Business Segments

3 Months Ended

May 04, 2013

Business Segments [Abstract]

Business Segments

7. Business Segments

The Company has two reportable operating segments: retail trade and electronic commerce trade. These reportable operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally.

Our chief operating decision makers are our Executive Chairman and our Chief Executive Officer and President. The Company is primarily a retailer of book merchandise. The Company’s two reportable segments are two distinct business units, one a traditional retailer of book merchandise and the other a seller of book merchandise primarily over the Internet. The electronic commerce trade segment is managed separately due to divergent technology and marketing requirements. The retail trade reportable segment also includes the Company’s distribution center operations, which predominantly supplies merchandise to our retail stores and sells books to outside parties on a wholesale basis. The results of the distribution center’s outside operations are not material for segment reporting.

The Company evaluates the performance of the retail trade and electronic commerce trade segments based on profit and loss from operations before interest and income taxes. Certain intersegment cost allocations have been made based upon consolidated and segment revenues. Shipping income related to Internet sales is included in net sales, and shipping expense is included in cost of sales.

Both the retail trade and electronic commerce trade reportable operating segments derive revenues primarily from the sale of book merchandise through sales in our retail stores and over the Internet, respectively.

	Thirteen Weeks Ended
Segment Information (in thousands)	May 4, 2013			April 28, 2012
Net Sales
Retail Trade	$	102,636		$	110,758
Electronic Commerce Trade		5,682			6,279
Intersegment Sales Elimination		(3,829	)		(4,204	)
Total Net Sales	$	104,489		$	112,833
Operating Loss from Continuing Operations
Retail Trade	$	(4,887	)	$	(1,683	)
Electronic Commerce Trade		29			(320	)
Intersegment Elimination of Certain Costs		(248	)		(243	)
Total Operating Loss from Continuing Operations	$	(5,106	)	$	(2,246	)
	As of May 4, 2013			As of February 2, 2013
Assets
Retail Trade	$	287,249		$	279,897
Electronic Commerce Trade		7,167			6,573
Total Assets	$	294,416		$	286,470

For the thirteen week periods ended May 4, 2013 and April 28, 2012, respectively, sales by merchandise category, as a percentage of total net sales, were as follows:

	Thirteen Weeks Ended
	May 4, 2013			April 28, 2012
Books and Magazines		73.2	%		75.3	%
General Merchandise		12.0	%		10.7	%
Café		4.8	%		4.9	%
Electronics, eBooks and accessories		1.9	%		2.0	%
Other		8.1	%		7.1	%
Total		100.0	%		100.0	%

General merchandise consists of gifts, cards, games, toys, collectibles and similar types of products. Café consists of coffee, tea, yogurt and other edible products, as well as gift items related to our Joe Muggs cafés. Other products include music, DVDs and other products.