Note D - Revenue Recognition

9 Months Ended

Jun. 27, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Our revenue streams consist of retail stores, direct-to-consumer ecommerce, and wholesale channels which are included in our Condensed Consolidated Statements of Operations. The table below identifies the amount and percentage of net sales by revenue stream (in thousands):

	Three Months Ended
	June 27, 2020					June 29, 2019
	$		%			$		%
Retail	$	1,179		2	%	$	1,296		1	%
Direct-to-consumer ecommerce		3,153		4	%		1,419		1	%
Wholesale		67,469		94	%		116,545		98	%
Net sales	$	71,801		100	%	$	119,260		100	%

	Nine Months Ended
	June 27, 2020					June 29, 2019
	$		%			$		%
Retail	$	3,374		1	%	$	3,180		1	%
Direct-to-consumer ecommerce		5,920		2	%		3,990		1	%
Wholesale		255,057		97	%		316,603		98	%
Net sales	$	264,351		100	%	$	323,773		100	%

The table below provides net sales by reportable segment (in thousands) and the percentage of net sales by distribution channel for each reportable segment:

	Third Quarter Fiscal Year 2020
	Net Sales		Retail			Direct-to-consumer ecommerce			Wholesale
Delta Group	$	65,543		0.2	%		1.0	%		98.8	%
Salt Life Group		6,258		17.0	%		40.4	%		42.6	%
Total	$	71,801

	Third Quarter Fiscal Year 2019
	Net Sales		Retail			Direct-to-consumer ecommerce			Wholesale
Delta Group	$	107,409		0.3	%		0.3	%		99.4	%
Salt Life Group		11,851		5.0	%		9.1	%		85.9	%
Total	$	119,260

	Year To Date Fiscal Year 2020
	Net Sales		Retail			Direct-to-consumer ecommerce			Wholesale
Delta Group	$	238,685		0.2	%		0.5	%		99.3	%
Salt Life Group		25,666		10.9	%		18.9	%		70.2	%
Total	$	264,351

	Year To Date Fiscal Year 2019
	Net Sales		Retail			Direct-to-consumer ecommerce			Wholesale
Delta Group	$	291,325		0.3	%		0.3	%		99.4	%
Salt Life Group		32,448		7.0	%		9.5	%		83.5	%
Total	$	323,773

In determining our estimates for discounts, allowances, chargebacks, and returns, we consider historical and current trends, agreements with our customers and retailer performance. We record these discounts, returns and allowances as a reduction to net sales in our Condensed Consolidated Statements of Operations and as a refund liability in our accrued expenses in our Condensed Consolidated Balance Sheets, with the estimated value of inventory expected to be returned in prepaid and other current assets in our Condensed Consolidated Balance Sheets. As of  June 27, 2020, and September 28, 2019, there was $0.7 million and $1.0 million, respectively, in refund liabilities for customer returns, allowances, markdowns and discounts within accrued expenses.