v3.25.1
Reportable Segments
 3 Months Ended
Mar. 30, 2025
Segment Reporting [Abstract]  
Reportable Segments
(3)
Reportable Segments

The Company has one reportable segment: operating. The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online, and whose CODM is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce platform offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix for both the stores and e-commerce platform from a single distribution center.

The single operating segment derives revenues from customers purchasing goods from both the Company’s retail stores and online. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation.

The accounting policies of the single operating segment are the same as those described in the summary of significant accounting policies.

The CODM assesses performance for the single operating segment and decides how to allocate resources based on net income or loss that also is reported on the income statement as net income or loss.

The measure of segment assets is reported on the balance sheet as total assets.

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the operating segment or into other parts of the entity, such as to pay dividends.

Net income is used in monitoring budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

The Company does not have intra-entity sales or transfers.

The Company's single reportable segment revenue, segment profit or loss, and significant segment expenses are as follows:

 

 

March 30,
2025

 

 

March 31,
2024

 

 

 

(In thousands)

 

Revenue

 

$

175,647

 

 

$

193,427

 

Less:

 

 

 

 

 

 

Cost of merchandise sold

 

 

83,257

 

 

 

93,447

 

Employee labor and benefit-related expense

 

 

57,054

 

 

 

58,274

 

Occupancy expense

 

 

25,187

 

 

 

25,922

 

Equipment, trucking and utilities expense

 

 

11,169

 

 

 

11,020

 

Other segment items (1)

 

 

7,101

 

 

 

7,214

 

Depreciation and amortization expense

 

 

4,433

 

 

 

4,517

 

Income tax expense (benefit)

 

 

1

 

 

 

(2,818

)

Credit card fees

 

 

2,343

 

 

 

2,501

 

Advertising expense (2)

 

 

1,540

 

 

 

1,513

 

Interest expense, net

 

 

812

 

 

 

123

 

Segment net loss

 

$

(17,250

)

 

$

(8,286

)

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

Adjustments and reconciling items

 

 

—

 

 

 

—

 

Net loss

 

$

(17,250

)

 

$

(8,286

)

(1)
Includes business insurance and license expense, audit and legal expense, outside service expense, supplies expense and other overhead expense for the fiscal quarter ended March 30, 2025 and March 31, 2024.
(2)
Excludes labor and benefit-related expense that is included in “Employee labor and benefit-related expense” above.