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Segment Disclosures
 3 Months Ended
May 03, 2025
Segment Reporting [Abstract]  
Segment Disclosures

10. Segment Disclosures

The Company sells clothing, footwear and accessories to big + tall men through its stores and 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 the Company's 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 Note A, Summary of Significant Accounting Policies included in the Company's consolidated financial statements for the year ended February 1, 2025. 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:

 

 

For the three months ended

 

 

 

May 3, 2025

 

 

May 4, 2024

 

(in thousands)

 

 

 

 

 

 

Sales

 

$

105,533

 

 

$

115,489

 

Cost of goods sold

 

 

(41,274

)

 

 

(44,804

)

Occupancy costs

 

 

(16,677

)

 

 

(15,003

)

 

 

 

 

 

 

 

 Store compensation

 

 

(13,649

)

 

 

(12,909

)

 Other selling expenses

 

 

(6,563

)

 

 

(6,440

)

4-wall contribution (non-GAAP)

 

 

27,370

 

 

 

36,333

 

 

 

 

 

 

 

 

Advertising

 

 

(6,418

)

 

 

(7,314

)

Corporate G&A

 

 

(13,544

)

 

 

(12,982

)

Distributing and supporting G&A

 

 

(7,269

)

 

 

(7,878

)

Depreciation and amortization

 

 

(3,636

)

 

 

(3,278

)

Interest income, net

 

 

284

 

 

 

570

 

Income (loss) before provision (benefit) for income taxes

 

$

(3,213

)

 

$

5,451

 

Provision (benefit) for income taxes

 

 

(1,274

)

 

 

1,658

 

Net income (loss) (GAAP)

 

$

(1,939

)

 

$

3,793

 

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.