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Revenue Recognition
 9 Months Ended
Nov. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

NOTE 6 – REVENUE RECOGNITION

Revenue is recognized upon customer receipt or delivery for retail sales. The Company’s revenues are reported net of discounts, returns and sales tax, and include wholesale sales and royalties. Amounts charged to customers for shipping and handling are included in net sales. A reserve has been established for estimated merchandise returns based upon historical experience and other known factors. The gross reserve for estimated merchandise returns at November 30, 2019 and December 1, 2018, was $5,686,000 and $7,809,000, respectively. For the 13 and 39 weeks ended November 30, 2019, the Company recognized revenue of $2,521,000 and $9,780,000, respectively, for gift card redemptions. For the 13 and 39 weeks ended December 1, 2018, the Company recognized revenue of $3,049,000 and $11,659,000, respectively, for gift card redemptions. Prior to recognition as revenue, these amounts were previously included in gift cards and other deferred revenue on the Company’s consolidated balance sheets as of March 2, 2019 and March 3, 2018, respectively.

Disaggregated Revenues — Net sales consisted almost entirely of sales to retail customers, net of discounts, returns and sales tax, but also included delivery revenues, wholesale sales and royalties, and gift card breakage. Net sales were as follows (in thousands):

 

 

13 Weeks Ended

 

 

39 Weeks Ended

 

 

 

November 30,

 

 

December 1,

 

 

November 30,

 

 

December 1,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Retail sales

 

$

356,160

 

 

$

410,377

 

 

$

970,112

 

 

$

1,132,170

 

Other (1)

 

 

2,256

 

 

 

2,855

 

 

 

7,218

 

 

 

8,262

 

Net sales

 

$

358,416

 

 

$

413,232

 

 

$

977,330

 

 

$

1,140,432

 

 

(1)

The Company supplies merchandise and licenses the Pier 1 Imports name to Grupo Sanborns, which sells Pier 1 Imports merchandise primarily in a "store within a store" format in Mexico and El Salvador and online in Mexico. Other sales consisted primarily of these wholesale sales and royalties received from Grupo Sanborns, as well as gift card breakage.