The following summarized unaudited results of operations for the quarters in fiscal 2017 and fiscal 2016 have been prepared on the same basis as the annual financial statements and reflect normal recurring adjustments that we consider necessary for a fair presentation of results of operations for the periods presented. Our results of operations have varied and may continue to fluctuate significantly from quarter to quarter due to seasonality and the timing of operating expenses. Results of operations in any period should not be considered indicative of the results to be expected for any future period.



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter (a)			Total
	(In thousands, except percentages and per share amounts)
Fiscal 2017
Net sales	$	156,343		$	148,949		$	150,212		$	192,716		$	648,220
Gross profit	56,286			56,480			57,294			65,052			235,112
Gross profit margin	36.0		%	37.9		%	38.1		%	33.8		%	36.3		%
Operating expenses	56,867			56,951			57,648			60,424			231,890
Operating income (loss) (b)	(581		)	(471		)	(354		)	4,628			3,222
Other expense, net	(2,406		)	(1,311		)	(1,373		)	(1,434		)	(6,524		)
Income tax (provision) benefit	(209		)	(209		)	624			3,239			3,445
Net income (loss) (b)	$	(3,196	)	$	(1,991	)	$	(1,103	)	$	6,433		$	143

Net income (loss) per share	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.10		$	0.00
Net income (loss) per share — assuming dilution	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.10		$	0.00
Weighted average shares outstanding:
Basic	60,919			64,091			65,191			65,279			63,870
Diluted	60,919			64,091			65,191			65,672			63,968

Fiscal 2016
Net sales	$	166,920		$	157,139		$	151,636		$	190,518		$	666,213
Gross profit	61,448			59,828			55,431			64,820			241,527
Gross profit margin	36.8		%	38.1		%	36.6		%	34.0		%	36.3		%
Operating expenses	64,982			60,002			57,510			61,051			243,545
Operating income (loss) (c)	(3,534		)	(174		)	(2,079		)	3,769			(2,018		)
Other expense, net	(1,203		)	(1,604		)	(1,583		)	(1,536		)	(5,926		)
Income tax provision	(205		)	(205		)	(205		)	(186		)	(801		)
Net income (loss) (c)	$	(4,942	)	$	(1,983	)	$	(3,867	)	$	2,047		$	(8,745	)

Net income (loss) per share	$	(0.09	)	$	(0.03	)	$	(0.06	)	$	0.03		$	(0.15	)
Net income (loss) per share — assuming dilution	$	(0.09	)	$	(0.03	)	$	(0.06	)	$	0.03		$	(0.15	)
Weighted average shares outstanding:
Basic	57,181			57,259			60,513			64,185			59,785
Diluted	57,181			57,259			60,513			64,492			59,785


(a)	As a result of the Company's retail calendar, the fourth quarter of fiscal 2017 includes 14 weeks of operations as compared to 13 weeks in the fourth quarter of fiscal 2016.

(b)

Net income (loss) and operating income (loss) for the first, second, third and fourth quarters of fiscal 2017 includes executive and management transition costs of $506,000, $572,000, $893,000 and $174,000. In addition, net income (loss) for the first, third and fourth quarters of fiscal 2017 includes loss on debt extinguishment of $913,000, $221,000 and $323,000. Net income for the fourth quarter of fiscal 2017 also includes a $551,000 gain on the television station sale.

(c) Net income (loss) and operating income (loss) for the first, second, third and fourth quarters of fiscal 2016 includes distribution facility consolidation and technology upgrade costs of approximately $80,000, $300,000, $150,000 and $147,000. In addition, net loss and operating loss for the first, second and third quarters of fiscal 2016 includes executive and management transition costs of $3,601,000, $242,000 and $568,000.