Revenue Recognition (Tables)

3 Months Ended

May 02, 2020

Revenue from Contract with Customer [Abstract]

Summary of Revenue by Type of Contract

The following table sets forth our revenue by type of contract (in thousands):

	13 Weeks Ended May 2, 2020		13 Weeks Ended May 4, 2019
Store sales (1)	$	122,849	$	293,289
Ecommerce sales (2)	8,871		13,744
Licensee commissions (3)	2,553		7,124
Net sales	134,273		314,157
Credit card revenue (4)	817		2,564
Breakage revenue (5)	3,010		2,538
Other	82		123
Other revenue	3,909		5,225
Total revenue	$	138,182	$	319,382

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⁽¹⁾Store sales are net of any returns, discounts and percentage-off coupons. Store sales include $11.4 million and $3.9 million sales generated online and either shipped from store or picked up in store by our customers for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.

⁽²⁾Ecommerce sales are net of any returns, discounts and percentage-off coupons. Ecommerce sales are online orders fulfilled from our warehouse or shipped directly from our vendors.

⁽³⁾Licensed department commissions are net of any returns.

⁽⁴⁾Credit card revenue earned from Synchrony programs, partially offset by rewards program costs.

⁽⁵⁾Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points.

Summary of Gross Up of Sales Return Reserve

The following table sets forth the gross-up of the sales return reserve (in thousands):

	May 2, 2020		February 1, 2020		May 4, 2019
Reserve for sales returns	$	(3,652)	$	(3,763)	$	(6,286)
Cost of inventory returns	2,576		2,160		3,372

Summary of Contract Liabilities and Their Relationship to Revenue

The following table sets forth the contract liabilities and their relationship to revenue (in thousands):

	May 2, 2020		February 1, 2020		May 4, 2019
Deferred revenue contracts	$	(9,032)	$	(9,424)	$	(10,617)
Gift card liability	(10,154)		(11,488)		(9,631)
Credit card reward liability	(5,743)		(7,261)		(5,510)
Liability for deferred revenue	$	(24,929)	$	(28,173)	$	(25,758)

Summary of Amounts Included in Contract Liabilities

The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands):

	13 Weeks Ended May 2, 2020		13 Weeks Ended May 4, 2019
Beginning balance	$	28,173	$	28,846
Current period gift cards sold and loyalty reward points earned	4,261		7,501
Net sales from redemptions (1)	(4,103)		(7,651)
Breakage and amortization (2)	(3,402)		(2,938)
Ending balance	$	24,929	$	25,758

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⁽¹⁾$2.8 million and $4.4 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.

⁽²⁾$3.2 million and $2.8 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.