12.  SEGMENT REPORTING

As of February 2, 2025 and January 28, 2024, we had one reportable segment. The Company’s operating segment is based on how the Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance. Our CODM is our Chief Executive Officer and the CODM receives discrete financial information for the Company’s gross margin and a summarized comprehensive statement of income monthly that categorizes selling, general and administrative expenses into four line items with remaining expenses and expenditures for long-lived assets being consolidated as an omnichannel business.

The following table summarizes the Company’s gross margin and selling, general and administrative expenses.

Fiscal Year Ended

February 2, 2025

January 28, 2024

(53 weeks)

(52 weeks)

(in thousands)

Net sales

$

626,629

$

646,681

Cost of goods sold

318,119

321,710

Gross margin

308,510

324,971

Less:

Outbound shipping expenses

43,664

47,185

Advertising expenses

67,518

69,049

Variable expenses

56,055

58,049

Overhead expenses

178,134

160,257

Total selling, general and administrative

345,371

334,540

Operating loss

$

(36,861)

$

(9,569)

Historical Timeline

Fiscal YearFiled
2025Mar 24, 2025Showing above
2018Mar 21, 2018
2016Apr 8, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.