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Loyalty Program
 6 Months Ended
Aug. 03, 2024
Revenue from Contract with Customer [Abstract]  
Loyalty Program Revenue Recognition
We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price.
Our revenue, disaggregated by product category, consists of the following (in thousands):
Three Months EndedSix Months Ended
August 3, 2024July 29, 2023August 3, 2024July 29, 2023
Apparel$259,782 $254,569 $512,515 $513,482 
Non-apparel17,536 26,309 37,828 53,157 
Other7,320 8,266 14,066 16,359 
Total net sales$284,638 $289,144 $564,409 $582,998 
Amounts within Apparel include revenues earned from the sale of tops, bottoms, dresses, intimates, sleep wear, swim wear and outerwear. Amounts within Non-apparel include revenues earned from the sale of accessories, footwear and beauty. Amounts within Other primarily represent PLCC Funds received.
We have an agreement with a third party, which is amended from time to time, to provide customers with private label credit cards (“Credit Card Agreement”). Each private label credit card (“PLCC”) bears the logo of the Torrid brand and can only be used at our store locations and on www.torrid.com. A third-party financing company is the sole owner of the accounts issued under the PLCC program and absorbs the losses associated with non-payment by the PLCC holders and a portion of any fraudulent usage of the accounts. Pursuant to the Credit Card Agreement, we receive royalties, profit-sharing and marketing and promotional funds from the third-party financing company based on usage of the PLCCs. These PLCC Funds are recorded as a component of net sales in the condensed consolidated statements of operations and comprehensive income.
We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. During the six-month period ended August 3, 2024, we recognized revenue of approximately $8.8 million and $7.9 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2024. During the six-month period ended July 29, 2023, we recognized revenue of approximately $8.6 million and $4.6 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2023.
Loyalty Program
We operate our loyalty program, Torrid Rewards, in all our stores and on www.torrid.com. Under this program, customers accumulate points based on purchase activity and qualifying non-purchase activity. Upon reaching a certain point level, customers can earn awards that may only be redeemed for merchandise. Unredeemed points typically expire after 13 months without additional purchase and qualifying non-purchase activity and unredeemed awards typically expire 45 days after issuance. We use historical redemption rates to estimate the value of future award redemptions and we recognize the estimated value of these future awards as a reduction of revenue in the condensed consolidated statements of operations and comprehensive income in the period the points are earned by the customer. As of the end of the second quarter of fiscal year 2024 and as of the end of fiscal year 2023, we had $13.7 million and $12.5 million, respectively, in deferred revenue related to our loyalty program included in accrued and other current liabilities in the condensed consolidated balance sheets. During the three- and six-month periods ended August 3, 2024, we recorded $1.8 million and $1.2 million, respectively, as a reduction to net sales. During the three-month period ended July 29, 2023, we recorded $0.2 million as a reduction of net sales, and during the six-month period ended July 29, 2023, we recorded $0.5 million as a benefit to net sales. Actual results may differ from our estimates, resulting in changes to net sales.