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Revenue | 6 Months Ended
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Aug. 02, 2024
Revenue from Contract with Customer [Abstract] |
Revenue | NOTE 13. REVENUE Net Revenue Product Sales Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company’s revenue is recognized when control of product passes to customers, which for the U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is expected to be received by the customer and for the Retail distribution channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company’s products transfers to customers, and is presented net of various forms of promotions, which range from contractually fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 12, Segment Reporting. Revenue by geographic location was:
|  | 13 Weeks Ended |  |  | 26 Weeks Ended |
(in thousands) |  | August 2, 2024 |  |  | July 28, 2023 |  |  | August 2, 2024 |  |  | July 28, 2023 |
Net revenue: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 291,041 |  |  | $ | 296,653 |  |  | $ | 548,548 |  |  | $ | 577,057 |
Europe |  |  | 23,330 |  |  |  | 23,305 |  |  |  | 48,638 |  |  |  | 49,182 |
Other |  |  | 2,802 |  |  |  | 3,405 |  |  |  | 5,458 |  |  |  | 6,682 |
Total Net revenue |  | $ | 317,173 |  |  | $ | 323,363 |  |  | $ | 602,644 |  |  | $ | 632,921 |
Licensing Agreements The Company generates royalty revenue from licensing the right to use its trademarks to third parties. The licensing agreements generally are exclusive to a product category, selling channel and/or geography, have terms in excess of one year, provide for annual guaranteed minimum royalties and, in most cases, include renewal options. In certain agreements, the licensee pays the Company a fulfillment fee for licensed product sold on the Company’s website and fulfilled from the Company’s distribution center. The trademark royalty revenue and fulfillment fee are included in Net revenue and reported in the Third Party distribution channel. See Note 12, Segment Reporting. In exchange for providing these rights, the license agreements require the licensees to pay the Company a trademark royalty based on net sales as defined in the license agreements. The Company recognizes sales-based royalty revenue at the later of (i) when the related sales of the licensed product occur, or (ii) when the performance obligation has been satisfied, when the Company expects the annual guaranteed minimums will be met, where such provisions exist. If a sales-based royalty is not ultimately expected to exceed a contractually guaranteed minimum royalty amount, the minimum is recognized straight-line as revenue over the contractual period, if all other criteria of revenue recognition have been met. In certain agreements, the Company agreed to perform transitional activities, such as marketing costs, for the licensed products. The Company receives reimbursement for such costs. The amount of these reimbursements, which are recorded as a reduction of Selling and administrative expenses in the Condensed Consolidated Statements of Operations, for the 13 and 26 weeks ended August 2, 2024 was $2.1 million and $3.3 million, respectively. Contract Liabilities Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Condensed Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets, and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of August 2, 2024 is expected to be recognized in Net revenue in the fiscal quarter ending November 1, 2024, as products are delivered to customers.
|  | 13 Weeks Ended |  |  | 26 Weeks Ended |
(in thousands) |  | August 2, 2024 |  |  | July 28, 2023 |  |  | August 2, 2024 |  |  | July 28, 2023 |
Deferred revenue beginning of period |  | $ | 9,340 |  |  | $ | 6,019 |  |  | $ | 4,314 |  |  | $ | 7,484 |
Deferred revenue recognized in period |  |  | (9,125 | ) |  |  | (5,805 | ) |  |  | (4,100 | ) |  |  | (7,270 | )
Revenue deferred in period |  |  | 9,087 |  |  |  | 7,867 |  |  |  | 9,088 |  |  |  | 7,867 |
Deferred revenue end of period |  | $ | 9,302 |  |  | $ | 8,081 |  |  | $ | 9,302 |  |  | $ | 8,081 |
Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Condensed Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability and included within Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards:
|  | 13 Weeks Ended |  |  | 26 Weeks Ended |
(in thousands) |  | August 2, 2024 |  |  | July 28, 2023 |  |  | August 2, 2024 |  |  | July 28, 2023 |
Balance as of beginning of period |  | $ | 35,119 |  |  | $ | 34,222 |  |  | $ | 35,604 |  |  | $ | 33,029 |
Gift cards sold |  |  | 14,562 |  |  |  | 13,171 |  |  |  | 29,617 |  |  |  | 28,786 |
Gift cards redeemed |  |  | (14,019 | ) |  |  | (13,048 | ) |  |  | (28,212 | ) |  |  | (26,682 | )
Gift card breakage |  |  | (1,483 | ) |  |  | (789 | ) |  |  | (2,830 | ) |  |  | (1,577 | )
Balance as of end of period |  | $ | 34,179 |  |  | $ | 33,556 |  |  | $ | 34,179 |  |  | $ | 33,556 |
Refund Liabilities Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. Refund liabilities, primarily associated with estimated product returns, were $14.9 million, $18.4 million and $21.6 million as of August 2, 2024, July 28, 2023 and February 2, 2024, respectively, and reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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