MERCHANDISE INVENTORIES AND SOURCES OF SUPPLY

9 Months Ended

Oct. 27, 2012

MERCHANDISE INVENTORIES AND SOURCES OF SUPPLY

MERCHANDISE INVENTORIES AND SOURCES OF SUPPLY

NOTE 5 — MERCHANDISE INVENTORIES AND SOURCES OF SUPPLY

Our merchandise inventories consisted of the following (in thousands):

	October 27,		January 28,
Description	2012		2012
Merchandise - in store/e-Commerce	$	52,791	$	32,599
Merchandise - in transit	5,395		6,856
	$	58,186	$	39,455

We do not have long-term purchase commitments or arrangements with any of our suppliers or agents.  During the nine months ended October 27, 2012, one of our vendors supplied approximately 18% of our merchandise purchases and another vendor supplied approximately 11% of our merchandise purchases.  For the nine months ended November 26, 2011, one vendor supplied 18% of our merchandise purchases.  No other vendors supplied greater than 10% of our merchandise purchases for the nine months ended October 27, 2012 and November 26, 2011.

Although we have strong relationships with these vendors, there can be no assurance that these relationships can be maintained in the future or that the vendors will continue to supply merchandise to us.  If there should be any significant disruption in the supply of merchandise from these vendors, we believe that we will be able to shift production to other suppliers so as to continue to secure the required volume of product.  Nevertheless, it is possible that any significant disruption in supply could have a material adverse impact on our financial position or results of operations.

Beginning with its August 2012 merchandise assortment, the Company changed its payment terms from net 30 days to net 45 days from receipt of goods in its distribution center for vendors representing approximately 60% of its merchandise purchases.