Discontinued Operations

12 Months Ended

Jan. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

J. DISCONTINUED OPERATIONS

Sears Canada

In the second quarter of fiscal 2014, the Company notified Sears Canada of its intent to exit the business and began the process of an orderly wind-down. The Company ceased taking new orders and completed the run-off of operations through a final settlement with Sears during the fourth quarter of fiscal 2014. Accordingly, the results of the direct business with Sears Canada have been reclassified to reflect the operating results as discontinued operations for all periods presented. The loss for fiscal 2014 includes a charge, recorded in the second quarter of fiscal 2014, of approximately $0.8 million related primarily to inventory reserves and sales allowances as a result of our decision to exit the business.  

European Direct Business

In fiscal 2012, the Company exited its European direct business, terminating its business relationship with its vendor, who had provided all web store design, order processing, fulfillment and customer call center services for the company’s European web stores.  This loss from discontinued operation of $1.9 million for fiscal 2012, includes an early termination fee of $1.1 million that was paid to the Company’s vendor.    

The following table summarizes the results from discontinued operations for the fiscal years presented. The loss from discontinued operations of $1.9 million for fiscal 2012 is primarily due to the loss of $1.9 million for its European direct business, discussed above.  The direct business with Sears Canada had income of $68,000 in fiscal 2012. There were no discontinued operations for the Company’s European direct Business for fiscal 2013 or fiscal 2014.

For the fiscal year ended:	January 31, 2015			February 1, 2014			February 2, 2013
	(in thousands)
Sales	$	(450	)	$	3,227		$	3,763
Gross margin		(998	)		1,296			920
Selling, general and administrative expenses		(120	)		(828	)		(2,777	)
Depreciation and amortization		—			—			(8	)
Provision (benefit) from income taxes		—			—			—
Income (loss) from discontinued operations	$	(1,118	)	$	468		$	(1,865	)