Revenue Recognition

3 Months Ended

Apr. 29, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Disaggregated Revenue

The table below disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale revenue, which is not a significant component of total revenue, and is aggregated within the respective brands.

	Thirteen Weeks Ended
	April 29, 2023				April 30, 2022
Chico’s	$	273,650	51.2	%	$	264,466	48.9	%
WHBM	153,470		28.7		169,029		31.2
Soma	107,623		20.1		107,420		19.9
Total Net Sales	$	534,743	100.0	%	$	540,915	100.0	%

Contract Liability

    Contract liabilities in the unaudited condensed consolidated balance sheets are comprised of obligations associated with our gift card and customer rewards programs. As of April 29, 2023, January 28, 2023, and April 30, 2022, contract liabilities primarily consisted of gift cards of $35.3 million, $42.6 million and $36.7 million, respectively.

For the thirteen weeks ended April 29, 2023, the Company recognized $11.2 million of revenue that was previously included in the gift card contract liability as of January 28, 2023. For the thirteen weeks ended April 30, 2022, the Company recognized $11.5 million of revenue that was previously included in the gift card contract liability as of January 29, 2022.

	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Beginning gift card liability	$	42,649	$	43,536
Issuances	8,224		9,060
Redemptions	(14,171)		(14,584)
Gift card breakage	(1,411)		(1,282)
Ending gift card liability	$	35,291	$	36,730

The Company maintains customer rewards programs in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchases at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of the merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as the rewards are redeemed or expire. While historically this point based program was specific to Soma, during the second quarter of fiscal year 2022, Chico’s FAS extended its point based rewards program to Chico’s and WHBM. As of April 29, 2023, January 28, 2023, and April 30, 2022, the rewards deferred revenue balance was $8.5 million, $7.4 million and $0.8 million, respectively.

	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Beginning balance rewards deferred revenue	$	7,441	$	626
Reduction in revenue, net	1,068		131
Ending balance rewards deferred revenue	$	8,509	$	757

Performance Obligation

For the thirteen weeks ended April 29, 2023, and April 30, 2022, revenue recognized from performance obligations related to prior periods were not material. Revenue to be recognized in future periods related to performance obligations is not expected to be material.