Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jul. 05, 2014 | Aug. 29, 2014 | Jan. 03, 2014 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 5-Jul-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'BEBE | ' | ' |
Entity Registrant Name | 'bebe stores, inc. | ' | ' |
Entity Central Index Key | '0001059272 | ' | ' |
Current Fiscal Year End Date | '--07-04 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 79,557,869 | ' |
Entity Public Float | ' | ' | $184 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $94,345 | $86,965 |
Available for sale securities | 18,665 | 38,945 |
Receivables (net of allowance of $413 and $97) | 4,814 | 7,051 |
Inventories | 31,683 | 33,862 |
Deferred income taxes, net | 88 | 0 |
Prepaid and other | 10,704 | 13,543 |
Total current assets | 160,299 | 180,366 |
Available for sale securities | 11,941 | 54,181 |
Property and equipment, net | 93,640 | 104,720 |
Deferred income taxes, net | 91 | 1,188 |
Intangible asset | 917 | 912 |
Other assets | 3,467 | 3,449 |
Total assets | 270,355 | 344,816 |
Current liabilities: | ' | ' |
Accounts payable | 20,022 | 18,209 |
Accrued liabilities | 39,252 | 29,647 |
Deferred income taxes, net | 25 | 553 |
Total current liabilities | 59,299 | 48,409 |
Deferred rent and other lease incentives | 25,847 | 36,358 |
Liability for uncertain tax positions | 78 | 549 |
Total liabilities | 85,224 | 85,316 |
Commitments and contingencies (Notes 6, 7 and 14) | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock-authorized 1,000,000 shares at $0.001 par value per share; no shares issued and outstanding | 0 | 0 |
Common stock-authorized 135,000,000 shares at $0.001 par value per share; issued and outstanding 79,555,064 and 79,040,866 shares | 80 | 79 |
Additional paid-in capital | 142,868 | 138,307 |
Accumulated other comprehensive income | 3,161 | 784 |
Retained earnings | 39,022 | 120,330 |
Total shareholders’ equity | 185,131 | 259,500 |
Total liabilities and shareholders’ equity | $270,355 | $344,816 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Receivables allowance | $413 | $97 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, shares authorized | 135,000,000 | 135,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 79,555,064 | 79,040,866 |
Common stock,, shares outstanding | 79,555,064 | 79,040,866 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $425,117 | $463,169 | $519,845 |
Cost of sales, including production and occupancy | 286,990 | 308,974 | 311,094 |
Gross margin | 138,127 | 154,195 | 208,751 |
Selling, general and administrative expenses | 197,796 | 197,170 | 186,920 |
Operating income (loss) | -59,669 | -42,975 | 21,831 |
Interest and other income, net | 257 | 815 | 931 |
Income (loss) from continuing operations, before income taxes | -59,412 | -42,160 | 22,762 |
Income tax provision (benefit) | -163 | 26,985 | 9,561 |
Income (loss) from continuing operations, net of tax | -59,249 | -69,145 | 13,201 |
Loss from discontinued operations, net of tax | -14,133 | -8,275 | -1,480 |
Net income (loss) | -73,382 | -77,420 | 11,721 |
Basic per share amounts: | ' | ' | ' |
Income (loss) from continuing operations, net of tax (in dollars per share) | ($0.75) | ($0.84) | $0.16 |
Loss from discontinued operations, net of tax (in dollars per share) | ($0.18) | ($0.10) | ($0.02) |
Net income (loss) (in dollars per share) | ($0.93) | ($0.94) | $0.14 |
Diluted per share amounts: | ' | ' | ' |
Income (loss) from continuing operations, net of tax (in dollars per share) | ($0.75) | ($0.84) | $0.16 |
Loss from discontinued operations, net of tax (in dollars per share) | ($0.18) | ($0.10) | ($0.02) |
Net income (loss) (in dollars per share) | ($0.93) | ($0.94) | $0.14 |
Basic weighted average shares outstanding | 79,234 | 81,847 | 84,235 |
Diluted weighted average shares outstanding | 79,234 | 81,847 | 84,402 |
Other comprehensive income (loss) | ' | ' | ' |
Unrealized gain on available for sale securities, net of tax | 2,610 | 1,653 | 2,138 |
Foreign currency translation adjustments | -233 | -1,021 | -1,916 |
Other comprehensive income | 2,377 | 632 | 222 |
Comprehensive income (loss) | ($71,005) | ($76,788) | $11,943 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholder's Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Jul. 02, 2011 | $356,253 | $84 | $141,829 | ($5) | $214,345 |
Beginning Balance, shares at Jul. 02, 2011 | ' | 84,097,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | 11,721 | ' | ' | ' | 11,721 |
Other Comprehensive Income | 222 | ' | ' | 157 | 65 |
Stock based compensation | 2,021 | ' | 2,021 | ' | ' |
Common stock issued under stock plans including tax benefit | 330 | ' | 330 | ' | ' |
Common stock issued under stock plans including tax benefit, shares | ' | 263,000 | ' | ' | ' |
Cash dividends declared ($0.10 per share) | -8,427 | ' | ' | ' | -8,427 |
Ending Balance at Jun. 30, 2012 | 362,120 | 84 | 144,180 | 152 | 217,704 |
Ending Balance, shares at Jun. 30, 2012 | ' | 84,360,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | -77,420 | ' | ' | ' | -77,420 |
Other Comprehensive Income | 632 | ' | ' | 632 | ' |
Stock based compensation | 3,107 | ' | 3,107 | ' | ' |
Purchase of common stock | -21,226 | -5 | -9,447 | ' | -11,774 |
Purchase of common stock, shares | ' | -5,488,000 | ' | ' | ' |
Common stock issued under stock plans including tax benefit | 467 | ' | 467 | ' | ' |
Common stock issued under stock plans including tax benefit, shares | ' | 168,000 | ' | ' | ' |
Cash dividends declared ($0.10 per share) | -8,180 | ' | ' | ' | -8,180 |
Ending Balance at Jul. 06, 2013 | 259,500 | 79 | 138,307 | 784 | 120,330 |
Ending Balance, shares at Jul. 06, 2013 | 79,040,866 | 79,040,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | -73,382 | ' | ' | ' | -73,382 |
Other Comprehensive Income | 2,377 | ' | ' | 2,377 | ' |
Stock based compensation | 3,708 | ' | 3,708 | ' | ' |
Common stock issued under stock plans including tax benefit | 854 | 1 | 853 | ' | ' |
Common stock issued under stock plans including tax benefit, shares | ' | 515,000 | ' | ' | ' |
Cash dividends declared ($0.10 per share) | -7,926 | ' | ' | ' | -7,926 |
Ending Balance at Jul. 05, 2014 | $185,131 | $80 | $142,868 | $3,161 | $39,022 |
Ending Balance, shares at Jul. 05, 2014 | 79,555,064 | 79,555,000 | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholder's Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Dividends declared (in dollars per share) | $0.10 | $0.10 | $0.10 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($73,382) | ($77,420) | $11,721 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ' | ' | ' |
Non-cash compensation expense | 3,708 | 3,107 | 2,026 |
Depreciation and amortization | 19,379 | 21,560 | 20,279 |
Non-cash charge for asset impairment | 7,605 | 7,046 | 490 |
Net loss (gain) on disposal of property | 433 | 1,335 | -296 |
Deferred income taxes | 515 | 27,702 | 3,754 |
Liability for long term uncertain tax positions | -471 | -1,687 | 177 |
Tax benefit from exercise of stock options and awards | 0 | 686 | 278 |
Excess tax benefit from exercise of stock options and awards | -223 | -7 | -124 |
Changes in operating assets and liabilities: | ' | ' | ' |
Receivables | 2,230 | 2,137 | -4,175 |
Inventories | 2,180 | -571 | 226 |
Prepaid and other | 3,177 | 4,648 | -2,532 |
Accounts payable | -307 | 2,455 | -2,712 |
Deferred rent and other lease incentives | -4,077 | -244 | 1,242 |
Accrued liabilities | 8,956 | 883 | 2,386 |
Net cash provided by (used in) operating activities | -30,277 | -8,370 | 32,740 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -19,799 | -24,611 | -42,066 |
Insurance proceeds from property and equipment | 42 | 0 | 763 |
Purchase of investments | -15,574 | -73,897 | -83,896 |
Proceeds from sales and maturities of investments | 80,126 | 118,066 | 110,045 |
Other | -5 | 0 | -27 |
Net cash provided by (used in) investing activities | 44,790 | 19,558 | -15,181 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from stock options exercised | 854 | 597 | 1,346 |
Excess of tax benefit on stock options exercised | 223 | 7 | 124 |
Cash dividends paid | -7,926 | -8,180 | -8,427 |
Purchases of common stock | 0 | -21,226 | 0 |
Net cash used in financing activities | -6,849 | -28,802 | -6,957 |
Net increase (decrease) in cash and equivalents | 7,664 | -17,614 | 10,602 |
Effect of exchange rate changes on cash | -284 | -403 | -797 |
Cash and equivalents: | ' | ' | ' |
Beginning of year | 86,965 | 104,982 | 95,177 |
End of year | 94,345 | 86,965 | 104,982 |
Non-cash investing activities: | ' | ' | ' |
Change in fair value of available for sale securities—unrealized gain | 2,610 | 1,653 | 2,138 |
Accrued capital expenditures | 5,809 | 2,431 | 6,160 |
Supplemental information: | ' | ' | ' |
Cash paid for interest | 9 | 45 | 78 |
Cash paid (received) for income taxes | ($2,052) | ($3,564) | $6,732 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Nature of the business—bebe stores, inc. (the “Company”) designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe, BEBE SPORT and bbsp brand names. As of July 5, 2014, the Company operates 206 specialty retail stores located in 34 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Canada and our on-line store at www.bebe.com. In addition, the Company has 94 international stores operated by licensees. | ||||||||||||
The Company has one reportable segment and has two brands with product lines of a similar nature. Revenues of the Company’s international wholesale licensee retail operations represented approximately eight percent of net sales for fiscal years 2014, 2013 and 2012. | ||||||||||||
Basis of financial statement presentation—The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). | ||||||||||||
Consolidation—The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. | ||||||||||||
Fiscal year—The Company’s fiscal year ends on the first Saturday on or after June 30. Fiscal year 2014 had 52 weeks, fiscal year 2013 had 53 weeks and fiscal year 2012 had 52 weeks. | ||||||||||||
Use of estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Foreign currency adjustments—The Company enters into a significant amount of purchase obligations outside of the United States, substantially all of which are negotiated and settled in U.S. dollars. The Company also has a subsidiary for which the functional currency is the Canadian dollar, as well as a subsidiary for which the functional currency is the Japanese yen. Assets and liabilities of bebe’s foreign operations are translated into U.S. dollars at year-end rates, while income and expenses are translated at the weighted average exchange rates for the year. The related translation adjustments are recorded in accumulated other comprehensive income as a separate component of shareholders’ equity. Intercompany settlements are recorded in interest and other income, net at the weighted average exchange rate for the year. | ||||||||||||
Cash and equivalents—represent cash and short-term, highly liquid investments with original maturities of less than three months. The Company also classifies amounts in transit from banks for customer credit card and debit card transactions as cash and equivalents as the banks process the majority of these amounts within one or two business days. | ||||||||||||
Investments—The Company holds treasury bills, certificates of deposit and a variety of interest bearing auction rate securities (“ARS”) consisting of federally insured student loan backed securities and insured municipal authority bonds. The Company designates its investments as available for sale securities which are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. As of July 5, 2014, the Company’s ARS portfolio totaled approximately $11.9 million, net of impairment, and is classified as available for sale securities. (See note 3 for further discussion of the Company’s investments.) | ||||||||||||
Fair value of financial instruments—The carrying values of cash and equivalents, marketable securities, receivables and accounts payable approximate their estimated fair values. | ||||||||||||
Concentration of credit risk—Financial instruments, which subject the Company to concentration of credit risk, consist principally of cash and equivalents and marketable securities. The Company invests its cash through financial institutions. Such investments may be in excess of FDIC insurance limits. The Company has not experienced any losses on its deposits of cash and equivalents for the periods presented. | ||||||||||||
Inventories—are stated at the lower of weighted average cost or market. Cost includes certain indirect purchasing, merchandise handling and storage costs. In addition, the Company estimates and accrues shortage for the period between the last physical count and the balance sheet date. | ||||||||||||
Allowance for doubtful accounts—The changes in the allowance for doubtful accounts are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 97 | $ | 1,255 | $ | 1,247 | ||||||
Charged to expense | 505 | 101 | 41 | |||||||||
Write offs | (189 | ) | (1,259 | ) | (33 | ) | ||||||
Balance at end of year | $ | 413 | $ | 97 | $ | 1,255 | ||||||
During fiscal 2013 the Company wrote off its full reserve for not sufficient funds (“NSF”) checks as it stopped accepting checks as a form of tender for retail sales in fiscal 2011 and the receipt of payment is deemed to be remote. | ||||||||||||
Property and equipment, net—are stated at cost. Depreciation and amortization on property and equipment is computed using the straight-line method over the following estimated useful lives and is included within selling, general and administrative expenses. | ||||||||||||
Description | Term | |||||||||||
Buildings | 39.5 years | |||||||||||
Leasehold improvements | 10 years or term of lease, whichever is shorter | |||||||||||
Furniture, fixtures, equipment and vehicles | 5 | |||||||||||
Computer hardware and software | 3 | |||||||||||
Impairment of long-lived assets—The Company regularly reviews the carrying value of its long-lived assets. Long-lived assets are reviewed whenever events or changes in circumstances indicate that the carrying amount of its assets might not be recoverable. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a store level. Store assets are reviewed for impairment using factors including, but not limited to, the Company’s future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to that store, compared to the carrying value of the assets. The Company recognizes full or partial impairment if the sum of the undiscounted future cash flows of a store does not exceed the carrying value of the assets. For impaired assets, the Company recognizes a loss equal to the difference between the net book value of the asset and its estimated fair value. Fair value is based on discounted future cash flows of the asset using a discount rate commensurate with the risk. In addition, at the time a decision is made to close a store, the Company records an impairment charge, if appropriate, or accelerates depreciation over the revised useful life of the asset. | ||||||||||||
Lease accounting—The Company leases retail stores and office space under operating leases. Costs associated with securing new store leases are capitalized in other assets and amortized over the lease term. Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the initial lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the lease term, commencing when possession of the property is taken from the landlord, which normally includes a construction period prior to the store opening. The Company records the difference between the recognized rent expense and the amounts paid as deferred rent. | ||||||||||||
The Company receives construction allowances from landlords, which are deferred and amortized on a straight-line basis over the lease term, including the construction period, as a reduction of rent expense. Construction allowances are recorded under deferred rent and other lease incentives on the balance sheet. | ||||||||||||
The Company discontinued its 2b division and closed stores prior to the expiration of the related leases. Certain of those leases contain a contractual cap on the amount owed and the Company has accrued a liability pursuant to the terms of the contract. For leases with no contractual maximum an expense was recorded for the difference between the present value of our future lease payments and related costs (e.g. common area maintenance and real estate taxes) from the date of closure through the end of the remaining lease term, reduced by assumed sublease rental income. The estimate of future cash flows is based on an analysis of the specific real estate market and included input from an independent real estate broker. Cash flows are discounted using a credit-adjusted risk free interest rate. The liability for these leases contains uncertainties because management is required to make assumptions including the duration and amount of sublease income. Furthermore, the Company intends to pursue a negotiated settlement with the respective landlords, and actual negotiated settlements could result in amounts that differ from amounts recorded and will be reflected within discontinued operations in the period of settlement. | ||||||||||||
Revenue recognition—The Company recognizes revenue at the time the products are received by the customer. Revenue is recognized for store sales at the point at which the customer receives and pays for the merchandise at the register. For on-line sales, revenue is recognized at the time the customer receives the product. The Company estimates and defers revenue and the related product costs for shipments that are in transit to the customer. Customers typically receive goods within a few days of shipment. Amounts related to shipping billed to customers are reflected in net sales and the related costs are reflected in cost of goods sold. Sales tax collected from customers on retail sales are recorded net of retail sales at the time of the transaction. | ||||||||||||
The Company records a reserve for estimated product returns based on estimated margin using historical return trends. If actual returns are greater than those projected, additional sales returns may be recorded in the future. The changes in the returns reserve are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 703 | $ | 817 | $ | 933 | ||||||
Charged to cost and expense | 18,782 | 15,224 | 16,545 | |||||||||
Returns | (18,830 | ) | (15,338 | ) | (16,661 | ) | ||||||
Balance at end of year | $ | 655 | $ | 703 | $ | 817 | ||||||
Discounts offered to customers consist primarily of point of sale markdowns and are recorded at the time of the related sale as a reduction of revenue. | ||||||||||||
The value of points and rewards earned by our loyalty program members are recorded as a liability and a reduction of revenue at the time the points and rewards are earned based on historical conversion and redemption rates. The associated revenue is recognized when the rewards are redeemed or expire. | ||||||||||||
Gift certificates sold are recorded as a liability and revenue is recognized when the gift certificate is redeemed. Similarly, customers may receive a store credit in exchange for returned goods. Store credits are recorded as a liability until redeemed. Unredeemed store credits and gift certificates are recognized as other income within selling, general and administrative expenses three and four years, respectively, after issuance. In addition, the Company sells gift cards with no expiration dates to customers in its retail store locations, through its on-line stores, and through third parties. Income from gift cards is recognized when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage income based on historical redemption patterns, which the Company estimates is four years. Gift card breakage is included within selling, general and administrative expenses. | ||||||||||||
Royalty revenue from product licensees is recorded as the greater of the minimum amount guaranteed in the contract or units sold. | ||||||||||||
Wholesale revenue from the sale of product to international licensee operated bebe stores is recognized at the time the licensee receives the shipment. | ||||||||||||
Store preopening costs—associated with the opening or remodeling of stores, such as preopening payroll, are expensed as incurred. | ||||||||||||
Apparel and accessory design activities—are expensed as incurred. | ||||||||||||
Advertising costs—are charged to expense when the advertising takes place. Advertising costs from continuing operations were $27.4 million, $23.2 million and $22.9 million, respectively, during fiscal 2014, 2013 and 2012. | ||||||||||||
Income taxes—are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company is subject to periodic audits by the Internal Revenue Service and other foreign, state and local taxing authorities. These audits may challenge certain of the Company’s tax positions such as the timing and amount of income and deductions and the allocation of taxable income to various tax jurisdictions. The Company evaluates its tax positions and establishes liabilities in accordance with applicable accounting guidance on uncertainty in income taxes. In estimating future tax consequences, all expected future events known to management are considered other than pending changes in the tax law or rates. The Company regularly assesses the need for a valuation allowance against its deferred assets. In evaluating whether it is more likely than not that some or all of the Company’s deferred tax assets will not be realized, it considers all available positive and negative evidence, including recent year’s operational results which is objectively verifiable evidence. As a result of its evaluation of the realizability of its deferred tax assets as of July 5, 2014, the Company has concluded, based upon all available evidence, that it is more likely than not that the majority of its deferred tax assets will continue to not be realized and the Company has recorded a valuation allowance. | ||||||||||||
Additional income tax information has been included in note 10 of the notes to the financial statements. | ||||||||||||
Self-insurance—The Company uses a combination of insurance and self-insurance for employee related health care benefits and workers compensation. The Company records self-insurance liabilities based on claims filed and an estimate of those claims incurred but not reported. | ||||||||||||
Stock-based compensation—The Company has equity awards that vest based on achieving a service condition, and also has equity awards that vest based on a market-based performance condition. | ||||||||||||
For awards that vest based on a service condition, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options, restricted stock units and employee stock purchase plan shares. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected employee exercise behaviors, risk-free interest rate and expected dividends. As the stock-based compensation expense recognized on the consolidated statements of operations and comprehensive income (loss) for fiscal 2014, 2013 and 2012 is based on awards ultimately expected to vest, such amounts have been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on the Company’s historical experience. In fiscal 2014, we accelerated the vesting on certain awards granted to our former CEO at the time of his resignation. A modification of an award that accelerates vesting is accounted for as a cancellation of the original award and the issuance of a new award. The compensation expense associated with the original award is reversed while compensation expense for the new award is recorded at fair value determined at the time the modification occurs. Compensation expense for the new award is recorded over the period the employee is required to provide service (if any). | ||||||||||||
During fiscal year 2014, as part of the total long term executive incentive plan, the Company’s Board of Directors granted a target performance award of 132,138 restricted stock units (“RSU”) to certain members of its senior executive team that contained a market-based performance condition in addition to a service component. These RSUs vest after three years from the date of grant and the grants ultimately awarded will be based upon the performance percentage, which can range from 0-200% of the target performance award grant. The RSUs ultimately issued upon vesting are based on the Company’s performance relative to peer group companies’ two year compound annual growth rate of total shareholder return. Total shareholder return is measured based on a comparison of the closing price on June 30, 2013, the day prior to the performance period beginning, and the closing price on June 30, 2015, the last day of the performance period. Total shareholder return will include the effect of dividends paid during the performance period. The per share fair value of these RSUs at their grant date was $6.83 and was estimated on the date of grant using a Monte Carlo simulation model that included valuation inputs for expected volatility 41%, risk free interest rate 0.38%, dividend yield 1.8% and correlation to peer group companies of 22%. | ||||||||||||
Earnings per share—Basic earnings per share (EPS) is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise of outstanding dilutive stock options. | ||||||||||||
The following is a reconciliation of the number of shares used in the basic and diluted earnings per share computations: | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
(in thousands) | ||||||||||||
Basic weighted average number of shares outstanding | 79,234 | 81,847 | 84,235 | |||||||||
Incremental shares from assumed issuance of stock options | — | — | 167 | |||||||||
Diluted weighted average number of shares outstanding | 79,234 | 81,847 | 84,402 | |||||||||
The number of incremental shares from the assumed issuance of stock options is calculated by applying the treasury stock method. | ||||||||||||
Excluded from the computation of the number of diluted weighted average shares outstanding were anti-dilutive options to purchase 4.8 million, 5.5 million and 3.8 million shares for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively. | ||||||||||||
Comprehensive income—consists of net income and other comprehensive income (income, expenses, gains and losses that bypass the income statement and are reported directly as a separate component of net income). The Company’s comprehensive income includes net income (loss), unrealized gains (losses) on investments and foreign currency translation adjustments for all periods presented. Such components of comprehensive income are shown in the consolidated statements of operations and comprehensive income (loss). | ||||||||||||
Recent Accounting PronouncementsOther Comprehensive Income | ||||||||||||
In February 2013, the FASB issued an ASU that requires enhanced disclosures around the amounts reclassified out of accumulated other comprehensive income. The amendments do not change the requirements for reporting net income or other comprehensive income. The ASU requires an entity to present information about significant reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in net income. The ASU was effective for annual and interim reporting periods beginning after December 15, 2012 and as such, the Company adopted the disclosure provisions in the first quarter of fiscal 2014 and it did not have a material impact on the Company's consolidated financial statements. | ||||||||||||
Presentation of Financial Statements | ||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity", or ASU 2014-08. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, ASU 2014-08 required expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014, with early adoption permitted. The Company has not early-adopted this ASU. | ||||||||||||
Revenue Recognition | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", or ASU 2014-09, which states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity will need to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligation in the contract; and recognized revenue when (or as) the entity satisfies each performance obligation. ASU No. 2014-09 will be effective beginning January 1, 2017 and can be adopted on a full retrospective basis or on a modified retrospective basis. The Company is currently assessing its approach to the adoption of this standard and the impact on our results of operations and financial position. |
Discontinued_Operation_of_2b_S
Discontinued Operation of 2b Stores | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operation of 2b Stores | ' | |||||||||||
Discontinued Operation of 2b Stores | ||||||||||||
In the fourth quarter of fiscal 2014, the Company discontinued the operations of the 2b division by closing all existing 2b stores including 2b.com, allowing the Company to focus its efforts on the core bebe brand's retail and outlet stores, e-commerce and international licensing business. The Company closed 18 2b mall-based stores, including the e-commerce business, in the fourth fiscal quarter of 2014. The results of the 2b stores closed to date, net of income tax benefit, which consists of 18, 20 and 14 stores for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively, have been presented as a discontinued operation in the accompanying consolidated statements of operations and comprehensive income (loss) for all periods presented and are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, 2014 | 6-Jul-13 | 30-Jun-12 | ||||||||||
(In thousands) | ||||||||||||
Net sales | $ | 21,418 | $ | 21,516 | $ | 10,986 | ||||||
Cost of sales, including production and occupancy | 18,692 | 17,414 | 8,664 | |||||||||
Gross margin | 2,726 | 4,102 | 2,322 | |||||||||
Selling, general and administrative expenses | 16,857 | 12,375 | 4,746 | |||||||||
Loss from discontinued operations, before income tax provision (benefit) | (14,131 | ) | (8,273 | ) | (2,424 | ) | ||||||
Tax provision (benefit) | 2 | 2 | (944 | ) | ||||||||
Loss from discontinued operations, net of tax provision (benefit) | $ | (14,133 | ) | $ | (8,275 | ) | $ | (1,480 | ) | |||
Costs associated with exit or disposal activities are recorded when the liability is incurred. As of July 5, 2014, the Company has a remaining reserve of $7.4 million for future costs associated with discontinued operations. This reserve has been included within the "Accrued liabilities" line in the consolidated balance sheets. A roll forward of the reserve is presented as follows: | ||||||||||||
Lease Obligations | Other Costs | Total | ||||||||||
(In thousands) | ||||||||||||
Balance as of July 6, 2013 | $ | — | $ | — | $ | — | ||||||
Costs incurred in fiscal 2014 | 6,385 | 1,000 | 7,385 | |||||||||
Cash payments/or markdowns applied | — | — | — | |||||||||
Balance as of July 5, 2014 | $ | 6,385 | $ | 1,000 | $ | 7,385 | ||||||
For leases with a contractual maximum on the termination cost, the lease obligation is computed pursuant to the terms of the contract. For leases with no contractual maximum, the lease obligation amount is the estimated fair value of the obligation as of July 5, 2014, computed as the net present value of the contractual lease payments over the remainder of the lease term reduced by assumed sub-lease rental income. | ||||||||||||
Other costs consist of a reserve for estimated losses on purchase commitments for 2b inventory. This obligation will be applied when the related inventory is received. |
Investments
Investments | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Investments Schedule [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
The Company’s investment portfolio consists of treasury bills, certificates of deposit and auction rate securities. The Company held short term available for sale securities totaling $18.7 million as of July 5, 2014, that consisted entirely of certificates of deposit at cost which approximates fair value. The Company also held long term available for sale securities at fair value totaling $11.9 million as of July 5, 2014, that consisted of interest bearing auction rate securities (“ARS”). | ||||||||||||||||
The Company's ARS consist of federally insured student loan backed securities and insured municipal authority bonds. As of July 5, 2014, the Company’s ARS portfolio totaled approximately $11.9 million classified as available for sale securities, net of a temporary impairment charge of $3.6 million. As of that date, the Company’s ARS portfolio includes approximately 77% federally insured student loan backed securities and 23% municipal authority bonds. The Company’s ARS portfolio consists of approximately 36% A rated investments, 19% BBB rated investments and 45% CCC rated investments. This is a change from the Company’s fiscal 2013 portfolio, which consisted of 21% AAA rated investments, 19% AA rated investments, 23% A rated investments, 20% BBB rated investments and 17% CCC rated investments. These ARS investments are intended to provide liquidity via an auction process that resets the applicable interest rate at predetermined calendar intervals, allowing investors to either roll over their holdings or gain immediate liquidity by selling such interests at par. The uncertainties in the credit markets that began in February 2008 have affected the Company’s holdings in ARS investments and auctions for the Company’s investments in these securities have failed to settle on their respective settlement dates. Historically the fair value of ARS investments had approximated par value due to the frequent resets through the auction process. While the Company continues to earn interest on its ARS investments at the maximum contractual rate, the majority of these investments are not currently trading and therefore do not currently have a readily determinable market value. Accordingly, the estimated fair value of ARS no longer approximates par value. Consequently, the investments are not currently liquid, and the Company will not be able to access these funds until a future auction of these investments is successful, the issuer redeems the securities, or at maturity. Maturity dates for these ARS investments range from 2031 to 2033 with principal distributions occurring on certain securities prior to maturity. | ||||||||||||||||
The Company reviews its impairments in accordance with guidance issued by the FASB and SEC in order to determine the classification of the impairment as “temporary” or “other-than-temporary”. A temporary impairment charge results in an unrealized loss being recorded in the other comprehensive income component of shareholders’ equity. Such an unrealized loss does not affect net income for the applicable accounting period. An other-than-temporary impairment charge is recorded as a loss in the statement of operations and comprehensive income (loss) and reduces net income for the applicable accounting period. When evaluating the investments for other-than-temporary impairment, the Company estimates the expected cash flows of the underlying collateral by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. The Company has not recorded any impairment loss from its available for sale investments as other-than-temporary based on such analysis. | ||||||||||||||||
The valuation of the Company’s investment portfolio is subject to uncertainties that are difficult to predict. Factors that may impact its valuation include changes to credit ratings of the securities as well as to the underlying assets supporting those securities, rates of default of the underlying assets, underlying collateral value, discount rates and ongoing strength and quality of market credit and liquidity. | ||||||||||||||||
The following is a summary of the Company’s available for sale securities: | ||||||||||||||||
As of July 5, 2014 | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Losses | Losses 12 | Fair Value | ||||||||||||||
Less Than | Months or | |||||||||||||||
12 Months | Greater | |||||||||||||||
(in thousands) | ||||||||||||||||
Short term certificates of deposit | $ | 18,665 | $ | — | $ | — | $ | 18,665 | ||||||||
Long term auction rate securities | $ | 15,575 | $ | — | $ | 3,634 | $ | 11,941 | ||||||||
As of July 6, 2013 | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Losses | Losses 12 | Fair Value | ||||||||||||||
Less Than | Months or | |||||||||||||||
12 Months | Greater | |||||||||||||||
(in thousands) | ||||||||||||||||
Short term treasury bills | $ | 11,990 | $ | — | $ | — | $ | 11,990 | ||||||||
Short term certificates of deposit | 26,955 | — | — | 26,955 | ||||||||||||
$ | 38,945 | $ | — | $ | — | $ | 38,945 | |||||||||
Long term treasury bills | $ | 19,950 | $ | — | $ | — | $ | 19,950 | ||||||||
Long term auction rate securities | 40,475 | — | 6,244 | 34,231 | ||||||||||||
Total | $ | 60,425 | $ | — | $ | 6,244 | $ | 54,181 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The FASB has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||
As of July 5, 2014, the Company held financial instruments that are measured at fair value on a recurring basis. These included cash equivalents and available for sale securities. Cash equivalents consist of money market funds. Short term available for sale securities consist of certificates of deposit. Long term available for sale securities consist of government treasury bills and ARS. These ARS consist of federally insured student loan backed securities and insured municipal authority bonds. | ||||||||||||||||
The Company determined the estimated fair value of its investment in ARS as of July 5, 2014 by reviewing trading activity for similar securities in secondary markets as well as by using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for liquidity (average of LIBOR +4.64%), interest rates (weighted average of 0.2%), timing (range from 0 – 14 years), credit ratings and amount of cash flows and expected holding periods of the ARS and recent trading activity in the secondary marketplace. | ||||||||||||||||
The following items are measured at fair value on a recurring basis at July 5, 2014: | ||||||||||||||||
Description | July 5, | Using Quoted Prices | Significant | Significant | ||||||||||||
2014 | in Active Markets for | Other | Unobservable | |||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||
Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements at reporting date | ||||||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents | $ | 46,423 | $ | 46,423 | $ | — | $ | — | ||||||||
Current available for sale securities | 18,665 | — | 18,665 | — | ||||||||||||
Non-current available for sale securities | 11,941 | — | — | 11,941 | ||||||||||||
Total | $ | 77,029 | $ | 46,423 | $ | 18,665 | $ | 11,941 | ||||||||
The following items are measured at fair value on a recurring basis at July 6, 2013: | ||||||||||||||||
Description | July 6, | Using Quoted Prices | Significant | Significant | ||||||||||||
2013 | in Active Markets for | Other | Unobservable | |||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||
Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements at reporting date | ||||||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents | $ | 50,123 | $ | 50,123 | $ | — | $ | — | ||||||||
Current available for sale securities | 38,946 | 11,990 | 26,956 | — | ||||||||||||
Non-current available for sale securities | 54,181 | 19,950 | — | 34,231 | ||||||||||||
Total | $ | 143,250 | $ | 82,063 | $ | 26,956 | $ | 34,231 | ||||||||
During the fiscal years ended July 5, 2014 and July 6, 2013, there were no transfers of assets and liabilities between Level 1 (quoted prices in active markets for identical assets) and Level 2 (significant other observable inputs) of the fair value measurement hierarchy. An impairment charge has been recorded that reduces the carrying amount of the non-current available for sale securities of $15.6 million to their estimated fair value of $11.9 million as of July 5, 2014. The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended July 5, 2014: | ||||||||||||||||
4. Fair Value Measurements (Continued) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance at July 6, 2013 | $ | 34,231 | ||||||||||||||
Total gains or (losses) (realized or unrealized) | ||||||||||||||||
Included in earnings | — | |||||||||||||||
Included in other comprehensive income | 2,610 | |||||||||||||||
Settlements | (24,900 | ) | ||||||||||||||
Balance at July 5, 2014 | $ | 11,941 | ||||||||||||||
Non-financial Assets | ||||||||||||||||
The Company measures certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. During the fiscal years ended July 5, 2014, June 6, 2013 and June 30, 2012, the Company recorded impairment charges of approximately $7.0 million, $3.8 million and $0.5 million, respectively, related to under-performing stores. The following table presents the Company’s considerations of at-risk assets for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively: | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
July 5, 2014 | 6-Jul-13 | 30-Jun-12 | ||||||||||||||
Number of stores identified as at risk and evaluated for impairment | 38 | 42 | 14 | |||||||||||||
Total carrying amount of stores identified as at risk prior to any impairment charges taken | $ | 8.4 | million | $ | 7.1 | million | $ | 3.2 | million | |||||||
Less: impairment charges recorded during the period | $ | 7 | million | $ | 3.8 | million | $ | 0.5 | million | |||||||
Remaining carrying amount of stores identified as at risk after impairment charges taken | $ | 1.4 | million | $ | 3.3 | million | $ | 2.7 | million | |||||||
Number of stores considered at risk, but not impaired | 10 | 18 | 11 | |||||||||||||
Total carrying amount of stores identified as at risk, but not impaired | $ | 1.2 | million | $ | 3 | million | $ | 2.7 | million | |||||||
The fair market value of these assets was determined using the income approach and level 3 inputs, which required management to make significant estimates about future operating plans and projected cash flows. Management estimates the amount and timing of future cash flows based on its experience and knowledge of the retail market in which each store operates. The assumptions used in preparing the discounted cash flow model and the related sensitivity analysis around the discounted cash flow model include estimates for weighted average cost of capital (11.0)% and annual revenue growth rates (range from (2.0)% – 5.0%). The stores not impaired had undiscounted cash flows that exceeded their net carrying amount at a weighted average of 447%, 472% and 548% for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively. |
Inventories
Inventories | 12 Months Ended | |||||||
Jul. 05, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The Company’s inventories consist of: | ||||||||
As of | ||||||||
July 5, | July 6, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 1,206 | $ | 1,965 | ||||
Merchandise available for sale | 30,477 | 31,897 | ||||||
Inventories | $ | 31,683 | $ | 33,862 | ||||
Credit_Facilities
Credit Facilities | 12 Months Ended |
Jul. 05, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
The Company had an unsecured commercial line of credit agreement which provides for borrowings and issuance of letters of credit of up to a combined total of $10.0 million. This agreement was canceled by the Company on May 14, 2014. The outstanding balance bears interest at either the bank’s reference rate (which was 3.25% as of July 6, 2013) or the LIBOR rate (which was 0.19% at July 6, 2013) plus 1.75% points. As of July 6, 2013 there were no outstanding cash borrowings, no trade letters of credit outstanding and one $3.0 million outstanding stand-by letter of credit. | |
On May 14, 2014 the Company entered into a stand-by letter of credit agreement which provides for issuance of one or more stand-by letters of credit. As of July 5, 2014 there was $3.8 million outstanding, related to two stand-by letters of credit. To date, no beneficiary has drawn upon the stand-by letter of credit. |
Lease_Obligations
Lease Obligations | 12 Months Ended | |||
Jul. 05, 2014 | ||||
Leases [Abstract] | ' | |||
Lease Obligations | ' | |||
Lease Obligations | ||||
The Company leases its retail store locations, corporate headquarters. The Company recognizes rent expense on a straight-line basis over the term of the lease, taking into account, when applicable, lessor incentives for tenant improvements, periods where no rent payment is required and escalations in rent payments over the term of the lease. Deferred rent is recognized for the difference between the rent expense recognized on a straight-line basis and the payments made per the terms of the lease. Store leases typically provide for payment by the Company of certain operating expenses, real estate taxes and additional rent based on a percentage of net sales if a specified net sales target is exceeded. In addition, certain leases have escalation clauses and provide for terms of renewal and/or early termination based on the net sales volumes achieved. | ||||
Rent expense under operating leases for the fiscal years ended July 5, 2014, July 6, 2013, and June 30, 2012 was $86.9 million, $94.1 million and $89.2 million, respectively. Rent expense included other lease-required expenses for fiscal years 2014, 2013 and 2012 of $28.4 million, $31.3 million and $29.0 million, respectively. | ||||
Future minimum lease payments for noncancellable leases at July 5, 2014 are as follows: | ||||
Operating Leases | ||||
(in | ||||
thousands) | ||||
Fiscal year | ||||
2015 | $ | 51,978 | ||
2016 | 45,422 | |||
2017 | 36,844 | |||
2018 | 30,257 | |||
2019 | 24,780 | |||
Thereafter | 64,649 | |||
Total minimum lease payments | $ | 253,930 | ||
Includes amounts for operating leases related to closed 2b stores classified as discontinued operations for the following fiscal years (in thousands): 2015: $2,015; 2016: $2,074; 2017: $2,128; 2018: $2,175; 2019: $2,224; and thereafter: $5,449. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Jul. 05, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
As of | ||||||||
5-Jul-14 | 6-Jul-13 | |||||||
Gift certificates, gift cards and store credits | $ | 5,176 | $ | 5,456 | ||||
Employee compensation | 9,802 | 8,253 | ||||||
Sales/use tax payable | 3,466 | 4,045 | ||||||
Deferred revenue | 3,994 | 3,675 | ||||||
Capital expenditures | 1,852 | 570 | ||||||
Lease obligation costs | 6,385 | — | ||||||
Other | 8,577 | 7,648 | ||||||
Total | $ | 39,252 | $ | 29,647 | ||||
Costs associated with exit or disposal activities, (including restructuring charges) are recorded as a liability when incurred. In addition to the lease termination and other costs related to the closure of 2b described in note 2, as of July 5, 2014, the Company has $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring occurring in fiscal 2014 as follows (in thousands): | ||||||||
Total | ||||||||
Balance as of July 6, 2013 | $ | — | ||||||
Costs incurred in fiscal 2014 | 2,167 | |||||||
Cash payments | (223 | ) | ||||||
Balance at July 5, 2014 | $ | 1,944 | ||||||
This amount is included in employee compensation and has been recorded in selling, general and administrative expenses. |
Intangible_Asset
Intangible Asset | 12 Months Ended |
Jul. 05, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Intangible Asset | ' |
Intangible Asset | |
During the third quarter of fiscal 2011, the Company acquired the registered trademark in the People’s Republic of China for the “bebe” mark (“the Mark”). The Company has recognized the full $0.9 million purchase price of the Mark as an indefinite-lived intangible asset on the consolidated balance sheets. The Mark is subject to annual impairment testing, unless there is an indicator of impairment, which would require an interim impairment review. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Significant components of the provision for income taxes expense (benefit) from continuing operations are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | 171 | ||||||
State | (440 | ) | (34 | ) | 678 | |||||||
Foreign | (204 | ) | (1,475 | ) | 498 | |||||||
(644 | ) | (1,509 | ) | 1,347 | ||||||||
Deferred: | ||||||||||||
Federal | — | 21,753 | 7,057 | |||||||||
State | — | 6,417 | 1,013 | |||||||||
Foreign | 481 | 324 | 144 | |||||||||
481 | 28,494 | 8,214 | ||||||||||
Provision (benefit) from continuing operations | $ | (163 | ) | $ | 26,985 | $ | 9,561 | |||||
The components of earnings (loss) from continuing operations before income taxes are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | (69,191 | ) | $ | (53,643 | ) | $ | 7,836 | ||||
Foreign | 9,779 | 11,483 | 14,926 | |||||||||
Total income (loss) from continuing operations before income taxes | $ | (59,412 | ) | $ | (42,160 | ) | $ | 22,762 | ||||
A reconciliation of the federal statutory tax rate with the Company’s effective income tax rate from continuing operations is as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | (35.0 | )% | (35.0 | )% | 35 | % | ||||||
State rate, net of federal benefit | (3.2 | ) | (3.3 | ) | 4.9 | |||||||
Tax-exempt interest | — | (0.2 | ) | (0.6 | ) | |||||||
Stock-based compensation | 0.1 | 0.4 | 1 | |||||||||
Valuation allowance | 39.3 | 101.1 | — | |||||||||
Foreign deferred tax adjustment | (0.8 | ) | 0.2 | 0.7 | ||||||||
Tax reserve adjustment | (0.5 | ) | 0.5 | 0.1 | ||||||||
Other | (0.2 | ) | 0.3 | 0.9 | ||||||||
Effective tax rate | (0.3 | )% | 64 | % | 42 | % | ||||||
10. Income Taxes (Continued) | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. | ||||||||||||
Significant components of the Company’s deferred tax assets (liabilities) are as follows: | ||||||||||||
July 5, | July 6, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Gift certificates, gift cards and store credits | $ | 1,204 | $ | 1,249 | ||||||||
Inventory | 2,399 | 1,935 | ||||||||||
Other accrued expenses | 3,142 | 769 | ||||||||||
Deferred revenue | 1,158 | 1,040 | ||||||||||
Accrued vacation | 702 | 978 | ||||||||||
State taxes | (61 | ) | (188 | ) | ||||||||
Prepaid expenses | (699 | ) | (1,101 | ) | ||||||||
Tax credit and net operating loss carryovers | 154 | — | ||||||||||
Other | 3 | — | ||||||||||
Total current | 8,002 | 4,682 | ||||||||||
Valuation allowance | (7,939 | ) | (5,235 | ) | ||||||||
Current deferred tax assets (liabilities), net | 63 | (553 | ) | |||||||||
Non-Current: | ||||||||||||
Basis difference in fixed assets | 15,005 | 11,443 | ||||||||||
Deferred rent | 6,528 | 7,873 | ||||||||||
Stock based compensation | 4,348 | 5,723 | ||||||||||
Foreign tax credit | 1,101 | 1,467 | ||||||||||
Tax credit and net operating loss carryovers | 42,625 | 19,264 | ||||||||||
Construction allowance | (5,265 | ) | (4,636 | ) | ||||||||
Unrealized loss on ARS | 1,339 | 2,321 | ||||||||||
Indirect benefit from uncertain tax positions | 42 | 192 | ||||||||||
Other | 253 | 254 | ||||||||||
Total non-current | 65,976 | 43,901 | ||||||||||
Valuation allowance | (65,885 | ) | (42,713 | ) | ||||||||
Non-current deferred tax assets, net | 91 | 1,188 | ||||||||||
Deferred tax assets, net | $ | 154 | $ | 635 | ||||||||
As of July 5, 2014, the Company has federal, state and foreign gross net operating loss carryovers of approximately $108.4 million, $85.4 million and $1.7 million, respectively. If not used, these carry forwards will expire at various dates from fiscal year 2017 to fiscal year 2034. The Company also has foreign tax credit and state tax credit carry forwards of approximately $1.1 million and $0.1 million, respectively, which will be available to offset future taxable income. If not used, the foreign tax credit carry forwards will expire at various dates from 2016 to 2024 and the state tax credit does not expire. | ||||||||||||
As of July 5, 2014, it was considered more likely than not that the Company’s deferred tax assets would not be realized with the exception of the Company’s deferred tax assets in Japan of approximately $0.2 million. The Company regularly assesses the need for a valuation allowance against its deferred assets. In evaluating whether it is more likely than not that some or all of the Company’s deferred tax assets will not be realized, it considers all available positive and negative evidence, including recent year’s operational results which is objectively verifiable evidence. As a result of its evaluation of the realizability of its deferred tax assets as of July 5, 2014, the Company has concluded, based upon all available evidence, that it is more likely than not that the majority of its deferred tax assets will not be realized. Therefore, the Company has increased its valuation allowance by approximately $25.9 million for the current fiscal year. The Company will continue to maintain a | ||||||||||||
10. Income Taxes (Continued) | ||||||||||||
valuation allowance against its deferred tax assets until the Company believes it is more likely than not that these assets will be realized in the future. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more likely than not standard, the valuation allowance would be reversed accordingly in the period that such determination is made. | ||||||||||||
The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, the Company recognized approximately ($0.1) million, $(0.3) million, and $0.2 million in interest and penalties, respectively. The Company had approximately $0.0 million and $0.2 million for the accrual of interest and penalties at July 5, 2014 and July 6, 2013, respectively. | ||||||||||||
The Company could be subject to Federal income tax examinations for fiscal years 2011 and forward and could be subject to state and Canada examinations for fiscal years 2010 and forward. The Company is currently under examination in certain states and expects the commencement of these tax audits in the near term. At this time, the Company does not believe that the outcome of any examination will have a material impact on the Company’s financial statements. | ||||||||||||
As of July 5, 2014, the Company has $0.4 million in unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Balance as of beginning of period | $ | 898 | $ | 1,756 | $ | 1,668 | ||||||
Additions for tax positions taken during the current year | — | 511 | 67 | |||||||||
Additions for tax positions taken during prior years | — | 77 | 332 | |||||||||
Reductions for tax positions taken during the current year | (272 | ) | — | — | ||||||||
Settlements | (180 | ) | (37 | ) | (38 | ) | ||||||
Expirations of statues of limitations | (62 | ) | (1,409 | ) | (273 | ) | ||||||
Balance as of end of period | $ | 384 | $ | 898 | $ | 1,756 | ||||||
Of the $0.4 million recorded at July 5, 2014, $0.3 million of unrecognized tax benefits would affect the effective tax rate if recognized. While the Company expects the amount of unrecognized tax benefits to change in the next twelve months, the change is not expected to have a significant effect on the estimated effective annual tax rate, the results of operations or financial position. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jul. 05, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment: | ||||||||
Property and equipment consist of the following: | ||||||||
As of | ||||||||
5-Jul-14 | 6-Jul-13 | |||||||
(in thousands) | ||||||||
Leasehold improvements | $ | 121,346 | $ | 132,253 | ||||
Furniture, fixtures and equipment | 51,107 | 52,237 | ||||||
Computer hardware and software | 48,815 | 46,097 | ||||||
Land and buildings | 29,478 | 29,478 | ||||||
Construction in progress | 14,984 | 8,540 | ||||||
Total | 265,730 | 268,605 | ||||||
Less: Accumulated depreciation | (172,090 | ) | (163,885 | ) | ||||
Property and equipment, net | $ | 93,640 | $ | 104,720 | ||||
Construction in progress consists primarily of construction costs related to facilities that will open subsequent to year end and information technology projects. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Jul. 05, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
Employees are eligible to participate in the Company’s 401(k) plan if they have been employed by the Company for six months, have reached age 21 and work at least 1,000 hours annually. Generally, employees can defer up to 75% of their gross wages up to the maximum limit allowable under the Internal Revenue Code. The Company can make a discretionary matching contribution for the employee. Company contributions to the plan for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012 were $0.0 million, $0.5 million and $0.5 million, respectively. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Shareholders' Equity | ' | |||||||||||||||
Shareholders’ Equity | ||||||||||||||||
Preferred Stock | ||||||||||||||||
The Company is authorized to issue up to 1,000,000 shares of $0.001 par value preferred stock and to fix the rights, preferences, privileges and restrictions including voting rights, of these shares without any further vote or approval by the shareholders. No preferred stock has been issued to date. | ||||||||||||||||
Common Stock Plans | ||||||||||||||||
The 1997 Stock Plan as amended (the “Stock Plan”) provides for the grant of incentive stock options, non-qualified stock options, stock purchase rights, stock awards and service-based and performance-based restricted stock units (“RSU”). Although the Stock Plan allows for stock options and related awards to be granted at prices below fair market value, the Company has historically granted such options at the fair market value of the stock on the date of grant. Stock options and related awards have a maximum term of ten years. Options and restricted stock units granted to employees generally vest over four years with 25% of the award vested on each of the four anniversary dates. Options granted to directors generally vest over four years with 25% of the award vested on each of the four anniversary dates. RSUs awarded to directors generally vest over a period of one year from the date of grant. As of July 5, 2014, the Company has 7,827,410 shares of common stock authorized and unissued under the Stock Plan and there were 2,328,581 shares available for future grant. | ||||||||||||||||
The following table summarizes information about stock options outstanding at July 5, 2014: | ||||||||||||||||
Options Outstanding | Options Vested and | |||||||||||||||
Exercisable | ||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||
(in thousands) | Average | Average | (in thousands) | Average | ||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||
Life | Price | Price | ||||||||||||||
(in years) | ||||||||||||||||
$3.57 to $3.99 | 1,186 | 3.17 | $3.87 | 974 | $3.85 | |||||||||||
$4.02 to $5.71 | 1,075 | 7.48 | 5.39 | 287 | 5.42 | |||||||||||
$5.82 to $7.37 | 1,295 | 4.82 | 6.7 | 921 | 6.65 | |||||||||||
$7.39 to $8.14 | 991 | 1.68 | 7.62 | 953 | 7.62 | |||||||||||
$8.16 to $26.19 | 395 | 3.74 | 11.91 | 377 | 12.06 | |||||||||||
4,942 | 4.29 | $6.34 | 3,512 | $6.62 | ||||||||||||
As of July 5, 2014 and July 6, 2013, and June 30, 2012 there were approximately 3,512,000, 2,894,000 and 2,600,000 options exercisable at weighted-average exercise prices per share of $6.62, $8.04 and $8.39, respectively. | ||||||||||||||||
The following table summarizes stock option activity: | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Outstanding | Average | Average | Intrinsic Value | |||||||||||||
(Amounts in | Exercise Price | Remaining | (in thousands) | |||||||||||||
thousands) | of Share | Contractual | ||||||||||||||
Term | ||||||||||||||||
Outstanding, July 6, 2013 | 6,206 | $ | 6.65 | |||||||||||||
Granted | 1,327 | 4.58 | ||||||||||||||
Exercised | (30 | ) | 3.93 | |||||||||||||
Cancelled | (2,561 | ) | 5.97 | |||||||||||||
Outstanding, July 5, 2014 | 4,942 | $ | 6.34 | 4.29 | $ | — | ||||||||||
Exercisable, July 5, 2014 | 3,512 | $ | 6.62 | 2.7 | $ | — | ||||||||||
Options vested and expected to vest—end of period | 4,469 | $ | 6.42 | 3.83 | $ | — | ||||||||||
Intrinsic value for stock options is defined as the difference between the current market value and the grant price. For the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012 the total intrinsic value of stock options exercised was $0.1 million, $0.1 million and $0.5 million, respectively. Cash received from stock options exercised during the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012 was $0.1 million, $0.4 million and $1.2 million, respectively, and the actual tax benefit realized for tax deductions from stock options exercised totaled $0.1 million, $0.1 million and $0.5 million, respectively. | ||||||||||||||||
The following table summarizes RSU activity: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
(in thousands) | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Per Share | ||||||||||||||||
Nonvested, July 6, 2013 | 822 | $ | 6.57 | |||||||||||||
Granted | 695 | 5.33 | ||||||||||||||
Cancelled | (449 | ) | 5.07 | |||||||||||||
Vested | (511 | ) | 5.61 | |||||||||||||
Nonvested, July 5, 2014 | 557 | $ | 5.5 | |||||||||||||
Stock-based compensation | ||||||||||||||||
For the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, the Company recognized share-based compensation expense of $3.7 million, $3.1 million and $2.0 million, respectively, as a component of selling, general and administrative expenses. As of July 5, 2014, there was $2.6 million (before any related tax benefit) of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.9 years. | ||||||||||||||||
The fair value of each option grant was estimated on the date of the grant using the Black-Scholes valuation model. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. The expected stock price volatility is based on an average of the historical volatility of the Company’s stock for a period approximating the expected life and the implied volatility based on traded options of the Company’s stock. The expected dividend yield is based on the Company’s historical dividend payout. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term that approximates the expected life. | ||||||||||||||||
The following table presents the weighted average assumptions used in the option pricing model for the stock options granted in the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012: | ||||||||||||||||
July 5, | July 6, | June 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected dividend rate | 1.64 | % | 2.26 | % | 1.43 | % | ||||||||||
Volatility | 42.1 | % | 45.5 | % | 50.5 | % | ||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 1 | % | ||||||||||
Expected lives (years) | 4.51 | 4.5 | 4.3 | |||||||||||||
Fair value per option granted | $ | 1.8 | $ | 1.4 | $ | 2.71 | ||||||||||
Stock Purchase Plan | ||||||||||||||||
The 1998 Employee Stock Purchase Plan (the “Plan”) has a total of 2,531,250 shares of common stock reserved for issuance. The Plan is implemented in three month purchase periods. The price at which stock may be purchased is equal to 95% of the fair market value of the Company’s common stock on the Purchase Date. During the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, there were 9,800, 10,600 and 6,700 shares issued, respectively. |
Litigation
Litigation | 12 Months Ended |
Jul. 05, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
As of the date of this filing, the Company is involved in ongoing legal proceedings as described below. | |
As reported in previous quarterly and yearly filings, a former employee sued the Company in a complaint filed July 27, 2006 in the Superior Court of California, San Mateo County (Case No. CIV 456550) alleging a failure to pay all wages, overtime wages, minimum wages and a failure to provide meal and rest periods, among other claims. The plaintiff purports to bring the action also on behalf of current and former California bebe managers who are similarly situated. On or about September 2, 2014, the parties entered a settlement agreement which is conditioned upon court approval and a certain class participation rate and is consistent with amounts the company previously accrued. The parties now seek court approval and once received, and assuming the requisite class participation, will pursue administration of the settlement terms with class members. | |
A former employee filed a lawsuit against the Company on November 2, 2010 in the Superior Court of California, San Bernardino County (Case No. CIVRS1011823) alleging a failure to pay all wages, overtime wages, minimum wages, failure to pay/provide meal and rest periods, various other violations of the California Labor Code and a violation of California Business & Professions Code §17200 et seq. The plaintiff purports to bring the action also on behalf of current and former California bebe stylists and sales associates who are similarly situated. Both parties have conducted some discovery and depositions and the Company continues to prepare its defense. A hearing regarding class certification is scheduled to take place on January 13, 2015. | |
A customer served the Company with a complaint on January 31, 2014 in the United States District Court for the Northern District of California (Civil Action No. C14-267 DMR) alleging negligent violations of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq.), knowing and/or willful violations of the Telephone Consumer Protection Act (47U.S.C. §§227 et seq.) and violations of California’s unfair competition law (California Business and Professions Code §§ 17200, et seq.) each stemming from an alleged failure to obtain customer consent prior to sending text messages. The plaintiff purports to bring the action also on behalf of others similarly situated. The lawsuit seeks statutory and injunctive relief and other remedies. The Company completed its initial investigation into the claims, filed its initial response with the court, commenced discovery practice and is vigorously pursuing its defense. The Company filed a motion to dismiss on September 9, 2014. | |
A customer served the Company with a complaint on May 20, 2014 in the United States District Court for the Northern District of California (Civil Action No. 3:14-CV-01968) alleging negligent and willful violations of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq.) stemming from an alleged failure to obtain customer consent prior to sending text messages. The plaintiff purports to bring the action also on behalf of others similarly situated. The lawsuit seeks statutory and injunctive relief and other remedies. The Company completed its initial investigation into the claim, filed its response with the court and is vigorously pursuing its defense. | |
The Company is also involved in various other legal proceedings arising in the normal course of business. | |
Regarding all matters referenced herein, the Company intends to defend itself vigorously and has, accrued estimated amounts of liability where required, appropriate and determinable. Any such estimates may be revised as further information becomes available. The results of any litigation are inherently uncertain and as such bebe cannot assure that it will be able to successfully defend itself in these lawsuits nor that any amounts accrued are sufficient. The Company believes that the legal proceedings referenced herein, as well as the amounts accrued as of this filing, either individually or in the aggregate, will not have a material adverse effect on our business, financial condition or results of operations. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jul. 05, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
During the fiscal years 2014, 2013 and 2012 the Company made payments of $0.6 million, $0.3 million and $0 million, respectively to Skid Holdings LLC for consulting services. Skid Holdings is owned by Manny Mashouf, the Chairman of the Board of the Company. Also in fiscal 2014, 2013 and 2012 the Company made $0.1 million, $0.2 million and $0.1 million, respectively in payments to PM Consulting Group, a company owned by Paul Mashouf, the son of Manny Mashouf. PM Consulting Group provided consulting services related to logistics to the Company during these periods. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Jul. 05, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | |||||||||||||||||
The quarterly financial information presented below reflects all adjustments which, in the opinion of the Company’s management, are of a normal and recurring nature necessary to present fairly the results of operations for the periods presented. | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
October 5(1) | January 4(1) | April 5(1) | July 5(1)(4)(5) | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 109,268 | $ | 123,261 | $ | 89,019 | $ | 103,569 | |||||||||
Gross margin | 39,622 | 42,000 | 24,500 | 32,005 | |||||||||||||
Selling, general and administrative expenses | 47,824 | 46,514 | 47,365 | 56,093 | |||||||||||||
Loss from operations | (8,202 | ) | (4,514 | ) | (22,865 | ) | (24,088 | ) | |||||||||
Loss from continuing operations before income taxes | (8,044 | ) | (4,428 | ) | (22,847 | ) | (24,093 | ) | |||||||||
Loss from continuing operations, net of tax | (7,898 | ) | (4,369 | ) | (22,754 | ) | (24,228 | ) | |||||||||
Loss from discontinued operations, net of tax | (1,256 | ) | (1,096 | ) | (1,522 | ) | (10,259 | ) | |||||||||
Net loss | (9,154 | ) | (5,465 | ) | (24,276 | ) | (34,487 | ) | |||||||||
Basic per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.29 | ) | $ | (0.30 | ) | |||||
Loss from discontinued operations, net of tax | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.13 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.43 | ) | |||||
Diluted per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.29 | ) | $ | (0.30 | ) | |||||
Loss from discontinued operation, net of tax | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.13 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.43 | ) | |||||
2013 Quarter Ended | |||||||||||||||||
September 29(3) | December 29(3) | April 6(3)(2) | July 6(3) | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 112,735 | $ | 129,531 | $ | 107,417 | $ | 113,486 | |||||||||
Gross margin | 41,404 | 44,713 | 32,394 | 35,684 | |||||||||||||
Selling, general and administrative expenses | 44,261 | 50,806 | 49,894 | 52,209 | |||||||||||||
Loss from operations | (2,857 | ) | (6,093 | ) | (17,500 | ) | (16,525 | ) | |||||||||
Loss from continuing operations before income taxes | (2,624 | ) | (5,874 | ) | (17,249 | ) | (16,413 | ) | |||||||||
Loss from continuing operations, net of tax | (1,516 | ) | (3,447 | ) | (48,156 | ) | (16,026 | ) | |||||||||
Loss from discontinued operations, net of tax | (1,064 | ) | (1,372 | ) | (1,115 | ) | (4,724 | ) | |||||||||
Net loss | (2,580 | ) | (4,819 | ) | (49,271 | ) | (20,750 | ) | |||||||||
Basic per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | (0.20 | ) | |||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||
Net loss | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.62 | ) | $ | (0.26 | ) | |||||
Diluted per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | (0.20 | ) | |||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||
Net loss | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.62 | ) | $ | (0.26 | ) | |||||
-1 | Selling, general and administrative expenses in the first, second, third and fourth fiscal quarters include $0.2 million, $0.3 million, $2.7 million and $3.8 million, respectively of impairment charges for store assets. | ||||||||||||||||
-2 | Net loss in the third fiscal quarter includes a non-cash charge of $31.4 million to establish a $27.5 million valuation allowance against the majority of the Company’s deferred tax assets as well as $3.9 million to recognize the fiscal 2013 year to date impact of establishing the valuation allowance. | ||||||||||||||||
-3 | Selling, general and administrative expenses in the first, second, third and fourth fiscal quarters include $0.1 million, $1.7 million, $1.1 million and $0.9 million, respectively of impairment charges for store assets. | ||||||||||||||||
-4 | Loss from discontinued operations, net of tax in the fourth fiscal quarter includes $6.4 million in lease obligation costs and $1 million in charges related to estimated losses on purchase obligations for 2b inventory. | ||||||||||||||||
-5 | Selling, general and administrative expenses in the fourth fiscal quarter includes $4.0 million in severance costs. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Nature of the business | ' | |||||||||||
Nature of the business—bebe stores, inc. (the “Company”) designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe, BEBE SPORT and bbsp brand names. As of July 5, 2014, the Company operates 206 specialty retail stores located in 34 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Canada and our on-line store at www.bebe.com. In addition, the Company has 94 international stores operated by licensees. | ||||||||||||
The Company has one reportable segment and has two brands with product lines of a similar nature. Revenues of the Company’s international wholesale licensee retail operations represented approximately eight percent of net sales for fiscal years 2014, 2013 and 2012. | ||||||||||||
Basis of financial statement presentation | ' | |||||||||||
Basis of financial statement presentation—The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). | ||||||||||||
Consolidation | ' | |||||||||||
Consolidation—The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. | ||||||||||||
Fiscal year | ' | |||||||||||
Fiscal year—The Company’s fiscal year ends on the first Saturday on or after June 30. Fiscal year 2014 had 52 weeks, fiscal year 2013 had 53 weeks and fiscal year 2012 had 52 weeks. | ||||||||||||
Use of estimates | ' | |||||||||||
Use of estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Foreign currency adjustments | ' | |||||||||||
Foreign currency adjustments—The Company enters into a significant amount of purchase obligations outside of the United States, substantially all of which are negotiated and settled in U.S. dollars. The Company also has a subsidiary for which the functional currency is the Canadian dollar, as well as a subsidiary for which the functional currency is the Japanese yen. Assets and liabilities of bebe’s foreign operations are translated into U.S. dollars at year-end rates, while income and expenses are translated at the weighted average exchange rates for the year. The related translation adjustments are recorded in accumulated other comprehensive income as a separate component of shareholders’ equity. Intercompany settlements are recorded in interest and other income, net at the weighted average exchange rate for the year. | ||||||||||||
Cash and equivalents | ' | |||||||||||
Cash and equivalents—represent cash and short-term, highly liquid investments with original maturities of less than three months. The Company also classifies amounts in transit from banks for customer credit card and debit card transactions as cash and equivalents as the banks process the majority of these amounts within one or two business days. | ||||||||||||
Investments | ' | |||||||||||
Investments—The Company holds treasury bills, certificates of deposit and a variety of interest bearing auction rate securities (“ARS”) consisting of federally insured student loan backed securities and insured municipal authority bonds. The Company designates its investments as available for sale securities which are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. As of July 5, 2014, the Company’s ARS portfolio totaled approximately $11.9 million, net of impairment, and is classified as available for sale securities. (See note 3 for further discussion of the Company’s investments.) | ||||||||||||
Fair value of financial instruments | ' | |||||||||||
Fair value of financial instruments—The carrying values of cash and equivalents, marketable securities, receivables and accounts payable approximate their estimated fair values. | ||||||||||||
Concentration of credit risk | ' | |||||||||||
Concentration of credit risk—Financial instruments, which subject the Company to concentration of credit risk, consist principally of cash and equivalents and marketable securities. The Company invests its cash through financial institutions. Such investments may be in excess of FDIC insurance limits. The Company has not experienced any losses on its deposits of cash and equivalents for the periods presented. | ||||||||||||
Inventories | ' | |||||||||||
Inventories—are stated at the lower of weighted average cost or market. Cost includes certain indirect purchasing, merchandise handling and storage costs. In addition, the Company estimates and accrues shortage for the period between the last physical count and the balance sheet date. | ||||||||||||
Allowance for doubtful accounts | ' | |||||||||||
Allowance for doubtful accounts—The changes in the allowance for doubtful accounts are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 97 | $ | 1,255 | $ | 1,247 | ||||||
Charged to expense | 505 | 101 | 41 | |||||||||
Write offs | (189 | ) | (1,259 | ) | (33 | ) | ||||||
Balance at end of year | $ | 413 | $ | 97 | $ | 1,255 | ||||||
During fiscal 2013 the Company wrote off its full reserve for not sufficient funds (“NSF”) checks as it stopped accepting checks as a form of tender for retail sales in fiscal 2011 and the receipt of payment is deemed to be remote. | ||||||||||||
Property and equipment, net | ' | |||||||||||
Property and equipment, net—are stated at cost. Depreciation and amortization on property and equipment is computed using the straight-line method over the following estimated useful lives and is included within selling, general and administrative expenses. | ||||||||||||
Description | Term | |||||||||||
Buildings | 39.5 years | |||||||||||
Leasehold improvements | 10 years or term of lease, whichever is shorter | |||||||||||
Furniture, fixtures, equipment and vehicles | 5 | |||||||||||
Computer hardware and software | 3 | |||||||||||
Impairment of long-lived assets | ' | |||||||||||
Impairment of long-lived assets—The Company regularly reviews the carrying value of its long-lived assets. Long-lived assets are reviewed whenever events or changes in circumstances indicate that the carrying amount of its assets might not be recoverable. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a store level. Store assets are reviewed for impairment using factors including, but not limited to, the Company’s future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to that store, compared to the carrying value of the assets. The Company recognizes full or partial impairment if the sum of the undiscounted future cash flows of a store does not exceed the carrying value of the assets. For impaired assets, the Company recognizes a loss equal to the difference between the net book value of the asset and its estimated fair value. Fair value is based on discounted future cash flows of the asset using a discount rate commensurate with the risk. In addition, at the time a decision is made to close a store, the Company records an impairment charge, if appropriate, or accelerates depreciation over the revised useful life of the asset. | ||||||||||||
Lease accounting | ' | |||||||||||
Lease accounting—The Company leases retail stores and office space under operating leases. Costs associated with securing new store leases are capitalized in other assets and amortized over the lease term. Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the initial lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the lease term, commencing when possession of the property is taken from the landlord, which normally includes a construction period prior to the store opening. The Company records the difference between the recognized rent expense and the amounts paid as deferred rent. | ||||||||||||
The Company receives construction allowances from landlords, which are deferred and amortized on a straight-line basis over the lease term, including the construction period, as a reduction of rent expense. Construction allowances are recorded under deferred rent and other lease incentives on the balance sheet. | ||||||||||||
The Company discontinued its 2b division and closed stores prior to the expiration of the related leases. Certain of those leases contain a contractual cap on the amount owed and the Company has accrued a liability pursuant to the terms of the contract. For leases with no contractual maximum an expense was recorded for the difference between the present value of our future lease payments and related costs (e.g. common area maintenance and real estate taxes) from the date of closure through the end of the remaining lease term, reduced by assumed sublease rental income. The estimate of future cash flows is based on an analysis of the specific real estate market and included input from an independent real estate broker. Cash flows are discounted using a credit-adjusted risk free interest rate. The liability for these leases contains uncertainties because management is required to make assumptions including the duration and amount of sublease income. Furthermore, the Company intends to pursue a negotiated settlement with the respective landlords, and actual negotiated settlements could result in amounts that differ from amounts recorded and will be reflected within discontinued operations in the period of settlement. | ||||||||||||
Revenue recognition | ' | |||||||||||
Revenue recognition—The Company recognizes revenue at the time the products are received by the customer. Revenue is recognized for store sales at the point at which the customer receives and pays for the merchandise at the register. For on-line sales, revenue is recognized at the time the customer receives the product. The Company estimates and defers revenue and the related product costs for shipments that are in transit to the customer. Customers typically receive goods within a few days of shipment. Amounts related to shipping billed to customers are reflected in net sales and the related costs are reflected in cost of goods sold. Sales tax collected from customers on retail sales are recorded net of retail sales at the time of the transaction. | ||||||||||||
The Company records a reserve for estimated product returns based on estimated margin using historical return trends. If actual returns are greater than those projected, additional sales returns may be recorded in the future. The changes in the returns reserve are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 703 | $ | 817 | $ | 933 | ||||||
Charged to cost and expense | 18,782 | 15,224 | 16,545 | |||||||||
Returns | (18,830 | ) | (15,338 | ) | (16,661 | ) | ||||||
Balance at end of year | $ | 655 | $ | 703 | $ | 817 | ||||||
Discounts offered to customers consist primarily of point of sale markdowns and are recorded at the time of the related sale as a reduction of revenue. | ||||||||||||
The value of points and rewards earned by our loyalty program members are recorded as a liability and a reduction of revenue at the time the points and rewards are earned based on historical conversion and redemption rates. The associated revenue is recognized when the rewards are redeemed or expire. | ||||||||||||
Gift certificates sold are recorded as a liability and revenue is recognized when the gift certificate is redeemed. Similarly, customers may receive a store credit in exchange for returned goods. Store credits are recorded as a liability until redeemed. Unredeemed store credits and gift certificates are recognized as other income within selling, general and administrative expenses three and four years, respectively, after issuance. In addition, the Company sells gift cards with no expiration dates to customers in its retail store locations, through its on-line stores, and through third parties. Income from gift cards is recognized when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage income based on historical redemption patterns, which the Company estimates is four years. Gift card breakage is included within selling, general and administrative expenses. | ||||||||||||
Royalty revenue from product licensees is recorded as the greater of the minimum amount guaranteed in the contract or units sold. | ||||||||||||
Wholesale revenue from the sale of product to international licensee operated bebe stores is recognized at the time the licensee receives the shipment. | ||||||||||||
Store preopening costs | ' | |||||||||||
Store preopening costs—associated with the opening or remodeling of stores, such as preopening payroll, are expensed as incurred. | ||||||||||||
Apparel and accessory design activities | ' | |||||||||||
Apparel and accessory design activities—are expensed as incurred. | ||||||||||||
Advertising costs | ' | |||||||||||
Advertising costs—are charged to expense when the advertising takes place. | ||||||||||||
Income taxes | ' | |||||||||||
Income taxes—are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company is subject to periodic audits by the Internal Revenue Service and other foreign, state and local taxing authorities. These audits may challenge certain of the Company’s tax positions such as the timing and amount of income and deductions and the allocation of taxable income to various tax jurisdictions. The Company evaluates its tax positions and establishes liabilities in accordance with applicable accounting guidance on uncertainty in income taxes. In estimating future tax consequences, all expected future events known to management are considered other than pending changes in the tax law or rates. The Company regularly assesses the need for a valuation allowance against its deferred assets. In evaluating whether it is more likely than not that some or all of the Company’s deferred tax assets will not be realized, it considers all available positive and negative evidence, including recent year’s operational results which is objectively verifiable evidence. As a result of its evaluation of the realizability of its deferred tax assets as of July 5, 2014, the Company has concluded, based upon all available evidence, that it is more likely than not that the majority of its deferred tax assets will continue to not be realized and the Company has recorded a valuation allowance. | ||||||||||||
Additional income tax information has been included in note 10 of the notes to the financial statements. | ||||||||||||
Self-insurance | ' | |||||||||||
Self-insurance—The Company uses a combination of insurance and self-insurance for employee related health care benefits and workers compensation. The Company records self-insurance liabilities based on claims filed and an estimate of those claims incurred but not reported. | ||||||||||||
Stock-based compensation | ' | |||||||||||
Stock-based compensation—The Company has equity awards that vest based on achieving a service condition, and also has equity awards that vest based on a market-based performance condition. | ||||||||||||
For awards that vest based on a service condition, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options, restricted stock units and employee stock purchase plan shares. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected employee exercise behaviors, risk-free interest rate and expected dividends. As the stock-based compensation expense recognized on the consolidated statements of operations and comprehensive income (loss) for fiscal 2014, 2013 and 2012 is based on awards ultimately expected to vest, such amounts have been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on the Company’s historical experience. In fiscal 2014, we accelerated the vesting on certain awards granted to our former CEO at the time of his resignation. A modification of an award that accelerates vesting is accounted for as a cancellation of the original award and the issuance of a new award. The compensation expense associated with the original award is reversed while compensation expense for the new award is recorded at fair value determined at the time the modification occurs. Compensation expense for the new award is recorded over the period the employee is required to provide service (if any). | ||||||||||||
During fiscal year 2014, as part of the total long term executive incentive plan, the Company’s Board of Directors granted a target performance award of 132,138 restricted stock units (“RSU”) to certain members of its senior executive team that contained a market-based performance condition in addition to a service component. These RSUs vest after three years from the date of grant and the grants ultimately awarded will be based upon the performance percentage, which can range from 0-200% of the target performance award grant. The RSUs ultimately issued upon vesting are based on the Company’s performance relative to peer group companies’ two year compound annual growth rate of total shareholder return. Total shareholder return is measured based on a comparison of the closing price on June 30, 2013, the day prior to the performance period beginning, and the closing price on June 30, 2015, the last day of the performance period. Total shareholder return will include the effect of dividends paid during the performance period. The per share fair value of these RSUs at their grant date was $6.83 and was estimated on the date of grant using a Monte Carlo simulation model that included valuation inputs for expected volatility 41%, risk free interest rate 0.38%, dividend yield 1.8% and correlation to peer group companies of 22%. | ||||||||||||
Earnings per share | ' | |||||||||||
Earnings per share—Basic earnings per share (EPS) is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise of outstanding dilutive stock options. | ||||||||||||
The following is a reconciliation of the number of shares used in the basic and diluted earnings per share computations: | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
(in thousands) | ||||||||||||
Basic weighted average number of shares outstanding | 79,234 | 81,847 | 84,235 | |||||||||
Incremental shares from assumed issuance of stock options | — | — | 167 | |||||||||
Diluted weighted average number of shares outstanding | 79,234 | 81,847 | 84,402 | |||||||||
The number of incremental shares from the assumed issuance of stock options is calculated by applying the treasury stock method. | ||||||||||||
Comprehensive income | ' | |||||||||||
Comprehensive income—consists of net income and other comprehensive income (income, expenses, gains and losses that bypass the income statement and are reported directly as a separate component of net income). The Company’s comprehensive income includes net income (loss), unrealized gains (losses) on investments and foreign currency translation adjustments for all periods presented. Such components of comprehensive income are shown in the consolidated statements of operations and comprehensive income (loss). | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting PronouncementsOther Comprehensive Income | ||||||||||||
In February 2013, the FASB issued an ASU that requires enhanced disclosures around the amounts reclassified out of accumulated other comprehensive income. The amendments do not change the requirements for reporting net income or other comprehensive income. The ASU requires an entity to present information about significant reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in net income. The ASU was effective for annual and interim reporting periods beginning after December 15, 2012 and as such, the Company adopted the disclosure provisions in the first quarter of fiscal 2014 and it did not have a material impact on the Company's consolidated financial statements. | ||||||||||||
Presentation of Financial Statements | ||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity", or ASU 2014-08. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, ASU 2014-08 required expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014, with early adoption permitted. The Company has not early-adopted this ASU. | ||||||||||||
Revenue Recognition | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", or ASU 2014-09, which states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity will need to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligation in the contract; and recognized revenue when (or as) the entity satisfies each performance obligation. ASU No. 2014-09 will be effective beginning January 1, 2017 and can be adopted on a full retrospective basis or on a modified retrospective basis. The Company is currently assessing its approach to the adoption of this standard and the impact on our results of operations and financial position. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Changes in Allowance for Doubtful Accounts | ' | |||||||||||
The changes in the allowance for doubtful accounts are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 97 | $ | 1,255 | $ | 1,247 | ||||||
Charged to expense | 505 | 101 | 41 | |||||||||
Write offs | (189 | ) | (1,259 | ) | (33 | ) | ||||||
Balance at end of year | $ | 413 | $ | 97 | $ | 1,255 | ||||||
Summary of Property and Equipment, Net | ' | |||||||||||
Depreciation and amortization on property and equipment is computed using the straight-line method over the following estimated useful lives and is included within selling, general and administrative expenses. | ||||||||||||
Description | Term | |||||||||||
Buildings | 39.5 years | |||||||||||
Leasehold improvements | 10 years or term of lease, whichever is shorter | |||||||||||
Furniture, fixtures, equipment and vehicles | 5 | |||||||||||
Computer hardware and software | 3 | |||||||||||
Summary of Changes in Returns Reserve | ' | |||||||||||
The changes in the returns reserve are summarized below (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
Balance at beginning of year | $ | 703 | $ | 817 | $ | 933 | ||||||
Charged to cost and expense | 18,782 | 15,224 | 16,545 | |||||||||
Returns | (18,830 | ) | (15,338 | ) | (16,661 | ) | ||||||
Balance at end of year | $ | 655 | $ | 703 | $ | 817 | ||||||
Reconciliation of Number of Shares Used in the Basic and Diluted Earnings Per Share Computations | ' | |||||||||||
The following is a reconciliation of the number of shares used in the basic and diluted earnings per share computations: | ||||||||||||
Fiscal Year Ended | ||||||||||||
5-Jul-14 | 6-Jul-13 | 30-Jun-12 | ||||||||||
(in thousands) | ||||||||||||
Basic weighted average number of shares outstanding | 79,234 | 81,847 | 84,235 | |||||||||
Incremental shares from assumed issuance of stock options | — | — | 167 | |||||||||
Diluted weighted average number of shares outstanding | 79,234 | 81,847 | 84,402 | |||||||||
Discontinued_Operation_of_2b_S1
Discontinued Operation of 2b Stores (Tables) | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operation | ' | |||||||||||
The results of the 2b stores closed to date, net of income tax benefit, which consists of 18, 20 and 14 stores for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively, have been presented as a discontinued operation in the accompanying consolidated statements of operations and comprehensive income (loss) for all periods presented and are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, 2014 | 6-Jul-13 | 30-Jun-12 | ||||||||||
(In thousands) | ||||||||||||
Net sales | $ | 21,418 | $ | 21,516 | $ | 10,986 | ||||||
Cost of sales, including production and occupancy | 18,692 | 17,414 | 8,664 | |||||||||
Gross margin | 2,726 | 4,102 | 2,322 | |||||||||
Selling, general and administrative expenses | 16,857 | 12,375 | 4,746 | |||||||||
Loss from discontinued operations, before income tax provision (benefit) | (14,131 | ) | (8,273 | ) | (2,424 | ) | ||||||
Tax provision (benefit) | 2 | 2 | (944 | ) | ||||||||
Loss from discontinued operations, net of tax provision (benefit) | $ | (14,133 | ) | $ | (8,275 | ) | $ | (1,480 | ) | |||
Schedule of disposal activities reserve | ' | |||||||||||
A roll forward of the reserve is presented as follows: | ||||||||||||
Lease Obligations | Other Costs | Total | ||||||||||
(In thousands) | ||||||||||||
Balance as of July 6, 2013 | $ | — | $ | — | $ | — | ||||||
Costs incurred in fiscal 2014 | 6,385 | 1,000 | 7,385 | |||||||||
Cash payments/or markdowns applied | — | — | — | |||||||||
Balance as of July 5, 2014 | $ | 6,385 | $ | 1,000 | $ | 7,385 | ||||||
In addition to the lease termination and other costs related to the closure of 2b described in note 2, as of July 5, 2014, the Company has $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring occurring in fiscal 2014 as follows (in thousands): | ||||||||||||
Total | ||||||||||||
Balance as of July 6, 2013 | $ | — | ||||||||||
Costs incurred in fiscal 2014 | 2,167 | |||||||||||
Cash payments | (223 | ) | ||||||||||
Balance at July 5, 2014 | $ | 1,944 | ||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Investments Schedule [Abstract] | ' | |||||||||||||||
Summary of Company's Available for Sale Securities | ' | |||||||||||||||
The following is a summary of the Company’s available for sale securities: | ||||||||||||||||
As of July 5, 2014 | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Losses | Losses 12 | Fair Value | ||||||||||||||
Less Than | Months or | |||||||||||||||
12 Months | Greater | |||||||||||||||
(in thousands) | ||||||||||||||||
Short term certificates of deposit | $ | 18,665 | $ | — | $ | — | $ | 18,665 | ||||||||
Long term auction rate securities | $ | 15,575 | $ | — | $ | 3,634 | $ | 11,941 | ||||||||
As of July 6, 2013 | ||||||||||||||||
Cost | Unrealized | Unrealized | Estimated | |||||||||||||
Losses | Losses 12 | Fair Value | ||||||||||||||
Less Than | Months or | |||||||||||||||
12 Months | Greater | |||||||||||||||
(in thousands) | ||||||||||||||||
Short term treasury bills | $ | 11,990 | $ | — | $ | — | $ | 11,990 | ||||||||
Short term certificates of deposit | 26,955 | — | — | 26,955 | ||||||||||||
$ | 38,945 | $ | — | $ | — | $ | 38,945 | |||||||||
Long term treasury bills | $ | 19,950 | $ | — | $ | — | $ | 19,950 | ||||||||
Long term auction rate securities | 40,475 | — | 6,244 | 34,231 | ||||||||||||
Total | $ | 60,425 | $ | — | $ | 6,244 | $ | 54,181 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Items are Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
The following items are measured at fair value on a recurring basis at July 5, 2014: | ||||||||||||||||
Description | July 5, | Using Quoted Prices | Significant | Significant | ||||||||||||
2014 | in Active Markets for | Other | Unobservable | |||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||
Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements at reporting date | ||||||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents | $ | 46,423 | $ | 46,423 | $ | — | $ | — | ||||||||
Current available for sale securities | 18,665 | — | 18,665 | — | ||||||||||||
Non-current available for sale securities | 11,941 | — | — | 11,941 | ||||||||||||
Total | $ | 77,029 | $ | 46,423 | $ | 18,665 | $ | 11,941 | ||||||||
The following items are measured at fair value on a recurring basis at July 6, 2013: | ||||||||||||||||
Description | July 6, | Using Quoted Prices | Significant | Significant | ||||||||||||
2013 | in Active Markets for | Other | Unobservable | |||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||
Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements at reporting date | ||||||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents | $ | 50,123 | $ | 50,123 | $ | — | $ | — | ||||||||
Current available for sale securities | 38,946 | 11,990 | 26,956 | — | ||||||||||||
Non-current available for sale securities | 54,181 | 19,950 | — | 34,231 | ||||||||||||
Total | $ | 143,250 | $ | 82,063 | $ | 26,956 | $ | 34,231 | ||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||
The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended July 5, 2014: | ||||||||||||||||
4. Fair Value Measurements (Continued) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance at July 6, 2013 | $ | 34,231 | ||||||||||||||
Total gains or (losses) (realized or unrealized) | ||||||||||||||||
Included in earnings | — | |||||||||||||||
Included in other comprehensive income | 2,610 | |||||||||||||||
Settlements | (24,900 | ) | ||||||||||||||
Balance at July 5, 2014 | $ | 11,941 | ||||||||||||||
Schedule of Consideration of Risk Assets | ' | |||||||||||||||
The following table presents the Company’s considerations of at-risk assets for the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012, respectively: | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
July 5, 2014 | 6-Jul-13 | 30-Jun-12 | ||||||||||||||
Number of stores identified as at risk and evaluated for impairment | 38 | 42 | 14 | |||||||||||||
Total carrying amount of stores identified as at risk prior to any impairment charges taken | $ | 8.4 | million | $ | 7.1 | million | $ | 3.2 | million | |||||||
Less: impairment charges recorded during the period | $ | 7 | million | $ | 3.8 | million | $ | 0.5 | million | |||||||
Remaining carrying amount of stores identified as at risk after impairment charges taken | $ | 1.4 | million | $ | 3.3 | million | $ | 2.7 | million | |||||||
Number of stores considered at risk, but not impaired | 10 | 18 | 11 | |||||||||||||
Total carrying amount of stores identified as at risk, but not impaired | $ | 1.2 | million | $ | 3 | million | $ | 2.7 | million |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jul. 05, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Summary of Inventories | ' | |||||||
The Company’s inventories consist of: | ||||||||
As of | ||||||||
July 5, | July 6, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 1,206 | $ | 1,965 | ||||
Merchandise available for sale | 30,477 | 31,897 | ||||||
Inventories | $ | 31,683 | $ | 33,862 | ||||
Lease_Obligations_Tables
Lease Obligations (Tables) | 12 Months Ended | |||
Jul. 05, 2014 | ||||
Leases [Abstract] | ' | |||
Summary of Future Minimum Lease Payments | ' | |||
Future minimum lease payments for noncancellable leases at July 5, 2014 are as follows: | ||||
Operating Leases | ||||
(in | ||||
thousands) | ||||
Fiscal year | ||||
2015 | $ | 51,978 | ||
2016 | 45,422 | |||
2017 | 36,844 | |||
2018 | 30,257 | |||
2019 | 24,780 | |||
Thereafter | 64,649 | |||
Total minimum lease payments | $ | 253,930 | ||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||
Summary of Accrued Liabilities | ' | |||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||
As of | ||||||||||||
5-Jul-14 | 6-Jul-13 | |||||||||||
Gift certificates, gift cards and store credits | $ | 5,176 | $ | 5,456 | ||||||||
Employee compensation | 9,802 | 8,253 | ||||||||||
Sales/use tax payable | 3,466 | 4,045 | ||||||||||
Deferred revenue | 3,994 | 3,675 | ||||||||||
Capital expenditures | 1,852 | 570 | ||||||||||
Lease obligation costs | 6,385 | — | ||||||||||
Other | 8,577 | 7,648 | ||||||||||
Total | $ | 39,252 | $ | 29,647 | ||||||||
Schedule of severance costs | ' | |||||||||||
A roll forward of the reserve is presented as follows: | ||||||||||||
Lease Obligations | Other Costs | Total | ||||||||||
(In thousands) | ||||||||||||
Balance as of July 6, 2013 | $ | — | $ | — | $ | — | ||||||
Costs incurred in fiscal 2014 | 6,385 | 1,000 | 7,385 | |||||||||
Cash payments/or markdowns applied | — | — | — | |||||||||
Balance as of July 5, 2014 | $ | 6,385 | $ | 1,000 | $ | 7,385 | ||||||
In addition to the lease termination and other costs related to the closure of 2b described in note 2, as of July 5, 2014, the Company has $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring occurring in fiscal 2014 as follows (in thousands): | ||||||||||||
Total | ||||||||||||
Balance as of July 6, 2013 | $ | — | ||||||||||
Costs incurred in fiscal 2014 | 2,167 | |||||||||||
Cash payments | (223 | ) | ||||||||||
Balance at July 5, 2014 | $ | 1,944 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jul. 05, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Summary of Components of Provision for Income Taxes Expense (Benefit) from Continuing Operations | ' | |||||||||||
Significant components of the provision for income taxes expense (benefit) from continuing operations are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | 171 | ||||||
State | (440 | ) | (34 | ) | 678 | |||||||
Foreign | (204 | ) | (1,475 | ) | 498 | |||||||
(644 | ) | (1,509 | ) | 1,347 | ||||||||
Deferred: | ||||||||||||
Federal | — | 21,753 | 7,057 | |||||||||
State | — | 6,417 | 1,013 | |||||||||
Foreign | 481 | 324 | 144 | |||||||||
481 | 28,494 | 8,214 | ||||||||||
Provision (benefit) from continuing operations | $ | (163 | ) | $ | 26,985 | $ | 9,561 | |||||
Components of Earnings from Continuing Operations Before Income Taxes | ' | |||||||||||
The components of earnings (loss) from continuing operations before income taxes are as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | (69,191 | ) | $ | (53,643 | ) | $ | 7,836 | ||||
Foreign | 9,779 | 11,483 | 14,926 | |||||||||
Total income (loss) from continuing operations before income taxes | $ | (59,412 | ) | $ | (42,160 | ) | $ | 22,762 | ||||
Summary of Reconciliation of Federal Statutory Tax Rate With Effective Income Tax Rate From Continuing Operations | ' | |||||||||||
A reconciliation of the federal statutory tax rate with the Company’s effective income tax rate from continuing operations is as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | (35.0 | )% | (35.0 | )% | 35 | % | ||||||
State rate, net of federal benefit | (3.2 | ) | (3.3 | ) | 4.9 | |||||||
Tax-exempt interest | — | (0.2 | ) | (0.6 | ) | |||||||
Stock-based compensation | 0.1 | 0.4 | 1 | |||||||||
Valuation allowance | 39.3 | 101.1 | — | |||||||||
Foreign deferred tax adjustment | (0.8 | ) | 0.2 | 0.7 | ||||||||
Tax reserve adjustment | (0.5 | ) | 0.5 | 0.1 | ||||||||
Other | (0.2 | ) | 0.3 | 0.9 | ||||||||
Effective tax rate | (0.3 | )% | 64 | % | 42 | % | ||||||
Summary of Components of Deferred Tax Assets (Liabilities) | ' | |||||||||||
Significant components of the Company’s deferred tax assets (liabilities) are as follows: | ||||||||||||
July 5, | July 6, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Gift certificates, gift cards and store credits | $ | 1,204 | $ | 1,249 | ||||||||
Inventory | 2,399 | 1,935 | ||||||||||
Other accrued expenses | 3,142 | 769 | ||||||||||
Deferred revenue | 1,158 | 1,040 | ||||||||||
Accrued vacation | 702 | 978 | ||||||||||
State taxes | (61 | ) | (188 | ) | ||||||||
Prepaid expenses | (699 | ) | (1,101 | ) | ||||||||
Tax credit and net operating loss carryovers | 154 | — | ||||||||||
Other | 3 | — | ||||||||||
Total current | 8,002 | 4,682 | ||||||||||
Valuation allowance | (7,939 | ) | (5,235 | ) | ||||||||
Current deferred tax assets (liabilities), net | 63 | (553 | ) | |||||||||
Non-Current: | ||||||||||||
Basis difference in fixed assets | 15,005 | 11,443 | ||||||||||
Deferred rent | 6,528 | 7,873 | ||||||||||
Stock based compensation | 4,348 | 5,723 | ||||||||||
Foreign tax credit | 1,101 | 1,467 | ||||||||||
Tax credit and net operating loss carryovers | 42,625 | 19,264 | ||||||||||
Construction allowance | (5,265 | ) | (4,636 | ) | ||||||||
Unrealized loss on ARS | 1,339 | 2,321 | ||||||||||
Indirect benefit from uncertain tax positions | 42 | 192 | ||||||||||
Other | 253 | 254 | ||||||||||
Total non-current | 65,976 | 43,901 | ||||||||||
Valuation allowance | (65,885 | ) | (42,713 | ) | ||||||||
Non-current deferred tax assets, net | 91 | 1,188 | ||||||||||
Deferred tax assets, net | $ | 154 | $ | 635 | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | |||||||||||
As of July 5, 2014, the Company has $0.4 million in unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: | ||||||||||||
July 5, | July 6, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Balance as of beginning of period | $ | 898 | $ | 1,756 | $ | 1,668 | ||||||
Additions for tax positions taken during the current year | — | 511 | 67 | |||||||||
Additions for tax positions taken during prior years | — | 77 | 332 | |||||||||
Reductions for tax positions taken during the current year | (272 | ) | — | — | ||||||||
Settlements | (180 | ) | (37 | ) | (38 | ) | ||||||
Expirations of statues of limitations | (62 | ) | (1,409 | ) | (273 | ) | ||||||
Balance as of end of period | $ | 384 | $ | 898 | $ | 1,756 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jul. 05, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment | ' | |||||||
Property and equipment consist of the following: | ||||||||
As of | ||||||||
5-Jul-14 | 6-Jul-13 | |||||||
(in thousands) | ||||||||
Leasehold improvements | $ | 121,346 | $ | 132,253 | ||||
Furniture, fixtures and equipment | 51,107 | 52,237 | ||||||
Computer hardware and software | 48,815 | 46,097 | ||||||
Land and buildings | 29,478 | 29,478 | ||||||
Construction in progress | 14,984 | 8,540 | ||||||
Total | 265,730 | 268,605 | ||||||
Less: Accumulated depreciation | (172,090 | ) | (163,885 | ) | ||||
Property and equipment, net | $ | 93,640 | $ | 104,720 | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Jul. 05, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of Stock Options Outstanding | ' | |||||||||||||||
The following table summarizes information about stock options outstanding at July 5, 2014: | ||||||||||||||||
Options Outstanding | Options Vested and | |||||||||||||||
Exercisable | ||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||
(in thousands) | Average | Average | (in thousands) | Average | ||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||
Life | Price | Price | ||||||||||||||
(in years) | ||||||||||||||||
$3.57 to $3.99 | 1,186 | 3.17 | $3.87 | 974 | $3.85 | |||||||||||
$4.02 to $5.71 | 1,075 | 7.48 | 5.39 | 287 | 5.42 | |||||||||||
$5.82 to $7.37 | 1,295 | 4.82 | 6.7 | 921 | 6.65 | |||||||||||
$7.39 to $8.14 | 991 | 1.68 | 7.62 | 953 | 7.62 | |||||||||||
$8.16 to $26.19 | 395 | 3.74 | 11.91 | 377 | 12.06 | |||||||||||
4,942 | 4.29 | $6.34 | 3,512 | $6.62 | ||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||||
The following table summarizes stock option activity: | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Outstanding | Average | Average | Intrinsic Value | |||||||||||||
(Amounts in | Exercise Price | Remaining | (in thousands) | |||||||||||||
thousands) | of Share | Contractual | ||||||||||||||
Term | ||||||||||||||||
Outstanding, July 6, 2013 | 6,206 | $ | 6.65 | |||||||||||||
Granted | 1,327 | 4.58 | ||||||||||||||
Exercised | (30 | ) | 3.93 | |||||||||||||
Cancelled | (2,561 | ) | 5.97 | |||||||||||||
Outstanding, July 5, 2014 | 4,942 | $ | 6.34 | 4.29 | $ | — | ||||||||||
Exercisable, July 5, 2014 | 3,512 | $ | 6.62 | 2.7 | $ | — | ||||||||||
Options vested and expected to vest—end of period | 4,469 | $ | 6.42 | 3.83 | $ | — | ||||||||||
Summary of RSU Activity | ' | |||||||||||||||
The following table summarizes RSU activity: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
(in thousands) | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Per Share | ||||||||||||||||
Nonvested, July 6, 2013 | 822 | $ | 6.57 | |||||||||||||
Granted | 695 | 5.33 | ||||||||||||||
Cancelled | (449 | ) | 5.07 | |||||||||||||
Vested | (511 | ) | 5.61 | |||||||||||||
Nonvested, July 5, 2014 | 557 | $ | 5.5 | |||||||||||||
Summary of Weighted Average Assumptions Used in Option Pricing Model for Stock Options Granted | ' | |||||||||||||||
The following table presents the weighted average assumptions used in the option pricing model for the stock options granted in the fiscal years ended July 5, 2014, July 6, 2013 and June 30, 2012: | ||||||||||||||||
July 5, | July 6, | June 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected dividend rate | 1.64 | % | 2.26 | % | 1.43 | % | ||||||||||
Volatility | 42.1 | % | 45.5 | % | 50.5 | % | ||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 1 | % | ||||||||||
Expected lives (years) | 4.51 | 4.5 | 4.3 | |||||||||||||
Fair value per option granted | $ | 1.8 | $ | 1.4 | $ | 2.71 | ||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 05, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Results of Operations | ' | ||||||||||||||||
The quarterly financial information presented below reflects all adjustments which, in the opinion of the Company’s management, are of a normal and recurring nature necessary to present fairly the results of operations for the periods presented. | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
October 5(1) | January 4(1) | April 5(1) | July 5(1)(4)(5) | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 109,268 | $ | 123,261 | $ | 89,019 | $ | 103,569 | |||||||||
Gross margin | 39,622 | 42,000 | 24,500 | 32,005 | |||||||||||||
Selling, general and administrative expenses | 47,824 | 46,514 | 47,365 | 56,093 | |||||||||||||
Loss from operations | (8,202 | ) | (4,514 | ) | (22,865 | ) | (24,088 | ) | |||||||||
Loss from continuing operations before income taxes | (8,044 | ) | (4,428 | ) | (22,847 | ) | (24,093 | ) | |||||||||
Loss from continuing operations, net of tax | (7,898 | ) | (4,369 | ) | (22,754 | ) | (24,228 | ) | |||||||||
Loss from discontinued operations, net of tax | (1,256 | ) | (1,096 | ) | (1,522 | ) | (10,259 | ) | |||||||||
Net loss | (9,154 | ) | (5,465 | ) | (24,276 | ) | (34,487 | ) | |||||||||
Basic per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.29 | ) | $ | (0.30 | ) | |||||
Loss from discontinued operations, net of tax | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.13 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.43 | ) | |||||
Diluted per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.29 | ) | $ | (0.30 | ) | |||||
Loss from discontinued operation, net of tax | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.13 | ) | |||||||||
Net loss | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.43 | ) | |||||
2013 Quarter Ended | |||||||||||||||||
September 29(3) | December 29(3) | April 6(3)(2) | July 6(3) | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 112,735 | $ | 129,531 | $ | 107,417 | $ | 113,486 | |||||||||
Gross margin | 41,404 | 44,713 | 32,394 | 35,684 | |||||||||||||
Selling, general and administrative expenses | 44,261 | 50,806 | 49,894 | 52,209 | |||||||||||||
Loss from operations | (2,857 | ) | (6,093 | ) | (17,500 | ) | (16,525 | ) | |||||||||
Loss from continuing operations before income taxes | (2,624 | ) | (5,874 | ) | (17,249 | ) | (16,413 | ) | |||||||||
Loss from continuing operations, net of tax | (1,516 | ) | (3,447 | ) | (48,156 | ) | (16,026 | ) | |||||||||
Loss from discontinued operations, net of tax | (1,064 | ) | (1,372 | ) | (1,115 | ) | (4,724 | ) | |||||||||
Net loss | (2,580 | ) | (4,819 | ) | (49,271 | ) | (20,750 | ) | |||||||||
Basic per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | (0.20 | ) | |||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||
Net loss | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.62 | ) | $ | (0.26 | ) | |||||
Diluted per share amount | |||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | (0.20 | ) | |||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||
Net loss | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.62 | ) | $ | (0.26 | ) | |||||
-1 | Selling, general and administrative expenses in the first, second, third and fourth fiscal quarters include $0.2 million, $0.3 million, $2.7 million and $3.8 million, respectively of impairment charges for store assets. | ||||||||||||||||
-2 | Net loss in the third fiscal quarter includes a non-cash charge of $31.4 million to establish a $27.5 million valuation allowance against the majority of the Company’s deferred tax assets as well as $3.9 million to recognize the fiscal 2013 year to date impact of establishing the valuation allowance. | ||||||||||||||||
-3 | Selling, general and administrative expenses in the first, second, third and fourth fiscal quarters include $0.1 million, $1.7 million, $1.1 million and $0.9 million, respectively of impairment charges for store assets. | ||||||||||||||||
-4 | Loss from discontinued operations, net of tax in the fourth fiscal quarter includes $6.4 million in lease obligation costs and $1 million in charges related to estimated losses on purchase obligations for 2b inventory. | ||||||||||||||||
-5 | Selling, general and administrative expenses in the fourth fiscal quarter includes $4.0 million in severance costs. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
segment | |||
brand | |||
state | |||
Store | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Specialty retail stores operated by the company | 206 | ' | ' |
Number of states where specialty retail store operated | 34 | ' | ' |
Number of International stores | 94 | ' | ' |
Reportable segment | 1 | ' | ' |
Brands with product line of similar nature | 2 | ' | ' |
Revenue percentage of International retail stores | 8.00% | 8.00% | 8.00% |
Fiscal period duration | '364 days | '371 days | '364 days |
Available for sale securities | $11,941,000 | $54,181,000 | ' |
Period for unredeemed store credits recognized | '3 years | ' | ' |
Period for unredeemed gift certificates recognized | '4 years | ' | ' |
Number of years for accumulated sufficient historical data to determine breakage income | '4 years | ' | ' |
Advertising expense | $27,400,000 | $23,200,000 | $22,900,000 |
Restricted stock units, granted (in shares) | 695,000 | ' | ' |
Restricted stock units, weighted average grant date fair value (in dollars per share) | $5.33 | ' | ' |
Risk free volatility rate | 42.10% | 45.50% | 50.50% |
Risk free interest rate | 1.60% | 0.80% | 1.00% |
Expected dividend rate | 1.64% | 2.26% | 1.43% |
Purchase of shares on anti-dilutive options | 4,800,000 | 5,500,000 | 3,800,000 |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Days taken Debit and Credit card transaction processing | 1 | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Days taken Debit and Credit card transaction processing | 2 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock units, granted (in shares) | 132,138 | ' | ' |
Restricted stock units, vesting period | '3 years | ' | ' |
Restricted stock units, weighted average grant date fair value (in dollars per share) | $6.83 | ' | ' |
Risk free volatility rate | 41.00% | ' | ' |
Risk free interest rate | 0.38% | ' | ' |
Expected dividend rate | 1.80% | ' | ' |
Risk free correlation rate | 22.00% | ' | ' |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Performance based compensation percentage | 0.00% | ' | ' |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Performance based compensation percentage | 200.00% | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summary of Changes in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $97 | $1,255 | $1,247 |
Charged to expense | 505 | 101 | 41 |
Write offs | -189 | -1,259 | -33 |
Balance at end of year | $413 | $97 | $1,255 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Property and Equipment, Net (Detail) | 12 Months Ended |
Jul. 05, 2014 | |
Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment useful life | '39 years 6 months |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Leasehold improvements | '10 years or term of lease, whichever is shorter |
Furniture, fixtures, equipment and vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment useful life | '5 years |
Computer hardware and software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment useful life | '3 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Changes in Returns Reserve (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $703 | $817 | $933 |
Charged to cost and expense | 18,782 | 15,224 | 16,545 |
Returns | -18,830 | -15,338 | -16,661 |
Balance at end of year | $655 | $703 | $817 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Reconciliation of Number of Shares Used in the Basic and Diluted Earnings Per Share Computations (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Basic weighted average number of shares outstanding | 79,234 | 81,847 | 84,235 |
Incremental shares from assumed issuance of stock options | 0 | 0 | 167 |
Diluted weighted average number of shares outstanding | 79,234 | 81,847 | 84,402 |
Discontinued_Operation_of_2b_S2
Discontinued Operation of 2b Stores - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Store | Store | Store | Store | |
Discontinued Operations [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Reserve for future costs associated with discontinued operations | 7,385 | 7,385 | 0 | ' |
2b bebe [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Number of Stores closed | 18 | 18 | 20 | 14 |
Discontinued_Operation_of_2b_S3
Discontinued Operation of 2b Stores - Discontinued Operation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' |
Net sales | $21,418 | $21,516 | $10,986 |
Cost of sales, including production and occupancy | 18,692 | 17,414 | 8,664 |
Gross margin | 2,726 | 4,102 | 2,322 |
Selling, general and administrative expenses | 16,857 | 12,375 | 4,746 |
Loss from discontinued operations, before income tax provision (benefit) | -14,131 | -8,273 | -2,424 |
Tax provision (benefit) | 2 | 2 | -944 |
Loss from discontinued operations, net of tax provision (benefit) | ($14,133) | ($8,275) | ($1,480) |
Discontinued_Operation_of_2b_S4
Discontinued Operation of 2b Stores - Reserve Roll Forward (Details) (Discontinued Operations [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 05, 2014 |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve beginning balance | $0 |
Costs incurred in fiscal 2014 | 7,385 |
Cash payments/or markdowns applied | 0 |
Restructuring reserve ending balance | 7,385 |
Lease Obligations [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve beginning balance | 0 |
Costs incurred in fiscal 2014 | 6,385 |
Cash payments/or markdowns applied | 0 |
Restructuring reserve ending balance | 6,385 |
Other Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve beginning balance | 0 |
Costs incurred in fiscal 2014 | 1,000 |
Cash payments/or markdowns applied | 0 |
Restructuring reserve ending balance | $1,000 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Jul. 05, 2014 | Jul. 06, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Short term available for Sale securities | $18,665,000 | $38,945,000 |
Available for sale securities | 11,941,000 | 54,181,000 |
Temporary impairment charge | $3,600,000 | ' |
Investment maturity date range year start | '2031 | ' |
Investments maturity date range year end | '2033 | ' |
Standard & Poor's, AAA Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Company's ARS Percentage consist | ' | 21.00% |
Standard & Poor's, AA Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Company's ARS Percentage consist | ' | 19.00% |
Standard & Poor's, A Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Company's ARS Percentage consist | 36.00% | 23.00% |
Standard & Poor's, BBB Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Company's ARS Percentage consist | 19.00% | 20.00% |
Standard & Poor's, CCC Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Company's ARS Percentage consist | 45.00% | 17.00% |
Federally Insured Student Loan Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Percentage of Company's ARS portfolio | 77.00% | ' |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Percentage of Company's ARS portfolio | 23.00% | ' |
Investments_Summary_of_Company
Investments - Summary of Company's Available for Sale Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 |
Short Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | $38,945 |
Unrealized Losses Less Than 12 Months | ' | 0 |
Unrealized Losses 12 Months or Greater | ' | 0 |
Estimated Fair Value | ' | 38,945 |
Short Term Investments [Member] | Treasury Bills [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 11,990 |
Unrealized Losses Less Than 12 Months | ' | 0 |
Unrealized Losses 12 Months or Greater | ' | 0 |
Estimated Fair Value | ' | 11,990 |
Short Term Investments [Member] | Certificates of Deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 18,665 | 26,955 |
Unrealized Losses Less Than 12 Months | 0 | 0 |
Unrealized Losses 12 Months or Greater | 0 | 0 |
Estimated Fair Value | 18,665 | 26,955 |
Long Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 60,425 |
Unrealized Losses Less Than 12 Months | ' | 0 |
Unrealized Losses 12 Months or Greater | ' | 6,244 |
Estimated Fair Value | ' | 54,181 |
Long Term Investments [Member] | Treasury Bills [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 19,950 |
Unrealized Losses Less Than 12 Months | ' | 0 |
Unrealized Losses 12 Months or Greater | ' | 0 |
Estimated Fair Value | ' | 19,950 |
Long Term Investments [Member] | Auction Rate Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 15,575 | 40,475 |
Unrealized Losses Less Than 12 Months | 0 | 0 |
Unrealized Losses 12 Months or Greater | 3,634 | 6,244 |
Estimated Fair Value | $11,941 | $34,231 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Weighted average interest rate | 0.20% | ' | ' |
Carrying amount of the non-current available for sale securities | $15,600,000 | ' | ' |
Estimated fair value of non-current available for sale securities | 11,900,000 | ' | ' |
Charges for impairment of long-lived assets | $7,000,000 | $3,800,000 | $500,000 |
Weighted average cost of capital | 11.00% | ' | ' |
Percentage of undiscounted cash flows exceeded net carrying value | 447.00% | 472.00% | 548.00% |
Minimum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discounted cash flow model, estimated timing | '0 years | ' | ' |
Annual revenue growth rates | -2.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discounted cash flow model, estimated timing | '14 years | ' | ' |
Annual revenue growth rates | 5.00% | ' | ' |
LIBOR [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discounted cash flow model, estimated interest rate | 4.64% | ' | ' |
Fair_Value_Measurements_Items_
Fair Value Measurements - Items Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Non-current available for sale securities | $11,900 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 46,423 | 50,123 |
Current available for sale securities | 18,665 | 38,946 |
Non-current available for sale securities | 11,941 | 54,181 |
Total | 77,029 | 143,250 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 46,423 | 50,123 |
Current available for sale securities | 0 | 11,990 |
Non-current available for sale securities | 0 | 19,950 |
Total | 46,423 | 82,063 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Current available for sale securities | 18,665 | 26,956 |
Non-current available for sale securities | 0 | 0 |
Total | 18,665 | 26,956 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Current available for sale securities | 0 | 0 |
Non-current available for sale securities | 11,941 | 34,231 |
Total | $11,941 | $34,231 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 05, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Balance at beginning of period | $34,231 |
Total gains or (losses) (realized or unrealized) | ' |
Included in earnings | 0 |
Included in other comprehensive income | 2,610 |
Settlements | -24,900 |
Balance at end of period | $11,941 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Consideration of Risk Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Store | Store | Store | |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Number of stores identified as at risk and evaluated for impairment | 38 | 42 | 14 |
Total carrying amount of stores identified as at risk prior to any impairment charges taken | $8.40 | $7.10 | $3.20 |
Less: impairment charges recorded during the period | 7 | 3.8 | 0.5 |
Remaining carrying amount of stores identified as at risk after impairment charges taken | 1.4 | 3.3 | 2.7 |
Number of stores considered at risk, but not impaired | 10 | 18 | 11 |
Total carrying amount of stores identified as at risk, but not impaired | $1.20 | $3 | $2.70 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $1,206 | $1,965 |
Merchandise available for sale | 30,477 | 31,897 |
Inventories | $31,683 | $33,862 |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||
14-May-14 | Jul. 06, 2013 | 14-May-14 | Jul. 05, 2014 | 14-May-14 | Jul. 06, 2013 | |
Stand-by Letter of Credit [Member] | Stand-by Letter of Credit [Member] | Stand-by Letter of Credit [Member] | ||||
letter_of_credit | letter_of_credit | letter_of_credit | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Letters of credit, amount | ' | ' | $10,000,000 | ' | ' | ' |
Letters of credit, expiration date | 14-May-14 | ' | ' | ' | ' | ' |
Outstanding letters of credit interest rate | ' | 3.25% | ' | ' | ' | ' |
Percentage on LIBOR rate | ' | 0.19% | ' | ' | ' | ' |
Percentage on LIBOR rate plus | ' | 1.75% | ' | ' | ' | ' |
Number of letters of credit | ' | ' | ' | 2 | 1 | 1 |
Line of credit facility, amount outstanding | ' | ' | ' | $3,800,000 | ' | $3,000,000 |
Lease_Obligations_Additional_I
Lease Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Leases [Abstract] | ' | ' | ' |
Rent expense under operating leases | $86.90 | $94.10 | $89.20 |
Other lease-required expenses | $28.40 | $31.30 | $29 |
Lease_Obligations_Summary_of_F
Lease Obligations - Summary of Future Minimum Lease Payments (Detail) (USD $) | Jul. 05, 2014 |
In Thousands, unless otherwise specified | |
Summary of future minimum lease payments | ' |
2015 | $51,978 |
2016 | 45,422 |
2017 | 36,844 |
2018 | 30,257 |
2019 | 24,780 |
Thereafter | 64,649 |
Total minimum lease payments | 253,930 |
Discontinued Operations [Member] | ' |
Summary of future minimum lease payments | ' |
2015 | 2,015 |
2016 | 2,074 |
2017 | 2,128 |
2018 | 2,175 |
2019 | 2,224 |
Thereafter | $5,449 |
Accrued_Liabilities_Summary_of
Accrued Liabilities - Summary of Accrued Liabilities (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Gift certificates, gift cards and store credits | $5,176 | $5,456 |
Employee compensation | 9,802 | 8,253 |
Sales/use tax payable | 3,466 | 4,045 |
Deferred revenue | 3,994 | 3,675 |
Capital expenditures | 1,852 | 570 |
Lease obligation costs | 6,385 | 0 |
Other | 8,577 | 7,648 |
Total | $39,252 | $29,647 |
Accrued_Liabilities_Severance_
Accrued Liabilities - Severance Costs (Details) (Employee Severance [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 05, 2014 |
Employee Severance [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve beginning balance | $0 |
Costs incurred in fiscal 2014 | 2,167 |
Cash payments | -223 |
Restructuring reserve ending balance | $1,944 |
Intangible_Asset_Additional_In
Intangible Asset - Additional Information (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Purchase price of indefinite-lived intangible asset | $917 | $912 |
Trademarks [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Purchase price of indefinite-lived intangible asset | $900 | ' |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of Provision for Income Taxes Expense (Benefit) from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Current: | ' | ' | ' |
Federal | $0 | $0 | $171 |
State | -440 | -34 | 678 |
Foreign | -204 | -1,475 | 498 |
Current income taxes, Total | -644 | -1,509 | 1,347 |
Deferred: | ' | ' | ' |
Federal | 0 | 21,753 | 7,057 |
State | 0 | 6,417 | 1,013 |
Foreign | 481 | 324 | 144 |
Deferred income taxes, Total | 481 | 28,494 | 8,214 |
Provision (benefit) from continuing operations | ($163) | $26,985 | $9,561 |
Income_Taxes_Components_of_Ear
Income Taxes - Components of Earnings from Continuing Operations Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Apr. 05, 2014 | Jan. 04, 2014 | Oct. 05, 2013 | Jul. 06, 2013 | Apr. 06, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ($69,191) | ($53,643) | $7,836 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 9,779 | 11,483 | 14,926 |
Income (loss) from continuing operations, before income taxes | ($24,093) | ($22,847) | ($4,428) | ($8,044) | ($16,413) | ($17,249) | ($5,874) | ($2,624) | ($59,412) | ($42,160) | $22,762 |
Income_Taxes_Summary_of_Reconc
Income Taxes - Summary of Reconciliation of Federal Statutory Tax Rate With Effective Income Tax Rate From Continuing Operations (Detail) | 12 Months Ended | ||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory rate | -35.00% | -35.00% | 35.00% |
State rate, net of federal benefit | -3.20% | -3.30% | 4.90% |
Tax-exempt interest | 0.00% | -0.20% | -0.60% |
Stock-based compensation | 0.10% | 0.40% | 1.00% |
Valuation allowance | 39.30% | 101.10% | 0.00% |
Foreign deferred tax adjustment | -0.80% | 0.20% | 0.70% |
Tax reserve adjustment | -0.50% | 0.50% | 0.10% |
Other | -0.20% | 0.30% | 0.90% |
Effective tax rate | -0.30% | 64.00% | 42.00% |
Income_Taxes_Summary_of_Compon1
Income Taxes - Summary of Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Current: | ' | ' |
Gift certificates, gift cards and store credits | $1,204 | $1,249 |
Inventory | 2,399 | 1,935 |
Other accrued expenses | 3,142 | 769 |
Deferred revenue | 1,158 | 1,040 |
Accrued vacation | 702 | 978 |
State taxes | -61 | -188 |
Prepaid expenses | -699 | -1,101 |
Tax credit and net operating loss carryovers | 154 | 0 |
Other | 3 | 0 |
Total current | 8,002 | 4,682 |
Valuation allowance | -7,939 | -5,235 |
Current deferred tax assets (liabilities), net | 63 | -553 |
Non-Current: | ' | ' |
Basis difference in fixed assets | 15,005 | 11,443 |
Deferred rent | 6,528 | 7,873 |
Stock based compensation | 4,348 | 5,723 |
Foreign tax credit | 1,101 | 1,467 |
Tax credit and net operating loss carryovers | 42,625 | 19,264 |
Construction allowance | -5,265 | -4,636 |
Unrealized loss on ARS | 1,339 | 2,321 |
Indirect benefit from uncertain tax positions | 42 | 192 |
Other | 253 | 254 |
Total non-current | 65,976 | 43,901 |
Valuation allowance | -65,885 | -42,713 |
Non-current deferred tax assets, net | 91 | 1,188 |
Deferred tax assets, net | $154 | $635 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | Jul. 02, 2011 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Increase in valuation allowance | $25,900,000 | ' | ' | ' |
Unrecognized tax benefits in interest and penalties | -100,000 | -300,000 | 200,000 | ' |
Accrual of interest and penalties | 0 | 200,000 | ' | ' |
Unrecognized tax benefits | 384,000 | 898,000 | 1,756,000 | 1,668,000 |
Unrecognized tax benefits affect the effective tax rate | 300,000 | ' | ' | ' |
Japan [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Deferred tax assets | 200,000 | ' | ' | ' |
Federal [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryovers | 108,400,000 | ' | ' | ' |
State [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryovers | 85,400,000 | ' | ' | ' |
Tax credit carry forwards | 100,000 | ' | ' | ' |
Foreign [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryovers | 1,700,000 | ' | ' | ' |
Tax credit carry forwards | $1,100,000 | ' | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance as of beginning of period | $898 | $1,756 | $1,668 |
Additions for tax positions taken during the current year | 0 | 511 | 67 |
Additions for tax positions taken during prior years | 0 | 77 | 332 |
Reductions for tax positions taken during the current year | -272 | 0 | 0 |
Settlements | -180 | -37 | -38 |
Expirations of statues of limitations | -62 | -1,409 | -273 |
Balance as of end of period | $384 | $898 | $1,756 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Jul. 05, 2014 | Jul. 06, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $265,730 | $268,605 |
Less: Accumulated depreciation | -172,090 | -163,885 |
Property and equipment, net | 93,640 | 104,720 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 121,346 | 132,253 |
Furniture, fixtures and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 51,107 | 52,237 |
Computer hardware and software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 48,815 | 46,097 |
Land and buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 29,478 | 29,478 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $14,984 | $8,540 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
H | |||
Y | |||
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Minimum period of employment required to qualify under 401(k) plan | '6 months | ' | ' |
Minimum age required to qualify under 401(k) plan | 21 | ' | ' |
Annual working hours of employees | 1,000 | ' | ' |
Percentage of gross wages employee can defer | 75.00% | ' | ' |
Company contributions to the plan | $0 | $0.50 | $0.50 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ' |
Maximum term of stock options and related awards | '10 years | ' | ' |
Shares outstanding exercisable | 3,512,000 | 2,894,000 | 2,600,000 |
Weighted average exercise price of share exercisable (in dollars per share) | $6.62 | $8.04 | $8.39 |
Intrinsic value of stock options exercised | $0.10 | $0.10 | $0.50 |
Cash received from stock options exercised | 0.1 | 0.4 | 1.2 |
Tax benefit realized from stock options exercised | 0.1 | 0.1 | 0.5 |
Share-based compensation expense | 3.7 | 3.1 | 2 |
Unrecognized compensation cost | $2.60 | ' | ' |
Weighted-average period of unrecognized compensation cost | '2 years 10 months 24 days | ' | ' |
Stock Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock shares authorized and unissued | 7,827,410 | ' | ' |
Common stock shares available for future grant | 2,328,581 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of options and restricted stock units granted | '3 years | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock issuance under employee stock purchase plan | 2,531,250 | ' | ' |
Common stock issuance under employee stock purchase plan period | '3 months | ' | ' |
Percentage of fair market value of common stock | 95.00% | ' | ' |
Shares issued under stock purchase plan | 9,800 | 10,600 | 6,700 |
Directors [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of options and restricted stock units granted | '1 year | ' | ' |
Minimum [Member] | Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of options and restricted stock units granted | '4 years | ' | ' |
Percentage on vesting period of options and restricted stock units granted, minimum | 25.00% | ' | ' |
Minimum [Member] | Directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of options and restricted stock units granted | '4 years | ' | ' |
Percentage on vesting period of options and restricted stock units granted, minimum | 25.00% | ' | ' |
Shareholders_Equity_Summary_of
Shareholders' Equity - Summary of Stock Options Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 05, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number (in shares) | 4,942 |
Options Outstanding, Weighted Average Remaining Life (in years) | '4 years 3 months 15 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.34 |
Options Vested and Exercisable, Number (in shares) | 3,512 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.62 |
Exercise Prices Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Lower range limit (in dollars per share) | $3.57 |
Upper range limit (in dollars per share) | $3.99 |
Options Outstanding, Number (in shares) | 1,186 |
Options Outstanding, Weighted Average Remaining Life (in years) | '3 years 2 months 1 day |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.87 |
Options Vested and Exercisable, Number (in shares) | 974 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.85 |
Exercise Prices Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Lower range limit (in dollars per share) | $4.02 |
Upper range limit (in dollars per share) | $5.71 |
Options Outstanding, Number (in shares) | 1,075 |
Options Outstanding, Weighted Average Remaining Life (in years) | '7 years 5 months 23 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.39 |
Options Vested and Exercisable, Number (in shares) | 287 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.42 |
Exercise Prices Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Lower range limit (in dollars per share) | $5.82 |
Upper range limit (in dollars per share) | $7.37 |
Options Outstanding, Number (in shares) | 1,295 |
Options Outstanding, Weighted Average Remaining Life (in years) | '4 years 9 months 26 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.70 |
Options Vested and Exercisable, Number (in shares) | 921 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.65 |
Exercise Prices Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Lower range limit (in dollars per share) | $7.39 |
Upper range limit (in dollars per share) | $8.14 |
Options Outstanding, Number (in shares) | 991 |
Options Outstanding, Weighted Average Remaining Life (in years) | '1 year 8 months 5 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $7.62 |
Options Vested and Exercisable, Number (in shares) | 953 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $7.62 |
Exercise Prices Range Five [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Lower range limit (in dollars per share) | $8.16 |
Upper range limit (in dollars per share) | $26.19 |
Options Outstanding, Number (in shares) | 395 |
Options Outstanding, Weighted Average Remaining Life (in years) | '3 years 8 months 27 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $11.91 |
Options Vested and Exercisable, Number (in shares) | 377 |
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share) | $12.06 |
Shareholders_Equity_Summary_of1
Shareholders' Equity - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Shares Outstanding, Beginning Balance | 6,206 | ' | ' |
Shares Outstanding, Granted | 1,327 | ' | ' |
Shares Outstanding, Exercised | -30 | ' | ' |
Shares Outstanding, Cancelled | -2,561 | ' | ' |
Shares Outstanding, Ending Balance | 4,942 | ' | ' |
Shares Outstanding, Exercisable | 3,512 | 2,894 | 2,600 |
Shares Outstanding, Options vested and expected to vested | 4,469 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Weighted Average Exercise Price of Share, Outstanding beginning balance (in dollars per share) | $6.65 | ' | ' |
Weighted Average Exercise Price of Share, Granted (in dollars per share) | $4.58 | ' | ' |
Weighted Average Exercise Price of Share, Exercised (in dollars per share) | $3.93 | ' | ' |
Weighted Average Exercise Price of Share, Cancelled (in dollars per share) | $5.97 | ' | ' |
Weighted Average Exercise Price of Share, Outstanding ending balance (in dollars per share) | $6.34 | ' | ' |
Weighted Average Exercise Price of Share, Exercisable (in dollars per share) | $6.62 | $8.04 | $8.39 |
Weighted Average Exercise Price of Share, Options vested and expected to vested (in dollars per share) | $6.42 | ' | ' |
Weighted Average Remaining Contractual Term, Outstanding | '4 years 3 months 15 days | ' | ' |
Weighted Average Remaining Contractual Term, Exercisable | '2 years 8 months 12 days | ' | ' |
Weighted Average Remaining Contractual Term, Options vested and expected to vested | '3 years 9 months 29 days | ' | ' |
Aggregate Intrinsic Value, Outstanding | $0 | ' | ' |
Aggregate Intrinsic Value, Outstanding, Exercisable | 0 | ' | ' |
Aggregate Intrinsic Value, Options vested and expected to vested | $0 | ' | ' |
Shareholders_Equity_Summary_of2
Shareholders' Equity - Summary of RSU Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 05, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Nonvested, Shares, Beginning balance | 822 |
Nonvested, Shares, Granted | 695 |
Nonvested, Shares, Cancelled | -449 |
Nonvested, Shares, Vested | -511 |
Nonvested, Shares, Ending balance | 557 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Nonvested, Weighted Average Grant Date Fair Value Per Share, Beginning balance (in dollars per share) | $6.57 |
Nonvested, Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | $5.33 |
Nonvested, Weighted Average Grant Date Fair Value Per Share, Cancelled (in dollars per share) | $5.07 |
Nonvested, Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | $5.61 |
Nonvested, Weighted Average Grant Date Fair Value Per Share, Ending balance (in dollars per share) | $5.50 |
Shareholders_Equity_Summary_of3
Shareholders' Equity - Summary of Weighted Average Assumptions Used in Option Pricing Model for Stock Options Granted (Detail) (USD $) | 12 Months Ended | ||
Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
Equity [Abstract] | ' | ' | ' |
Expected dividend rate | 1.64% | 2.26% | 1.43% |
Volatility | 42.10% | 45.50% | 50.50% |
Risk-free interest rate | 1.60% | 0.80% | 1.00% |
Expected lives (years) | '4 years 6 months 4 days | '4 years 6 months | '4 years 3 months 18 days |
Fair value per option granted (in dollars per share) | $1.80 | $1.40 | $2.71 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Consulting Services [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Manny Mashouf, Chairman of the Board [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party, payments for services | $0.60 | $0.30 | $0 |
Paul Mashouf, Son of Chairmen of the Board [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party, payments for services | $0.10 | $0.20 | $0.10 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) - Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 05, 2014 | Apr. 05, 2014 | Jan. 04, 2014 | Oct. 05, 2013 | Jul. 06, 2013 | Apr. 06, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $103,569 | $89,019 | $123,261 | $109,268 | $113,486 | $107,417 | $129,531 | $112,735 | $425,117 | $463,169 | $519,845 |
Gross margin | 32,005 | 24,500 | 42,000 | 39,622 | 35,684 | 32,394 | 44,713 | 41,404 | 138,127 | 154,195 | 208,751 |
Selling, general and administrative expenses | 56,093 | 47,365 | 46,514 | 47,824 | 52,209 | 49,894 | 50,806 | 44,261 | 197,796 | 197,170 | 186,920 |
Operating income (loss) | -24,088 | -22,865 | -4,514 | -8,202 | -16,525 | -17,500 | -6,093 | -2,857 | -59,669 | -42,975 | 21,831 |
Loss from continuing operations before income taxes | -24,093 | -22,847 | -4,428 | -8,044 | -16,413 | -17,249 | -5,874 | -2,624 | -59,412 | -42,160 | 22,762 |
Loss from continuing operations, net of tax | -24,228 | -22,754 | -4,369 | -7,898 | -16,026 | -48,156 | -3,447 | -1,516 | -59,249 | -69,145 | 13,201 |
Loss from discontinued operations, net of tax | -10,259 | -1,522 | -1,096 | -1,256 | -4,724 | -1,115 | -1,372 | -1,064 | -14,133 | -8,275 | -1,480 |
Net income (loss) | ($34,487) | ($24,276) | ($5,465) | ($9,154) | ($20,750) | ($49,271) | ($4,819) | ($2,580) | ($73,382) | ($77,420) | $11,721 |
Basic per share amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of tax (in dollars per share) | ($0.30) | ($0.29) | ($0.06) | ($0.11) | ($0.20) | ($0.61) | ($0.05) | ($0.02) | ($0.75) | ($0.84) | $0.16 |
Loss from discontinued operations, net of tax (in dollars per share) | ($0.13) | ($0.02) | ($0.01) | ($0.02) | ($0.06) | ($0.01) | ($0.02) | ($0.01) | ($0.18) | ($0.10) | ($0.02) |
Net income (loss) (in dollars per share) | ($0.43) | ($0.31) | ($0.07) | ($0.13) | ($0.26) | ($0.62) | ($0.07) | ($0.03) | ($0.93) | ($0.94) | $0.14 |
Diluted per share amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of tax (in dollars per share) | ($0.30) | ($0.29) | ($0.06) | ($0.11) | ($0.20) | ($0.61) | ($0.05) | ($0.02) | ($0.75) | ($0.84) | $0.16 |
Loss from discontinued operations, net of tax (in dollars per share) | ($0.13) | ($0.02) | ($0.01) | ($0.02) | ($0.06) | ($0.01) | ($0.02) | ($0.01) | ($0.18) | ($0.10) | ($0.02) |
Net income (loss) (in dollars per share) | ($0.43) | ($0.31) | ($0.07) | ($0.13) | ($0.26) | ($0.62) | ($0.07) | ($0.03) | ($0.93) | ($0.94) | $0.14 |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Unaudited) - Results of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 05, 2014 | Apr. 05, 2014 | Jan. 04, 2014 | Oct. 05, 2013 | Jul. 06, 2013 | Apr. 06, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jul. 05, 2014 | Jul. 06, 2013 | Jun. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges for impairment of long lived assets recorded as discontinued operations | $3,800,000 | $2,700,000 | $300,000 | $200,000 | $900,000 | $1,100,000 | $1,700,000 | $100,000 | $7,605,000 | $7,046,000 | $490,000 |
Non-cash charge included in net loss | ' | ' | ' | ' | ' | 31,400,000 | ' | ' | ' | ' | ' |
Valuation allowance against of the Company's deferred tax assets | ' | ' | ' | ' | ' | 27,500,000 | ' | ' | ' | 3,900,000 | ' |
Lease obligations | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | ' |
Purchase obligations | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Severance costs | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |