Inventories

Inventories consist of the following (in thousands):



	Nov 3, 2018		Feb 3, 2018
Raw materials	$	1,360	$	604
Work in progress	166		16
Finished goods¹	546,991		427,684
	$	548,517	$	428,304

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Notes:

During the first quarter of fiscal 2019, the Company adopted a new revenue recognition standard on a modified retrospective basis which changed the presentation of the estimated cost associated with the allowance for sales returns to be included within other current assets rather than included in inventories. Accordingly, the Company has included $10.4 million related to the estimated cost associated with the allowance for sales returns in other current assets as of November 3, 2018. Refer to Notes 1 and 2 for further information regarding the impact from the adoption of the new revenue recognition standard on the Company’s condensed consolidated financial statements and related disclosures during the third quarter of fiscal 2019.

The above balances include an allowance to write down inventories to the lower of cost or net realizable value of $26.7 million and $29.9 million as of November 3, 2018 and February 3, 2018, respectively.