v3.22.2.2
Revenue
 9 Months Ended
Oct. 30, 2022
Revenue [Abstract]  
Revenue 10.    REVENUE

The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods. Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment. Store revenue is recognized at the point of sale, net of returns, and excludes taxes. Shipping and processing revenue generated from customer orders are included as a component of net sales and shipping and processing expense, including handling expense, is included as a component of selling, general and administrative expenses. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included in accrued expenses.

Sales disaggregated based upon sales channel is presented below.

Three Months Ended

Nine Months Ended

October 30, 2022

October 31, 2021

October 30, 2022

October 31, 2021

(in thousands)

Direct-to-consumer

$

90,999

$

85,200

$

254,000

$

258,830

Stores

56,127

60,077

157,541

168,993

$

147,126

$

145,277

$

411,541

$

427,823

Contract Assets and Liabilities

The Company’s contract assets primarily consist of the right of return for amounts of inventory to be returned that is expected to be resold and is recorded in Prepaid expenses and other current assets on the Company’s consolidated balance sheets. The Company’s contract liabilities primarily consist of gift card liabilities and are recorded in Accrued expenses and other current liabilities under deferred revenue (see Note 4 “Accrued Expenses and Other Current Liabilities”) on the Company’s consolidated balance sheets. Upon issuance of a gift card, a liability is established for its cash value. The gift card liability is relieved and revenues on gift cards are recorded at the time of redemption by the customer.

Contract assets and liabilities on the Company’s consolidated balance sheets are presented in the following table:

October 30, 2022

January 30, 2022

(in thousands)

Contract assets

$

2,292

$

2,235

Contract liabilities

$

7,495

$

10,791

Revenue from gift cards is recognized when the gift card is redeemed by the customer for merchandise or as a gift card breakage, an estimate of gift cards which will not be redeemed. The Company does not record breakage revenue when escheat liability to the relevant jurisdictions exists. Gift card breakage is recorded within Net sales on the Company’s consolidated statement of operations. The following table provides the reconciliation of the contract liability related to gift cards for the nine months ended:

October 30, 2022

October 31, 2021

(in thousands)

Balance as of beginning of period

$

10,791

$

9,788

Gift cards sold

5,731

6,097

Gift cards redeemed

(8,720)

(8,112)

Gift card breakage

(307)

(373)

Balance as of end of period

$

7,495

$

7,400