Net Sales

9 Months Ended

Nov. 03, 2018

Revenues [Abstract]

Net Sales

9. NET SALES

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

	Three Months Ended				Nine Months Ended
	November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Retail stores	$	55,979	$	59,325	$	177,608	$	191,664
Leased departments		9,743		10,292		29,624		32,752
Total retail locations		65,722		69,617		207,232		224,416
Ecommerce		21,045		20,539		69,530		57,615
Marketing partnerships		4,110		4,475		12,236		13,004
Wholesale and franchise		1,960		1,723		3,461		6,025
Total net sales	$	92,837	$	96,354	$	292,459	$	301,060

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.