Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
3 Months Ended
May 02, 2020
REVENUE RECOGNITION  
REVENUE RECOGNITION

3. REVENUE RECOGNITION

Our revenue is primarily associated with sales of merchandise to customers within our stores, customers utilizing our e-commerce platforms and through our Darice wholesale business (“Darice”). Revenue from sales of our merchandise is recognized when the customer takes possession of the merchandise. Payment for our retail sales is typically due at the time of the sale.

Customer Receivables

As of May 2, 2020, February 1, 2020 and May 4, 2019, receivables from customers, which consist primarily of trade receivables related to Darice, were approximately $12.2 million, $13.3 million and $22.4 million, respectively, and are included in accounts receivable, net in the consolidated balance sheets.

Gift Cards

The gift card liability is included in accrued liabilities and other in the consolidated balance sheets. The following table includes activity related to gift cards (in thousands):

13 Weeks Ended

May 2,

May 4,

2020

2019

Balance at beginning of period

$

64,130

$

61,071

Issuance of gift cards

6,906

11,325

Revenue recognized (1)

(10,600)

(15,747)

Gift card breakage

(778)

(941)

Balance at end of period

$

59,658

$

55,708

(1) Revenue recognized from the beginning liability during the first quarters of fiscal 2020 and fiscal 2019 totaled $7.3 million and $10.7 million, respectively.