0000930413-18-003586.txt : 20181218 0000930413-18-003586.hdr.sgml : 20181218 20181218145651 ACCESSION NUMBER: 0000930413-18-003586 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20181103 FILED AS OF DATE: 20181218 DATE AS OF CHANGE: 20181218 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS WORLD ENTERTAINMENT CORP CENTRAL INDEX KEY: 0000795212 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL- COMPUTER & PRERECORDED TAPE STORES [5735] IRS NUMBER: 141541629 STATE OF INCORPORATION: NY FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14818 FILM NUMBER: 181240219 BUSINESS ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 BUSINESS PHONE: 5184521242 MAIL ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD MUSIC CORP DATE OF NAME CHANGE: 19920703 10-Q 1 c92469_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 3, 2018
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT FOR THE TRANSITION PERIOD FROM _____________ TO _____________

 

COMMISSION FILE NUMBER: 0-14818

 

TRANS WORLD ENTERTAINMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

New York 14-1541629
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer
  Identification Number)

 

38 Corporate Circle

Albany, New York 12203

(Address of principal executive offices, including zip code)

 

(518) 452-1242

(Registrant’s telephone number, including area code)

 

Indicate by a check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o     Accelerated filer o     Non-accelerated filer o

Smaller reporting company x     Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Common Stock, $.01 par value,

36,258,839 shares outstanding as of November 3, 2018

 

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

 QUARTERLY REPORT ON FORM 10-Q

INDEX TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

Form 10-Q

Page No.

PART I. FINANCIAL INFORMATION    
     
Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)    
Condensed Consolidated Balance Sheets at November 3, 2018, February 3, 2018 and October 28, 2017   3
     
Condensed Consolidated Statements of Operations – Thirteen and Thirty-nine Weeks Ended November 3, 2018 and October 28, 2017   4
     
Condensed Consolidated Statements of Comprehensive Loss – Thirteen and Thirty-nine Weeks Ended November 3, 2018 and October 28, 2017   5
     
Condensed Consolidated Statements of Cash Flows – Thirty-nine Weeks Ended November 3, 2018 and October 28, 2017   6
     
Notes to Interim Condensed Consolidated Financial Statements   7
     
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations   16
     
Item 3 – Quantitative and Qualitative Disclosures about Market Risk   24
     
Item 4 – Controls and Procedures   24
     
PART II. OTHER INFORMATION    
     
Item 1 – Legal Proceedings   25
     
Item 1A- Risk Factors   25
     
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds   25
     
Item 3 – Defaults Upon Senior Securities   25
     
Item 4 – Mine Safety Disclosures   26
     
Item 5 – Other Information   26
     
Item 6 – Exhibits   26
     
Signatures   27

2

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

PART 1. FINANCIAL INFORMATION

Item 1 – Interim Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share and share amounts)

(unaudited)

 

   November 3,   February 3,   October 28, 
   2018   2018   2017 
ASSETS               
CURRENT ASSETS               
Cash and cash equivalents  $4,497   $31,326   $3,924 
Restricted cash   4,122    1,505    1,503 
Accounts receivable   5,659    4,469    6,071 
Merchandise inventory   131,285    109,377    144,754 
Prepaid expenses and other assets   9,227    6,976    7,113 
Total current assets   154,790    153,653    163,365 
                
Restricted cash   5,944    10,675    10,731 
Fixed assets, net   12,177    13,546    43,472 
Goodwill   39,191    39,191    39,191 
Intangible assets, net   21,052    23,967    24,940 
Other assets   5,907    7,139    7,247 
TOTAL ASSETS  $239,061   $248,171   $288,946 
                
LIABILITIES               
CURRENT LIABILITIES               
Accounts payable  $42,272   $41,780   $45,378 
Short-term borrowings   27,440    -    5,000 
Accrued expenses and other current liabilities   8,624    11,038    9,805 
Deferred revenue   6,454    8,464    7,231 
Total current liabilities   84,790    61,282    67,414 
                
Contingent consideration   -    -    2,115 
Other long-term liabilities   25,853    29,131    29,236 
TOTAL LIABILITIES   110,643    90,413    98,765 
                
SHAREHOLDERS’ EQUITY               
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)   -    -    - 
Common stock ($0.01 par value; 200,000,000 shares authorized;
64,436,671, 64,305,171 and 64,255,171 shares issued, respectively)
   644    643    643 
Additional paid-in capital   343,511    341,103    340,391 
Treasury stock at cost (28,177,832, 28,156,601 and 28,138,116 shares, respectively)   (230,167)    (230,145)    (230,144) 
 Accumulated other comprehensive loss   (1,013)    (998)    (788) 
 Retained earnings   15,443    47,155    80,079 
 TOTAL SHAREHOLDERS’ EQUITY   128,418    157,758    190,181 
 TOTAL LIABILITIES AND EQUITY  $239,061   $248,171   $288,946 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

3

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
   2018   2017   2018   2017 
                 
Net sales  $90,877   $91,817   $287,148   $293,482 
Other revenue   1,107    1,184    3,613    3,964 
Total revenue   91,984    93,001    290,761    297,446 
                     
Cost of sales   64,598    61,420    199,514    194,390 
Gross profit   27,386    31,581    91,247    103,056 
Selling, general and administrative expenses   41,140    39,692    122,550    121,725 
Loss from operations   (13,754)    (8,111)    (31,303)    (18,669) 
                     
Interest expense   277    83    444    200 
Gain on insurance proceeds   -    (27)    -    (8,733) 
Other income   (43)    (32)    (171)    (91) 
Loss before income tax expense   (13,988)    (8,135)    (31,576)    (10,045) 
Income tax expense (benefit)   64    (64)    136    40 
Net loss  $(14,052)   $(8,071)   $(31,712)   $(10,085) 
                     
BASIC AND DILUTED LOSS PER COMMON SHARE:                    
Basic and diluted loss per common share  $(0.39)   $(0.22)   $(0.87)   $(0.28) 
                     
Weighted average number of common shares outstanding – basic and diluted   36,296    36,190    36,272    36,181 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

4

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

 

  Thirteen Weeks Ended   Thirty-nine Weeks Ended
  November 3,   October 28,   November 3,   October 28,
  2018   2017   2018   2017
               
Net loss ($14,052)   ($8,071)   ($31,712)   ($10,085)
Amortization of pension gain (loss)  5    (5)    15    (15)
Comprehensive loss ($14,047)   ($8,076)   ($31,697)   ($10,100)

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

5

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

   Thirty-nine Weeks Ended 
   November 3,   October 28, 
   2018   2017 
OPERATING ACTIVITIES:          
Net loss   ($31,712)    ($10,085) 
Adjustments to reconcile net loss to net cash used in operating activities:          
           
Depreciation of fixed assets   3,893    7,558 
Amortization of intangible assets   2,915    2,917 
Amortization of lease valuations, net   -    (12)
Stock based compensation   2,387    2,314 
Adjustment to contingent consideration   (272)    (1,437) 
Loss on disposal of fixed assets   327    459 
Change in cash surrender value   90    (227) 
Gain on life insurance asset   -    (8,733) 
Changes in operating assets and liabilities that provide (use) cash:          
Accounts receivable   (1,190)    1,014 
Merchandise inventory   (21,908)    (18,750) 
Prepaid expenses and other current assets   (2,251)    1,158 
Other long-term assets   (163)    (497) 
Accounts payable   492    (6,929) 
Accrued expenses and other current liabilities   (642)    (892) 
Deferred revenue   (2,010)    (1,999) 
Other long-term liabilities   (3,293)    194 
Net cash used in operating activities   (53,337)    (33,947) 
           
INVESTING ACTIVITIES:          
Purchases of fixed assets   (2,851)    (6,392) 
Proceeds from company owned life insurance   -    14,363 
Investment in joint venture   -    (2,575) 
Capital distributions from joint venture   1,305    632 
Net cash (used in) provided by investing activities   (1,546)    6,028 
           
FINANCING ACTIVITIES:          
Proceeds from short term borrowings   27,440    5,000 
Payments to etailz shareholders   (1,500)    (5,000) 
Net cash provided by (used in) financing activities   25,940    - 
           
Net decrease in cash, cash equivalents, and restricted cash   (28,943)    (27,919) 
Cash, cash equivalents, and restricted cash, beginning of period   43,506    44,077 
Cash, cash equivalents, and restricted cash, end of period  $14,563   $16,158 

 

See Accompanying Notes to Interim Condensed Consolidated Financial Statements.

6

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

November 3, 2018 and October 28, 2017

 

Note 1. Nature of Operations

 

Trans World Entertainment Corporation and subsidiaries (“the Company”) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of November 3, 2018, the fye segment operated 227 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. fye stores offer predominantly entertainment products. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, for both segments, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.

 

Liquidity and Cash Flows:

 

The Company’s primary sources of liquidity are borrowing capacity under its revolving credit facility, available cash and cash equivalents, and cash generated from operations. The Company’s cash flows may be impacted by many factors including the economic environment, consumer confidence, competitive conditions in the retail industry and the success of its strategies. For the next 12 months, management believes that the Company’s existing liquidity will be adequate to fund its working capital needs. Management believes that the Company’s current financial position will provide it the financial flexibility to support its growth initiatives. However, in accordance with the Company’s financing strategy, the Company may access the capital markets opportunistically.

Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.

In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.

 

Note 2. Basis of Presentation

 

The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”), Record Town’s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation.

 

The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.

7

The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended February 3, 2018 contained in the Company’s Annual Report on Form 10-K filed May 4, 2018. The results of operations for the thirteen and thirty-nine weeks ended November 3, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019.

 

The Company’s significant accounting policies are described in Note 1 to the Company’s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018.

 

There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures.

 

Recently Adopted Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.

 

Note 3. Recently Issued Accounting Pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company’s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.

 

Note 4. Goodwill and Other Intangible Assets

 

Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable.

8

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.

 

The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and trade names and trademarks. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

 

Identifiable intangible assets as of November 3, 2018 consisted of the following ($ in thousands):

 

   Weighted
Average
Amortization
Period
(in months)
  Original Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                   
Vendor relationships  120  $19,100   $3,918   $15,182 
Technology  60   6,700    2,743    3,957 
Trade names and trademarks  60   3,200    1,287    1,913 
      $29,000   $7,948   $21,052 
                   
The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:
                   
($ in thousands)      February 3,
2018
   Amortization   November 3,
2018
 
                    
Amortized intangible assets:                   
Vendor relationships      $16,612   $1,430   $15,182 
Technology       4,962    1,005    3,957 
Trade names and trademarks       2,393    480    1,913 
Net amortized intangible assets      $23,967   $2,915   $21,052 
                    
Unamortized intangible assets:                   
Goodwill      $39,191   $-   $39,191 
Total unamortized intangible assets      $39,191   $-   $39,191 

 

Amortization expense of intangible assets for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017 consisted of the following:

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $478   $1,430   $1,432 
Technology   335    335    1,005    1,005 
Trade names and trademarks   160    160    480    480 
Total amortization expense  $972   $973   $2,915   $2,917 

 

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

 

Year  Annual
Amortization
( $ in thousands)   
2018  $972
2019  3,890
2020  3,890
2021  3,325
2022  1,910
2023  1,910
Thereafter  5,155
9

Note 5. Depreciation and Amortization

 

Depreciation and amortization included in the condensed consolidated statements of operations is as follows:

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
         
Cost of sales  $-   $163   $-   $474 
Selling, general and administrative expenses   2,303    3,425    6,808    9,989 
Total  $2,303   $3,588   $6,808    $10,463 

 

Note 6. Segment Data

 

As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
Total Revenue                    
fye  $47,865   $52,105   $152,473   $176,006 
etailz   44,119    40,896    138,288    121,440 
Total Company  $91,984   $93,001   $290,761   $297,446 
                     
Gross Profit                    
fye  $18,276   $21,347   $61,181   $73,342 
etailz   9,110    10,234    30,066    29,714 
Total Company  $27,386   $31,581   $91,247   $103,056 
                     
Loss From Operations                    
fye  $(9,493)   $(7,858)   $(21,495)   $(17,703) 
etailz   (4,261)    (253)    (9,808)    (966) 
Total Company  $(13,754)   $(8,111)   $(31,303)   $(18,669) 
                     
Total Assets As of November 3, 2018 and As of October 28, 2017 
  
                   November 3,
2018
   October 28,
2017
 
fye                  $132,699   $186,869 
etailz                   106,362    102,077 
Total Company                  $239,061   $288,946 

 

Note 7. Restricted Cash

 

As of November 3, 2018, the Company had restricted cash of $4.1 million and $5.9 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of October 28, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.

 

In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.

10

In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $5.9 million is classified as restricted cash in other assets of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.

 

A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):

 

   November 3,  February 3,  October 28,
   2018  2018  2017
Cash and cash equivalents  $4,497   $31,326   $3,924 
Restricted cash   10,066    12,180    12,234 
Total cash, cash equivalents and restricted cash  $14,563   $43,506   $16,158 

 

During the thirty-nine weeks ended November 3, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement.

 

Note 8. Short Term Borrowings

 

In January 2017, the Company entered into a $50 million asset based credit facility (“Credit Facility”) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.

 

The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of November 3, 2018, the Company was compliant with all covenants.

 

On October 29, 2018, the Company entered into a letter agreement with Wells Fargo in accordance with the Credit Facility in which Wells Fargo provided consent to the Company exceeding the permitted number of store closures and related inventory dispositions.

 

Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.

 

As of November 3, 2018, borrowings under the credit facility were $27.4 million compared to $5.0 million as of October 28, 2017. The Company had $22.1 million and $49.0 million available for borrowing as of November 3, 2018 and October 28, 2017, respectively.

 

As of November 3, 2018, and as of October 28, 2017 the Company did not have any outstanding letters of credit.

 

The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.

11

Note 9. Stock Based Compensation

 

As of November 3, 2018, there was approximately $1.5 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.7 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 1.6 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 3.9 years; and $0.6 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next three months.

 

The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the “New “Plan”). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans or the 1990 Plan.

 

Equity awards authorized for issuance under the New Plan total 5.0 million. As of November 3, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.9 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at November 3, 2018 were 4.4 million.

 

The following table summarizes stock award activity during the thirty-nine weeks ended November 3, 2018:

 

   Employee and Director Stock Award Plans     
   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other Share
Awards (1)
   Weighted
Average
Grant Fair
Value
   Aggregate
Intrinsic
Value (2)
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22    - 
Granted   555,000    0.99         219,484    1.14    - 
Forfeited   (53,000)    3.44         -    -    - 
Canceled   (72,000)    3.37         -    -    - 
Exercised   -    -    -    (131,500)    2.19    - 
Balance November 3, 2018   3,015,914   $2.68    6.3    271,411   $2.53   $83,400 
Exercisable November 3, 2018   1,900,289   $3.07    4.8    128,911   $2.85   $19,200 
  (1)Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
  (2)As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value.

 

In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and thirty-nine weeks ended November 3, 2018, the Company recognized $0.6 million and $1.8 million of compensation cost related to these shares, respectively. As of November 3, 2018, there was approximately $0.6 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next three months.

 

Note 10. Accumulated Other Comprehensive Loss

 

Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company’s defined benefit plan. Comprehensive loss consists of net loss and

12

the amortization of pension costs associated with Company’s defined benefit plan for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017.

 

Note 11. Defined Benefit Plan

 

The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the thirty-nine weeks ended November 3, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.

 

The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.

 

The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
                     
Service cost   $14     $16     $42     $48  
Interest cost   140     139     420     417  
Amortization of net gain (1)   (5)     (5)     (15)     (15)  
Net periodic pension cost   $149     $150     $447     $450  
(1)The amortization of net gain is related to a director retirement plan previously provided by the Company.

 

Note 12. Basic and Diluted Loss Per Share

 

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company’s common stock awards from the Company’s Stock Award Plans.

 

For the thirteen and thirty-nine week periods ended November 3, 2018 and October 28, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and thirty-nine weeks ended November 3, 2018 were approximately 3.1 million shares and 3.0 million shares, respectively, as compared to 2.6 million shares for both, thirteen and thirty-nine weeks ended October 28, 2017.

13

Note 13. Income Taxes

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company’s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company’s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company’s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.

 

Note 14. Commitments and Contingencies

 

Legal Proceedings

 

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.

 

Loyalty Memberships and Magazine Subscriptions Class Action

On November 14, 2018, three consumers filed a putative class action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Court for the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’s Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, that the Company’s “negative option marketing” misled consumers into enrolling for membership and subscriptions without obtaining the consumers’ consent. The complaint seeks statutory and actual damages. The Company is reviewing the claims. 

 

Store Manager Class Actions

Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager).

14

Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.

 

On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.

 

Legal matters are defended and handled in the ordinary course of business.  The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.

15

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

PART 1. FINANCIAL INFORMATION

Item 2 - Management’s Discussion and Analysis of Financial Condition and

Results of Operations

November 3, 2018 and October 28, 2017

 

Overview

Management’s Discussion and Analysis of Financial Condition and Results of Operations provides information that the Company’s management believes necessary to achieve an understanding of its financial statements and results of operations. To the extent that such analysis contains statements which are not of a historical nature, such statements are forward-looking statements, which involve risks and uncertainties. These risks include, but are not limited to, changes in the competitive environment, availability of new products, change in vendor policies or relationships, general economic factors in markets where the Company’s merchandise is sold; and other factors discussed in the Company’s filings with the Securities and Exchange Commission. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the interim condensed consolidated financial statements and related notes included elsewhere in this report and the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018.

 

The Company operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of November 3, 2018, the fye segment operated 227 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. fye stores offer predominantly entertainment products. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, for both segments, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.

 

The Company’s results have been, and will continue to be, contingent upon management’s ability to understand trends and to manage the business in response to those trends and general economic trends. Management monitors a number of key performance indicators to evaluate its performance, including:

 

Net sales and comparable store net sales: The fye segment measures the rate of comparable store net sales change. A store is included in comparable store net sales calculations at the beginning of its thirteenth full month of operation. Stores relocated, expanded or downsized are excluded from comparable store sales if the change in square footage is greater than 20% until the thirteenth full month following relocation, expansion or downsizing. Closed stores that were open for at least thirteen months are included in comparable store sales through the month immediately preceding the month of closing. The fye segment further analyzes net sales by store format and by product category. The etailz segment measures total year over year sales growth by product category and evaluates product sales by supplier.

 

Cost of Sales and Gross Profit: Gross profit is calculated based on the cost of product in relation to its retail selling value. Changes in gross profit are impacted primarily by net sales levels, mix of products sold, vendor discounts and allowances, shrinkage, obsolescence and distribution costs. Distribution expenses include those costs associated with receiving, inspecting & warehousing merchandise, Amazon fulfillment fees, and costs associated with product returns to vendors.

 

Selling, General and Administrative (“SG&A”) Expenses: Included in SG&A expenses are payroll and related costs, occupancy charges, general operating and overhead expenses and depreciation charges (excluding those related to distribution operations, see Note 5 to the Condensed Consolidated Financial Statements in this Form 10-Q). SG&A expenses also include fixed assets write-offs associated with store closures, if any, and miscellaneous income and expense items, other than interest.

16

Balance Sheet and Ratios: The Company views cash and working capital (current assets less current liabilities) as relevant indicators of its financial position. See Liquidity and Capital Resources for further discussion of these items.

 

RESULTS OF OPERATIONS

 

Thirteen and Thirty-nine Weeks Ended November 3, 2018

Compared to the Thirteen and Thirty-nine Weeks Ended October 28, 2017

 

Segment Highlights ($ in thousands):

 

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3, 2018   October 28, 2017   November 3, 2018   October 28, 2017 
Total Revenue                    
 fye  $47,865   $52,105   $152,473   $176,006 
 etailz   44,119    40,896    138,288    121,440 
Total Company  $91,984   $93,001   $290,761   $297,446 
                     
Gross Profit                    
 fye  $18,276   $21,347   $61,181   $73,342 
 etailz   9,110    10,234    30,066    29,714 
Total Company  $27,386   $31,581   $91,247   $103,056 
                     
Loss From Operations                    
 fye  $(9,493)  $(7,858)  $(21,495)  $(17,703)
 etailz   (4,261)   (253)   (9,808)   (966)
Total Company  $(13,754)  $(8,111)  $(31,303)  $(18,669)
                     
Reconciliation of etailz Loss from Operations to etailz Adjusted (Loss) Income from Operations    
etailz loss fom operations  $(4,261)  $(253)  $(9,808)  $(966)
Acquisition related intangibles amortization   972    969    2,915    2,905 
Acquisition related compensation expense, net of contingency benefit   750    1,118    2,991    1,708 
etailz adjusted (loss) income from operations (1)  $(2,539)  $1,834   $(3,902)  $3,647 

 

(1) In addition to the results of operations determined in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), we reported non-GAAP adjusted operating (loss) income for the etailz segment as shown above.

 

Total Revenue. The following table sets forth a year-over-year comparison of the Company’s total revenue:

 

   Thirteen Weeks Ended   Change   Thirty-nine Weeks Ended   Change 
   November 3,
2018
   October 28,
2017
   $   %   November 3,
2018
   October 28,
2017
   $   % 
($ in thousands)                                        
fye revenue  $47,865    52,105   $(4,240)   -8.1%  $152,473    176,006    $(23,533)   -13.4%
etailz revenue   44,119    40,896    3,223    7.9%   138,288    121,440    16,848    13.9%
Total revenue  $91,984   $93,001   $(1,017)   -1.1%  $290,761   $297,446    $(6,685)   -2.2%

 

Total revenue decreased 1.1% and 2.2% for the thirteen and thirty-nine weeks ended November 3, 2018 as compared to the same period last year.

17

fye Segment

The following table sets forth a period over period comparison of net fye sales by merchandise category:

 

   Thirteen Weeks Ended  Change     Thirty-nine Weeks Ended  Change    
   November 3,
2018
  October 28,
2017
  $  %  Comp
Store Net
Sales
  November 3,
2018
  October 28,
2017
  $  %  Comp
Store Net
Sales
($ in thousands)                                                  
fye net sales  $46,758  $50,970  $(4,212)   -8.3%   3.8%  $148,860  $172,042  $(23,182)   -13.5%   -4.3%
Other revenue   1,107   1,135   (28)   -2.5%        3,613   3,964   (351)   -8.9%     
Total revenue  $47,865  $52,105  $(4,240)   -8.1%       $152,473  $176,006  $(23,533)   -13.4%     
                                                   
As a % of fye net sales                                                  
Trend/Lifestyle   41.9%   38.0%             13.3%   40.1%   35.4%             4.3%
Video (1)   29.6%   32.7%             -4.0%   30.2%   33.4%             -10.1%
Music   17.9%   18.9%             -0.3%   18.4%   20.4%             -12.8%
Electronics   10.6%   10.4%             3.0%   11.3%   10.8%             2.5%
    100.0%   100.0%                  100.0%   100.0%               
                                                   
Store Count:                            227   268   (41)   -15.3%     
                                                   
Total Square footage                            1,268,231   1,490,816   (222,585)   -14.9%     

 

  (1)Includes Video Games category, which represented 0.1% of fye fiscal third quarter net sales. Fiscal 2017 data was adjusted to include this immaterial reclassification.

 

Net sales. Net sales decreased 8.3% and 13.5% during the thirteen and thirty-nine weeks ended November 3, 2018, respectively, as compared to the same periods last year. The decline in net sales primarily resulted from a 15.3% decline in total stores in operation for the thirty-nine weeks ended November 3, 2018.

 

Trend/Lifestyle:

Comparable store net sales in the trend/lifestyle category increased 13.3% and 4.3% during the thirteen and thirty-nine weeks ended November 3, 2018, respectively. Trend/lifestyle products represented 41.9% and 40.1% of total net sales for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to 38.0% and 35.4% in the comparable periods last year. The Company continues to take advantage of opportunities to strengthen its selection and shift product mix to growing categories of entertainment-related merchandise.

 

Video:

Comparable store sales in the video category decreased 4.0% and 10.1% during the thirteen and thirty-nine week periods ended November 3, 2018, respectively. The video category represented 29.6% and 30.2% of total net sales for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to 32.7% and 33.4% in the comparable periods last year due to continued industry-wide decline in physical media sales.

 

Music:

During the thirteen and thirty-nine weeks ended November 3, 2018, music sales in comparable stores decreased 0.3% and 12.8%, respectively. The music category represented 17.9% and 18.4% of total net sales for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to 18.9% and 20.4% for the thirteen and thirty-nine weeks ended October 28, 2017 due to continued industry-wide decline in physical media sales.

18

Electronics:

Comparable store net sales in the electronics category increased 3.0% and 2.5% during the thirteen and thirty-nine weeks ended November 3, 2018, respectively. Electronics net sales represented 10.6% and 11.3% of total net sales for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to 10.4% and 10.8% in the comparable periods last year. The Company continues to take advantage of opportunities to strengthen its selection and shift product mix to growing categories of electronics.

 

Other Revenue. Other revenue, which was primarily related to commissions and fees earned from third parties, was approximately $1.1 million and $3.6 million for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to $1.1 million and $4.0 million in the comparable periods last year. The decline in other revenue for the thirty-nine weeks ended November 3, 2018 was due to lower number of stores in operation.

 

etailz Segment

etailz reported net sales of $44.1 million and $138.3 million for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to $40.9 million and $121.4 million net sales for the thirteen and thirty-nine weeks ended October 28, 2017. etailz generates revenue across a broad array of product lines primarily through the Amazon Marketplace. Categories include: apparel, baby, beauty, electronics, health & personal care, home/kitchen/grocery, pets, sporting goods, toys & art. During the thirty-nine weeks ended November 3, 2018, etailz sold approximately 38,000 SKUs from approximately 2,100 suppliers, compared to approximately 33,000 SKUs from approximately 1,700 suppliers during the thirty-nine weeks ended October 28, 2017.

 

Gross Profit. The following table sets forth a year-over-year comparison of the Company’s gross profit:

 

   Thirteen Weeks Ended   Change   Thirty-nine Weeks Ended   Change 
   November 3,
2018
   October 28,
2017
   $   %   November 3,
2018
   October 28,
2017
   $   % 
($in thousands)                                
fye gross profit  $18,276   $21,347   $   (3,071)   -14.4%  $61,181   $73,342   $(12,161)    -16.6%
etailz gross profit   9,110    10,234    (1,124)   -11.0%   30,066    29,714    352    1.2%
Total gross profit  $27,386   $31,581   $(4,195)   -13.3%  $91,247   $103,056   $(11,809)    -11.5%
                                         
fye gross profit as a % of fye revenue   38.2%    41.0%              40.1%    41.7%           
etailz gross profit as a % of etailz revenue   20.6%    25.0%              21.7%    24.5%           
Total gross profit as a % of total revenue   29.8%    34.0%              31.4%    34.6%           

 

Gross profit decreased 13.3% to $27.4 million for the thirteen weeks ended November 3, 2018 compared to $31.6 million for the thirteen weeks ended October 28, 2017. For the thirty-nine weeks ended November 3, 2018, gross profit decreased 11.5% to $91.2 million compared to $103.1 million for the comparable period last year.

 

fye Segment

fye gross profit as a percentage of total revenue for the thirteen and thirty-nine weeks ended November 3, 2018 was 38.2% and 40.1%, respectively, compared to 41.0% and 41.7% for the comparable periods last year. The decline in rate was primarily driven by a higher number of closing stores during the quarter this year.

19

etailz Segment

 

etailz gross profit as a percentage of total revenue for the thirteen and thirty-nine weeks ended November 3, 2018 was 20.6% and 21.7%, respectively, compared to 25.0% and 24.5% for the comparable periods last year. The decline in the gross profit rate was primarily due to higher marketplace fulfillment and warehousing fees.

 

SG&A Expenses. The following table sets forth a period over period comparison of the Company’s SG&A expenses:

 

   Thirteen Weeks Ended  Change  Thirty-nine Weeks Ended  Change
($ in thousands)  November 3,
2018
  October 28,
2017
  $  %  November 3,
2018
  October 28,
2017
  $  %
                      
fye SG&A, excluding depreciation and amortization  $26,620   $ 26,790    ($170)   -0.6%  $79,214   $84,102    ($4,888)   -5.8%
As a % of total fye revenue   55.6%    51.4%              52.0%    47.8%           
                                         
etailz SG&A, excluding depreciation and amortization   12,217    9,477    2,740    28.9%   36,528    27,634    8,894    32.2%
As a % of total etailz revenue   27.7%    23.2%              26.4%    22.8%           
                                         
Depreciation and amortization   2,303    3,425    (1,122)   -32.8%   6,808    9,989    (3,181)   -31.8%
                                         
Total SG&A  $41,140   $ 39,692    $ 1,448    3.6%  $ 122,550   $ 121,725    $825    0.7%
                                         
As a %  of total revenue   44.7%    42.7%              42.1%    40.9%           

 

SG&A expenses increased $1.4 million and $0.8 million for the thirteen and thirty-nine weeks ended November 3, 2018, respectively.

 

fye Segment

fye SG&A, excluding depreciation and amortization expenses, decreased $0.2 million, or 0.6%, and $4.9 million, or 5.8%, for the thirteen and thirty-nine weeks ended November 3, 2018, respectively. As a percentage of fye revenue, SG&A expenses in the fye segment for the thirteen and thirty-nine weeks ended November 3, 2018 were 55.6% and 52.0%, respectively, compared to 51.4% and 47.8% for the same period last year. The decline in SG&A expenses was due to fewer stores in operation. The increase in the rate for the thirteen weeks ended November 3, 2018 was primarily due to increased home office expenses to support strategic growth initiatives. The increase in the rate for the thirty-nine weeks ended November 3, 2018 was primarily due to the comparable sales decline and increased home office expenses to support strategic growth initiatives.

 

etailz Segment

etailz SG&A, excluding depreciation and amortization expenses, increased $2.7 million and $8.9 million for the thirteen and thirty-nine weeks ended November 3, 2018, respectively. As a percentage of etailz revenue, SG&A expenses in the etailz segment for the thirteen and thirty-nine weeks ended November 3, 2018 were 27.7% and 26.4%, respectively, compared to 23.2% and 22.8% for the same period last year. The increase in SG&A expenses was due to investments in product identification and sourcing, technology, and platform diversification, in addition to higher marketplace commissions on higher sales.

 

Depreciation and amortization. Consolidated depreciation and amortization expense decreased $1.1 million and $3.2 million for the thirteen and thirty-nine weeks ended November 3, 2018, respectively, primarily due to the $29.1 million net decrease in carrying value of fixed assets, resulting from impairment charges recorded for the fye segment, during the fourth quarter of fiscal 2017. For a discussion of the Company’s impairment charges, see “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018.

20

Interest Expense. Interest expense was $277 thousand and $444 thousand during the thirteen and thirty-nine weeks ended November 3, 2018, respectively. Interest expense consisted primarily of interest paid on Company’s borrowings and unused commitment fees and the amortization of fees related to the Company’s credit facility. Interest expense during the thirteen and thirty-nine weeks ended October 28, 2017 was $83 thousand and $200 thousand, respectively. The increase in interest expense was due to borrowings under the credit facility as discussed in Note 8 to the condensed consolidated financial statements.

 

Gain on Insurance Proceeds. During the thirty-nine weeks ended October 28, 2017, the fye segment recorded an $8.7 million gain on insurance proceeds related to the death of the Company’s former Chairman.

 

Other Income. Other income was $43 thousand and $171 thousand during the thirteen and thirty-nine weeks ended November 3, 2018, respectively, compared to $32 thousand and $91 thousand for the same periods last year.

 

Income Tax Expense. Based on available objective evidence, management concluded that a full valuation allowance should be recorded against the Company’s deferred tax assets. There were insignificant tax expense (benefit) amounts recorded during the thirteen and thirty-nine weeks ended November 3, 2018 and comparative periods last year due to the losses recognized each period.

 

Net Loss. The following table sets forth a period over period comparison of the Company’s net loss:

 

   Thirteen Weeks ended   Thirty-nine Weeks ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   Change   November 3,
2018
   October 28,
2017
   Change 
                         
Loss before income tax  $(13,988)   $(8,135)   $(5,853)   $(31,576)   $(10,045)   $(21,531) 
Income tax expense (benefit)   64    (64)    128    136    40    96 
Net loss  $(14,052)   $(8,071)   $(5,981)   $(31,712)   $(10,085)   $(21,627) 

 

LIQUIDITY

 

Liquidity and Cash Flows:

 

The Company’s primary sources of liquidity are borrowing capacity under its revolving credit facility, available cash and cash equivalents, and cash generated from operations. The Company’s cash flows may be impacted by many factors including the economic environment, consumer confidence, competitive conditions in the retail industry and the success of its strategies. For the next 12 months, management believes that the Company’s existing liquidity will be adequate to fund its working capital needs. Management believes that the Company’s current financial position will provide it the financial flexibility to support its growth initiatives. However, in accordance with the Company’s financing strategy, the Company may access the capital markets opportunistically.

 

Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.

 

Further, in response to the general decline in operating results, management, in consultation with and approval of the Board of Directors, intends to implement certain strategic initiatives, operational efficiencies and other considerations directed towards improving the Company’s performance, operations and cash flow.

 

In connection with the preparation of the unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that the financial statements are issued.

21

The following table sets forth a summary of key components of cash flow and working capital:

 

         As of or for the
Thirty-nine Weeks Ended
   Change 
   ($ in thousands)     November 3,
2018
   October 28,
2017
   $ 
   Operating Cash Flows      (53,337)    (33,947)    (19,390) 
   Investing Cash Flows      (1,546)    6,028    (7,574) 
   Financing Cash Flows      25,940    -    25,940 
                      
   Capital Expenditures  (1)   (2,851)    (6,392)    3,541 
   Cash, Cash Equivalents, and Restricted Cash  (2)   14,563    16,158    (1,595) 
   Merchandise Inventory      131,285    144,754    (13,469) 
   Working Capital      70,000    95,951    (25,951) 
                      
(1)  Included in Investing Cash Flows                  
                      
(2)  Cash and cash equivalents per interim condensed consolidated balance sheets     $4,497   $3,924   $573 
   Add: restricted cash      10,066    12,234    (2,168) 
   Cash, cash equivalents, and restricted cash     $14,563   $16,158   $(1,595) 

 

Cash used in operations was $53.3 million for the thirty-nine weeks ended November 3, 2018, primarily due to a net loss of $31.7 million, adding back depreciation and amortization of $6.8 million and non-cash compensation of $2.4 million, less $1.2 million increase in accounts receivable, $21.9 million seasonal increase in inventory, $2.3 million increase in prepaid expenses, and reductions in deferred revenue and other long-term liabilities of $2.0 million and $3.3 million, respectively. The Company’s merchandise inventory and accounts payable are influenced by the seasonality of its business. A significant reduction of accounts payable occurs annually in the fiscal first quarter, reflecting payments for merchandise inventory purchased during the prior year’s holiday season.

 

Cash used in investing activities was $1.5 million for the thirty-nine weeks ended November 3, 2018, which consisted of $2.9 million in capital expenditures, offset by $1.3 million of capital distributions from the joint venture.

 

Cash provided by financing activities for the thirty-nine weeks ended November 3, 2018, was comprised of $27.4 million proceeds from short-term borrowings, offset by a $1.5 million payment to the etailz shareholders as per the original etailz acquisition share purchase agreement.

 

Capital Expenditures. During the thirteen and thirty-nine weeks ended November 3, 2018, respectively, the Company made capital expenditures of $1.1 million and $2.9 million, respectively. The Company currently plans to spend approximately $4.0 million for capital expenditures during fiscal 2018.

 

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

 

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires that management apply accounting policies and make estimates and assumptions that affect results of operations and the reported amounts of assets and liabilities in the financial statements. Management continually evaluates its estimates and judgments including those related to merchandise inventory and return costs and income taxes. Management bases its estimates and judgments on

22

historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Form 10-K for the year ended February 3, 2018 includes a summary of the critical accounting policies and methods used by the Company in the preparation of its interim condensed consolidated financial statements. There have been no material changes or modifications to the policies since February 3, 2018.

 

Recent Accounting Pronouncements:

 

The information set forth under Note 2, Recently Adopted Accounting Pronouncements section, and Note 3, Recently Issued Accounting Pronouncements, contained in Item 1, “Notes to Interim Condensed Consolidated Financial Statements”, is incorporated herein by reference.

 

Non-GAAP Measures:

 

This Form 10-Q contains certain non-GAAP metrics, including: etailz adjusted income (loss) from operations and SG&A, excluding depreciation and amortization expenses, for each reporting segment. A non-GAAP measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for SG&A expenses, operating earnings, net earnings from continuing operations or cash flows from operating activities, as determined in accordance with GAAP. Non-GAAP items are provided because management believes that, when reconciled from the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance.

 

The Company calculates etailz adjusted income (loss) from operations to evaluate its own operating performance and as an integral part of its planning process. The Company presents etailz adjusted income (loss) from operations as a supplemental measure because it believes such a measure provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.

 

The Company calculates SG&A, excluding depreciation and amortization expenses, for each reporting segment to evaluate its own operating performance and as an integral part of its planning process. The Company presents SG&A, excluding depreciation and amortization expenses, as a supplemental measure because it believes such a measure provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.

23

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

PART I – FINANCIAL INFORMATION

 

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

 

The Company does not hold any financial instruments that expose it to significant market risk and does not engage in hedging activities. To the extent the Company borrows under its revolving credit facility, the Company is subject to risk resulting from interest rate fluctuations since interest on the Company’s borrowings under its credit facility can be variable. If interest rates on the Company’s revolving credit facility were to increase by 25 basis points, and to the extent borrowings were outstanding, for every $1,000,000 outstanding on the facility, income before income taxes would be reduced by $2,500 per year. For a discussion of the Company’s accounting policies for financial instruments and further disclosures relating to financial instruments, see “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018.

 

Item 4 – Controls and Procedures

 

(a) Evaluation of disclosure controls and procedures. The Company’s Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of November 3, 2018, have concluded that as of such date, the Company’s disclosure controls and procedures were effective and designed to ensure that (i) information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

(b) Changes in internal controls. There have been no changes in the Company’s internal controls over financial reporting that occurred during the fiscal quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

24

TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES

 

PART II - OTHER INFORMATION

 

Item 1 – Legal Proceedings

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.

 

Loyalty Memberships and Magazine Subscriptions Class Action

On November 14, 2018, three consumers filed a putative class action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Court for the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’s Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, that the Company’s “negative option marketing” misled consumers into enrolling for membership and subscriptions without obtaining the consumers’ consent. The complaint seeks statutory and actual damages. The Company is reviewing the claims. 

 

Store Manager Class Actions

Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager.)

 

Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.

 

On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.

 

Item 1A – Risk Factors

Risks relating to the Company’s business and Common Stock are described in detail in Item 1A of the Company’s most recently filed Annual Report on Form 10-K for the year ended February 3, 2018.

 

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

 

Item 3 – Defaults Upon Senior Securities

None.

25

Item 4 – Mine Safety Disclosure

Not Applicable.

 

Item 5 – Other Information

None.

 

Item 6 - Exhibits

 

(A) Exhibits -

Exhibit No. Description
10.1 Letter Agreement between Trans World Entertainment Corporation and Wells Fargo Bank, National Association dated as of October 29, 2018 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K dated November 1, 2018).
   
31.1 Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2 Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32 Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
   
101.INS XBRL Instance Document (furnished herewith)
   
101.SCH XBRL Taxonomy Extension Schema (furnished herewith)
   
101.CAL XBRL Taxonomy Extension Calculation Linkbase (furnished herewith)
   
101.DEF XBRL Taxonomy Extension Definition Linkbase (furnished herewith)
   
101.LAB XBRL Taxonomy Extension Label Linkbase (furnished herewith)
   
101.PRE XBRL Taxonomy Extension Presentation Linkbase (furnished herewith)
26

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TRANS WORLD ENTERTAINMENT CORPORATION

 

December 18, 2018 By: /s/ Michael Feurer  
  Michael Feurer  
  Chief Executive Officer  
  (Principal Executive Officer)  
     
December 18, 2018 By: /s/ Edwin Sapienza  
  Edwin Sapienza  
  Chief Financial Officer  
  (Principal and Chief Accounting Officer)  
27
EX-31.1 2 c92469_ex31-1.htm

Exhibit 31.1

 

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT 2002

 

I, Michael Feurer certify that:

 

(1)I have reviewed this report on Form 10–Q of the Registrant;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated:   December 18, 2018

 

    /s/ Michael Feurer  
  Michael Feurer
Chief Executive Officer
Trans World Entertainment Corporation
 
 
EX-31.2 3 c92469_ex31-2.htm

Exhibit 31.2

 

CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT 2002

 

I, Edwin Sapienza, Chief Financial Officer of Trans World Entertainment Corporation (the “Registrant”), certify that:

 

(1)I have reviewed this report on Form 10–Q of the Registrant;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated:   December 18, 2018

 

    /s/ Edwin Sapienza  
  Edwin Sapienza
Chief Financial Officer
Trans World Entertainment Corporation
 
 
EX-32 4 c92469_ex32.htm

Exhibit 32

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Trans World Entertainment Corporation (the “Company”) on Form 10-Q for the period ending November 3, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Michael Feurer, Chief Executive Officer of the Company and Edwin Sapienza, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

 

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  /s/ Michael Feurer     /s/ Edwin Sapienza  
Michael Feurer
Chief Executive Officer
December 18, 2018
  Edwin Sapienza
Chief Financial Officer
December 18, 2018
 
 
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Nature of Operations</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Trans World Entertainment Corporation and subsidiaries (&#x201c;the Company&#x201d;) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, <b>www.fye.com </b>and <b>www.secondspin.com</b>. As of November 3, 2018, the fye segment operated 227 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. fye stores offer predominantly entertainment products. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company&#x2019;s business is seasonal in nature, for both segments, with the peak selling period being the holiday season which falls in the Company&#x2019;s fourth fiscal quarter.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Liquidity and Cash Flows:</i></b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">The Company&#x2019;s primary sources of liquidity are borrowing capacity under its revolving credit facility, available cash and cash equivalents, and cash generated from operations. <a name="Editing"></a>The Company&#x2019;s cash flows may be impacted by many factors including the economic environment, consumer confidence, competitive conditions in the retail industry and the success of its strategies. For the next 12 months, management believes that the Company&#x2019;s existing liquidity will be adequate to fund its working capital needs. Management believes that the Company&#x2019;s current financial position will provide it the financial flexibility to support its growth initiatives. However, in accordance with the Company&#x2019;s financing strategy, the Company may access the capital markets opportunistically.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company&#x2019;s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.</p><br/><p style="font: 12pt CG Times (W1),serif; margin: 0pt 0">In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company&#x2019;s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.</p><br/> 2 227 1300000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 2. Basis of Presentation</b></p><br/><p style="font: 12pt CG Times (W1),serif; margin: 0pt 0; text-align: left">The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (&#x201c;Record Town&#x201d;), Record Town&#x2019;s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (&#x201c;U.S. GAAP&#x201d;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended February 3, 2018 contained in the Company&#x2019;s Annual Report on Form 10-K filed May 4, 2018. The results of operations for the thirteen and thirty-nine weeks ended November 3, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Company&#x2019;s significant accounting policies are described in Note 1 to the Company&#x2019;s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Recently Adopted Accounting Pronouncements</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2014, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued Accounting Standard Update (&#x201c;ASU&#x201d;) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.</p><br/> In June 2014, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;)issued Accounting Standard Update (&#x201c;ASU&#x201d;) 2014-09, Revenue from Contracts with Customers (Topic 606), which requiresan entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or servicesto customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoptionof this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift cardbreakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognizegift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentationof our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applyingASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparativeprior period information continues to be reported under the accounting standards in effect during those periods 500000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3. Recently Issued Accounting Pronouncements</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, &#x201c;Leases&#x201d;, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity&#x2019;s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company&#x2019;s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company&#x2019;s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company&#x2019;s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.</p><br/> In February 2016, the FASB issued ASU No. 2016-02, &#x201c;Leases&#x201d;,which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity shouldrecognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative andspecific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand moreabout the nature of an entity&#x2019;s leasing activities, including significant judgments and changes in judgments. The new standardwill be effective for the Company&#x2019;s fiscal year beginning February 3, 2019, and requires the modified retrospective methodof adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company&#x2019;s ConsolidatedFinancial Statements and disclosures. Given the nature of the operating leases for the Company&#x2019;s home office, distributioncenter, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities. <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4. Goodwill and Other Intangible Assets</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and trade names and trademarks. 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color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">29,000</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7,948</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">21,052</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="15">The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt; width: 41%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 10%">&#xa0;</td><td style="color: black; width: 3%">&#xa0;</td> <td style="color: black; text-align: right; width: 2%">&#xa0;</td><td style="color: black; text-align: right; width: 12%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; width: 2%">&#xa0;</td> <td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; text-align: right; width: 10%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; width: 2%">&#xa0;</td> <td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; text-align: right; width: 10%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; padding-bottom: 1px"><b><font style="text-decoration:underline">($ in thousands)</font></b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">February 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Amortization</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-left: 10pt; text-indent: -10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-left: 20pt; text-indent: -10pt">Vendor relationships</td><td style="color: black">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">16,612</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,430</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">15,182</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-left: 20pt; text-indent: -10pt">Technology</td><td style="color: black">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">4,962</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">3,957</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">Trade names and trademarks</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,393</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">1,913</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">Net amortized intangible assets</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">23,967</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,915</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">21,052</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-left: 10pt; text-indent: -10pt">Unamortized intangible assets:</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">Goodwill</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">-</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">Total unamortized intangible assets</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">-</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amortization expense of intangible assets for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017 consisted of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center"><font style="text-decoration:underline">Thirteen Weeks Ended</font></td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center"><font style="text-decoration:underline">Thirty-nine Weeks Ended</font></td><td style="color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; padding-bottom: 1px"><b><font style="text-decoration:underline">($ in thousands)</font></b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 44%; color: black; text-align: left; padding-left: 10pt">Vendor relationships</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: right">$</td><td style="width: 9%; color: black; text-align: right">477</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">478</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,430</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,432</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-left: 10pt">Technology</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">335</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">335</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt">Trade names and trademarks</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">160</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">160</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Total amortization expense</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">972</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">973</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,915</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,917</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 15%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; text-align: left; border-top: Black 1px solid; padding-left: 5pt; vertical-align: bottom"><b>Year</b></td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid"><b>&#xa0;</b></td> <td style="text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid"><b>Annual <br /> Amortization</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">( $ in thousands)</td><td>&#xa0;</td> <td>&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 63%; text-align: left; padding-left: 5pt">2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 35%; text-align: right">$972</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2019</td><td>&#xa0;</td> <td style="text-align: right">3,890</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">2020</td><td>&#xa0;</td> <td style="text-align: right">3,890</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2021</td><td>&#xa0;</td> <td style="text-align: right">3,325</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">2022</td><td>&#xa0;</td> <td style="text-align: right">1,910</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2023</td><td>&#xa0;</td> <td style="text-align: right">1,910</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">Thereafter</td><td>&#xa0;</td> <td style="text-align: right">5,155</td></tr> </table><br/> Identifiable intangible assets as of November 3, 2018 consisted of the following ($ in thousands):<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt"><b>&#xa0;</b></td><td style="color: black; padding-bottom: 1px"><b>&#xa0;</b></td> <td style="color: black; text-align: center; border-bottom: Black 1px solid"><b>Weighted<br /> Average<br /> Amortization<br /> Period <br /> (in months)</b></td><td style="color: black; padding-bottom: 1px; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="color: black; text-align: center; border-bottom: Black 1px solid"><b>Original Gross<br /> Carrying<br /> Amount</b></td><td style="padding-bottom: 1px; color: black; border-bottom: Black 1px solid"><b>&#xa0;</b></td><td style="color: black; padding-bottom: 1px; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="color: black; text-align: center; border-bottom: Black 1px solid"><b>Accumulated<br /> Amortization</b></td><td style="padding-bottom: 1px; color: black; border-bottom: Black 1px solid"><b>&#xa0;</b></td><td style="color: black; padding-bottom: 1px; border-bottom: Black 1px solid"><b>&#xa0;</b></td> <td colspan="2" style="color: black; text-align: center; border-bottom: Black 1px solid"><b>Net Carrying<br /> Amount</b></td><td style="padding-bottom: 1px; color: black; border-bottom: Black 1px solid"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 41%; color: black; text-align: left; padding-left: 20pt; text-indent: -10pt">Vendor relationships</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 10%; color: black; text-align: center">120</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 12%; color: black; text-align: right">19,100</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">3,918</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">15,182</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; padding-left: 20pt; text-indent: -10pt">Technology</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: center">60</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">6,700</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">2,743</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">3,957</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">Trade names and trademarks</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="color: black; text-align: center; padding-bottom: 1px">60</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">3,200</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">1,287</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">1,913</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">29,000</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7,948</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">21,052</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: left">&#xa0;</td></tr> </table> P120M 19100000 3918000 15182000 P60M 6700000 2743000 3957000 P60M 3200000 1287000 1913000 29000000 7948000 21052000 The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 20pt; text-indent: -10pt; width: 41%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 10%">&#xa0;</td><td style="color: black; width: 3%">&#xa0;</td> <td style="color: black; text-align: right; width: 2%">&#xa0;</td><td style="color: black; text-align: right; width: 12%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; width: 2%">&#xa0;</td> <td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; text-align: right; width: 10%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; width: 2%">&#xa0;</td> <td style="color: black; text-align: left; width: 1%">&#xa0;</td><td style="color: black; text-align: right; width: 10%">&#xa0;</td><td style="color: black; text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; padding-bottom: 1px"><b><font style="text-decoration:underline">($ in thousands)</font></b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">February 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Amortization</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-left: 10pt; text-indent: -10pt">Amortized intangible assets:</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-left: 20pt; text-indent: -10pt">Vendor relationships</td><td style="color: black">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">16,612</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,430</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">15,182</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-left: 20pt; text-indent: -10pt">Technology</td><td style="color: black">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">4,962</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">3,957</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">Trade names and trademarks</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,393</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">1,913</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">Net amortized intangible assets</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">23,967</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,915</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">21,052</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-left: 10pt; text-indent: -10pt">Unamortized intangible assets:</td><td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt">Goodwill</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">-</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt; text-indent: -10pt">Total unamortized intangible assets</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">-</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">39,191</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> </table> 16612000 1430000 15182000 4962000 1005000 3957000 2393000 480000 1913000 2915000 39191000 39191000 Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center"><font style="text-decoration:underline">Thirteen Weeks Ended</font></td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center"><font style="text-decoration:underline">Thirty-nine Weeks Ended</font></td><td style="color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; padding-bottom: 1px"><b><font style="text-decoration:underline">($ in thousands)</font></b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="2">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left">Amortized intangible assets:</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 44%; color: black; text-align: left; padding-left: 10pt">Vendor relationships</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: right">$</td><td style="width: 9%; color: black; text-align: right">477</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">478</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,430</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,432</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-left: 10pt">Technology</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">&#xa0;</td><td style="color: black; text-align: right">335</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">335</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">&#xa0;</td><td style="color: black; text-align: right">1,005</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; padding-left: 10pt">Trade names and trademarks</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">160</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">160</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">480</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Total amortization expense</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">972</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">973</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,915</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,917</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> </table> 477000 478000 1432000 335000 335000 1005000 160000 160000 480000 972000 973000 Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 15%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; text-align: left; border-top: Black 1px solid; padding-left: 5pt; vertical-align: bottom"><b>Year</b></td><td style="border-bottom: Black 1px solid; border-top: Black 1px solid"><b>&#xa0;</b></td> <td style="text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid"><b>Annual <br /> Amortization</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">( $ in thousands)</td><td>&#xa0;</td> <td>&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 63%; text-align: left; padding-left: 5pt">2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 35%; text-align: right">$972</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2019</td><td>&#xa0;</td> <td style="text-align: right">3,890</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">2020</td><td>&#xa0;</td> <td style="text-align: right">3,890</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2021</td><td>&#xa0;</td> <td style="text-align: right">3,325</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">2022</td><td>&#xa0;</td> <td style="text-align: right">1,910</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-left: 5pt">2023</td><td>&#xa0;</td> <td style="text-align: right">1,910</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 5pt">Thereafter</td><td>&#xa0;</td> <td style="text-align: right">5,155</td></tr> </table> 972000 3890000 3890000 3325000 1910000 1910000 5155000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5. Depreciation and Amortization</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation and amortization included in the condensed consolidated statements of operations is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">October 28,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">October 28,</td><td style="color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; font-style: italic; padding-bottom: 1px"><b>($ in thousands)</b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 2px; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="6">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="6">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; color: black; text-indent: -10pt; padding-left: 10pt">Cost of sales</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">-</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">163</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">-</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">474</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Selling, general and administrative expenses</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,303</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">3,425</td><td style="padding-bottom: 1px; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">6,808</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">9,989</td><td style="padding-bottom: 2px; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">2,303</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">3,588</td><td style="padding-bottom: 3px; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">6,808</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; color: black; text-align: right">$10,463</td><td style="padding-bottom: 3px; color: black; text-align: left">&#xa0;</td></tr> </table><br/> Depreciation and amortization included in the condensed consolidated statements of operations is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">October 28,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center">October 28,</td><td style="color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; font-style: italic; padding-bottom: 1px"><b>($ in thousands)</b></td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; color: black; font-weight: bold">&#xa0;</td><td style="color: black; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 2px; color: black; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td colspan="6">&#xa0;</td><td>&#xa0;</td><td>&#xa0;</td> <td colspan="6">&#xa0;</td><td>&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; color: black; text-indent: -10pt; padding-left: 10pt">Cost of sales</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">-</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">163</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">-</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">474</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Selling, general and administrative expenses</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">2,303</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">3,425</td><td style="padding-bottom: 1px; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">6,808</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">9,989</td><td style="padding-bottom: 2px; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">2,303</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">3,588</td><td style="padding-bottom: 3px; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">6,808</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; color: black; text-align: right">$10,463</td><td style="padding-bottom: 3px; color: black; text-align: left">&#xa0;</td></tr> </table> 163000 474000 2303000 3425000 6808000 9989000 2303000 3588000 6808000 10463000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt"><b>Note 6. Segment Data</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt"><b>($ in thousands)</b></td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total Revenue</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">47,865</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">52,105</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">152,473</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">176,006</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">44,119</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">40,896</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">138,288</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">121,440</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">91,984</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">93,001</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">290,761</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">297,446</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Gross Profit</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">18,276</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">21,347</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">61,181</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">73,342</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">9,110</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">10,234</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">30,066</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">29,714</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">27,386</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">31,581</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">91,247</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">103,056</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Loss From Operations</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">(9,493)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(7,858)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">(21,495)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(17,703)</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(4,261)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(253)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(9,808)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(966)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(13,754)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(8,111)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(31,303)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(18,669)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="16" style="padding-left: 10pt; text-indent: -10pt"><b>Total Assets As of November 3, 2018 and As of October 28, 2017</b></td><td style="text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="16" style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-top: Black 1px solid">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; border-bottom: Black 1px solid; text-align: center; border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; font-family: Times New Roman, Times, Serif; color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="width: 3%; font-family: Times New Roman, Times, Serif; color: black">&#xa0;</td> <td style="width: 2%">&#xa0;</td> <td style="width: 10%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 2%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 10%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 3%">&#xa0;</td> <td style="width: 2%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">132,699</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&#xa0;</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">186,869</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">106,362</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">102,077</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 3px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">239,061</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">288,946</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> </table><br/> As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="color: black; padding-bottom: 1px; padding-left: 20pt; text-indent: -10pt"><b>($ in thousands)</b></td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total Revenue</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">47,865</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">52,105</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">152,473</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 2%; color: black">&#xa0;</td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">176,006</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">44,119</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">40,896</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">138,288</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">121,440</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">91,984</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">93,001</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">290,761</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">297,446</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Gross Profit</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">18,276</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">21,347</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">61,181</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">73,342</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">9,110</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">10,234</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">30,066</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">29,714</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">27,386</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">31,581</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">91,247</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">103,056</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Loss From Operations</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">(9,493)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(7,858)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: right">$</td><td style="color: black; text-align: right">(21,495)</td><td style="color: black; text-align: left">&#xa0;</td><td style="color: black">&#xa0;</td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(17,703)</td><td style="color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(4,261)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(253)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(9,808)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">(966)</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(13,754)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(8,111)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(31,303)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">(18,669)</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> </table> 47865000 52105000 152473000 176006000 44119000 40896000 138288000 121440000 91984000 93001000 290761000 297446000 18276000 21347000 61181000 73342000 9110000 10234000 30066000 29714000 27386000 31581000 91247000 103056000 -9493000 -7858000 -21495000 -17703000 -4261000 -253000 -9808000 -966000 -13754000 -8111000 -31303000 -18669000 Total Assets As of November 3, 2018 and As of October 28, 2017<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="16" style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">November 3, <br /> 2018</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-top: Black 1px solid">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; border-bottom: Black 1px solid; text-align: center; border-top: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1px solid; border-top: Black 1px solid">October 28, <br /> 2017</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 40%; font-family: Times New Roman, Times, Serif; color: black; text-indent: -10pt; padding-left: 20pt">fye</td><td style="width: 3%; font-family: Times New Roman, Times, Serif; color: black">&#xa0;</td> <td style="width: 2%">&#xa0;</td> <td style="width: 10%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 2%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 10%">&#xa0;</td> <td style="width: 1%">&#xa0;</td> <td style="width: 3%">&#xa0;</td> <td style="width: 2%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">132,699</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&#xa0;</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">186,869</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1px; text-indent: -10pt; padding-left: 20pt">etailz</td><td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">106,362</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; color: black; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: right">102,077</td><td style="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 30pt">Total Company</td><td style="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 3px">&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td>&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">239,061</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td><td style="font-family: Times New Roman, Times, Serif; color: black; border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: right">288,946</td><td style="border-bottom: Black 3px double; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&#xa0;</td></tr> </table> 132699000 186869000 106362000 102077000 239061000 288946000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7. Restricted Cash</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">As of November 3, 2018, the Company had restricted cash of $4.1 million and $5.9 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of October 28, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $5.9 million is classified as restricted cash in other assets of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">February 3,</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">October 28,</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 50%; color: black; text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 5%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">4,497</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">31,326</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">3,924</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Restricted cash</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">10,066</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">12,180</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">12,234</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total cash, cash equivalents and restricted cash</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">14,563</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">43,506</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">16,158</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">During the thirty-nine weeks ended November 3, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement.</p><br/> 4100000 5900000 1500000 10700000 3200000 7100000 900000 5900000 1500000 A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">November 3,</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">February 3,</td><td style="color: black; font-weight: bold">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center">October 28,</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="color: black; font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="3" style="color: black; font-weight: bold; text-align: center; border-bottom: Black 1px solid">2017</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 50%; color: black; text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 5%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">4,497</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">31,326</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td><td style="width: 3%; color: black">&#xa0;</td> <td style="width: 2%; color: black; text-align: right">$</td><td style="width: 10%; color: black; text-align: right">3,924</td><td style="width: 1%; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Restricted cash</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">10,066</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">12,180</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; color: black; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid; color: black; text-align: right">12,234</td><td style="border-bottom: Black 1px solid; color: black; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Total cash, cash equivalents and restricted cash</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">14,563</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">43,506</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td><td style="color: black; padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; color: black; text-align: right">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">16,158</td><td style="border-bottom: Black 3px double; color: black; text-align: left">&#xa0;</td></tr> </table> 10066000 12180000 12234000 43506000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 8. Short Term Borrowings</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the Company entered into a $50 million asset based credit facility (&#x201c;Credit Facility&#x201d;) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of November 3, 2018, the Company was compliant with all covenants.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">On October 29, 2018, the Company entered into a letter agreement with Wells Fargo in accordance with the Credit Facility in which Wells Fargo provided consent to the Company exceeding the permitted number of store closures and related inventory dispositions.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">As of November 3, 2018, borrowings under the credit facility were $27.4 million compared to $5.0 million as of October 28, 2017. The Company had $22.1 million and $49.0 million available for borrowing as of November 3, 2018 and October 28, 2017, respectively.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">As of November 3, 2018, and as of October 28, 2017 the Company did not have any outstanding letters of credit.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.</p><br/> 50000000 75000000 5000000 0.0175 0.0200 0.0075 0.0100 0.0025 27400000 5000000 22100000 49000000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 9. Stock Based Compensation</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">As of November 3, 2018, there was approximately $1.5 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.7 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 1.6 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 3.9 years; and $0.6 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next three months.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the &#x201c;Old Plans&#x201d;); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the &#x201c;New &#x201c;Plan&#x201d;). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the &#x201c;1990 Plan&#x201d;). The Company no longer issues stock options under the Old Plans or the 1990 Plan.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Equity awards authorized for issuance under the New Plan total 5.0 million. As of November 3, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.9 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at November 3, 2018 were 4.4 million.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The following table summarizes stock award activity during the thirty-nine weeks ended November 3, 2018:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Employee and Director Stock Award Plans</td><td style="padding-bottom: 1px; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Number&#xa0;of<br /> Shares<br /> Subject&#xa0;To<br /> Option</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom"><b>Other&#xa0;Share<br /> Awards <sup>(1)</sup></b></td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Grant&#xa0;Fair<br /> Value</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom"><b>Aggregate<br /> Intrinsic<br /> Value <sup>(2)</sup></b></td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 28%; text-align: center; text-indent: -10pt; padding-left: 10pt">Balance February 3, 2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">2,585,914</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3.06</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">7.2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">183,427</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3.22</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">-</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Granted</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">555,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.99</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">219,484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1.14</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Forfeited</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(53,000)</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.44</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Canceled</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(72,000)</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.37</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid">Exercised</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(131,500)</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2.19</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Balance November 3, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,015,914</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.68</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6.3</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">271,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.53</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">83,400</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Exercisable November 3, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,900,289</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">3.07</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4.8</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">128,911</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.85</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">19,200</td><td style="text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 4%">&#xa0;</td> <td style="width: 4%; text-align: left; padding-top: 3pt"><sup>(1)</sup></td><td style="text-align: left; padding-top: 3pt; width: 92%">Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.</td> </tr> <tr style="vertical-align: top; text-align: justify"> <td>&#xa0;</td> <td style="text-align: left"><sup>(2)</sup></td><td style="text-align: left">As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value.</td> </tr></table><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and thirty-nine weeks ended November 3, 2018, the Company recognized $0.6 million and $1.8 million of compensation cost related to these shares, respectively. As of November 3, 2018, there was approximately $0.6 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next three months.</p><br/> 1500000 700000 P1Y219D 200000 P3Y328D P3Y 5000000 3000000 1900000 4400000 1572552 3.56 600000 1800000 600000 The following table summarizes stock award activity during the thirty-nine weeks ended November 3, 2018:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Employee and Director Stock Award Plans</td><td style="padding-bottom: 1px; font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Number&#xa0;of<br /> Shares<br /> Subject&#xa0;To<br /> Option</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom"><b>Other&#xa0;Share<br /> Awards <sup>(1)</sup></b></td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom">Weighted<br /> Average<br /> Grant&#xa0;Fair<br /> Value</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td><td style="font-weight: bold; text-align: center; vertical-align: bottom">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; vertical-align: bottom"><b>Aggregate<br /> Intrinsic<br /> Value <sup>(2)</sup></b></td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 28%; text-align: center; text-indent: -10pt; padding-left: 10pt">Balance February 3, 2018</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">2,585,914</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3.06</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">7.2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">183,427</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3.22</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">-</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Granted</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">555,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">0.99</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">219,484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1.14</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Forfeited</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(53,000)</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.44</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Canceled</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(72,000)</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3.37</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">-</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid">Exercised</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(131,500)</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2.19</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="padding-bottom: 1px; border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Balance November 3, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,015,914</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.68</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6.3</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">271,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.53</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">83,400</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: center; text-indent: -10pt; padding-left: 10pt">Exercisable November 3, 2018</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,900,289</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">3.07</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">4.8</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">128,911</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.85</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">19,200</td><td style="text-align: left">&#xa0;</td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 4%">&#xa0;</td> <td style="width: 4%; text-align: left; padding-top: 3pt"><sup>(1)</sup></td><td style="text-align: left; padding-top: 3pt; width: 92%">Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.</td> </tr> <tr style="vertical-align: top; text-align: justify"> <td>&#xa0;</td> <td style="text-align: left"><sup>(2)</sup></td><td style="text-align: left">As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value.</td> </tr></table> 2585914 3.06 P7Y73D 183427 3.22 555000 0.99 219484 1.14 53000 3.44 -72000 3.37 -131500 2.19 3015914 2.68 P6Y109D 271411 2.53 83400 1900289 3.07 P4Y292D 128911 2.85 19200 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 10. Accumulated Other Comprehensive Loss </b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company&#x2019;s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension costs associated with Company&#x2019;s defined benefit plan for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017.</p><br/> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 11. Defined Benefit Plan</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The Company maintains a non-qualified Supplemental Executive Retirement Plan (&#x201c;SERP&#x201d;) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the thirty-nine weeks ended November 3, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following represents the components of the net periodic pension cost related to the Company&#x2019;s SERP for the respective periods:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">November 3,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; padding-right: 3pt">October 28,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">November 3,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; padding-right: 3pt">October 28,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic"><b>($ in thousands)</b></td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid; padding-right: 3pt">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid; padding-right: 3pt">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%; padding-right: 3pt">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%; padding-right: 3pt">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Service cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">$14</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">$16</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">$42</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">$48</td> <td style="text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Interest cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">140</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">139</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">420</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">417</td> <td style="text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Amortization of net gain <sup>(1)</sup></td><td>&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(5)</td> <td style="border-bottom: Black 1px solid; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right; padding-right: 3pt">(5)</td> <td style="padding-bottom: 1px; text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(15)</td> <td style="border-bottom: Black 1px solid; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right; padding-right: 3pt">(15)</td> <td style="padding-bottom: 1px; text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Net periodic pension cost</td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">$149</td> <td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">$150</td> <td style="padding-bottom: 3px; text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">$447</td> <td style="border-bottom: Black 3px double; text-align: right">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">$450</td> <td style="padding-bottom: 3px; text-align: right">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; width: 4%; padding-top: 3pt"><sup>(1)</sup></td><td style="width: 96%; padding-top: 3pt">The amortization of net gain is related to a director retirement plan previously provided by the Company.</td> </tr> </table><br/> 1200000 The following represents the components of the net periodic pension cost related to the Company&#x2019;s SERP for the respective periods:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirteen Weeks Ended</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Thirty-nine Weeks Ended</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">November 3,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; padding-right: 3pt">October 28,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center">November 3,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; padding-right: 3pt">October 28,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic"><b>($ in thousands)</b></td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid; padding-right: 3pt">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">2018</td><td style="border-bottom: Black 1px solid; font-weight: bold">&#xa0;</td><td style="font-weight: bold; border-bottom: Black 1px solid">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid; padding-right: 3pt">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%; padding-right: 3pt">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="text-align: left; width: 1%">&#xa0;</td><td style="text-align: right; width: 10%; padding-right: 3pt">&#xa0;</td><td style="text-align: left; width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Service cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">$14</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">$16</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">$42</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">$48</td> <td style="text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Interest cost</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">140</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">139</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">420</td> <td style="text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right; padding-right: 3pt">417</td> <td style="text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Amortization of net gain <sup>(1)</sup></td><td>&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(5)</td> <td style="border-bottom: Black 1px solid; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right; padding-right: 3pt">(5)</td> <td style="padding-bottom: 1px; text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(15)</td> <td style="border-bottom: Black 1px solid; text-align: right">&#xa0;</td><td style="border-bottom: Black 1px solid">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right; padding-right: 3pt">(15)</td> <td style="padding-bottom: 1px; text-align: right">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; text-indent: -10pt; padding-left: 10pt">Net periodic pension cost</td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">$149</td> <td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">$150</td> <td style="padding-bottom: 3px; text-align: right">&#xa0;</td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">$447</td> <td style="border-bottom: Black 3px double; text-align: right">&#xa0;</td><td style="border-bottom: Black 3px double">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right; padding-right: 3pt">$450</td> <td style="padding-bottom: 3px; text-align: right">&#xa0;</td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; width: 4%; padding-top: 3pt"><sup>(1)</sup></td><td style="width: 96%; padding-top: 3pt">The amortization of net gain is related to a director retirement plan previously provided by the Company.</td> </tr> </table> 14000 16000 42000 48000 140000 139000 420000 417000 -5000 -5000 -15000 -15000 149000 150000 447000 450000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 12. Basic and Diluted Loss Per Share </b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company&#x2019;s common stock awards from the Company&#x2019;s Stock Award Plans.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the thirteen and thirty-nine week periods ended November 3, 2018 and October 28, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and thirty-nine weeks ended November 3, 2018 were approximately 3.1 million shares and 3.0 million shares, respectively, as compared to 2.6 million shares for both, thirteen and thirty-nine weeks ended October 28, 2017.</p><br/> 3100000 3000000 2600000 2600000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 13.&#xa0;Income Taxes </b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt">In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company&#x2019;s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company&#x2019;s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company&#x2019;s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.</p><br/> 208300000 273400000 2037 100000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 14. Commitments and Contingencies</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Legal Proceedings</b></p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management&#x2019;s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loyalty Memberships and Magazine Subscriptions Class Action</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">On November 14, 2018,&#xa0;three consumers filed a putative class action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Court for the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW)&#xa0;concerning enrollment in the Company&#x2019;s Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, that the Company&#x2019;s &#x201c;negative option marketing&#x201d; misled consumers into enrolling for membership and subscriptions without obtaining the consumers&#x2019; consent. The complaint seeks statutory and actual damages. The Company is reviewing the claims.&#xa0;</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Store Manager Class Actions</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager).</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.</p><br/><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Legal matters are defended and handled in the ordinary course of business.&#xa0;&#xa0;The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.</p><br/> On November 14, 2018,&#xa0;three consumers filed a putativeclass action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Courtfor the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW)&#xa0;concerning enrollment in the Company&#x2019;sBackstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, thatthe Company&#x2019;s &#x201c;negative option marketing&#x201d; misled consumers into enrolling for membership and subscriptions withoutobtaining the consumers&#x2019; consent. The complaint seeks statutory and actual damages. The Company is reviewingthe claims.&#xa0; Specifically, Carol Spack filed a complaint against Trans WorldEntertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.:3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor StandardsAct (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers.She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managersin New Jersey or Senior Assistant Managers in Pennsylvania. On May 19, 2017, Natasha Roper filed a complaint against TransWorld in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also allegesthat she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action underthe FLSA on behalf of all similarly situated Store Managers. 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Document And Entity Information
9 Months Ended
Nov. 03, 2018
shares
Document and Entity Information [Abstract]  
Entity Registrant Name TRANS WORLD ENTERTAINMENT CORP
Document Type 10-Q
Current Fiscal Year End Date --01-31
Entity Common Stock, Shares Outstanding 36,258,839
Amendment Flag false
Entity Central Index Key 0000795212
Entity Current Reporting Status Yes
Entity Filer Category Accelerated Filer
Document Period End Date Nov. 03, 2018
Document Fiscal Year Focus 2018
Document Fiscal Period Focus Q3
Entity Small Business true
Entity Emerging Growth Company false
Entity Ex Transition Period false
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Nov. 03, 2018
Feb. 03, 2018
Oct. 28, 2017
CURRENT ASSETS      
Cash and cash equivalents $ 4,497 $ 31,326 $ 3,924
Restricted cash 4,122 1,505 1,503
Accounts receivable 5,659 4,469 6,071
Merchandise inventory 131,285 109,377 144,754
Prepaid expenses and other assets 9,227 6,976 7,113
Total current assets 154,790 153,653 163,365
Restricted cash 5,944 10,675 10,731
Fixed assets, net 12,177 13,546 43,472
Goodwill 39,191 39,191 39,191
Intangible assets, net 21,052 23,967 24,940
Other assets 5,907 7,139 7,247
TOTAL ASSETS 239,061 248,171 288,946
CURRENT LIABILITIES      
Accounts payable 42,272 41,780 45,378
Short-term borrowings 27,440   5,000
Accrued expenses and other current liabilities 8,624 11,038 9,805
Deferred revenue 6,454 8,464 7,231
Total current liabilities 84,790 61,282 67,414
Contingent consideration     2,115
Other long-term liabilities 25,853 29,131 29,236
TOTAL LIABILITIES 110,643 90,413 98,765
SHAREHOLDERS’ EQUITY      
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)
Common stock ($0.01 par value; 200,000,000 shares authorized; 64,436,671, 64,305,171 and 64,255,171 shares issued, respectively) 644 643 643
Additional paid-in capital 343,511 341,103 340,391
Treasury stock at cost (28,177,832, 28,156,601 and 28,138,116 shares, respectively) (230,167) (230,145) (230,144)
Accumulated other comprehensive loss (1,013) (998) (788)
Retained earnings 15,443 47,155 80,079
TOTAL SHAREHOLDERS’ EQUITY 128,418 157,758 190,181
TOTAL LIABILITIES AND EQUITY $ 239,061 $ 248,171 $ 288,946
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Nov. 03, 2018
Feb. 03, 2018
Oct. 28, 2017
Preferred stock par value (in Dollars per share) $ 0.01 $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000 5,000,000
Preferred stock, shares issued 0 0 0
Common stock par value (in Dollars per share) $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000 200,000,000
Common stock, shares issued 64,436,671 64,305,171 64,255,171
Treasury stock, shares at cost 28,177,832 28,156,601 28,138,116
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Net sales $ 90,877 $ 91,817 $ 287,148 $ 293,482
Other revenue 1,107 1,184 3,613 3,964
Total revenue 91,984 93,001 290,761 297,446
Cost of sales 64,598 61,420 199,514 194,390
Gross profit 27,386 31,581 91,247 103,056
Selling, general and administrative expenses 41,140 39,692 122,550 121,725
Loss from operations (13,754) (8,111) (31,303) (18,669)
Interest expense 277 83 444 200
Gain on insurance proceeds   (27)   (8,733)
Other income (43) (32) (171) (91)
Loss before income tax expense (13,988) (8,135) (31,576) (10,045)
Income tax expense (benefit) 64 (64) 136 40
Net loss $ (14,052) $ (8,071) $ (31,712) $ (10,085)
BASIC AND DILUTED LOSS PER COMMON SHARE:        
Basic and diluted loss per common share (in Dollars per share) $ (0.39) $ (0.22) $ (0.87) $ (0.28)
Weighted average number of common shares outstanding – basic and diluted (in Shares) 36,296 36,190 36,272 36,181
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Net loss $ (14,052) $ (8,071) $ (31,712) $ (10,085)
Amortization of pension gain (loss) 5 (5) 15 (15)
Comprehensive loss $ (14,047) $ (8,076) $ (31,697) $ (10,100)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
OPERATING ACTIVITIES:    
Net loss $ (31,712) $ (10,085)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation of fixed assets 3,893 7,558
Amortization of intangible assets 2,915 2,917
Amortization of lease valuations, net   (12)
Stock based compensation 2,387 2,314
Adjustment to contingent consideration (272) (1,437)
Loss on disposal of fixed assets 327 459
Change in cash surrender value 90 (227)
Gain on life insurance asset   (8,733)
Changes in operating assets and liabilities that provide (use) cash:    
Accounts receivable (1,190) 1,014
Merchandise inventory (21,908) (18,750)
Prepaid expenses and other current assets (2,251) 1,158
Other long-term assets (163) (497)
Accounts payable 492 (6,929)
Accrued expenses and other current liabilities (642) (892)
Deferred revenue (2,010) (1,999)
Other long-term liabilities (3,293) 194
Net cash used in operating activities (53,337) (33,947)
INVESTING ACTIVITIES:    
Purchases of fixed assets (2,851) (6,392)
Proceeds from company owned life insurance   14,363
Investment in joint venture   (2,575)
Capital distributions from joint venture 1,305 632
Net cash (used in) provided by investing activities (1,546) 6,028
FINANCING ACTIVITIES:    
Proceeds from short term borrowings 27,440 5,000
Payments to etailz shareholders (1,500) (5,000)
Net cash provided by (used in) financing activities 25,940  
Net decrease in cash, cash equivalents, and restricted cash (28,943) (27,919)
Cash, cash equivalents, and restricted cash, beginning of period 43,506 44,077
Cash, cash equivalents, and restricted cash, end of period $ 14,563 $ 16,158
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Nature of Operations
9 Months Ended
Nov. 03, 2018
Disclosure Text Block [Abstract]  
Nature of Operations [Text Block]

Note 1. Nature of Operations


Trans World Entertainment Corporation and subsidiaries (“the Company”) operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com and www.secondspin.com. As of November 3, 2018, the fye segment operated 227 stores totaling approximately 1.3 million square feet in the United States, the District of Columbia and the U.S. Virgin Islands. fye stores offer predominantly entertainment products. The etailz segment is a leading digital marketplace retailer and generates substantially all of its revenue through Amazon Marketplace. The Company’s business is seasonal in nature, for both segments, with the peak selling period being the holiday season which falls in the Company’s fourth fiscal quarter.


Liquidity and Cash Flows:


The Company’s primary sources of liquidity are borrowing capacity under its revolving credit facility, available cash and cash equivalents, and cash generated from operations. The Company’s cash flows may be impacted by many factors including the economic environment, consumer confidence, competitive conditions in the retail industry and the success of its strategies. For the next 12 months, management believes that the Company’s existing liquidity will be adequate to fund its working capital needs. Management believes that the Company’s current financial position will provide it the financial flexibility to support its growth initiatives. However, in accordance with the Company’s financing strategy, the Company may access the capital markets opportunistically.


Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility, as discussed in note 8 in the interim condensed consolidated financial statements.


In connection with the preparation of these unaudited interim condensed consolidated financial statements, the Company has evaluated and concluded there are no conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year following the date that these financial statements are issued.


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Basis of Presentation
9 Months Ended
Nov. 03, 2018
Disclosure Text Block [Abstract]  
Basis of Accounting [Text Block]

Note 2. Basis of Presentation


The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”), Record Town’s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation.


The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements.


The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes as of and for the year ended February 3, 2018 contained in the Company’s Annual Report on Form 10-K filed May 4, 2018. The results of operations for the thirteen and thirty-nine weeks ended November 3, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019.


The Company’s significant accounting policies are described in Note 1 to the Company’s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 3, 2018.


There have been no material changes to the accounting policies applied to our consolidated results and footnote disclosures.


Recently Adopted Accounting Pronouncements


In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoption of this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift card breakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognize gift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentation of our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applying ASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods.


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Recent Accounting Pronouncements
9 Months Ended
Nov. 03, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 3. Recently Issued Accounting Pronouncements


In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The new standard will be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospective method of adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’s Consolidated Financial Statements and disclosures. Given the nature of the operating leases for the Company’s home office, distribution center, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.


XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets
9 Months Ended
Nov. 03, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 4. Goodwill and Other Intangible Assets


Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable.


Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.


The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and trade names and trademarks. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.


Identifiable intangible assets as of November 3, 2018 consisted of the following ($ in thousands):


   Weighted
Average
Amortization
Period
(in months)
  Original Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                   
Vendor relationships  120  $19,100   $3,918   $15,182 
Technology  60   6,700    2,743    3,957 
Trade names and trademarks  60   3,200    1,287    1,913 
      $29,000   $7,948   $21,052 
                   

The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:

                   
($ in thousands)      February 3,
2018
   Amortization   November 3,
2018
 
                    
Amortized intangible assets:                   
Vendor relationships      $16,612   $1,430   $15,182 
Technology       4,962    1,005    3,957 
Trade names and trademarks       2,393    480    1,913 
Net amortized intangible assets      $23,967   $2,915   $21,052 
                    
Unamortized intangible assets:                   
Goodwill      $39,191   $-   $39,191 
Total unamortized intangible assets      $39,191   $-   $39,191 

Amortization expense of intangible assets for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017 consisted of the following:


   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $478   $1,430   $1,432 
Technology   335    335    1,005    1,005 
Trade names and trademarks   160    160    480    480 
Total amortization expense  $972   $973   $2,915   $2,917 

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:


Year  Annual
Amortization
( $ in thousands)   
2018  $972
2019  3,890
2020  3,890
2021  3,325
2022  1,910
2023  1,910
Thereafter  5,155

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization
9 Months Ended
Nov. 03, 2018
Depreciation and Amoritzation [Abstract]  
Depreciation and Amoritzation [Text Block]

Note 5. Depreciation and Amortization


Depreciation and amortization included in the condensed consolidated statements of operations is as follows:


   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
         
Cost of sales  $-   $163   $-   $474 
Selling, general and administrative expenses   2,303    3,425    6,808    9,989 
Total  $2,303   $3,588   $6,808    $10,463 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data
9 Months Ended
Nov. 03, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 6. Segment Data


As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:


   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
Total Revenue                    
fye  $47,865   $52,105   $152,473   $176,006 
etailz   44,119    40,896    138,288    121,440 
Total Company  $91,984   $93,001   $290,761   $297,446 
                     
Gross Profit                    
fye  $18,276   $21,347   $61,181   $73,342 
etailz   9,110    10,234    30,066    29,714 
Total Company  $27,386   $31,581   $91,247   $103,056 
                     
Loss From Operations                    
fye  $(9,493)   $(7,858)   $(21,495)   $(17,703) 
etailz   (4,261)    (253)    (9,808)    (966) 
Total Company  $(13,754)   $(8,111)   $(31,303)   $(18,669) 
                     

Total Assets As of November 3, 2018 and As of October 28, 2017 

  
                   November 3,
2018
   October 28,
2017
 
fye                  $132,699   $186,869 
etailz                   106,362    102,077 
Total Company                  $239,061   $288,946 

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash
9 Months Ended
Nov. 03, 2018
Disclosure Text Block Supplement [Abstract]  
Restricted Assets Disclosure [Text Block]

Note 7. Restricted Cash


As of November 3, 2018, the Company had restricted cash of $4.1 million and $5.9 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively. As of October 28, 2017, the Company had restricted cash of $1.5 million and $10.7 million reported in current and other assets on the accompanying condensed consolidated balance sheet, respectively.


In connection with the acquisition of etailz and under the terms of the amended and restated share purchase agreement, the Company designated $3.2 million of the restricted cash to equal the maximum earn-out amount that could be paid to the selling shareholders of etailz in accordance with the share purchase agreement, which is classified as restricted cash in current assets as of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.


In addition, as a result of the death of its former Chairman, the Company holds $7.1 million in a rabbi trust, of which $0.9 million is classified as restricted cash in current assets and $5.9 million is classified as restricted cash in other assets of November 3, 2018 on the accompanying interim condensed consolidated balance sheet.


A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):


   November 3,  February 3,  October 28,
   2018  2018  2017
Cash and cash equivalents  $4,497   $31,326   $3,924 
Restricted cash   10,066    12,180    12,234 
Total cash, cash equivalents and restricted cash  $14,563   $43,506   $16,158 

During the thirty-nine weeks ended November 3, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement.


XML 24 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Short Term Borrowings
9 Months Ended
Nov. 03, 2018
Disclosure Text Block [Abstract]  
Short-term Debt [Text Block]

Note 8. Short Term Borrowings


In January 2017, the Company entered into a $50 million asset based credit facility (“Credit Facility”) which amended the previous credit facility. The principal amount of all outstanding loans under the Credit Facility, together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. The Credit Facility contains a provision to increase availability to $75 million during October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels.


The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends and share repurchases to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. As of November 3, 2018, the Company was compliant with all covenants.


On October 29, 2018, the Company entered into a letter agreement with Wells Fargo in accordance with the Credit Facility in which Wells Fargo provided consent to the Company exceeding the permitted number of store closures and related inventory dispositions.


Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments.


As of November 3, 2018, borrowings under the credit facility were $27.4 million compared to $5.0 million as of October 28, 2017. The Company had $22.1 million and $49.0 million available for borrowing as of November 3, 2018 and October 28, 2017, respectively.


As of November 3, 2018, and as of October 28, 2017 the Company did not have any outstanding letters of credit.


The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity.


XML 25 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation
9 Months Ended
Nov. 03, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 9. Stock Based Compensation


As of November 3, 2018, there was approximately $1.5 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.7 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 1.6 years; $0.2 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 3.9 years; and $0.6 million was related to restricted shares issued in connection with the acquisition of etailz, as discussed further below, and expected to be recognized as expense over the next three months.


The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the “New “Plan”). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans or the 1990 Plan.


Equity awards authorized for issuance under the New Plan total 5.0 million. As of November 3, 2018, of the awards authorized for issuance under the Stock Award Plans, 3.0 million were granted and are outstanding, 1.9 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at November 3, 2018 were 4.4 million.


The following table summarizes stock award activity during the thirty-nine weeks ended November 3, 2018:


   Employee and Director Stock Award Plans     
   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other Share
Awards (1)
   Weighted
Average
Grant Fair
Value
   Aggregate
Intrinsic
Value (2)
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22    - 
Granted   555,000    0.99         219,484    1.14    - 
Forfeited   (53,000)    3.44         -    -    - 
Canceled   (72,000)    3.37         -    -    - 
Exercised   -    -    -    (131,500)    2.19    - 
Balance November 3, 2018   3,015,914   $2.68    6.3    271,411   $2.53   $83,400 
Exercisable November 3, 2018   1,900,289   $3.07    4.8    128,911   $2.85   $19,200 

  (1)Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
  (2)As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value.

In connection with the acquisition of etailz, the Company issued 1,572,552 restricted shares of Company stock to a key etailz employee, with a grant date fair value of $3.56 per share. These shares vest ratably through January 2019. During the thirteen and thirty-nine weeks ended November 3, 2018, the Company recognized $0.6 million and $1.8 million of compensation cost related to these shares, respectively. As of November 3, 2018, there was approximately $0.6 million of unrecognized compensation cost related to these restricted shares that is expected to be recognized as expense over the next three months.


XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Accumulated Other Comprehensive Loss
9 Months Ended
Nov. 03, 2018
Disclosure Text Block Supplement [Abstract]  
Other Comprehensive Income, Noncontrolling Interest [Text Block]

Note 10. Accumulated Other Comprehensive Loss


Accumulated other comprehensive loss that the Company reports in the condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company’s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension costs associated with Company’s defined benefit plan for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017.


XML 27 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans
9 Months Ended
Nov. 03, 2018
Disclosure Text Block Supplement [Abstract]  
Compensation and Employee Benefit Plans [Text Block]

Note 11. Defined Benefit Plan


The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a limited number of executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the thirty-nine weeks ended November 3, 2018, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2018.


The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities.


The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:


   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
                     
Service cost   $14     $16     $42     $48  
Interest cost   140     139     420     417  
Amortization of net gain (1)   (5)     (5)     (15)     (15)  
Net periodic pension cost   $149     $150     $447     $450  

(1)The amortization of net gain is related to a director retirement plan previously provided by the Company.

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basic and Diluted Loss Per Share
9 Months Ended
Nov. 03, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

Note 12. Basic and Diluted Loss Per Share


Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net income by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company’s common stock awards from the Company’s Stock Award Plans.


For the thirteen and thirty-nine week periods ended November 3, 2018 and October 28, 2017, the impact of all outstanding stock awards was not considered because the Company reported a net loss and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share is the same. Total anti-dilutive stock awards for the thirteen and thirty-nine weeks ended November 3, 2018 were approximately 3.1 million shares and 3.0 million shares, respectively, as compared to 2.6 million shares for both, thirteen and thirty-nine weeks ended October 28, 2017.


XML 29 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
9 Months Ended
Nov. 03, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 13. Income Taxes


In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company’s deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company’s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company’s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 2, 2019. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 3, 2018, the Company had a net operating loss carry forward of $208.3 million for federal income tax purposes and approximately $273.4 million for state income tax purposes that expire at various times through 2037 and are subject to certain limitations and statutory expiration periods. The Company has also recorded $0.1 million of deferred tax liability relating to the etailz segment that relates to state income tax returns that do not allow consolidated filing. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved.


XML 30 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies
9 Months Ended
Nov. 03, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 14. Commitments and Contingencies


Legal Proceedings


The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.


Loyalty Memberships and Magazine Subscriptions Class Action


On November 14, 2018, three consumers filed a putative class action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Court for the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’s Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, that the Company’s “negative option marketing” misled consumers into enrolling for membership and subscriptions without obtaining the consumers’ consent. The complaint seeks statutory and actual damages. The Company is reviewing the claims. 


Store Manager Class Actions


Two former Store Managers filed actions alleging claims of entitlement to unpaid compensation for overtime. In one action, the plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager and Senior Assistant Manager) while the other plaintiff seeks to represent a class of allegedly similarly situated employees who performed the same position (Store Manager).


Specifically, Carol Spack filed a complaint against Trans World Entertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.: 3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor Standards Act (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers. She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managers in New Jersey or Senior Assistant Managers in Pennsylvania.


On May 19, 2017, Natasha Roper filed a complaint against Trans World in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also alleges that she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action under the FLSA on behalf of all similarly situated Store Managers.


Legal matters are defended and handled in the ordinary course of business.  The Company has not established an accrual for the matters noted above as a loss is not considered to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position, or cash flows.


XML 31 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Nov. 03, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets [Table Text Block] Identifiable intangible assets as of November 3, 2018 consisted of the following ($ in thousands):

   Weighted
Average
Amortization
Period
(in months)
  Original Gross
Carrying
Amount
   Accumulated
Amortization
   Net Carrying
Amount
 
                   
Vendor relationships  120  $19,100   $3,918   $15,182 
Technology  60   6,700    2,743    3,957 
Trade names and trademarks  60   3,200    1,287    1,913 
      $29,000   $7,948   $21,052 
                   
Schedule of Intangible Assets and Goodwill [Table Text Block] The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:

                   
($ in thousands)      February 3,
2018
   Amortization   November 3,
2018
 
                    
Amortized intangible assets:                   
Vendor relationships      $16,612   $1,430   $15,182 
Technology       4,962    1,005    3,957 
Trade names and trademarks       2,393    480    1,913 
Net amortized intangible assets      $23,967   $2,915   $21,052 
                    
Unamortized intangible assets:                   
Goodwill      $39,191   $-   $39,191 
Total unamortized intangible assets      $39,191   $-   $39,191 
Finite-lived Intangible Assets Amortization Expense [Table Text Block] Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 consisted of the following:

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
                 
Amortized intangible assets:                    
Vendor relationships  $477   $478   $1,430   $1,432 
Technology   335    335    1,005    1,005 
Trade names and trademarks   160    160    480    480 
Total amortization expense  $972   $973   $2,915   $2,917 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

Year  Annual
Amortization
( $ in thousands)   
2018  $972
2019  3,890
2020  3,890
2021  3,325
2022  1,910
2023  1,910
Thereafter  5,155
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization (Tables)
9 Months Ended
Nov. 03, 2018
Depreciation and Amoritzation [Abstract]  
Schedule of Depreciation and Amortization of Fixed Assets [Table Text Block] Depreciation and amortization included in the condensed consolidated statements of operations is as follows:

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
         
Cost of sales  $-   $163   $-   $474 
Selling, general and administrative expenses   2,303    3,425    6,808    9,989 
Total  $2,303   $3,588   $6,808    $10,463 
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Tables)
9 Months Ended
Nov. 03, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block] As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table:

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
($ in thousands)  November 3,
2018
   October 28,
2017
   November 3,
2018
   October 28,
2017
 
Total Revenue                    
fye  $47,865   $52,105   $152,473   $176,006 
etailz   44,119    40,896    138,288    121,440 
Total Company  $91,984   $93,001   $290,761   $297,446 
                     
Gross Profit                    
fye  $18,276   $21,347   $61,181   $73,342 
etailz   9,110    10,234    30,066    29,714 
Total Company  $27,386   $31,581   $91,247   $103,056 
                     
Loss From Operations                    
fye  $(9,493)   $(7,858)   $(21,495)   $(17,703) 
etailz   (4,261)    (253)    (9,808)    (966) 
Total Company  $(13,754)   $(8,111)   $(31,303)   $(18,669) 
                     
Schedule Of Total Assets From Segment Reporting Information By Segment [Table Text Block] Total Assets As of November 3, 2018 and As of October 28, 2017

  
                   November 3,
2018
   October 28,
2017
 
fye                  $132,699   $186,869 
etailz                   106,362    102,077 
Total Company                  $239,061   $288,946 
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Tables)
9 Months Ended
Nov. 03, 2018
Disclosure Text Block Supplement [Abstract]  
Restrictions on Cash and Cash Equivalents [Table Text Block] A summary of cash, cash equivalents and restricted cash is as follows ($ in thousands):

   November 3,  February 3,  October 28,
   2018  2018  2017
Cash and cash equivalents  $4,497   $31,326   $3,924 
Restricted cash   10,066    12,180    12,234 
Total cash, cash equivalents and restricted cash  $14,563   $43,506   $16,158 
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Tables)
9 Months Ended
Nov. 03, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] The following table summarizes stock award activity during the thirty-nine weeks ended November 3, 2018:

   Employee and Director Stock Award Plans     
   Number of
Shares
Subject To
Option
   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Other Share
Awards (1)
   Weighted
Average
Grant Fair
Value
   Aggregate
Intrinsic
Value (2)
 
Balance February 3, 2018   2,585,914   $3.06    7.2    183,427   $3.22    - 
Granted   555,000    0.99         219,484    1.14    - 
Forfeited   (53,000)    3.44         -    -    - 
Canceled   (72,000)    3.37         -    -    - 
Exercised   -    -    -    (131,500)    2.19    - 
Balance November 3, 2018   3,015,914   $2.68    6.3    271,411   $2.53   $83,400 
Exercisable November 3, 2018   1,900,289   $3.07    4.8    128,911   $2.85   $19,200 
  (1)Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
  (2)As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value.
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Tables)
9 Months Ended
Nov. 03, 2018
Disclosure Text Block Supplement [Abstract]  
Schedule of Net Benefit Costs [Table Text Block] The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods:

   Thirteen Weeks Ended   Thirty-nine Weeks Ended 
   November 3,   October 28,   November 3,   October 28, 
($ in thousands)  2018   2017   2018   2017 
                     
Service cost   $14     $16     $42     $48  
Interest cost   140     139     420     417  
Amortization of net gain (1)   (5)     (5)     (15)     (15)  
Net periodic pension cost   $149     $150     $447     $450  
(1)The amortization of net gain is related to a director retirement plan previously provided by the Company.
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Nature of Operations (Details)
ft² in Millions
9 Months Ended
Nov. 03, 2018
ft²
Disclosure Text Block [Abstract]  
Number of Reportable Segments 2
Number of Stores 227
Area of Stores (in Square Feet) 1.3
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Details) - Accounting Standards Update 2014-09 [Member] - USD ($)
$ in Millions
9 Months Ended
Nov. 03, 2018
Feb. 04, 2018
Basis of Presentation (Details) [Line Items]    
New Accounting Pronouncement or Change in Accounting Principle, Description In June 2014, the Financial Accounting Standards Board (“FASB”)issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which requiresan entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or servicesto customers. On February 4, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The adoptionof this ASU impacted the timing of revenue recognition for gift card breakage. Prior to adoption of ASU No. 2014-09, gift cardbreakage was recognized at the point gift card redemption became remote. In accordance with this ASU, the Company will recognizegift card breakage in proportion to the pattern of rights exercised by the customer. The adoption of this ASU also impacted presentationof our condensed consolidated financial statements related to sales return reserves. The cumulative effect of initially applyingASU No. 2014-09 was a $0.5 million decrease to the opening balance of retained earnings as of February 4, 2018. The comparativeprior period information continues to be reported under the accounting standards in effect during those periods  
Cumulative Effect of New Accounting Principle in Period of Adoption   $ 0.5
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Recent Accounting Pronouncements (Details)
9 Months Ended
Nov. 03, 2018
Accounting Standards Update 2016-02 [Member]  
Recent Accounting Pronouncements (Details) [Line Items]  
New Accounting Pronouncement or Change in Accounting Principle, Description In February 2016, the FASB issued ASU No. 2016-02, “Leases”,which will replace most existing lease accounting guidance in U.S. GAAP. The core principle of this ASU is that an entity shouldrecognize the rights and obligations resulting from leases as assets and liabilities. The new standard requires qualitative andspecific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand moreabout the nature of an entity’s leasing activities, including significant judgments and changes in judgments. The new standardwill be effective for the Company’s fiscal year beginning February 3, 2019, and requires the modified retrospective methodof adoption. Management is progressing with implementation and continuing to evaluate the effect to the Company’s ConsolidatedFinancial Statements and disclosures. Given the nature of the operating leases for the Company’s home office, distributioncenter, and retail stores, the Company expects an increase to the carrying value of its assets and liabilities.
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Identifiable Intangible Assets
$ in Thousands
12 Months Ended
Dec. 03, 2018
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Original Gross Carrying Amount $ 29,000
Accumulated Amortization 7,948
Net Carrying Amount $ 21,052
Vendor Relationships [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 120 months
Original Gross Carrying Amount $ 19,100
Accumulated Amortization 3,918
Net Carrying Amount $ 15,182
Technology-Based Intangible Assets [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 60 months
Original Gross Carrying Amount $ 6,700
Accumulated Amortization 2,743
Net Carrying Amount $ 3,957
Trademarks and Trade Names [Member]  
Finite-Lived Intangible Assets [Line Items]  
Weighted Average Amortization Period (in months) 60 months
Original Gross Carrying Amount $ 3,200
Accumulated Amortization 1,287
Net Carrying Amount $ 1,913
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Changes in Net Intangibles and Goodwill - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Feb. 03, 2018
Amortized intangible assets:          
Amortization of intangible assets $ 972 $ 973 $ 2,915 $ 2,917  
Net amortized intangible assets 21,052 24,940 21,052 24,940 $ 23,967
Amortization of intangible assets     2,915    
Unamortized intangible assets:          
Goodwill 39,191 39,191 39,191 39,191 39,191
Total unamortized intangible assets 39,191   39,191   39,191
Vendor Relationships [Member]          
Amortized intangible assets:          
Amortized intangible assets 15,182   15,182   16,612
Amortization of intangible assets 477 478 1,430 1,432  
Technology [Member]          
Amortized intangible assets:          
Amortized intangible assets 3,957   3,957   4,962
Amortization of intangible assets 335 335 1,005 1,005  
Trademarks and Trade Names [Member]          
Amortized intangible assets:          
Amortized intangible assets 1,913   1,913   $ 2,393
Amortization of intangible assets $ 160 $ 160 $ 480 $ 480  
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Amortization Expense of Intangible Assets - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Amortized intangible assets:        
Amortized intangible assets: $ 972 $ 973 $ 2,915 $ 2,917
Vendor Relationships [Member]        
Amortized intangible assets:        
Amortized intangible assets: 477 478 1,430 1,432
Technology [Member]        
Amortized intangible assets:        
Amortized intangible assets: 335 335 1,005 1,005
Trademarks and Trade Names [Member]        
Amortized intangible assets:        
Amortized intangible assets: $ 160 $ 160 $ 480 $ 480
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of Estimated Amortization Expense
$ in Thousands
Nov. 03, 2018
USD ($)
Schedule of Estimated Amortization Expense [Abstract]  
2018 $ 972
2019 3,890
2020 3,890
2021 3,325
2022 1,910
2023 1,910
Thereafter $ 5,155
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Depreciation and Amortization (Details) - Schedule of Depreciation and Amortization of Fixed Assets - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Schedule of Depreciation and Amortization of Fixed Assets [Abstract]        
Cost of sales   $ 163   $ 474
Selling, general and administrative expenses $ 2,303 3,425 $ 6,808 9,989
Total $ 2,303 $ 3,588 $ 6,808 $ 10,463
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details)
9 Months Ended
Nov. 03, 2018
Segment Reporting [Abstract]  
Number of Reportable Segments 2
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details) - Schedule of Reporting Segements - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
fye [Member]        
Total Revenue        
Total Revenue $ 47,865 $ 52,105 $ 152,473 $ 176,006
Gross Profit        
Gross Profit 18,276 21,347 61,181 73,342
Loss From Operations        
Income (Loss) From Operations (9,493) (7,858) (21,495) (17,703)
etailz [Member]        
Total Revenue        
Total Revenue 44,119 40,896 138,288 121,440
Gross Profit        
Gross Profit 9,110 10,234 30,066 29,714
Loss From Operations        
Income (Loss) From Operations (4,261) (253) (9,808) (966)
Total Company [Member]        
Total Revenue        
Total Revenue 91,984 93,001 290,761 297,446
Gross Profit        
Gross Profit 27,386 31,581 91,247 103,056
Loss From Operations        
Income (Loss) From Operations $ (13,754) $ (8,111) $ (31,303) $ (18,669)
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments - USD ($)
$ in Thousands
Nov. 03, 2018
Oct. 28, 2017
fye [Member]    
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]    
Total Assets $ 132,699 $ 186,869
etailz [Member]    
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]    
Total Assets 106,362 102,077
Total Company [Member]    
Segment Data (Details) - Schedule of Total Assets Resulting From Reporting Segments [Line Items]    
Total Assets $ 239,061 $ 288,946
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Details) - USD ($)
$ in Thousands
9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Restricted Cash (Details) [Line Items]    
Restricted Cash and Cash Equivalents, Current $ 4,100 $ 1,500
Restricted Cash and Cash Equivalents, Noncurrent 5,900 10,700
Payments to Noncontrolling Interests 1,500 $ 5,000
In Connection With Acquisition of etailz [Member]    
Restricted Cash (Details) [Line Items]    
Restricted Cash Maximum Earn Out Provision 3,200  
Original Acquisition Share Purchase Agreement [Member]    
Restricted Cash (Details) [Line Items]    
Payments to Noncontrolling Interests 1,500  
As a Result of Death of Chairman [Member]    
Restricted Cash (Details) [Line Items]    
Restricted Cash and Cash Equivalents, Current 900  
Restricted Cash and Cash Equivalents, Noncurrent 5,900  
Assets Held-in-trust $ 7,100  
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Cash (Details) - Schedule of Cash, Cash Equivalents, and Restricted Cash - USD ($)
$ in Thousands
Nov. 03, 2018
Feb. 03, 2018
Feb. 02, 2018
Oct. 28, 2017
Jan. 28, 2017
Schedule of Cash, Cash Equivalents, and Restricted Cash [Abstract]          
Cash and cash equivalents $ 4,497 $ 31,326   $ 3,924  
Restricted cash 10,066 12,180   12,234  
Total cash, cash equivalents and restricted cash $ 14,563 $ 43,506 $ 43,506 $ 16,158 $ 44,077
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.10.0.1
Short Term Borrowings (Details) - USD ($)
$ in Millions
9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Current Borrowing Capacity $ 50.0  
Dividends and Share Repurchase Maximum 5.0  
Line of Credit Facility, Fair Value of Amount Outstanding 27.4 $ 5.0
Line of Credit Facility, Remaining Borrowing Capacity 22.1 $ 49.0
Increased Maximum During Months of October, November, and December [Member]    
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Current Borrowing Capacity $ 75.0  
Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.25%  
LIBOR Rate [Member] | Minimum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 1.75%  
LIBOR Rate [Member] | Maximum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 2.00%  
Prime Rate [Member] | Minimum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 0.75%  
Prime Rate [Member] | Maximum [Member] | Credit Facility [Member]    
Short Term Borrowings (Details) [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 1.00%  
XML 51 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Details)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Nov. 03, 2018
USD ($)
shares
Nov. 03, 2018
USD ($)
$ / shares
shares
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 0.7 $ 0.7
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   3 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | shares 5,000,000 5,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Outstanding Number (in Shares) | shares 3,000,000 3,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Vested And Expected To Vest Exercisable Number (in Shares) | shares 1,900,000 1,900,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | shares 4,400,000 4,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares   $ 1.14
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options   $ 1.8
Employee Stock Option [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 1.5 $ 1.5
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   1 year 219 days
Restricted Stock [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized 0.2 $ 0.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   3 years 328 days
Restricted Stock [Member] | In Connection With Acquisition of etailz [Member]    
Stock Based Compensation (Details) [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | shares   1,572,552
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares   $ 3.56
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options 0.6  
In Connection With Acquisition of etailz [Member] | Restricted Stock [Member]    
Stock Based Compensation (Details) [Line Items]    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 0.6 $ 0.6
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock Based Compensation (Details) - Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
9 Months Ended
Nov. 03, 2018
USD ($)
$ / shares
shares
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Abstract]  
Balance February 3, 2018 2,585,914
Balance February 3, 2018 (in Dollars per share) | $ / shares $ 3.06
Balance February 3, 2018 7 years 73 days
Balance February 3, 2018 183,427 [1]
Balance February 3, 2018 (in Dollars per share) | $ / shares $ 3.22
Granted 555,000
Granted (in Dollars per share) | $ / shares $ 0.99
Granted 219,484 [1]
Granted (in Dollars per share) | $ / shares $ 1.14
Forfeited (53,000)
Forfeited (in Dollars per share) | $ / shares $ 3.44
Canceled (72,000)
Canceled (in Dollars per share) | $ / shares $ 3.37
Exercised (131,500) [1]
Exercised (in Dollars per share) | $ / shares $ 2.19
Balance November 3, 2018 3,015,914
Balance November 3, 2018 (in Dollars per share) | $ / shares $ 2.68
Balance November 3, 2018 6 years 109 days
Balance November 3, 2018 271,411 [1]
Balance November 3, 2018 (in Dollars per share) | $ / shares $ 2.53
Balance November 3, 2018 83,400 [2]
Exercisable November 3, 2018 1,900,289
Exercisable November 3, 2018 (in Dollars per share) | $ / shares $ 3.07
Exercisable November 3, 2018 4 years 292 days
Exercisable November 3, 2018 128,911 [1]
Exercisable November 3, 2018 (in Dollars per share) | $ / shares $ 2.85
Exercisable November 3, 2018 (in Dollars) | $ $ 19,200 [2]
[1] Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
[2] As of February 3, 2018, all stock awards outstanding had a grant price higher than the market price of the stock and had no intrinsic value
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Details)
$ in Millions
Nov. 03, 2018
USD ($)
Supplemental Employee Retirement Plan [Member]  
Defined Benefit Plans (Details) [Line Items]  
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months $ 1.2
XML 54 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Defined Benefit Plans (Details) - Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss [Abstract]        
Service cost $ 14 $ 16 $ 42 $ 48
Interest cost 140 139 420 417
Amortization of net gain (1) (5) (5) (15) (15)
Net periodic pension cost $ 149 $ 150 $ 447 $ 450
XML 55 R45.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basic and Diluted Loss Per Share (Details) - shares
shares in Millions
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Earnings Per Share [Abstract]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 3.1 2.6 3.0 2.6
XML 56 R46.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Details) - USD ($)
$ in Millions
Feb. 03, 2018
Nov. 03, 2018
Domestic Tax Authority [Member]    
Income Taxes (Details) [Line Items]    
Operating Loss Carryforwards $ 208.3  
State and Local Jurisdiction [Member]    
Income Taxes (Details) [Line Items]    
Operating Loss Carryforwards $ 273.4  
Tax Credit Carryforward Expiration Year 2037  
etailz [Member] | State and Local Jurisdiction [Member]    
Income Taxes (Details) [Line Items]    
Deferred Tax Liabilities, Net   $ 0.1
XML 57 R47.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies (Details)
Nov. 14, 2018
May 19, 2017
Apr. 20, 2017
Commitments and Contingencies Disclosure [Abstract]      
Description of Filed Claim On November 14, 2018, three consumers filed a putativeclass action complaint against Trans World Entertainment Corporation and Synapse Group, Inc. in the United States District Courtfor the District of Massachusetts Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’sBackstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleges, among other things, thatthe Company’s “negative option marketing” misled consumers into enrolling for membership and subscriptions withoutobtaining the consumers’ consent. The complaint seeks statutory and actual damages. The Company is reviewingthe claims.  On May 19, 2017, Natasha Roper filed a complaint against TransWorld in the U.S. District Court for the Northern District of New York (Case No.: 1:17-cv-0553-TJM-CFH) in which she also allegesthat she is entitled to unpaid compensation for overtime under the FLSA Ms. Roper brings a nationwide collective action underthe FLSA on behalf of all similarly situated Store Managers. Specifically, Carol Spack filed a complaint against Trans WorldEntertainment Corporation (Trans World) in the United States District Court, District of New Jersey, on April 20, 2017 (Case No.:3:17-cv-02687-BRM-LHG) alleging that she is entitled to unpaid compensation for overtime under the Federal Fair Labor StandardsAct (FLSA). She brings a nationwide collective action under the FLSA on behalf of all Store Managers and Senior Assistant Managers.She also brings class action claims under New Jersey and Pennsylvania law on behalf of all persons who worked as Store Managersin New Jersey or Senior Assistant Managers in Pennsylvania.
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