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Segment Reporting (Notes)
 9 Months Ended
Jan. 28, 2023
Segment Reporting
Note 4. Segment Reporting
We have three reportable segments: Retail, Wholesale and DSS. Additionally, unallocated shared-service costs, which include various corporate level expenses and other governance functions, continue to be presented as “Corporate Services”.
We identify our segments in accordance with the way our business is managed (focusing on the financial information distributed) and the manner in which our chief operating decision maker allocates resources and assesses financial performance. The following summarizes the three segments. For additional information about each segment's operations, see Part I - Item 1. Business in our Annual Report on Form 10-K for the fiscal year ended April 30, 2022.
Retail
The Retail Segment operates 1,388 college, university, and K-12 school bookstores, comprised of 785 physical bookstores and 603 virtual bookstores. Our bookstores typically operate under agreements with the college, university, or K-12 schools to be the official bookstore and the exclusive seller of course materials and supplies, including physical and digital products. The majority of the physical campus bookstores have school-branded e-commerce websites which we operate independently or along with our merchant partners, and which offer students access to affordable course materials and affinity products,
including emblematic apparel and gifts. The Retail Segment also offers inclusive and equitable access programs, in which course materials are offered at a reduced price through a fee charged by the institution or included in tuition, and delivered to students on or before the first day of class. Additionally, the Retail Segment offers a suite of digital content and services to colleges and universities, including a variety of open educational resource-based courseware.
Wholesale
The Wholesale Segment is comprised of our wholesale textbook business and is one of the largest textbook wholesalers in the country. The Wholesale Segment centrally sources, sells, and distributes new and used textbooks to approximately 3,000 physical bookstores (including our Retail Segment's 785 physical bookstores) and sources and distributes new and used textbooks to our 603 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 340 college bookstores.
DSS
The Digital Student Solutions (“DSS”) Segment includes products and services to assist students to study more effectively and improve academic performance. The DSS Segment is comprised of the operations of Student Brands, LLC, a leading direct-to-student subscription-based writing services business, and bartleby®, an institutional and direct-to-student subscription-based offering providing textbook solutions, expert questions and answers, writing and tutoring.
Corporate Services represents unallocated shared-service costs which include corporate level expenses and other governance functions, including executive functions, such as accounting, legal, treasury, information technology, and human resources.
Intercompany Eliminations
The eliminations are primarily related to the following intercompany activities:
•The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale, and
•These cost of sales eliminations represent (i) the recognition of intercompany profit for Retail inventory that was purchased from Wholesale in a prior period that was subsequently sold to external customers during the current period and the elimination of Wholesale service fees charged for fulfillment of inventory for virtual store sales, net of (ii) the elimination of intercompany profit for Wholesale inventory purchases by Retail that remain in ending inventory at the end of the current period.
Our international operations are not material, and the majority of the revenue and total assets are within the United States.
Summarized financial information for our reportable segments is reported below:
13 weeks ended39 weeks ended
January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Sales
Retail$421,259 $374,740 $1,256,376 $1,194,161 
Wholesale38,958 37,039 97,161 103,192 
DSS9,010 9,430 26,659 26,012 
Elimination (22,163)(18,411)(52,176)(52,796)
Total Sales$447,064 $402,798 $1,328,020 $1,270,569 
Gross Profit
Retail (a)
$88,926 $69,161 $272,421 $246,129 
Wholesale6,668 8,104 19,022 24,129 
DSS7,199 7,932 21,376 21,868 
Elimination1,417 1,764 (286)423 
Total Gross Profit$104,210 $86,961 $312,533 $292,549 
Selling and Administrative Expenses
Retail$82,753 $84,626 $251,843 $242,477 
Wholesale3,563 3,941 11,561 12,319 
DSS7,632 7,775 23,909 21,527 
Corporate Services5,572 5,154 17,861 19,407 
Elimination(47)(36)(129)(133)
Total Selling and Administrative Expenses$99,473 $101,460 $305,045 $295,597 
Depreciation and Amortization
Retail$8,749 $8,939 $27,147 $27,015 
Wholesale1,357 1,396 4,076 4,060 
DSS506 1,826 2,646 5,627 
Corporate Services6 18 41 53 
Total Depreciation and Amortization$10,618 $12,179 $33,910 $36,755 
Impairment loss (non-cash) - Retail (b)
$6,008 $6,411 $6,008 $6,411 
Restructuring and Other Charges (b)
Retail$1,452 $30 $1,452 $2,113 
Wholesale931 — 931 — 
DSS1,848 — 1,848 — 
Corporate Services1,744 16 2,379 954 
Total Restructuring and Other Charges$5,975 $46 $6,610 $3,067 
Operating Loss
Retail$(10,036)$(30,845)$(14,029)$(31,887)
Wholesale817 2,767 2,454 7,750 
DSS(2,787)(1,669)(7,027)(5,286)
Corporate Services(7,322)(5,188)(20,281)(20,414)
Elimination 1,464 1,800 (157)556 
Total Operating Loss$(17,864)$(33,135)$(39,040)$(49,281)
13 weeks ended39 weeks ended
Reconciliation of segment Operating Loss to Loss Before Income Taxes:January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Total Operating Loss$(17,864)$(33,135)$(39,040)$(49,281)
Interest Expense, net6,918 3,051 15,672 7,809 
Loss Before Income Taxes$(24,782)$(36,186)$(54,712)$(57,090)
(a)    For the 39 weeks ended January 29, 2022, gross margin includes a merchandise inventory loss of $434 in the Retail Segment. See Note 2. Summary of Significant Accounting Policies - Merchandise Inventories.
(b)    For the 13 and 39 weeks ended January 28, 2023 and January 29, 2022, operating loss includes an impairment loss (non-cash) and restructuring and other charges. For additional information, see Note 9. Supplementary Information.