Segment Information

6 Months Ended

Jul. 30, 2011

Segment Information

15. Segment Information

The Company has two separately managed and reported business segments — stores and direct marketing.

The following is certain segment information for the thirteen and twenty-six weeks ended July 30, 2011 and July 31, 2010:

	Thirteen Weeks Ended
	July 30, 2011									July 31, 2010
				Direct								Direct
	Stores			Marketing			Total			Stores		Marketing		Total
	(In thousands)
Net sales	$	227,980		$	43,112		$	271,092		$	250,870	$	49,872	$	300,742
Direct (loss) profit		(2,576	)		(1,874	)	$	(4,450	)		31,010		10,784	$	41,794

	Twenty-Six Weeks Ended
	July 30, 2011						July 31, 2010
			Direct						Direct
	Stores		Marketing		Total		Stores		Marketing		Total
	(In thousands)
Net sales	$	468,735	$	103,667	$	572,402	$	508,443	$	112,960	$	621,403
Direct profit		13,784		14,323	$	28,107		82,473		30,592	$	113,065

Direct (loss) profit is calculated as net sales less cost of goods sold and direct expenses such as certain payroll, occupancy and other direct costs. The following reconciles direct (loss) profit to (loss) income from continuing operations for the thirteen and twenty-six weeks ended July 30, 2011 and July 31, 2010. Indirect expenses include unallocated corporate overhead and related expenses.

	Thirteen Weeks Ended					Twenty-Six Weeks Ended
	July 30,			July 31,		July 30,			July 31,
	2011			2010		2011			2010
	(In thousands)
Direct (loss) profit	$	(4,450	)	$	41,794	$	28,107		$	113,065
Less: Indirect expenses		28,571			29,904		54,811			69,504
Restructuring charges		1,005			112		3,270			5,071
Merger-related costs		—			3,050		885			26,863
Operating (loss) income		(34,026	)		8,728		(30,859	)		11,627
Interest expense, net		2,552			6,349		4,580			14,763
(Loss) income before taxes		(36,578	)		2,379		(35,439	)		(3,136	)
Income tax expense		776			1,858		1,007			3,439
(Loss) income from continuing operations	$	(37,354	)	$	521	$	(36,446	)	$	(6,575	)