v3.25.2
Reportable Segments
 6 Months Ended
Jun. 29, 2025
Segment Reporting [Abstract]  
Reportable Segments
(4)
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:

 

 

13 Weeks Ended

 

 

26 Weeks Ended

 

 

 

June 29,
2025

 

 

June 30,
2024

 

 

June 29,
2025

 

 

June 30,
2024

 

 

 

(In thousands)

 

 

(In thousands)

 

Revenue

 

$

184,894

 

 

$

199,824

 

 

$

360,541

 

 

$

393,251

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of merchandise sold

 

 

94,076

 

 

 

100,997

 

 

 

177,333

 

 

 

194,444

 

Employee labor and benefit-related expense

 

 

56,911

 

 

 

58,062

 

 

 

113,966

 

 

 

116,336

 

Occupancy expense

 

 

25,441

 

 

 

26,255

 

 

 

50,629

 

 

 

52,177

 

Equipment, trucking and utilities expense

 

 

11,711

 

 

 

11,576

 

 

 

22,880

 

 

 

22,596

 

Other segment items (1)

 

 

10,941

 

 

 

6,911

 

 

 

18,042

 

 

 

14,124

 

Depreciation and amortization expense

 

 

4,354

 

 

 

4,768

 

 

 

8,787

 

 

 

9,285

 

Income tax expense (benefit)

 

 

8

 

 

 

(3,581

)

 

 

9

 

 

 

(6,399

)

Credit card fees

 

 

2,561

 

 

 

2,726

 

 

 

4,903

 

 

 

5,227

 

Advertising expense (2)

 

 

2,101

 

 

 

2,032

 

 

 

3,640

 

 

 

3,546

 

Interest expense, net

 

 

1,330

 

 

 

82

 

 

 

2,142

 

 

 

205

 

Segment net loss

 

$

(24,540

)

 

$

(10,004

)

 

$

(41,790

)

 

$

(18,290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net loss

 

$

(24,540

)

 

$

(10,004

)

 

$

(41,790

)

 

$

(18,290

)

 

(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 June 29, 2025 and June 30, 2024.
(2)
Excludes labor and benefit-related expense that is included in “Employee labor and benefit-related expense” above.