QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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State or Other Jurisdiction of Incorporation or Organization
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I.R.S. Employer Identification No.
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Address of Principal Executive Offices
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Zip Code
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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Form 10-Q
Page No.
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PART I. FINANCIAL INFORMATION
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Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)
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4 | |
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5 | |
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6 | |
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7 | |
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8 | |
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9 | |
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22 |
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29 | |
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29 | |
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PART II. OTHER INFORMATION
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30
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30
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30
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30
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30
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30
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31
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32
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July 29,
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January 28,
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July 30,
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||||||||||
2023
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2023
|
2022
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||||||||||
ASSETS |
Unaudited
|
Unaudited
|
||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
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$
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$
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$
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||||||
Restricted cash
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|
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|||||||||
Accounts receivable
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|||||||||
Merchandise inventory
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|||||||||
Prepaid expenses and other current assets
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|||||||||
Total current assets
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|||||||||
Restricted cash
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|||||||||
Fixed assets, net
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|||||||||
Operating lease right-of-use assets
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|||||||||
Cash Surrender Value
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|||||||||
Other assets
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|||||||||
TOTAL ASSETS
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$
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|
$
|
|
$
|
|
||||||
LIABILITIES
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable
|
$
|
|
$
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$
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|
||||||
Short-term borrowings
|
|
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|
|||||||||
Short-term debt
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||||||||||||
Accrued expenses and other current liabilities
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|||||||||
Current portion of operating lease liabilities
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|||||||||
Total current liabilities
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|||||||||
Operating lease liabilities
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|||||||||
Long-term debt
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|||||||||
Other long-term liabilities
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|||||||||
TOTAL LIABILITIES
|
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|
|||||||||
SHAREHOLDERS’ EQUITY (DEFICIT)
|
||||||||||||
Preferred stock ($
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|
|
|
|||||||||
Common stock ($
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|
|
|
|||||||||
Additional paid-in capital
|
|
|
|
|||||||||
Treasury stock at cost (
|
(
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)
|
(
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)
|
(
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)
|
||||||
Accumulated other comprehensive loss
|
|
|
(
|
)
|
||||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT)
|
(
|
)
|
(
|
)
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
|
$
|
|
$
|
|
$
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
July 29,
|
July 30,
|
July 29,
|
July 30,
|
|||||||||||||
2023 |
2022 | 2023 |
2022 |
|||||||||||||
Net revenue
|
$
|
|
$
|
|
$ | $ | ||||||||||
Cost of sales
|
|
|
||||||||||||||
Gross profit
|
|
|
||||||||||||||
Selling, general and administrative expenses
|
|
|
||||||||||||||
Loss from operations
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Interest expense
|
|
|
||||||||||||||
Other income |
( |
) | ( |
) | ||||||||||||
Loss before income tax expense
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Income tax expense
|
|
|
||||||||||||||
Net loss
|
|
(
|
)
|
|
(
|
)
|
( |
) | ( |
) | ||||||
BASIC AND DILUTED LOSS PER SHARE:
|
||||||||||||||||
Basic and diluted loss per common share
|
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Weighted average number of common shares outstanding – basic and diluted |
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended |
|||||||||||||||
July 29,
|
July 30,
|
July 29,
|
July 30,
|
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | ||||
Amortization of pension gain
|
|
|
||||||||||||||
Comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) |
Thirteen Weeks Ended July 29, 2023 | ||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity (Deficit)
|
|||||||||||||||||||||||||
Balance as of April 29, 2023
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Net Loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of July 29, 2023
|
|
$ |
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Twenty-six Weeks Ended July 29, 2023
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity (Deficit)
|
|||||||||||||||||||||||||
Balance as of January 28,2023
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Net Loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of July 29, 2023
|
|
$ |
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Thirteen Weeks Ended July 30,
2022
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of April 30, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net income
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Issuance of shares, net of expenses
|
( |
) | ||||||||||||||||||||||||||||||
Common stock issued- Director grants
|
||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of July 30, 2022
|
|
$ |
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Twenty-six Weeks Ended July 30, 2022
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of January 29, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net Loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Issuance of shares, net of expenses
|
( |
) | ||||||||||||||||||||||||||||||
Issuance of warrants |
- | - | ||||||||||||||||||||||||||||||
Common stock issued-
Director grants
|
||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of July 30, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Twenty-Six Weeks Ended |
||||||||
July 29,
|
July 30,
|
|||||||
2023 |
2022 |
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation of fixed assets
|
|
|
||||||
Amortization of intangible assets
|
||||||||
Stock-based compensation
|
|
|
||||||
Amortization of ROU asset
|
||||||||
Amortization of warrant interest
|
||||||||
Interest on long term debt
|
|
|
||||||
Change in cash surrender value
|
(
|
)
|
|
|||||
Changes in operating assets and liabilities that provide (use) cash:
|
||||||||
Accounts receivable
|
(
|
)
|
|
|||||
Merchandise inventory
|
|
(
|
)
|
|||||
Prepaid expenses and other current assets
|
|
|
||||||
Other long-term assets
|
|
|
||||||
Accounts payable
|
|
|
||||||
Accrued expenses and other current liabilities
|
(
|
)
|
(
|
)
|
||||
Other long-term liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of fixed assets
|
( |
) | ( |
) | ||||
Net cash provided by (used in) investing activities
|
( |
) | ( |
) | ||||
FINANCING ACTIVITIES:
|
||||||||
Payments of short term borrowings
|
( |
) | ( |
) | ||||
Proceeds from long term borrowings
|
|
|
||||||
Proceeds from issuance of shares, net of expense
|
||||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
|||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
(
|
)
|
(
|
)
|
||||
Cash, cash equivalents, and restricted cash, beginning of period
|
|
|
||||||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures and non-cash investing and financing activities: |
||||||||
Interest paid |
$ | $ | ||||||
Warrants issued with debt |
$ |
$ |
•
|
We are partner obsessed. Our customers are our partners. Every decision is focused on building mutually beneficial relationships that deliver results.
|
•
|
We are insights driven. We make data actionable. Our curiosity drives us to discover opportunities early and often.
|
•
|
We create simplicity. We challenge the status quo. We take the complicated and simplify it.
|
•
|
We take ownership. We make things happen. We hold ourselves accountable and have a bias for action.
|
•
|
We empower each other. We welcome and learn from diverse experiences. Our empathy ignites innovation and empowers meaningful change.
|
July 29,
|
January 28,
|
July 30,
|
||||||||||
2023 | 2023 | 2022 |
||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Restricted cash
|
|
|
|
|||||||||
Total cash, cash equivalents and restricted cash
|
$
|
|
$
|
|
$
|
|
Employee Stock Award Plans |
||||||||||||||||||||
Number of
Shares
Subject To
Option
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Other
Share
Awards (1)
|
Weighted
Average
Grant Fair
Value
|
||||||||||||||||
Balance January 28, 2023
|
|
$
|
|
|
$ | |||||||||||||||
Granted
|
|
|
-
|
|||||||||||||||||
Forfeited
|
(
|
)
|
(
|
)
|
-
|
|||||||||||||||
Canceled
|
(
|
)
|
(
|
)
|
-
|
|||||||||||||||
Exercised
|
|
|
-
|
|||||||||||||||||
Balance July 29, 2023
|
|
$
|
|
|
$ | |||||||||||||||
Exercisable July 29, 2023
|
|
$
|
|
|
Exercise
|
Number
|
|||||
Price
|
Outstanding
|
|||||
$
|
|
|
||||
$
|
|
|
||||
|
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
July 29,
|
July 30,
|
July 29,
|
July 30,
|
||||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net periodic pension cost
|
$
|
|
$
|
|
$
|
|
$
|
|
•
|
We are partner obsessed. Our customers are our partners. Every decision is focused on building mutually beneficial relationships that deliver results.
|
•
|
We are insights driven. We make data actionable. Our curiosity drives us to discover opportunities early and often.
|
•
|
We create simplicity. We challenge the status quo. We take the complicated and simplify it.
|
•
|
We take ownership. We make things happen. We hold ourselves accountable and have a bias for action.
|
•
|
We empower each other. We welcome and learn from diverse experiences. Our empathy ignites innovation and empowers meaningful change.
|
Thirteen Weeks Ended
|
Change
|
Twenty-Six Weeks Ended
|
Change
|
|||||||||||||||||||||||||||||
(amounts in
thousands)
|
July 29,
2023
|
July 30,
2022
|
$ |
|
%
|
July 29,
2023 |
July 30,
2022
|
$ |
|
%
|
||||||||||||||||||||||
Net Revenue
|
$
|
33,136
|
$
|
33,907
|
$
|
(771
|
)
|
-2.3
|
%
|
$
|
66,068
|
$
|
65,697
|
$
|
371
|
0.6
|
%
|
|||||||||||||||
Gross profit
|
7,318
|
6,729
|
589
|
8.8
|
%
|
14,771
|
13,579
|
1,192
|
8.8
|
%
|
||||||||||||||||||||||
% to sales
|
22.1
|
%
|
19.8
|
%
|
22.4
|
%
|
20.7
|
%
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||||||||||||||||||||||||||
July 29, 2023
|
July 30, 2022
|
Change
|
July 29, 2023
|
July 30, 2022
|
Change
|
|||||||||||||||||||||||||||||||||||
Amazon US
|
$
|
32,119
|
96.9
|
%
|
$
|
31,978
|
94.3
|
%
|
0.4
|
%
|
$
|
63,763
|
96.5
|
%
|
$
|
61,598
|
93.8
|
%
|
3.5
|
%
|
||||||||||||||||||||
Amazon International
|
492
|
1.5
|
%
|
992
|
2.9
|
%
|
-50.4
|
%
|
1,026
|
1.6
|
%
|
2,279
|
3.5
|
%
|
-55.0
|
%
|
||||||||||||||||||||||||
Other Marketplaces
|
402
|
1.2
|
%
|
350
|
1.0
|
%
|
14.9
|
%
|
878
|
1.3
|
%
|
780
|
1.2
|
%
|
12.6
|
%
|
||||||||||||||||||||||||
Subtotal Retail as a Service
|
33,013
|
99.6
|
%
|
33,320
|
98.3
|
%
|
-0.9
|
%
|
65,668
|
99.4
|
%
|
64,657
|
98.4
|
%
|
1.6
|
%
|
||||||||||||||||||||||||
Subscriptions
|
123
|
0.4
|
%
|
587
|
1.7
|
%
|
-79.0
|
%
|
400
|
0.6
|
%
|
1,040
|
1.6
|
%
|
-61.5
|
%
|
||||||||||||||||||||||||
Net revenue
|
$
|
33,136
|
100.0
|
%
|
$
|
33,907
|
100.0
|
%
|
-2.3
|
%
|
$
|
66,068
|
100.0
|
%
|
$
|
65,697
|
100.0
|
%
|
0.6
|
%
|
Thirteen Weeks Ended
|
Change
|
Twenty six Weeks
|
Change
|
|||||||||||||||||||||||||||||
(amounts in thousands)
|
July 29, 2023
|
July 30, 2022
|
$ |
|
%
|
July 29, 2023
|
July 30, 2022
|
$ |
|
%
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Merchandise margin
|
$
|
13,162
|
$
|
14,121
|
$
|
(959
|
)
|
-6.8
|
%
|
$
|
26,621
|
$
|
28,167
|
$
|
(1,546
|
)
|
-5.5
|
%
|
||||||||||||||
% of net revenue
|
39.7
|
%
|
41.6
|
%
|
-2.0
|
%
|
40.3
|
%
|
42.9
|
%
|
-2.6
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Fulfillment fees
|
(3,945
|
)
|
(4,654
|
)
|
709
|
-15.2
|
%
|
(8,057
|
)
|
(9,222
|
)
|