REVENUE

Net Sales

The following table presents the composition of net sales by merchandise category (in thousands):



	Three Months Ended
	May 4, 2019									May 5, 2018
Merchandise Category	Department Stores			Off-price Stores			Total Company			Department Stores			Off-price Stores		Total Company
Women’s	$	83,615		$	20,861		$	104,476		$	103,487		$	19,967	$	123,454
Men’s	39,108			8,514			47,622			41,336			7,545		48,881
Children's	25,138			9,880			35,018			29,078			8,096		37,174
Apparel	147,861			39,255			187,116			173,901			35,608		209,509

Footwear	40,271			5,074			45,345			44,483			4,819		49,302
Accessories	16,714			4,344			21,058			18,872			4,366		23,238
Cosmetics/Fragrances	27,869			2,813			30,682			31,186			2,482		33,668
Home/Gifts/Other	25,154			20,705			45,859			12,809			18,507		31,316
Non-apparel	110,008			32,936			142,944			107,350			30,174		137,524

Revenue adjustments not allocated^(a)	(1,912		)	(427		)	(2,339		)	(2,888		)	84		(2,804		)

Net sales	$	255,957		$	71,764		$	327,721		$	278,363		$	65,866	$	344,229

^(a) Includes adjustments related to deferred revenue, estimated sales returns, breakage income, shipping and miscellaneous revenues, which are not allocated to merchandise categories.

Contract Liabilities

Contract liabilities (recorded in accrued expenses and other current liabilities) for each period presented were as follows (in thousands):



	May 4, 2019		February 2, 2019		May 5, 2018
Gift cards and merchandise credits, net	$	10,503	$	12,433	$	10,159
Loyalty program rewards, net	3,239		1,484		3,081
Merchandise fulfillment liability	698		488		788
Total contract liabilities	$	14,440	$	14,405	$	14,028

The following table summarizes contract liability activity for each period presented (in thousands):



	Three Months Ended
	May 4, 2019			May 5, 2018
Beginning balance	$	14,405		$	13,474
Net sales recognized during the period from amounts included in contract liability balances at the beginning of the period	(4,986		)	(4,669		)
Current period additions to contract liability balances included in contract liability balances at the end of the period	5,021			5,223
Ending balance	$	14,440		$	14,028

Credit Income

We earn credit income from our private label credit card (“PLCC”) through a profit-sharing arrangement with Comenity Bank, an affiliate of Alliance Data Systems Corporation. We receive a monthly net portfolio yield payment from Comenity Bank, and we can potentially earn an annual bonus based upon the performance of the PLCC portfolio.

We recorded deferred revenue for certain upfront payments received from Comenity Bank associated with the execution of the PLCC agreement, and we recognized $0.6 million and $0.4 million in credit income related to these upfront payments during the three months ended May 4, 2019 and May 5, 2018, respectively. As of May 4, 2019, deferred revenue of $7.3 million remained to be amortized.