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Segment Disclosures
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Segment Disclosures

M. SEGMENT DISCLOSURES

 

The Company sells clothing, footwear and accessories to big + tall men through its 288 store locations and its direct business, which includes its website, mobile app and certain marketplaces. The Company has identified its stores and its direct business as two separate operating segments. Resources are allocated and performance is assessed by our President and Chief Executive Officer, whom we have determined to be our Chief Operating Decision Maker (the "CODM").

The CODM evaluates the performance of its operating segments and allocates resources based on sales performance, merchandise margins and 4-wall contribution (a Non-GAAP measure). The accounting policies are the same as those described in the “Summary of Significant Accounting Policies” for the Company. The Company defines 4-wall contribution, which the CODM considers the performance measure for segment profitability, as segment revenues less cost of goods sold, occupancy costs and selling expenses.

We aggregate our two operating segments because they are economically similar. Both segments sell the same merchandise, at the same pricing, and share the same customer base, production, advertising spend and distribution. Our distribution channels are available to our customers regardless of how they initiate their transaction. Through our mobile app or website, a customer can initiate a purchase online and that purchase could be filled either by the distribution center or one of our stores. Similarly, a customer also has the option to pick up in store or have the merchandise shipped directly to them. The 4-wall contribution margin for each segment is materially similar, further supporting the economic similarity of these two operating segments and that no additional value would be provided by reporting the segments separately.

 

The following table is a summary of our segment disclosures and a reconciliation of 4-wall contribution (a Non-GAAP measure) to net income (a GAAP measure):

 

 

 

 

Fiscal 2024

 

 

Fiscal 2023

 

 

Fiscal 2022

 

(in thousands)

 

 

 

 

 

 

 

 

 

Sales

 

$

467,015

 

 

$

521,815

 

 

$

545,838

 

Cost of goods sold

 

 

(186,235

)

 

 

(210,340

)

 

 

(215,857

)

Occupancy costs

 

 

(63,585

)

 

 

(59,053

)

 

 

(57,383

)

 

 

 

 

 

 

 

 

 

 

 Store compensation

 

 

(53,765

)

 

 

(54,103

)

 

 

(55,423

)

 Other selling expenses

 

 

(26,928

)

 

 

(25,790

)

 

 

(25,626

)

4-wall contribution (Non-GAAP)

 

 

136,502

 

 

 

172,529

 

 

 

191,549

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

 

(31,844

)

 

 

(30,932

)

 

 

(32,503

)

Corporate G&A

 

 

(54,374

)

 

 

(54,144

)

 

 

(56,490

)

Distributing and supporting G&A

 

 

(31,371

)

 

 

(31,560

)

 

 

(28,748

)

Depreciation and amortization

 

 

(13,878

)

 

 

(13,833

)

 

 

(15,381

)

(Impairment) gain of assets

 

 

(1,303

)

 

 

(116

)

 

 

159

 

Loss from termination of retirement plans

 

 

-

 

 

 

(5,690

)

 

 

-

 

Interest income (expense)

 

 

2,084

 

 

 

2,137

 

 

 

(251

)

Income before provision (benefit) for income taxes

 

$

5,816

 

 

$

38,391

 

 

$

58,335

 

Provision (benefit) for income taxes

 

 

2,761

 

 

 

10,537

 

 

 

(30,788

)

Net income (GAAP)

 

$

3,055

 

 

$

27,854

 

 

$

89,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The CODM does not receive information about assets at the segment level because the Company's assets are managed at a consolidated level by department as opposed to by segment.