Quarterly report pursuant to Section 13 or 15(d)

Note D - Revenue Recognition

v3.20.2
Note D - Revenue Recognition
 9 Months Ended
Jun. 27, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

 Note D—Revenue Recognition

 

Our revenue streams consist of retail stores, direct-to-consumer ecommerce, and wholesale channels which are included in our Condensed Consolidated Statements of Operations. The table below identifies the amount and percentage of net sales by revenue stream (in thousands):

 

   

Three Months Ended

  
   

June 27, 2020

    

June 29, 2019

  
    $    

%

     $    

%

  

Retail

   $ 1,179       2 %   $ 1,296       1 %

Direct-to-consumer ecommerce

     3,153       4 %     1,419       1 %

Wholesale

     67,469       94 %     116,545       98 %

Net sales

   $ 71,801       100 %   $ 119,260       100 %

 

   

Nine Months Ended

  
   

June 27, 2020

    

June 29, 2019

  
    $    

%

     $    

%

  

Retail

   $ 3,374       1 %   $ 3,180       1 %

Direct-to-consumer ecommerce

     5,920       2 %     3,990       1 %

Wholesale

     255,057       97 %     316,603       98 %

Net sales

   $ 264,351       100 %   $ 323,773       100 %

 

The table below provides net sales by reportable segment (in thousands) and the percentage of net sales by distribution channel for each reportable segment:

 

   

Third Quarter Fiscal Year 2020

  
   

Net Sales

    

Retail

    

Direct-to-consumer ecommerce

    

Wholesale

  

Delta Group

   $ 65,543       0.2 %     1.0 %     98.8 %

Salt Life Group

     6,258       17.0 %     40.4 %     42.6 %

Total

   $ 71,801                          

 

   

Third Quarter Fiscal Year 2019

  
   

Net Sales

    

Retail

    

Direct-to-consumer ecommerce

    

Wholesale

  

Delta Group

   $ 107,409       0.3 %     0.3 %     99.4 %

Salt Life Group

     11,851       5.0 %     9.1 %     85.9 %

Total

   $ 119,260                          

 

   

Year To Date Fiscal Year 2020

  
   

Net Sales

    

Retail

    

Direct-to-consumer ecommerce

    

Wholesale

  

Delta Group

   $ 238,685       0.2 %     0.5 %     99.3 %

Salt Life Group

     25,666       10.9 %     18.9 %     70.2 %

Total

   $ 264,351                          

 

   

Year To Date Fiscal Year 2019

  
   

Net Sales

    

Retail

    

Direct-to-consumer ecommerce

    

Wholesale

  

Delta Group

   $ 291,325       0.3 %     0.3 %     99.4 %

Salt Life Group

     32,448       7.0 %     9.5 %     83.5 %

Total

   $ 323,773                          

 

In determining our estimates for discounts, allowances, chargebacks, and returns, we consider historical and current trends, agreements with our customers and retailer performance. We record these discounts, returns and allowances as a reduction to net sales in our Condensed Consolidated Statements of Operations and as a refund liability in our accrued expenses in our Condensed Consolidated Balance Sheets, with the estimated value of inventory expected to be returned in prepaid and other current assets in our Condensed Consolidated Balance Sheets. As of  June 27, 2020, and September 28, 2019, there was $0.7 million and $1.0 million, respectively, in refund liabilities for customer returns, allowances, markdowns and discounts within accrued expenses.