ in thousands)</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /><b> 2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>July 29, </b><br /><b> 2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /><b> 2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>July 29, </b><br /><b> 2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; text-align: left; padding-left: 10pt">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Total Revenue</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="width: 40%; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">50,545</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">58,958</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">104,608</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">123,902</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">51,629</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">43,521</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">94,169</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">80,544</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,174</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,479</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">198,777</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">204,446</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Gross Profit</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">20,634</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,085</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">42,905</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">51,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11,539</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,085</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">20,956</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">19,480</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,173</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">35,170</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">63,861</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">71,475</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Income (Loss) From Operations</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(6,629</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(5,467</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(12,001</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(9,853</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,760</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">98</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,547</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(723</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,389</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,369</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(17,548</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(10,576</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(229,255,255)"> <td colspan="15" style="font: 10pt Times New Roman, Times, Serif"><b>Total Assets As of August 4, 2018 and As of July 29, 2017</b></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>August 4, </b><br /> <b>2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>July 29, </b><br /> <b>2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">121,750</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">184,250</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">103,337</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">99,089</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">225,087</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">283,339</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table><br/> As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="6" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>Thirteen Weeks Ended</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="6" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>Twenty-six Weeks Ended</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; text-align: left; padding-left: 10pt">($ in thousands)</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /><b> 2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>July 29, </b><br /><b> 2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>August 4, </b><br /><b> 2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center"><b>July 29, </b><br /><b> 2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; text-align: left; padding-left: 10pt">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Total Revenue</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="width: 40%; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">50,545</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">58,958</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">104,608</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">123,902</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">51,629</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">43,521</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">94,169</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">80,544</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,174</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,479</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">198,777</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">204,446</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Gross Profit</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">20,634</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,085</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">42,905</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">51,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11,539</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,085</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">20,956</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">19,480</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,173</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">35,170</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">63,861</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">71,475</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><b>Income (Loss) From Operations</b></td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(6,629</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(5,467</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(12,001</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(9,853</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,760</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">98</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,547</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(723</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,389</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,369</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(17,548</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">(10,576</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> </table> 50545000 58958000 104608000 123902000 51629000 43521000 94169000 80544000 102174000 102479000 198777000 204446000 20634000 25085000 42905000 51995000 11539000 10085000 20956000 19480000 32173000 35170000 63861000 71475000 -6629000 -5467000 -12001000 -9853000 -2760000 98000 -5547000 -723000 -9389000 -5369000 -17548000 -10576000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(229,255,255)"> <td colspan="15" style="font: 10pt Times New Roman, Times, Serif"><b>Total Assets As of August 4, 2018 and As of July 29, 2017</b></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1px solid">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: center; font: 10pt Arial, Helvetica, Sans-Serif">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1px; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>August 4, </b><br /> <b>2018</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">&#xa0;</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1px solid; text-align: center">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>July 29, </b><br /> <b>2017</b></td><td style="border-bottom: Black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">fye</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">121,750</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">184,250</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px; padding-left: 10pt">etailz</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 1px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">103,337</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">99,089</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; padding-left: 20pt">Total Company</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: right; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="padding-bottom: 3px; text-align: left; font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">225,087</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">283,339</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table> 121750000 184250000 103337000 99089000 225087000 283339000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7. Restricted Cash </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of August 4, 2018, the Company had restricted cash of $4.1 million and $6.2 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of July 29, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of August 4, 2018 on the accompanying interim condensed consolidated balance sheet. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $6.2 million is classified as restricted cash in other assets of August 4, 2018 on the accompanying interim condensed consolidated balance sheet. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 3,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="width: 55%; font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">4,477</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">31,326</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">13,985</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Restricted cash</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,263</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">12,180</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">12,184</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total cash, cash equivalents and restricted cash</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">14,740</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">43,506</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">26,169</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the twenty-six weeks ended August 4, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement. </p><br/> 4100000 6200000 1500000 10700000 3200000 7100000 900000 6200000 1500000 A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 4,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 3,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">July 29,</td><td style="font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font: bold 10pt Times New Roman, Times, Serif">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="width: 55%; font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">4,477</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">31,326</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="width: 3%; font: 10pt Times New Roman, Times, Serif">&#xa0;</td> <td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">13,985</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Restricted cash</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,263</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">12,180</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font: 10pt Times New Roman, Times, Serif; text-align: right">12,184</td><td style="padding-bottom: 1px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total cash, cash equivalents and restricted cash</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">14,740</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">43,506</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font: 10pt Times New Roman, Times, Serif; text-align: right">26,169</td><td style="padding-bottom: 3px; font: 10pt Times New Roman, Times, Serif; text-align: left">&#xa0;</td></tr> </table> 10263000 12180000 12184000 43506000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><strong>Note 8. Short Term Borrowings</strong></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">In January 2017, the Company entered into a $50 million asset based credit facility (&#x201c;Credit Facility&#x201d;) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of August 4, 2018, the Company was compliant with all covenants.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of August 4, 2018, borrowings under the credit facility were $6.3 million. There were no borrowings under the credit facility as of July 29, 2017. The Company had $29.9 million and $37.0 million available for borrowing as of August 4, 2018 and July 29, 2017, respectively.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">As of August 4, 2018, the Company had $1.1 million in outstanding letters of credit related to an import purchase. As of July 29, 2017 the Company did not have any outstanding letters of credit.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.</p><br/> 50000000 75000000 5000000 0.0175 0.0200 0.0075 0.0100 0.0025 6300000 0 29900000 37000000 1100000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 9. Stock Based Compensation</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of August 4, 2018, there was approximately $2.2 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.8 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 2.4 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 4.0 years; and $1.2 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next six months. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the &#x201c;Old Plans&#x201d;); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the &#x201c;New Plan&#x201d;). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the &#x201c;1990 Plan&#x201d;). The Company no longer issues stock options under the Old Plans or the 1990 Plan.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Equity awards authorized for issuance under the New Plan total 5.0 million. As of August 4, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.6 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at August 4, 2018 were 4.4 million. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table summarizes stock award activity during the twenty-six weeks ended August 4, 2018:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Number of<br /> Shares<br /> Subject To<br /> Option</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"><b>Other</b></font><br /> <font style="font-family: Arial, Helvetica, Sans-Serif"><b>Share</b></font><br /> <font style="font-family: Arial, Helvetica, Sans-Serif"><b>Awards <sup>(1)</sup></b></font></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Grant Fair<br /> Value</b></td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 25%; font-family: Times New Roman, Times, Serif; text-align: center">Balance February 3, 2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">2,585,914</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3.06</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">7.2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">183,427</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3.22</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Granted</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">505,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.98</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10.0</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">135,484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.98</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Forfeited</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Canceled</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(110,000</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.29</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1px; border-bottom: Black 1px solid">Exercised</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(17,500</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3.53</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Balance August 4, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,980,914</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.70</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7.3</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">301,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.35</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Exercisable August 4, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,584,539</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">3.25</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">5.9</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">128,911</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.85</td><td style="text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 2%"></td><td style="width: 2%"><sup>(1)</sup></td><td style="text-align: justify; width: 96%">Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of August 4, 2018, all stock awards outstanding and exercisable had a grant price higher than the market price of the stock and had no intrinsic value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and twenty-six weeks ended August 4, 2018, the Company recognized $0.6 million and $1.2 million of compensation cost related to these shares, respectively. As of August 4, 2018, there was approximately $1.2 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next six months. </p><br/> 2200000 800000 P2Y146D 200000 P4Y 5000000 3000000 1600000 4400000 1572552 3.56 600000 1200000 1200000 P6M The following table summarizes stock award activity during the twenty-six weeks ended August 4, 2018:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Number of<br /> Shares<br /> Subject To<br /> Option</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term</b></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"><b>Other</b></font><br /> <font style="font-family: Arial, Helvetica, Sans-Serif"><b>Share</b></font><br /> <font style="font-family: Arial, Helvetica, Sans-Serif"><b>Awards <sup>(1)</sup></b></font></td><td style="border-top: Black 1px solid">&#xa0;</td><td style="border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-top: Black 1px solid; text-align: center"><b>Weighted<br /> Average<br /> Grant Fair<br /> Value</b></td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 25%; font-family: Times New Roman, Times, Serif; text-align: center">Balance February 3, 2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">2,585,914</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3.06</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">7.2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 11%; text-align: right">183,427</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3.22</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Granted</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">505,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.98</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10.0</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">135,484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.98</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Forfeited</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Canceled</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(110,000</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.29</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1px; border-bottom: Black 1px solid">Exercised</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(17,500</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3.53</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Balance August 4, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,980,914</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.70</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7.3</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">301,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.35</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: center">Exercisable August 4, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,584,539</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">3.25</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">5.9</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">128,911</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.85</td><td style="text-align: left">&#xa0;</td></tr> </table> 2585914 3.06 P7Y73D 183427 3.22 505000 0.98 P10Y 135484 0.98 110000 3.29 -17500 3.53 2980914 2.70 P7Y109D 301411 2.35 1584539 3.25 P5Y328D 128911 2.85 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 10. Accumulated Other Comprehensive Loss </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company&#x2019;s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension costs associated with Company&#x2019;s defined benefit plan for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017. </p><br/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 11. Defined Benefit Plan</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company maintains a non-qualified Supplemental Executive Retirement Plan (&#x201c;SERP&#x201d;) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the twenty-six weeks ended August 4, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following represents the components of the net periodic pension cost related to the Company&#x2019;s SERP for the respective periods: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">August 4,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">July 29,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">August 4,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">July 29,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">($ in thousands)</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td colspan="6" style="text-align: center">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="6" style="text-align: center">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; text-align: justify; padding-left: 10pt; text-indent: -10pt">Service cost</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">14</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">16</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">28</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">32</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt; text-indent: -10pt">Interest cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">140</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">139</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">280</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">278</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; padding-left: 10pt; text-indent: -10pt">Amortization of pension costs</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt"><font style="font-family: Times New Roman, Times, Serif">Amortization of net gain <sup>(1)</sup></font></td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(5</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(9</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(10</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(18</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; padding-bottom: 3px; padding-left: 10pt; text-indent: -10pt">Net periodic pension cost</td><td style="font-family: Calibri, Helvetica, Sans-Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">149</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font-family: Arial, Helvetica, Sans-Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">150</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">298</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font-family: Arial, Helvetica, Sans-Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">300</td><td style="border-bottom: Black 3px double; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">&#xa0;</td></tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Univers; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 2%"><font style="font-family: Times New Roman, Times, Serif"><sup>(1)</sup></font></td> <td style="width: 98%"><font style="font-family: Times New Roman, Times, Serif">The amortization of net gain is related to a director retirement plan previously provided by the Company.</font></td></tr> </table><br/> 1200000 The following represents the components of the net periodic pension cost related to the Company&#x2019;s SERP for the respective periods:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Twenty-six Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">August 4,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">July 29,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">August 4,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">July 29,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">($ in thousands)</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td colspan="6" style="text-align: center">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="6" style="text-align: center">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; text-align: justify; padding-left: 10pt; text-indent: -10pt">Service cost</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">14</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">16</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">28</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">32</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt; text-indent: -10pt">Interest cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">140</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">139</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">280</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">278</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; padding-left: 10pt; text-indent: -10pt">Amortization of pension costs</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt"><font style="font-family: Times New Roman, Times, Serif">Amortization of net gain <sup>(1)</sup></font></td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(5</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(9</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(10</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(18</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; 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padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">298</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">&#xa0;</td><td style="font-family: Arial, Helvetica, Sans-Serif; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">300</td><td style="border-bottom: Black 3px double; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">&#xa0;</td></tr> </table> 14000 16000 28000 32000 140000 139000 280000 278000 4000 8000 5000 9000 10000 18000 149000 150000 298000 300000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 12. Basic and Diluted Loss Per Share </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Basic income per share is calculated by dividing net income by the weighted average common shares outstanding for the period. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company&#x2019;s common stock awards from the Company&#x2019;s Stock Award Plans.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the thirteen and twenty-six week periods ended August 4, 2018 and July 29, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and twenty-six weeks ended August 4, 2018 were approximately 3.1 million shares and 2.9 million shares, respectively, as compared to 3.1 million shares and 2.7 million shares, respectively, for the thirteen and twenty-six weeks ended July 29, 2017.</p><br/> 3100000 2900000 3100000 2700000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 13.&#xa0;Income Taxes </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company&#x2019;s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company&#x2019;s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company&#x2019;s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.</p><br/> 208300000 273400000 2037 100000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 14. Commitments and Contingencies</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Legal Proceedings</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management&#x2019;s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company. </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Store Manager Class Actions</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager). </p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Legal matters are defended and handled in the ordinary course of business. The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.</p><br/> Specifically, Carol Spack filed a complaint against Trans WorldEntertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.:3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor StandardsAct (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers.She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managersin New Jersey or Senior Assistant Managers in Pennsylvania. On May 19, 2017, Natasha Roper filed a complaint against TransWorld in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also allegesthat she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action underthe FLSA on behalf of all similarly situated Store Managers. 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6 Months Ended
Aug. 04, 2018
shares
Document and Entity Information [Abstract]  
Entity Registrant Name TRANS WORLD ENTERTAINMENT CORP
Document Type 10-Q
Current Fiscal Year End Date --01-31
Entity Common Stock, Shares Outstanding 36,225,824
Amendment Flag false
Entity Central Index Key 0000795212
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Filer Category Accelerated Filer
Entity Well-known Seasoned Issuer No
Document Period End Date Aug. 04, 2018
Document Fiscal Year Focus 2018
Document Fiscal Period Focus Q2
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Aug. 04, 2018
Feb. 03, 2018
Jul. 29, 2017
CURRENT ASSETS      
Cash and cash equivalents $ 4,477 $ 31,326 $ 13,985
Restricted cash 4,116 1,505 1,502
Accounts receivable 6,509 4,469 6,445
Merchandise inventory 114,920 109,377 126,687
Prepaid expenses and other assets 8,937 6,976 7,024
Total current assets 138,959 153,653 155,643
Restricted cash 6,147 10,675 10,682
Fixed assets, net 12,648 13,546 43,876
Goodwill 39,191 39,191 39,191
Intangible assets, net 22,023 23,967 25,914
Other assets 6,119 7,139 8,033
TOTAL ASSETS 225,087 248,171 283,339
CURRENT LIABILITIES      
Accounts payable 34,200 41,780 37,169
Short-term borrowings 6,341    
Accrued expenses and other current liabilities 9,508 11,038 9,688
Deferred revenue 6,810 8,464 7,732
Total current liabilities 56,859 61,282 54,589
Contingent consideration     2,115
Other long-term liabilities 26,533 29,131 29,175
TOTAL LIABILITIES 83,392 90,413 85,879
SHAREHOLDERS’ EQUITY      
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)
Common stock ($0.01 par value; 200,000,000 shares authorized; 64,386,671, 64,305,171 and 64,255,171 shares issued, respectively) 644 643 643
Additional paid-in capital 342,710 341,103 339,624
Treasury stock at cost (28,160,847, 28,156,601 and 28,138,116 shares, respectively) (230,149) (230,145) (230,145)
Accumulated other comprehensive loss (1,008) (998) (793)
Retained earnings 29,498 47,155 88,131
TOTAL SHAREHOLDERS’ EQUITY 141,695 157,758 197,460
TOTAL LIABILITIES AND EQUITY $ 225,087 $ 248,171 $ 283,339
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Aug. 04, 2018
Feb. 03, 2018
Jul. 29, 2017
Preferred stock par value (in Dollars per share) $ 0.01 $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000 5,000,000
Preferred stock, shares issued 0 0 0
Common stock par value (in Dollars per share) $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000 200,000,000
Common stock, shares issued 64,386,671 64,305,171 64,255,171
Treasury stock, shares at cost 28,160,847 28,156,601 28,138,116
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Net sales $ 101,039 $ 100,914 $ 196,271 $ 201,665
Other revenue 1,135 1,565 2,506 2,781
Total revenue 102,174 102,479 198,777 204,446
Cost of sales 70,001 67,309 134,916 132,971
Gross profit 32,173 35,170 63,861 71,475
Selling, general and administrative expenses 41,562 40,539 81,409 82,051
Loss from operations (9,389) (5,369) (17,548) (10,576)
Interest expense 103 59 166 115
Loss (gain) on insurance proceeds   129   (8,706)
Other income (49) (43) (128) (57)
Loss before income tax expense (9,443) (5,514) (17,586) (1,928)
Income tax expense 67 51 71 105
Net loss $ (9,510) $ (5,565) $ (17,657) $ (2,033)
BASIC AND DILUTED LOSS PER COMMON SHARE:        
Basic and diluted loss per common share (in Dollars per share) $ (0.26) $ (0.15) $ (0.49) $ (0.06)
Weighted average number of common shares outstanding – basic and diluted (in Shares) 36,352 36,179 36,295 36,179
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Net loss $ (9,510) $ (5,565) $ (17,657) $ (2,033)
Amortization of pension loss (5) (5) (10) (10)
Comprehensive loss $ (9,515) $ (5,570) $ (17,667) $ (2,043)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
OPERATING ACTIVITIES:    
Net loss $ (17,657) $ (2,033)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation of fixed assets 2,563 4,932
Amortization of intangible assets 1,944 1,943
Stock based compensation 1,603 1,550
Adjustment to contingent consideration   (1,437)
Loss on disposal of fixed assets 135 448
Change in cash surrender value (44) (137)
Gain on life insurance asset   (8,706)
Changes in operating assets and liabilities that provide (use) cash:    
Accounts receivable (2,040) 640
Merchandise inventory (5,543) (683)
Prepaid expenses and other current assets (1,961) 1,247
Other long-term assets (73) (720)
Accounts payable (7,580) (15,138)
Accrued expenses and other current liabilities (30) (1,010)
Deferred revenue (1,654) (1,497)
Other long-term liabilities (2,607) 98
Net cash used in operating activities (32,944) (20,503)
INVESTING ACTIVITIES:    
Purchases of fixed assets (1,800) (4,166)
Proceeds from company owned life insurance   14,336
Investment in joint venture   (2,575)
Capital distributions from joint venture 1,137  
Net cash (used in) provided by investing activities (663) 7,595
FINANCING ACTIVITIES:    
Proceeds from short term borrowings 6,341  
Payments to etailz shareholders (1,500) (5,000)
Net cash provided by (used in) financing activities 4,841 (5,000)
Net decrease in cash, cash equivalents, and restricted cash (28,766) (17,908)
Cash, cash equivalents, and restricted cash, beginning of period 43,506 44,077
Cash, cash equivalents, and restricted cash, end of period $ 14,740 $ 26,169
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Nature of Operations
6 Months Ended
Aug. 04, 2018
Disclosure Text Block [Abstract]  
Nature of Operations [Text Block]

Note 1. Nature of Operations


Trans World Entertainment Corporation and subsidiaries (“the Company”) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of August 4, 2018, the fye segment operated 241 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.


Liquidity and Cash Flows:


The Company’s primary sources of working capital are cash provided by operations and borrowing capacity under its revolving credit facility. The Company’s cash flows fluctuate from quarter to quarter due to various items, including seasonality of sales and earnings, merchandise inventory purchases and returns, the related terms on the purchases and capital expenditures. Management believes it will have adequate resources to fund its cash needs, including its capital spending, its seasonal increase in merchandise inventory and other operating cash requirements and commitments and anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.


In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.


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Basis of Presentation
6 Months Ended
Aug. 04, 2018
Disclosure Text Block [Abstract]  
Basis of Accounting [Text Block]

Note 2. Basis of Presentation


The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”), Record Town’s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation.


The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.


The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended February 3, 2018 contained in the Company’s Annual Report on Form 10-K filed May 4, 2018. The results of operations for the thirteen and twenty-six weeks ended August 4, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019. 


The Company’s significant accounting policies are described in Note 1 to the Company’s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018.


There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures.


Recently Adopted Accounting Pronouncements


In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.


XML 19 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Recent Accounting Pronouncements
6 Months Ended
Aug. 04, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 3. Recently Issued Accounting Pronouncements


In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company’s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.


XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets
6 Months Ended
Aug. 04, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 4. Goodwill and Other Intangible Assets


Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable. 


Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.


The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.


Identifiable intangible assets as of August 4, 2018 consisted of the following ($ in thousands):


   August 4, 2018 
   Weighted
Average
Amortization
Period
(in months)
   Original
Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                 
Vendor relationships   120   $19,100   $3,442   $15,658 
Technology   60    6,700    2,408    4,292 
Trade names and trademarks   60    3,200    1,127    2,073 
        $29,000   $6,977   $22,023 

The changes in net intangibles and goodwill from February 3, 2018 to August 4, 2018 were as follows:


($ in thousands)       February 3,
2018
   Amortization   August 4,
2018
 
                     
Amortized intangible assets:                    
Vendor relationships       $16,612   $954   $15,658 
Technology        4,962    670    4,292 
Trade names and trademarks        2,393    320    2,073 
Net amortized intangible assets       $23,967   $1,944   $22,023 
                     
Unamortized intangible assets:                    
Goodwill       $39,191   $   $39,191 
Total unamortized intangible assets       $39,191   $   $39,191 

Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:


   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $470   $954   $953 
Technology   335    335    670    670 
Trade names and trademarks   160    160    320    320 
Total amortization expense  $972   $965   $1,944   $1,943 

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:


Year   Annual Amortization 
($ in thousands)      
2018   $1,946 
2019    3,890 
2020    3,890 
2021    3,325 
2022    1,910 
2023    1,910 
Thereafter    5,152 

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization
6 Months Ended
Aug. 04, 2018
Depreciation and Amoritzation [Abstract]  
Depreciation and Amoritzation [Text Block]

Note 5. Depreciation and Amortization


Depreciation and amortization included in the condensed consolidated statements of operations is as follows:


   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
                     
Cost of sales  $   $157   $   $311 
Selling, general and administrative expenses   2,274    3,341    4,507    6,564 
Total  $2,274   $3,498   $4,507   $6,875 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data
6 Months Ended
Aug. 04, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 6. Segment Data


As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:


   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Total Revenue                    
fye  $50,545   $58,958   $104,608   $123,902 
etailz   51,629    43,521    94,169    80,544 
Total Company  $102,174   $102,479   $198,777   $204,446 
                     
Gross Profit                    
fye  $20,634   $25,085   $42,905   $51,995 
etailz   11,539    10,085    20,956    19,480 
Total Company  $32,173   $35,170   $63,861   $71,475 
                     
Income (Loss) From Operations                    
fye  $(6,629)  $(5,467)  $(12,001)  $(9,853)
etailz   (2,760)   98    (5,547)   (723)
Total Company  $(9,389)  $(5,369)  $(17,548)  $(10,576)
                     

Total Assets As of August 4, 2018 and As of July 29, 2017  
                     
             August 4,
2018
   July 29,
2017
 
fye            $121,750   $184,250 
etailz             103,337    99,089 
Total Company            $225,087   $283,339 

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash
6 Months Ended
Aug. 04, 2018
Disclosure Text Block Supplement [Abstract]  
Restricted Assets Disclosure [Text Block]

Note 7. Restricted Cash


As of August 4, 2018, the Company had restricted cash of $4.1 million and $6.2 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of July 29, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.


In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of August 4, 2018 on the accompanying interim condensed consolidated balance sheet.


In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $6.2 million is classified as restricted cash in other assets of August 4, 2018 on the accompanying interim condensed consolidated balance sheet.


A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):


   August 4,   February 3,   July 29, 
   2018   2018   2017 
Cash and cash equivalents  $4,477   $31,326   $13,985 
Restricted cash   10,263    12,180    12,184 
Total cash, cash equivalents and restricted cash  $14,740   $43,506   $26,169 

During the twenty-six weeks ended August 4, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement.


XML 24 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Short Term Borrowings
6 Months Ended
Aug. 04, 2018
Disclosure Text Block [Abstract]  
Short-term Debt [Text Block]

Note 8. Short Term Borrowings


In January 2017, the Company entered into a $50 million asset based credit facility (“Credit Facility”) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.


The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of August 4, 2018, the Company was compliant with all covenants.


Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.


As of August 4, 2018, borrowings under the credit facility were $6.3 million. There were no borrowings under the credit facility as of July 29, 2017. The Company had $29.9 million and $37.0 million available for borrowing as of August 4, 2018 and July 29, 2017, respectively.


As of August 4, 2018, the Company had $1.1 million in outstanding letters of credit related to an import purchase. As of July 29, 2017 the Company did not have any outstanding letters of credit.


The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.


XML 25 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation
6 Months Ended
Aug. 04, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 9. Stock Based Compensation


As of August 4, 2018, there was approximately $2.2 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.8 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 2.4 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 4.0 years; and $1.2 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next six months.


The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the “New Plan”). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans or the 1990 Plan.


Equity awards authorized for issuance under the New Plan total 5.0 million. As of August 4, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.6 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at August 4, 2018 were 4.4 million.


The following table summarizes stock award activity during the twenty-six weeks ended August 4, 2018:


   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other
Share
Awards (1)
   Weighted
Average
Grant Fair
Value
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22 
Granted   505,000    0.98    10.0    135,484    0.98 
Forfeited                    
Canceled   (110,000)   3.29             
Exercised               (17,500)   3.53 
Balance August 4, 2018   2,980,914   $2.70    7.3    301,411   $2.35 
Exercisable August 4, 2018   1,584,539   $3.25    5.9    128,911   $2.85 

(1)Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.

As of August 4, 2018, all stock awards outstanding and exercisable had a grant price higher than the market price of the stock and had no intrinsic value.


In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and twenty-six weeks ended August 4, 2018, the Company recognized $0.6 million and $1.2 million of compensation cost related to these shares, respectively. As of August 4, 2018, there was approximately $1.2 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next six months.


XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Accumulated Other Comprehensive Loss
6 Months Ended
Aug. 04, 2018
Disclosure Text Block Supplement [Abstract]  
Other Comprehensive Income, Noncontrolling Interest [Text Block]

Note 10. Accumulated Other Comprehensive Loss


Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company’s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension costs associated with Company’s defined benefit plan for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017.


XML 27 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans
6 Months Ended
Aug. 04, 2018
Disclosure Text Block Supplement [Abstract]  
Compensation and Employee Benefit Plans [Text Block]

Note 11. Defined Benefit Plan


The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the twenty-six weeks ended August 4, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.


The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.


The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:


   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
         
Service cost  $14   $16   $28   $32 
Interest cost   140    139    280    278 
Amortization of pension costs       4        8 
Amortization of net gain (1)   (5)   (9)   (10)   (18)
Net periodic pension cost  $149   $150   $298   $300 

(1) The amortization of net gain is related to a director retirement plan previously provided by the Company.

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basic and Diluted Loss Per Share
6 Months Ended
Aug. 04, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

Note 12. Basic and Diluted Loss Per Share


Basic income per share is calculated by dividing net income by the weighted average common shares outstanding for the period. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company’s common stock awards from the Company’s Stock Award Plans.


For the thirteen and twenty-six week periods ended August 4, 2018 and July 29, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and twenty-six weeks ended August 4, 2018 were approximately 3.1 million shares and 2.9 million shares, respectively, as compared to 3.1 million shares and 2.7 million shares, respectively, for the thirteen and twenty-six weeks ended July 29, 2017.


XML 29 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
6 Months Ended
Aug. 04, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 13. Income Taxes


In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company’s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company’s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company’s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.


XML 30 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies
6 Months Ended
Aug. 04, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 14. Commitments and Contingencies


Legal Proceedings


The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.


Store Manager Class Actions


Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager).


Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.


On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.


Legal matters are defended and handled in the ordinary course of business. The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.


XML 31 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Tables)
6 Months Ended
Aug. 04, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets [Table Text Block] Identifiable intangible assets as of August 4, 2018 consisted of the following ($ in thousands):

   August 4, 2018 
   Weighted
Average
Amortization
Period
(in months)
   Original
Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                 
Vendor relationships   120   $19,100   $3,442   $15,658 
Technology   60    6,700    2,408    4,292 
Trade names and trademarks   60    3,200    1,127    2,073 
        $29,000   $6,977   $22,023 
Schedule of Intangible Assets and Goodwill [Table Text Block] The changes in net intangibles and goodwill from February 3, 2018 to August 4, 2018 were as follows:

($ in thousands)       February 3,
2018
   Amortization   August 4,
2018
 
                     
Amortized intangible assets:                    
Vendor relationships       $16,612   $954   $15,658 
Technology        4,962    670    4,292 
Trade names and trademarks        2,393    320    2,073 
Net amortized intangible assets       $23,967   $1,944   $22,023 
                     
Unamortized intangible assets:                    
Goodwill       $39,191   $   $39,191 
Total unamortized intangible assets       $39,191   $   $39,191 
Finite-lived Intangible Assets Amortization Expense [Table Text Block] Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $470   $954   $953 
Technology   335    335    670    670 
Trade names and trademarks   160    160    320    320 
Total amortization expense  $972   $965   $1,944   $1,943 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

Year   Annual Amortization 
($ in thousands)      
2018   $1,946 
2019    3,890 
2020    3,890 
2021    3,325 
2022    1,910 
2023    1,910 
Thereafter    5,152 
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization (Tables)
6 Months Ended
Aug. 04, 2018
Depreciation and Amoritzation [Abstract]  
Schedule of Depreciation and Amortization of Fixed Assets [Table Text Block] Depreciation and amortization included in the condensed consolidated statements of operations is as follows:

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
                     
Cost of sales  $   $157   $   $311 
Selling, general and administrative expenses   2,274    3,341    4,507    6,564 
Total  $2,274   $3,498   $4,507   $6,875 
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Tables)
6 Months Ended
Aug. 04, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block] As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
($ in thousands)  August 4,
2018
   July 29,
2017
   August 4,
2018
   July 29,
2017
 
                 
Total Revenue                    
fye  $50,545   $58,958   $104,608   $123,902 
etailz   51,629    43,521    94,169    80,544 
Total Company  $102,174   $102,479   $198,777   $204,446 
                     
Gross Profit                    
fye  $20,634   $25,085   $42,905   $51,995 
etailz   11,539    10,085    20,956    19,480 
Total Company  $32,173   $35,170   $63,861   $71,475 
                     
Income (Loss) From Operations                    
fye  $(6,629)  $(5,467)  $(12,001)  $(9,853)
etailz   (2,760)   98    (5,547)   (723)
Total Company  $(9,389)  $(5,369)  $(17,548)  $(10,576)
                     
ScheduleOfTotalAssetsFromSegmentReportingInformationBySegmentTextBlock
Total Assets As of August 4, 2018 and As of July 29, 2017  
                     
             August 4,
2018
   July 29,
2017
 
fye            $121,750   $184,250 
etailz             103,337    99,089 
Total Company            $225,087   $283,339 
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Tables)
6 Months Ended
Aug. 04, 2018
Disclosure Text Block Supplement [Abstract]  
Restrictions on Cash and Cash Equivalents [Table Text Block] A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):

   August 4,   February 3,   July 29, 
   2018   2018   2017 
Cash and cash equivalents  $4,477   $31,326   $13,985 
Restricted cash   10,263    12,180    12,184 
Total cash, cash equivalents and restricted cash  $14,740   $43,506   $26,169 
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Tables)
6 Months Ended
Aug. 04, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] The following table summarizes stock award activity during the twenty-six weeks ended August 4, 2018:

   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other
Share
Awards (1)
   Weighted
Average
Grant Fair
Value
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22 
Granted   505,000    0.98    10.0    135,484    0.98 
Forfeited                    
Canceled   (110,000)   3.29             
Exercised               (17,500)   3.53 
Balance August 4, 2018   2,980,914   $2.70    7.3    301,411   $2.35 
Exercisable August 4, 2018   1,584,539   $3.25    5.9    128,911   $2.85 
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Tables)
6 Months Ended
Aug. 04, 2018
Disclosure Text Block Supplement [Abstract]  
Schedule of Net Benefit Costs [Table Text Block] The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
   August 4,   July 29,   August 4,   July 29, 
($ in thousands)  2018   2017   2018   2017 
         
Service cost  $14   $16   $28   $32 
Interest cost   140    139    280    278 
Amortization of pension costs       4        8 
Amortization of net gain (1)   (5)   (9)   (10)   (18)
Net periodic pension cost  $149   $150   $298   $300 
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Nature of Operations (Details)
ft² in Millions
6 Months Ended
Aug. 04, 2018
ft²
Disclosure Text Block [Abstract]  
Number of Reportable Segments 2
Number of Stores 241
Area of Stores (in Square Feet) 1.3
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Details)
$ in Millions
Feb. 04, 2018
USD ($)
Disclosure Text Block [Abstract]  
Cumulative Effect of New Accounting Principle in Period of Adoption $ 0.5
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Recent Accounting Pronouncements (Details)
6 Months Ended
Aug. 04, 2018
Accounting Standards Update 2016-02 [Member]  
Recent Accounting Pronouncements (Details) [Line Items]  
New Accounting Pronouncement or Change in Accounting Principle, Description In February 2016, the FASB issued ASU No. 2016-02, “Leases”,which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity shouldrecognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative andspecific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understandmore about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The newstandard will be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospectivemethod of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’sConsolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company’s home office,distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Identifiable Intangible Assets
$ in Thousands
6 Months Ended
Aug. 04, 2018
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Original Gross Carrying Amount $ 29,000
Accumulated Amortization 6,977
Net Carrying Amount $ 22,023
Vendor Relationships [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 120 months
Original Gross Carrying Amount $ 19,100
Accumulated Amortization 3,442
Net Carrying Amount $ 15,658
Technology-Based Intangible Assets [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 60 months
Original Gross Carrying Amount $ 6,700
Accumulated Amortization 2,408
Net Carrying Amount $ 4,292
Trademarks and Trade Names [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 60 months
Original Gross Carrying Amount $ 3,200
Accumulated Amortization 1,127
Net Carrying Amount $ 2,073
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Changes in Net Intangibles and Goodwill - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Feb. 03, 2018
Amortized intangible assets:          
Amortization of intangible assets $ 972 $ 965 $ 1,944 $ 1,943  
Net amortized intangible assets 22,023 25,914 22,023 25,914 $ 23,967
Amortization of net intangible assets     1,944    
Unamortized intangible assets:          
Goodwill 39,191 39,191 39,191 39,191 39,191
Total unamortized intangible assets 39,191   39,191   39,191
Vendor Relationships [Member]          
Amortized intangible assets:          
Amortized intangible assets 15,658   15,658   16,612
Amortization of intangible assets 477 470 954 953  
Technology [Member]          
Amortized intangible assets:          
Amortized intangible assets 4,292   4,292   4,962
Amortization of intangible assets 335 335 670 670  
Trademarks and Trade Names [Member]          
Amortized intangible assets:          
Amortized intangible assets 2,073   2,073   $ 2,393
Amortization of intangible assets $ 160 $ 160 $ 320 $ 320  
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Amortization Expense of Intangible Assets - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Amortized intangible assets:        
Amortized intangible assets: $ 972 $ 965 $ 1,944 $ 1,943
Vendor Relationships [Member]        
Amortized intangible assets:        
Amortized intangible assets: 477 470 954 953
Technology [Member]        
Amortized intangible assets:        
Amortized intangible assets: 335 335 670 670
Trademarks and Trade Names [Member]        
Amortized intangible assets:        
Amortized intangible assets: $ 160 $ 160 $ 320 $ 320
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Estimated Amortization Expense
$ in Thousands
Aug. 04, 2018
USD ($)
Schedule of Estimated Amortization Expense [Abstract]  
2018 $ 1,946
2019 3,890
2020 3,890
2021 3,325
2022 1,910
2023 1,910
Thereafter $ 5,152
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization (Details) - Schedule of Depreciation and Amortization of Fixed Assets - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Schedule of Depreciation and Amortization of Fixed Assets [Abstract]        
Cost of sales   $ 157   $ 311
Selling, general and administrative expenses $ 2,274 3,341 $ 4,507 6,564
Total $ 2,274 $ 3,498 $ 4,507 $ 6,875
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details)
6 Months Ended
Aug. 04, 2018
Segment Reporting [Abstract]  
Number of Reportable Segments 2
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details) - Schedule of Reporting Segements - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Total Revenue        
Total Revenue $ 102,174 $ 102,479 $ 198,777 $ 204,446
Gross Profit        
Gross Profit 32,173 35,170 63,861 71,475
Income (Loss) From Operations        
Income (Loss) From Operations (9,389) (5,369) (17,548) (10,576)
fye [Member]        
Total Revenue        
Total Revenue 50,545 58,958 104,608 123,902
Gross Profit        
Gross Profit 20,634 25,085 42,905 51,995
Income (Loss) From Operations        
Income (Loss) From Operations (6,629) (5,467) (12,001) (9,853)
etailz [Member]        
Total Revenue        
Total Revenue 51,629 43,521 94,169 80,544
Gross Profit        
Gross Profit 11,539 10,085 20,956 19,480
Income (Loss) From Operations        
Income (Loss) From Operations (2,760) 98 (5,547) (723)
Total Company [Member]        
Total Revenue        
Total Revenue 102,174 102,479 198,777 204,446
Gross Profit        
Gross Profit 32,173 35,170 63,861 71,475
Income (Loss) From Operations        
Income (Loss) From Operations $ (9,389) $ (5,369) $ (17,548) $ (10,576)
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments - USD ($)
$ in Thousands
Aug. 04, 2018
Feb. 03, 2018
Jul. 29, 2017
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]      
Total Assets $ 225,087 $ 248,171 $ 283,339
fye [Member]      
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]      
Total Assets 121,750   184,250
etailz [Member]      
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]      
Total Assets 103,337   99,089
Total Company [Member]      
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]      
Total Assets $ 225,087   $ 283,339
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Details) - USD ($)
$ in Millions
6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Restricted Cash (Details) [Line Items]    
Restricted Cash and Cash Equivalents, Current $ 4.1 $ 1.5
Restricted Cash and Cash Equivalents, Noncurrent 6.2 $ 10.7
In Connection With Acquisition of etailz [Member]    
Restricted Cash (Details) [Line Items]    
Restricted Cash Maximum Earn Out Provision 3.2  
Business Combination, Indemnification Assets, Amount as of Acquisition Date 1.5  
As a Result of Death of Chairman [Member]    
Restricted Cash (Details) [Line Items]    
Restricted Cash and Cash Equivalents, Current 0.9  
Restricted Cash and Cash Equivalents, Noncurrent 6.2  
Assets Held-in-trust $ 7.1  
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Details) - Schedule of Cash, Cash Equivalents, and Restricted Cash - USD ($)
$ in Thousands
Aug. 04, 2018
Feb. 03, 2018
Feb. 02, 2018
Jul. 29, 2017
Jan. 28, 2017
Schedule of Cash, Cash Equivalents, and Restricted Cash [Abstract]          
Cash and cash equivalents $ 4,477 $ 31,326   $ 13,985  
Restricted cash 10,263 12,180   12,184  
Total cash, cash equivalents and restricted cash $ 14,740 $ 43,506 $ 43,506 $ 26,169 $ 44,077
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.10.0.1
Short Term Borrowings (Details) - USD ($)
6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Current Borrowing Capacity $ 50,000,000  
Dividends and Share Repurchase Maximum 5,000,000  
Line of Credit Facility, Fair Value of Amount Outstanding 6,300,000 $ 0
Line of Credit Facility, Remaining Borrowing Capacity 29,900,000 $ 37,000,000
Letters of Credit Outstanding, Amount 1,100,000  
Increased Maximum During Months of October, November, and December [Member]    
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Current Borrowing Capacity $ 75,000,000  
Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.25%  
LIBOR Rate [Member] | Minimum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 1.75%  
LIBOR Rate [Member] | Maximum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 2.00%  
Prime Rate [Member] | Minimum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 0.75%  
Prime Rate [Member] | Maximum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 1.00%  
XML 51 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Details)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Aug. 04, 2018
USD ($)
shares
Aug. 04, 2018
USD ($)
$ / shares
shares
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ $ 0.8 $ 0.8
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   6 months
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | shares 5,000,000 5,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Outstanding Number (in Shares) | shares 3,000,000 3,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Vested And Expected To Vest Exercisable Number (in Shares) | shares 1,600,000 1,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | shares 4,400,000 4,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares   $ 0.98
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | $ $ 0.6 $ 1.2
Employee Stock Option [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2.2 $ 2.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   2 years 146 days
Restricted Stock [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.2 $ 0.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares   $ 3.56
Restricted Stock [Member] | In Connection With Acquisition of etailz [Member]    
Stock Based Compensation (Details) [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | shares   1,572,552
In Connection With Acquisition of etailz [Member] | Restricted Stock [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ $ 1.2 $ 1.2
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Details) - Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
6 Months Ended
Aug. 04, 2018
$ / shares
shares
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Abstract]  
Balance February 3, 2018 | shares 2,585,914
Balance February 3, 2018 | $ / shares $ 3.06
Balance February 3, 2018 7 years 73 days
Balance February 3, 2018 | shares 183,427 [1]
Balance February 3, 2018 | $ / shares $ 3.22
Granted | shares 505,000
Granted | $ / shares $ 0.98
Granted 10 years
Granted | shares 135,484 [1]
Granted | $ / shares $ 0.98
Canceled | shares (110,000)
Canceled | $ / shares $ 3.29
Exercised | shares (17,500) [1]
Exercised | $ / shares $ 3.53
Balance August 4, 2018 | shares 2,980,914
Balance August 4, 2018 | $ / shares $ 2.70
Balance August 4, 2018 7 years 109 days
Balance August 4, 2018 | shares 301,411 [1]
Balance August 4, 2018 | $ / shares $ 2.35
Exercisable August 4, 2018 | shares 1,584,539
Exercisable August 4, 2018 | $ / shares $ 3.25
Exercisable August 4, 2018 5 years 328 days
Exercisable August 4, 2018 | shares 128,911 [1]
Exercisable August 4, 2018 | $ / shares $ 2.85
[1] Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Details)
$ in Millions
Aug. 04, 2018
USD ($)
Supplemental Employee Retirement Plan [Member]  
Defined Benefit Plans (Details) [Line Items]  
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months $ 1.2
XML 54 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Details) - Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss [Abstract]        
Service cost $ 14 $ 16 $ 28 $ 32
Interest cost 140 139 280 278
Amortization of pension costs   4   8
Amortization of net gain [1] (5) (9) (10) (18)
Net periodic pension cost $ 149 $ 150 $ 298 $ 300
[1] The amortization of net gain is related to a director retirement plan previously provided by the Company.
XML 55 R45.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basic and Diluted Loss Per Share (Details) - shares
shares in Millions
3 Months Ended 6 Months Ended
Aug. 04, 2018
Jul. 29, 2017
Aug. 04, 2018
Jul. 29, 2017
Earnings Per Share [Abstract]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 3.1 3.1 2.9 2.7
XML 56 R46.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Details) - USD ($)
$ in Millions
Feb. 03, 2018
Aug. 04, 2018
Domestic Tax Authority [Member]    
Income Taxes (Details) [Line Items]    
Operating Loss Carryforwards $ 208.3  
State and Local Jurisdiction [Member]    
Income Taxes (Details) [Line Items]    
Operating Loss Carryforwards $ 273.4  
Tax Credit Carryforward Expiration Year 2037  
etailz [Member] | State and Local Jurisdiction [Member]    
Income Taxes (Details) [Line Items]    
Deferred Tax Liabilities, Net   $ 0.1
XML 57 R47.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies (Details)
May 19, 2017
Apr. 20, 2017
Commitments and Contingencies Disclosure [Abstract]    
Description of Filed Claim On May 19, 2017, Natasha Roper filed a complaint against TransWorld in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also allegesthat she is entitled to unpaid compensation for overtime under the FLSA. Ms. Roper brings a nationwide collective action underthe FLSA on behalf of all similarly situated Store Managers. Specifically, Carol Spack filed a complaint against Trans WorldEntertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.:3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor StandardsAct (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers.She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managersin New Jersey or Senior Assistant Managers in Pennsylvania.
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