DISCONTINUED OPERATIONS

9 Months Ended

Oct. 27, 2012

DISCONTINUED OPERATIONS

12. DISCONTINUED OPERATIONS

In accordance with ASC Topic 205, “Presentation of Financial Statements- Discontinued Operations” (“ASC 205”), the Company has presented the results of operations of its closed stores as discontinued operations for all periods presented. The Company closed 6 and 1 underperforming stores in the third quarter of fiscal 2012 and 2011, respectively, and during the first three quarters of fiscal 2012 and 2011, the Company closed 14 and 32 underperforming stores, respectively. If the cash flow of the closed store was determined not to be significant to ongoing operations, and the cash inflows of nearby stores were not expected to increase significantly, the results of operations of the closed store are included in discontinued operations. The following table details the operating results included in discontinued operations for the periods presented:

	For the Third Quarter Ended October 29, 2011			For the Three Quarters Ended October 29, 2011
Net sales	$	15,225		$	43,081
Cost of goods sold, including buying, distribution and occupancy costs		11,970			35,386
Gross margin		3,255			7,695
Selling, general and administrative expenses		6,938			16,121
Operating loss		(3,683	)		(8,426	)
Income tax benefit		94			217
Loss from discontinued operations	$	(3,589	)	$	(8,209	)