v3.26.1
Revenue Recognition
 6 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale in our stores or when products are shipped for e-commerce orders. Revenue is recognized net of estimated sales returns and sales taxes, when control of the merchandise is transferred to the customer. We estimate sales returns based on historical data.

Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, were as follows (in thousands):

 

 

 

 

 

 

Six Months Ended March 31,

 

 

 

 

 

 

 

2026

 

 

2025

 

Beginning Balance

 

 

 

 

 

$

10,027

 

 

$

11,493

 

Loyalty points and gift cards issued but not redeemed, net of estimated breakage

 

 

5,071

 

 

 

4,545

 

Revenue recognized from beginning liability

 

 

(5,594

)

 

 

(4,618

)

Ending Balance

 

 

 

 

 

$

9,504

 

 

$

11,420

 

See Note 12, Segment Reporting, for additional information regarding the disaggregation of our sales revenue.