NET SALES

The following disaggregates the Company’s net sales by major source (in thousands):

	Three Months Ended				Six Months Ended
	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017

Retail stores	$	58,641	$	62,492	$	121,629	$	132,338
Leased departments		9,892		10,897		19,881		22,460
Total retail locations		68,533		73,389		141,510		154,798
Ecommerce		23,003		19,238		48,485		37,076
Marketing partnerships		4,191		4,180		8,126		8,530
Wholesale and franchise		668		1,473		1,501		4,302
Total other charges, net	$	96,395	$	98,280	$	199,622	$	204,706

The Company’s performance obligations consist primarily of transferring control of merchandise to customers. Retail and ecommerce sales are recognized upon transfer of control, which occurs when merchandise is taken at point-of-sale for a retail transaction or upon receipt of shipment for an ecommerce transaction. Sales are reported net of returns and sales taxes. Shipping and handling fees billed to customers are recognized in net sales when control of the underling merchandise is transferred to the customer.

The Company earns revenue through a variety of marketing partnership programs utilizing the Company’s opt-in customer database and various in-store marketing initiatives focused on baby and parent-related products and services. Revenue from these activities is recognized when the goods or services are provided.

Sales of product to the Company’s wholesale customers and international franchisees are recognized upon transfer of control which is primarily when product is shipped. Franchise fees are recorded by the Company when all material services have been performed or in the case of royalties earned on sales of product, in the period when the franchisee sells product to their retail customer.