REVENUE RECOGNITION

6 Months Ended

Jul. 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								Twenty-Six Weeks Ended
	July 29, 2023				July 30, 2022				July 29, 2023				July 30, 2022
Chico’s	$	274,217	50.3	%	$	281,777	50.4	%	$	547,867	50.7	%	$	546,243	49.7	%
WHBM	150,048		27.5		158,581		28.4		303,518		28.1		327,610		29.8
Soma	120,861		22.2		118,362		21.2		228,484		21.2		225,782		20.5
Total Net Sales	$	545,126	100.0	%	$	558,720	100.0	%	$	1,079,869	100.0	%	$	1,099,635	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 July 29, 2023, January 28, 2023, and July 30, 2022, contract liabilities primarily consisted of gift cards of $30.9 million, $42.6 million and $33.7 million, respectively.

For the thirteen and twenty-six weeks ended July 29, 2023, the Company recognized $7.9 million and $19.1 million, respectively, of revenue that was previously included in the gift card contract liability as of January 28, 2023. For the thirteen and twenty-six weeks ended July 30, 2022, the Company recognized $8.5 million and $20.0 million, respectively, of revenue that was previously included in the gift card contract liability as of January 29, 2022.

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Beginning gift card liability	$	35,291	$	36,730	$	42,649	$	43,536
Issuances	10,759		11,281		18,983		20,341
Redemptions	(12,547)		(13,289)		(26,717)		(27,873)
Gift card breakage	(2,598)		(1,015)		(4,010)		(2,297)
Ending gift card liability	$	30,905	$	33,707	$	30,905	$	33,707

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 points-based program was specific to Soma®, during the second quarter of fiscal year 2022, Chico’s FAS extended its points based rewards program to Chico’s® and White House Black Market® (“WHBM”). As of July 29, 2023, January 28, 2023, and July 30, 2022, the rewards deferred revenue balance was $9.2 million, $7.4 million, and $3.2 million, respectively.

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Beginning balance rewards deferred revenue	$	8,509	$	757	$	7,441	$	626
Net reduction in revenue / (revenue recognized)	724		2,479		1,792		2,610
Ending balance rewards deferred revenue	$	9,233	$	3,236	$	9,233	$	3,236

Performance Obligation

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