|6 Months Ended|
Jul. 31, 2022
|Revenue from Contract with Customer [Abstract]|
|REVENUE RECOGNITION||REVENUE RECOGNITION
The Company’s revenue consists substantially of product sales. The Company reports product sales net of discounts and recognizes them at the point in time when control transfers to the customer, which generally occurs upon our delivery to a third-party carrier.
Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction of net sales and cost of sales on the condensed statements of operations and an increase in inventory and customers returns liability on the condensed balance sheets. There was a returns allowance recorded on the condensed balance sheet in the amount of $2.7 million and $2.0 million as of July 31, 2022 and January 30, 2022, respectively, which was included in accrued expenses and $0.6 million and $0.4 million as of July 31, 2022 and January 30, 2022, associated with sales returns included in merchandise inventories.
In some cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as deposits on the Company’s condensed balance sheet. As of July 31, 2022 and January 30, 2022, the Company recorded under customer deposit liabilities the amount of $6.5 million and $13.3 million respectively. During the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, the Company recognized approximately $13.3 million and $6.0 million, respectively, related to our customer deposits.
The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms, which includes mobile concierge and kiosks, and through the internet. The Other channel predominantly represents sales through the use of online pop-up-shops and shop-in-shops that are staffed with associates trained to demonstrate and sell our product. The following represents net sales disaggregated by channel:
The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in both fiscal 2023 and 2022.
The Company had no customers in fiscal 2023 or 2022 that comprise more than 10% of total net sales.
See Note 10 for sales disaggregated by product.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef