bebe stores (BEBE) 10-K 15 Sep 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jul. 04, 2015	Aug. 31, 2015	Jan. 02, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jul. 4, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	BEBE
Entity Registrant Name	bebe stores, inc.
Entity Central Index Key	1,059,272
Current Fiscal Year End Date	--07-04
Entity Well-known Seasoned issuer	Yes
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		79,654,649
Entity Public Float			$ 85

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Current assets:
Cash and equivalents	$ 46,947	$ 94,345
Available for sale securities	17,880	18,665
Receivables (net of allowance of $515 and $413)	7,122	4,814
Inventories	31,317	31,683
Prepaid and other	10,774	10,792
Total current assets	114,040	160,299
Available for sale securities	5,241	11,941
Property and equipment, net	93,229	93,640
Other assets	3,903	4,475
Total assets	216,413	270,355
Current liabilities:
Accounts payable	12,595	20,022
Accrued liabilities	28,217	39,277
Total current liabilities	40,812	59,299
Deferred rent and other lease incentives	23,952	25,847
Liability for uncertain tax positions	81	78
Total liabilities	$ 64,845	$ 85,224
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 79,660,973 and 79,555,064 shares	80	80
Additional paid-in capital	145,499	142,868
Accumulated other comprehensive (loss) income	(1,776)	3,161
Retained earnings	7,765	39,022
Total shareholders’ equity	151,568	185,131
Total liabilities and shareholders’ equity	$ 216,413	$ 270,355

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Statement of Financial Position [Abstract]
Receivables allowance	$ 515	$ 413
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	135,000,000	135,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	79,660,973	79,555,064
Common stock, shares outstanding	79,660,973	79,555,064

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Income Statement [Abstract]
Net sales	$ 427,997	$ 425,117	$ 463,169
Cost of sales, including production and occupancy	282,816	286,990	308,974
Gross margin	145,181	138,127	154,195
Selling, general and administrative expenses	170,278	197,796	197,170
Operating loss	(25,097)	(59,669)	(42,975)
Interest and other income, net	368	257	815
Loss from continuing operations, before income taxes	(24,729)	(59,412)	(42,160)
Income tax provision (benefit)	645	(163)	26,985
Loss from continuing operations, net of tax	(25,374)	(59,249)	(69,145)
Loss from discontinued operations, net of tax	(2,297)	(14,133)	(8,275)
Net loss	$ (27,671)	$ (73,382)	$ (77,420)
Basic per share amounts:
Loss from continuing operations, net of tax (in dollars per share)	$ (0.32)	$ (0.75)	$ (0.84)
Loss from discontinued operations, net of tax (in dollars per share)	(0.03)	(0.18)	(0.10)
Net loss (in dollars per share)	(0.35)	(0.93)	(0.94)
Diluted per share amounts:
Loss from continuing operations, net of tax (in dollars per share)	(0.32)	(0.75)	(0.84)
Loss from discontinued operations, net of tax (in dollars per share)	(0.03)	(0.18)	(0.10)
Net loss (in dollars per share)	$ (0.35)	$ (0.93)	$ (0.94)
Basic weighted average shares outstanding	79,616	79,234	81,847
Diluted weighted average shares outstanding	79,616	79,234	81,847
Other comprehensive loss
Unrealized (loss) gain on available for sale securities, net of tax	$ (125)	$ 2,610	$ 1,653
Foreign currency translation adjustments	(4,812)	(233)	(1,021)
Other comprehensive (loss) income	(4,937)	2,377	632
Comprehensive loss	$ (32,608)	$ (71,005)	$ (76,788)

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance at Jun. 30, 2012	$ 362,120	$ 84	$ 144,180	$ 152	$ 217,704
Beginning balance (in shares) at Jun. 30, 2012		84,360,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(77,420)				(77,420)
Other Comprehensive Income	632			632
Stock based compensation	3,107		3,107
Purchase of common stock (in shares)		(5,488,000)
Purchase of common stock	(21,226)	$ (5)	(9,447)		(11,774)
Common stock issued under stock plans including tax benefit (in shares)		168,000
Common stock issued under stock plans including tax benefit	467	$ 0	467
Cash dividends declared (in dollars per share)	(8,180)				(8,180)
Ending balance at Jul. 06, 2013	259,500	$ 79	138,307	784	120,330
Ending balance (in shares) at Jul. 06, 2013		79,040,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net 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 (in shares)		515,000
Common stock issued under stock plans including tax benefit	854	$ 1	853
Cash dividends declared (in dollars per share)	(7,926)				(7,926)
Ending balance at Jul. 05, 2014	$ 185,131	$ 80	142,868	3,161	39,022
Ending balance (in shares) at Jul. 05, 2014	79,555,064	79,555,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (27,671)				(27,671)
Other Comprehensive Income	(4,937)			(4,937)
Stock based compensation	2,420		2,420
Common stock issued under stock plans including tax benefit (in shares)		106,000
Common stock issued under stock plans including tax benefit	207	$ 0	207
Cash dividends declared (in dollars per share)	(3,582)				(3,582)
Ending balance at Jul. 04, 2015	$ 151,568	$ 80	$ 145,495	$ (1,776)	$ 7,769
Ending balance (in shares) at Jul. 04, 2015	79,660,973	79,661,000

Consolidated Statements of Sha6

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.045	$ 0.10	$ 0.10

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Cash flows from operating activities:
Net loss	$ (27,671)	$ (73,382)	$ (77,420)
Adjustments to reconcile net loss to cash used in operating activities:
Non-cash compensation expense	2,420	3,708	3,107
Depreciation and amortization	17,847	19,379	21,560
Non-cash charge for asset impairment	480	7,605	7,046
Net loss on disposal of property	28	433	1,335
Deferred income taxes	154	515	27,702
Liability for long term uncertain tax positions	3	(471)	(1,687)
Tax benefit from exercise of stock options and awards	0	0	686
Excess tax benefit from exercise of stock options and awards	0	(223)	(7)
Other	(235)	0	0
Changes in operating assets and liabilities:
Receivables	(2,312)	2,230	2,137
Inventories	246	2,180	(571)
Prepaid and other	(571)	3,177	4,648
Accounts payable	(3,549)	(307)	2,455
Deferred rent and other lease incentives	(1,771)	(4,077)	(244)
Accrued liabilities	$ (10,109)	8,956	883
Other		0	0
Net cash used in operating activities	$ (25,040)	(30,277)	(8,370)
Cash flows from investing activities:
Purchase of property and equipment	(21,921)	(19,799)	(24,611)
Purchase of investments	(23,413)	(15,574)	(73,897)
Proceeds from sales and maturities of investments	27,606	80,126	118,066
Other	0	37	0
Net cash (used in) provided by investing activities	(17,728)	44,790	19,558
Cash flows from financing activities:
Proceeds from stock options exercised	20	854	597
Excess of tax benefit on stock options exercised	0	223	7
Cash dividends paid	(3,582)	(7,926)	(8,180)
Purchases of common stock	0	0	(21,226)
Net cash used in financing activities	(3,562)	(6,849)	(28,802)
Net increase (decrease) in cash and equivalents	(46,330)	7,664	(17,614)
Effect of exchange rate changes on cash	(1,068)	(284)	(403)
Cash and equivalents:
Beginning of year	94,345	86,965	104,982
End of year	46,947	94,345	86,965
Non-cash investing activities:
Change in fair value of available for sale securities—unrealized gain	125	2,610	1,653
Accrued capital expenditures	1,457	5,809	2,431
Supplemental information:
Cash paid for interest	0	9	45
Cash paid (received) for income taxes	$ 200	$ (2,052)	$ (3,564)

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jul. 04, 2015
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 and BEBE SPORT brand names. As of July 4, 2015 , the Company operates 200 specialty retail stores located in 34 states, the District of Columbia, Puerto Rico, and Canada plus our on-line store at www.bebe.com . In addition, the Company has 89 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 2015 , 2014 and 2013 . 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 2015 had 52 weeks, fiscal year 2014 had 52 weeks and fiscal year 2013 had 53 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. 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 certificates of deposit and interest bearing auction rate securities (“ARS”) consisting of federally insured student loan backed securities. 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 4, 2015 , the Company’s ARS portfolio totaled approximately $5.2 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. Inventory includes raw materials of $0.5 million and $1.2 million as of July 4, 2015 and July 5, 2014, respectively. Allowance for doubtful accounts —The changes in the allowance for doubtful accounts are summarized below (in thousands): Fiscal Year Ended July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 413 $ 97 $ 1,255 Charged to expense 215 505 101 Write offs (113 ) (189 ) (1,259 ) Balance at end of year $ 515 $ 413 $ 97 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 except for depreciation expense related to our distribution center which is included in cost of sales. 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, and 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. In fiscal 2014, the Company discontinued its 2b division and closed stores prior to the expiration of the related leases and recorded a liability for lease termination costs which was equal to the contractual maximum for leases that contained a contractual cap on liability. For leases with no contractual maximum, a liability 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 was based on an analysis of the specific real estate market and included input from an independent real estate broker. Cash flows were discounted using a credit-adjusted risk free interest rate. In fiscal 2015, the Company settled its obligations related to these leases and recorded the adjustments 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 fees are included in net sales and the related costs are included in cost of goods sold. Sales tax collected from customers on sales are excluded from revenue. 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 July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 655 $ 703 $ 817 Charged to cost and expense 19,157 18,782 15,224 Returns (19,115 ) (18,830 ) (15,338 ) Balance at end of year $ 697 $ 655 $ 703 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 $17.8 million , $27.4 million and $23.2 million , respectively, during fiscal 2015, 2014 and 2013. 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 4, 2015 , the Company has concluded, based upon all available evidence, that it is more likely than not that its deferred tax assets will continue to not be realized and the Company has recorded a full 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 or performance-based condition. For awards to employees that have service-based vesting conditions, the Company recognizes compensation expense, based on the calculated fair value on the date of grant. For restricted stock units (“RSU”), the Company determines the fair value based on the stock price at the grant date. For stock options, the Company determines the fair value using the Black-Scholes option pricing model. This model requires subjective assumptions, which are affected by its stock price as well as assumptions regarding a number of complex and subjective variables. These variables include its expected stock price volatility over the term of the awards, actual and projected employee exercise behaviors, risk-free interest rate and expected dividends. As the stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss for fiscal 2015, 2014 and 2013 is based on awards ultimately expected to vest, such amount has 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. The Company estimates forfeitures based on its historical experience. 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% . The Company's stock price did not meet the performance target, thus no shares will be issued. 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 July 4, 2015 July 5, 2014 July 6 2013 (in thousands) Basic weighted average number of shares outstanding 79,616 79,234 81,847 Incremental shares from assumed issuance of stock options and RSUs — — — Diluted weighted average number of shares outstanding 79,616 79,234 81,847 The number of incremental shares from the assumed issuance of stock options and RSUs 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 3.7 million , 4.8 million and 5.5 million shares for the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 , respectively. Comprehensive loss —consists of net loss and other comprehensive loss (income, expenses, gains and losses that bypass the income statement and are reported directly as a separate component of net loss). The Company’s comprehensive loss 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 loss. The Company had the following balances of accumulated comprehensive income (loss): Foreign Currency Translation Fair Value Adjustment for ARS Accumulated Other Comprehensive Income Loss) (In thousands) Balance at July 6, 2013 $ 7,028 $ (6,244 ) $ 784 Foreign currency translation adjustments (233 ) — (233 ) Change in fair value of ARS — 2,610 2,610 Other comprehensive income (loss) $ (233 ) $ 2,610 $ 2,377 Balance at July 5, 2014 6,795 (3,634 ) 3,161 Foreign currency translation adjustments (4,812 ) — (4,812 ) Change in fair value of ARS — (125 ) (125 ) Other comprehensive income (loss) (4,812 ) (125 ) (4,937 ) Balance at July 4, 2015 $ 1,983 $ (3,759 ) $ (1,776 ) Recent Accounting Pronouncements 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 for fiscal years beginning after December 15, 2017, and interim periods within those years. The Company is currently assessing its approach to the adoption of this standard and the impact on its results of operations and financial position. Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company will evaluate the impact of this standard at the time it becomes effective. Inventory In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". The new standard amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV, and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact, if any, of adopting this new accounting guidance on its results of operations and financial position.

Discontinued Operation of 2b St

Discontinued Operation of 2b Stores	12 Months Ended
	Jul. 04, 2015
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 closed all 2b stores including 2b.com. The results of the 2b operations have been presented as discontinued operations in the accompanying consolidated statements of operations and comprehensive income (loss) for all periods presented and are as follows: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 (In thousands) Net sales $ 349 $ 21,418 $ 21,516 Cost of sales, including production and occupancy 1,528 18,692 17,414 Gross margin (1,179 ) 2,726 4,102 Selling, general and administrative expenses 1,118 16,857 12,375 Loss from discontinued operations, before income tax provision (2,297 ) (14,131 ) (8,273 ) Tax provision — 2 2 Loss from discontinued operations, net of tax provision $ (2,297 ) $ (14,133 ) $ (8,275 ) Costs associated with exit or disposal activities are recorded when the liability is incurred. As of July 4, 2015 and July 5, 2014, the Company had accruals of $0.0 million and $7.4 million , respectively, for future costs associated with discontinued operations. This reserve was 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 5, 2014 $ 6,385 $ 1,000 $ 7,385 Costs incurred in fiscal 2015 1,252 896 2,148 Cash payments/or markdowns applied (7,637 ) (1,896 ) (9,533 ) Balance as of July 4, 2015 $ — $ — $ —

Investments

Investments	12 Months Ended
	Jul. 04, 2015
Investments Schedule [Abstract]
Investments	Investments As of July 4, 2015 , the fair value of the Company’s auction rate securities (ARS) portfolio totaled approximately $5.2 million classified as available for sale securities, which is net of a temporary impairment charge of $3.8 million . As of that date, the Company’s ARS portfolio consists of federally insured student loan backed securities. The Company’s ARS portfolio consists of approximately 22% AA rated investments and 78% B- rated investments. As of July 5, 2014 the Company's portfolio 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 were 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 investments: As of July 4, 2015 Cost Unrealized Unrealized Estimated (in thousands) Short term certificates of deposit $ 17,880 $ — $ — $ 17,880 Long term auction rate securities $ 9,000 $ — $ 3,759 $ 5,241 As of July 5, 2014 Cost Unrealized Unrealized Estimated (in thousands) Short term certificates of deposit $ 18,665 $ — $ — $ 18,665 Long term auction rate securities 15,575 — 3,634 11,941

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Jul. 04, 2015
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 4, 2015 , 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 ARS. These ARS consist of federally insured student loan backed securities . The Company determined the estimated fair value of its investment in ARS as of July 4, 2015 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 +6.04% ), interest rates (weighted average of 0.1% ), timing (range from 11 – 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 4, 2015 : Description July 4, 2015 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 14,426 $ 14,426 $ — $ — Current available for sale securities 17,880 — 17,880 — Non-current available for sale securities 5,241 — — 5,241 Total $ 37,547 $ 14,426 $ 17,880 $ 5,241 The following items are measured at fair value on a recurring basis at July 5, 2014 : Description July 5, Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable 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 During the fiscal years ended July 4, 2015 and July 5, 2014 , 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 $9.0 million to their estimated fair value of $5.2 million as of July 4, 2015 . 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 4, 2015 : (In thousands) Balance at July 5, 2014 $ 11,941 Total gains or (losses) (realized or unrealized): Included in earnings — Included in other comprehensive income (125 ) Settlements (6,575 ) Balance at July 4, 2015 $ 5,241 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 4, 2015 , July 5, 2014 and July 6, 2013 , the Company recorded impairment charges of $0.5 million , $7.0 million and $3.8 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 4, 2015 , July 5, 2014 and July 6, 2013 , respectively: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 Number of stores identified as at risk and evaluated for impairment 28 38 42 Number of stores identified as at risk, but not impaired (21 ) (10 ) (18 ) Number of stores identified as at risk with impairment 7 28 24 Total carrying amount of stores identified as at risk prior to any impairment charges taken $ 4.4 $ 8.4 $ 7.1 Total carrying amount of stores identified as at risk, but not impaired (3.9 ) (1.2 ) (3 ) Total carrying amount of stores identified for impairment 0.5 7.2 4.1 Impairment charges recorded during the period (0.5 ) (7.0 ) (3.8 ) Remaining carrying amount of stores identified for impairment after impairment charges taken $ — $ 0.2 $ 0.3 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 199% , 447% and 472% for the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 , respectively.

Inventories

Inventories	12 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories The Company’s inventories consist of: As of July 4, 2015 July 5, 2014 (In thousands) Raw materials $ 548 $ 1,206 Merchandise available for sale 30,769 30,477 Inventories $ 31,317 $ 31,683

Credit Facilities

Credit Facilities	12 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
Credit Facilities	Credit Facilities 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 4, 2015 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. 04, 2015
Leases [Abstract]
Lease Obligations	Lease Obligations Rent expense under operating leases for the fiscal years ended July 4, 2015 , July 5, 2014 , and July 6, 2013 was $ 80.4 million , $86.9 million and $94.1 million , respectively. Rent expense included other lease-required expenses for fiscal years 2015 , 2014 and 2013 of $27.1 million , $28.4 million and $31.3 million , respectively. 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. Future minimum lease payments for noncancellable leases at July 4, 2015 are as follows: Operating Leases (in thousands) Fiscal year 2016 $ 45,239 2017 36,913 2018 30,787 2019 25,265 2020 22,658 Thereafter 52,381 Total minimum lease payments $ 213,243

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Jul. 04, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following (in thousands): As of July 4, 2015 July 5, 2014 Gift certificates, gift cards and store credits $ 4,984 $ 5,176 Employee compensation 9,772 9,802 Sales/use tax payable 3,525 3,466 Deferred revenue 3,179 3,994 Capital expenditures 1,678 1,852 Lease obligation costs — 6,385 Other 5,079 8,602 Total $ 28,217 $ 39,277 Costs associated with exit or disposal activities, (including restructuring charges) are recorded as a liability when incurred. The Company had $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring that occurred in fiscal 2014 as follows (in thousands): Total Balance at July 5, 2014 $ 1,944 Costs incurred in fiscal 2015 — Cash payments (1,944 ) Balance at July 4, 2015 $ — This amount was included in employee compensation and was recorded in selling, general and administrative expenses in fiscal 2014.

Intangible Asset

Intangible Asset	12 Months Ended
	Jul. 04, 2015
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 which is included in other assets 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. 04, 2015
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 4, 2015 July 5, 2014 July 6, 2013 (in thousands) Current: Federal $ — $ — $ — State 214 (440 ) (34 ) Foreign 278 (204 ) (1,475 ) 492 (644 ) (1,509 ) Deferred: Federal — — 21,753 State — — 6,417 Foreign 153 481 324 153 481 28,494 Provision (benefit) from continuing operations $ 645 $ (163 ) $ 26,985 The components of earnings (loss) from continuing operations before income taxes are as follows: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 (in thousands) United States $ (32,896 ) $ (69,191 ) $ (53,643 ) Foreign 8,167 9,779 11,483 Total income (loss) from continuing operations before income taxes $ (24,729 ) $ (59,412 ) $ (42,160 ) 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 4, 2015 July 5, 2014 July 6, 2013 Federal statutory rate (35.0 )% (35.0 )% (35.0 )% State rate, net of federal benefit (1.9 ) (3.2 ) (3.3 ) Tax-exempt interest — — (0.2 ) Stock-based compensation 1.0 0.1 0.4 Valuation allowance 41.4 39.3 101.1 Foreign deferred tax adjustment (1.5 ) (0.8 ) 0.2 Tax reserve adjustment — (0.5 ) 0.5 Other (1.4 ) (0.2 ) 0.3 Effective tax rate 2.6 % (0.3 )% 64.0 % 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 4, 2015 July 5, 2014 (in thousands) Current: Gift certificates, gift cards and store credits $ 1,178 $ 1,204 Inventory 2,292 2,399 Other accrued expenses 1,113 3,142 Deferred revenue 882 1,158 Accrued vacation 774 702 State taxes (1 ) (61 ) Prepaid expenses (884 ) (699 ) Tax credit and net operating loss carryovers 0 154 Other 12 3 Total current 5,366 8,002 Valuation allowance (5,290 ) (7,939 ) Current deferred tax assets (liabilities), net 76 63 Non-Current: Basis difference in fixed assets 14,734 15,005 Deferred rent 5,902 6,528 Stock based compensation 1,726 4,348 Foreign tax credit 1,571 1,101 Tax credit and net operating loss carryovers 56,771 42,625 Construction allowance (5,951 ) (5,265 ) Unrealized loss on ARS 1,432 1,339 Indirect benefit from uncertain tax positions 45 42 Other — 253 Total non-current 76,230 65,976 Valuation allowance (76,306 ) (65,885 ) Non-current deferred tax assets, net (76 ) 91 Deferred tax assets, net $ — $ 154 As of July 4, 2015 , the Company has federal, state and foreign gross net operating loss carryovers of approximately $146.0 million , $104.8 million and $2.6 million , respectively. If not used, these carry forwards will expire at various dates from fiscal year 2017 to fiscal year 2035. The Company also has foreign tax credit and state tax credit carry forwards of approximately $1.6 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 2017 to 2026 and the state tax credit will expire from fiscal year 2021 to fiscal year 2023. As of July 4, 2015 , it was considered more likely than not that the Company’s deferred tax assets would not be realized. 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 years' operating results which is objectively verifiable evidence. As a result of its evaluation of the realizability of its deferred tax assets as of July 4, 2015 , 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 $7.8 million for the current fiscal year. The Company will continue to 10. Income Taxes (Continued) maintain a 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 4, 2015 , July 5, 2014 and July 6, 2013 , the Company recognized approximately $0.0 million , $(0.1) million , and $(0.3) million in interest and penalties, respectively. The Company had approximately $0.0 million and $0.0 million for the accrual of interest and penalties at July 4, 2015 and July 5, 2014 , respectively. The Company could be subject to Federal income tax examinations for fiscal years 2012 and forward and could be subject to state and Canada examinations for fiscal years 2011 and forward. The Company is currently under examination with the IRS for fiscal years 2012 and fiscal year 2013. The Company is under audit in certain states for fiscal year 2011 through fiscal year 2013, and expects additional audits to commence. 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 4, 2015 , the Company has $0.4 million in unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: July 4, 2015 July 5, 2014 July 6, 2013 (in thousands) Balance as of beginning of period $ 384 $ 898 $ 1,756 Additions for tax positions taken during the current year — — 511 Additions for tax positions taken during prior years — — 77 Reductions for tax positions taken during the current year — (272 ) — Settlements — (180 ) (37 ) Expirations of statues of limitations — (62 ) (1,409 ) Balance as of end of period $ 384 $ 384 $ 898 Of the $0.4 million recorded at July 4, 2015 , $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. 04, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment: Property and equipment consist of the following: As of July 4, 2015 July 5, 2014 (in thousands) Leasehold improvements $ 128,220 $ 121,346 Furniture, fixtures and equipment 50,337 51,107 Computer hardware and software 57,064 48,815 Land and buildings 29,478 29,478 Construction in progress 4,431 14,984 Total 269,530 265,730 Less: Accumulated depreciation (176,301 ) (172,090 ) Property and equipment, net $ 93,229 $ 93,640 Construction in progress consists primarily of construction costs related to stores that will open subsequent to year end and information technology projects.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Jul. 04, 2015
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 makes a 10% matching contribution up to the annual maximum IRS contribution limit for the employee each payroll and, provided certain earnings goals are met, the Plan allows for an incremental 10% match following year end. Company contributions to the plan for the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 were $0.4 million , $0.0 million and $0.5 million , respectively.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Jul. 04, 2015
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 4, 2015 , the Company has 11,050,957 shares of common stock authorized and unissued under the Stock Plan and there were 6,223,772 shares available for future grant. The following table summarizes information about stock options outstanding at July 4, 2015 : Options Outstanding Options Vested and Exercisable Exercise Prices Number (in thousands) Weighted Average Remaining Life (in years) Weighted Average Exercise Price Number (in thousands) Weighted Average Exercise Price $2.34 to $3.81 84 9.20 $2.38 1 $3.81 $3.99 to $3.99 299 7.45 3.99 288 3.99 $4.02 to $5.35 325 7.27 5.00 132 5.00 $5.36 to $5.64 279 8.14 5.52 82 5.54 $5.70 to $6.29 427 6.20 6.03 304 6.12 $6.33 to $7.14 221 5.19 6.57 208 6.56 $7.37 to $7.37 337 5.64 7.37 260 7.37 $7.39 to $7.64 379 2.33 7.61 361 7.61 $7.87 to $15.01 266 3.51 10.27 260 10.31 $16.21 to $24.68 40 1.18 19.89 39 19.89 2,657 1,935 As of July 4, 2015 and July 5, 2014 , and June 30, 2013 there were approximately 1,935,328 , 3,512,000 and 2,894,000 options exercisable at weighted-average exercise prices per share of $7.04 , $6.62 and $8.04 , respectively. The following table summarizes stock option activity: Shares Outstanding (Amounts in thousands) Weighted Average Exercise Price of Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding, July 5, 2014 4,942 $ 6.34 Granted 82 2.34 Exercised — — Cancelled (2,367 ) 5.92 Outstanding, July 4, 2015 2,657 $ 6.58 5.72 $ — Exercisable, July 4, 2015 1,935 $ 7.04 4.96 $ — Options vested and expected to vest—end of period 2,466 $ 6.72 5.52 $ — 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 4, 2015 , July 5, 2014 and July 6, 2013 the total intrinsic value of stock options exercised was $0.0 million , $0.1 million and $0.1 million , respectively. Cash received from stock options exercised during the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 was $0.0 million , $0.1 million and $0.4 million , respectively, and the actual tax benefit realized for tax deductions from stock options exercised totaled $0.0 million , $0.1 million and $0.1 million , respectively. The following table summarizes RSU activity: Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, July 5, 2014 557 $ 5.50 Granted 1,881 2.65 Cancelled (149 ) 4.22 Vested (99 ) 2.96 Nonvested, July 4, 2015 2,190 $ 4.87 Stock-based compensation For the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 , the Company recognized share-based compensation expense of $2.4 million , $3.7 million and $3.1 million , respectively, as a component of selling, general and administrative expenses. As of July 4, 2015 , there was $2.3 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 1.78 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 4, 2015 , July 5, 2014 and July 6, 2013 : July 4, 2015 July 5, 2014 July 6, Expected dividend rate 2.56 % 1.64 % 2.26 % Volatility 51.8 % 42.1 % 45.5 % Risk-free interest rate 1.7 % 1.6 % 0.8 % Expected lives (years) 4.33 4.51 4.50 Fair value per option granted $ 0.84 $ 1.80 $ 1.40 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 4, 2015 , July 5, 2014 and July 6, 2013 , there were 7,400 , 9,800 and 10,600 shares issued, respectively.

Litigation

Litigation	12 Months Ended
	Jul. 04, 2015
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. A former employee filed a complaint against the Company on July 27, 2006 in the Superior Court of California, San Mateo County (Case No. CIV 456550) alleging a failure to pay wages and to provide meal and rest periods, among other claims. The plaintiff purported to bring the action on behalf of current and former California bebe managers who are similarly situated. On or about September 2014, the parties entered a settlement agreement conditioned upon court approval and a certain class participation rate which is consistent with amounts the Company previously accrued. The Court granted preliminary approval of the settlement. The parties intend to proceed with the administration of the settlement terms with the class members. A former employee filed a complaint against the Company on November 2, 2010 in the Superior Court of California, San Bernardino County (Case No. CIVRS1011823) alleging a failure to pay wages, failure to provide meal and rest periods and other violations of the California Labor Code and California Business & Professions Code §17200 et. seq. The plaintiff purported to bring the action on behalf of current and former California bebe stylists and sales associates who are similarly situated. The complaint seeks damages, civil penalties and injunctive relief among other remedies. The Company continues to defend against the claims. The Company is unable to estimate an amount or range of any reasonably possible losses. 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 various violations of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq.) and violations of California’s unfair competition law (California Business and Professions Code §§ 17200, et seq.) stemming from an alleged failure to obtain customer consent prior to sending text messages. The plaintiff purported to bring the action on behalf of others similarly situated. The complaint seeks damages and injunctive relief among other remedies. The parties have commenced discovery. The Company continues to defend against the claims. The Company is unable to estimate an amount or range of any reasonably possible losses. 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 complaint seeks damages and injunctive relief other remedies. The Company continues to defend against the claims. This proceeding was consolidated with the action referenced above (Civil Action No. C14-267 DMR). The Company is unable to estimate an amount or range of any reasonably possible losses. The Company is involved in additional 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 the Company 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. 04, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions During the fiscal years 2015, 2014 and 2013 the Company made payments of $0.7 million , $0.6 million and $0.3 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 2015, 2014 and 2013 the Company made payments of $0.0 million , $0.1 million and $0.2 million , respectively 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 Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Jul. 04, 2015
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. 2015 Quarter Ended October 4 January 3 April 4 July 4 (in thousands, except per share data) Net sales $ 102,156 $ 128,914 $ 92,668 $ 104,259 Gross margin 32,770 47,907 28,187 36,317 Selling, general and administrative expenses 42,127 47,816 39,047 41,288 (Loss) income from operations (9,357 ) 91 (10,860 ) (4,971 ) (Loss) income from continuing operations before income taxes (8,950 ) 119 (10,817 ) (5,081 ) Loss from continuing operations, net of tax (8,986 ) (20 ) (10,892 ) (5,476 ) (Loss) income from discontinued operations, net of tax (1,831 ) (365 ) (354 ) 253 Net loss (10,817 ) (385 ) (11,246 ) (5,223 ) Basic per share amount Loss from continuing operations, net of tax $ (0.11 ) $ — $ (0.14 ) $ (0.07 ) Loss from discontinued operations, net of tax (0.03 ) — — — Net loss $ (0.14 ) $ — $ (0.14 ) $ (0.07 ) Diluted per share amount Loss from continuing operations, net of tax $ (0.11 ) $ — $ (0.14 ) $ (0.07 ) Loss from discontinued operation, net of tax (0.03 ) — — — Net loss $ (0.14 ) $ — $ (0.14 ) $ (0.07 ) 2014 Quarter Ended October 5 January 4 April 5 (1) July 5 (1)(2)(3) (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 operations, net of tax (0.02 ) (0.01 ) (0.02 ) (0.13 ) Net loss $ (0.13 ) $ (0.07 ) $ (0.31 ) $ (0.43 ) (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) 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. (3) Selling, general and administrative expenses in the fourth fiscal quarter includes $4.0 million in severance costs.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jul. 04, 2015
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 and BEBE SPORT brand names. As of July 4, 2015 , the Company operates 200 specialty retail stores located in 34 states, the District of Columbia, Puerto Rico, and Canada plus our on-line store at www.bebe.com . In addition, the Company has 89 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 2015 , 2014 and 2013 .
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 2015 had 52 weeks, fiscal year 2014 had 52 weeks and fiscal year 2013 had 53 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. 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 certificates of deposit and interest bearing auction rate securities (“ARS”) consisting of federally insured student loan backed securities. 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 4, 2015 , the Company’s ARS portfolio totaled approximately $5.2 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 July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 413 $ 97 $ 1,255 Charged to expense 215 505 101 Write offs (113 ) (189 ) (1,259 ) Balance at end of year $ 515 $ 413 $ 97
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 except for depreciation expense related to our distribution center which is included in cost of sales. 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, and 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. In fiscal 2014, the Company discontinued its 2b division and closed stores prior to the expiration of the related leases and recorded a liability for lease termination costs which was equal to the contractual maximum for leases that contained a contractual cap on liability. For leases with no contractual maximum, a liability 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 was based on an analysis of the specific real estate market and included input from an independent real estate broker. Cash flows were discounted using a credit-adjusted risk free interest rate. In fiscal 2015, the Company settled its obligations related to these leases and recorded the adjustments 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 fees are included in net sales and the related costs are included in cost of goods sold. Sales tax collected from customers on sales are excluded from revenue. 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 July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 655 $ 703 $ 817 Charged to cost and expense 19,157 18,782 15,224 Returns (19,115 ) (18,830 ) (15,338 ) Balance at end of year $ 697 $ 655 $ 703 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 4, 2015 , the Company has concluded, based upon all available evidence, that it is more likely than not that its deferred tax assets will continue to not be realized and the Company has recorded a full 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 or performance-based condition. For awards to employees that have service-based vesting conditions, the Company recognizes compensation expense, based on the calculated fair value on the date of grant. For restricted stock units (“RSU”), the Company determines the fair value based on the stock price at the grant date. For stock options, the Company determines the fair value using the Black-Scholes option pricing model. This model requires subjective assumptions, which are affected by its stock price as well as assumptions regarding a number of complex and subjective variables. These variables include its expected stock price volatility over the term of the awards, actual and projected employee exercise behaviors, risk-free interest rate and expected dividends. As the stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss for fiscal 2015, 2014 and 2013 is based on awards ultimately expected to vest, such amount has 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. The Company estimates forfeitures based on its historical experience. 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% . The Company's stock price did not meet the performance target, thus no shares will be issued.
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 July 4, 2015 July 5, 2014 July 6 2013 (in thousands) Basic weighted average number of shares outstanding 79,616 79,234 81,847 Incremental shares from assumed issuance of stock options and RSUs — — — Diluted weighted average number of shares outstanding 79,616 79,234 81,847 The number of incremental shares from the assumed issuance of stock options and RSUs is calculated by applying the treasury stock method.
Comprehensive loss	Comprehensive loss —consists of net loss and other comprehensive loss (income, expenses, gains and losses that bypass the income statement and are reported directly as a separate component of net loss). The Company’s comprehensive loss 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 loss.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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 for fiscal years beginning after December 15, 2017, and interim periods within those years. The Company is currently assessing its approach to the adoption of this standard and the impact on its results of operations and financial position. Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company will evaluate the impact of this standard at the time it becomes effective. Inventory In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". The new standard amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV, and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact, if any, of adopting this new accounting guidance on its results of operations and financial position.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jul. 04, 2015
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 July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 413 $ 97 $ 1,255 Charged to expense 215 505 101 Write offs (113 ) (189 ) (1,259 ) Balance at end of year $ 515 $ 413 $ 97
Summary of estimated useful lives of property and equipment	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 except for depreciation expense related to our distribution center which is included in cost of sales. 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 Property and equipment consist of the following: As of July 4, 2015 July 5, 2014 (in thousands) Leasehold improvements $ 128,220 $ 121,346 Furniture, fixtures and equipment 50,337 51,107 Computer hardware and software 57,064 48,815 Land and buildings 29,478 29,478 Construction in progress 4,431 14,984 Total 269,530 265,730 Less: Accumulated depreciation (176,301 ) (172,090 ) Property and equipment, net $ 93,229 $ 93,640
Summary of changes in returns reserve	The changes in the returns reserve are summarized below (in thousands): Fiscal Year Ended July 4, 2015 July 5, 2014 July 6 2013 Balance at beginning of year $ 655 $ 703 $ 817 Charged to cost and expense 19,157 18,782 15,224 Returns (19,115 ) (18,830 ) (15,338 ) Balance at end of year $ 697 $ 655 $ 703
Reconciliation of number of shares used in 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 July 4, 2015 July 5, 2014 July 6 2013 (in thousands) Basic weighted average number of shares outstanding 79,616 79,234 81,847 Incremental shares from assumed issuance of stock options and RSUs — — — Diluted weighted average number of shares outstanding 79,616 79,234 81,847
Schedule of accumulated comprehensive income (loss	The Company had the following balances of accumulated comprehensive income (loss): Foreign Currency Translation Fair Value Adjustment for ARS Accumulated Other Comprehensive Income Loss) (In thousands) Balance at July 6, 2013 $ 7,028 $ (6,244 ) $ 784 Foreign currency translation adjustments (233 ) — (233 ) Change in fair value of ARS — 2,610 2,610 Other comprehensive income (loss) $ (233 ) $ 2,610 $ 2,377 Balance at July 5, 2014 6,795 (3,634 ) 3,161 Foreign currency translation adjustments (4,812 ) — (4,812 ) Change in fair value of ARS — (125 ) (125 ) Other comprehensive income (loss) (4,812 ) (125 ) (4,937 ) Balance at July 4, 2015 $ 1,983 $ (3,759 ) $ (1,776 )

Discontinued Operation of 2b 26

Discontinued Operation of 2b Stores (Tables)	12 Months Ended
	Jul. 04, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operation	The results of the 2b operations have been presented as discontinued operations in the accompanying consolidated statements of operations and comprehensive income (loss) for all periods presented and are as follows: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 (In thousands) Net sales $ 349 $ 21,418 $ 21,516 Cost of sales, including production and occupancy 1,528 18,692 17,414 Gross margin (1,179 ) 2,726 4,102 Selling, general and administrative expenses 1,118 16,857 12,375 Loss from discontinued operations, before income tax provision (2,297 ) (14,131 ) (8,273 ) Tax provision — 2 2 Loss from discontinued operations, net of tax provision $ (2,297 ) $ (14,133 ) $ (8,275 )
Rollforward 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 5, 2014 $ 6,385 $ 1,000 $ 7,385 Costs incurred in fiscal 2015 1,252 896 2,148 Cash payments/or markdowns applied (7,637 ) (1,896 ) (9,533 ) Balance as of July 4, 2015 $ — $ — $ — The Company had $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring that occurred in fiscal 2014 as follows (in thousands): Total Balance at July 5, 2014 $ 1,944 Costs incurred in fiscal 2015 — Cash payments (1,944 ) Balance at July 4, 2015 $ —

Investments (Tables)

Investments (Tables)	12 Months Ended
	Jul. 04, 2015
Investments Schedule [Abstract]
Summary of investments	The following is a summary of the Company’s investments: As of July 4, 2015 Cost Unrealized Unrealized Estimated (in thousands) Short term certificates of deposit $ 17,880 $ — $ — $ 17,880 Long term auction rate securities $ 9,000 $ — $ 3,759 $ 5,241 As of July 5, 2014 Cost Unrealized Unrealized Estimated (in thousands) Short term certificates of deposit $ 18,665 $ — $ — $ 18,665 Long term auction rate securities 15,575 — 3,634 11,941

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Jul. 04, 2015
Fair Value Disclosures [Abstract]
Items measured at fair value on a recurring basis	The following items are measured at fair value on a recurring basis at July 4, 2015 : Description July 4, 2015 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 14,426 $ 14,426 $ — $ — Current available for sale securities 17,880 — 17,880 — Non-current available for sale securities 5,241 — — 5,241 Total $ 37,547 $ 14,426 $ 17,880 $ 5,241 The following items are measured at fair value on a recurring basis at July 5, 2014 : Description July 5, Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable 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
Schedule of activity for assets measured at fair value on a recurring basis using significant unobservable inputs	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 4, 2015 : (In thousands) Balance at July 5, 2014 $ 11,941 Total gains or (losses) (realized or unrealized): Included in earnings — Included in other comprehensive income (125 ) Settlements (6,575 ) Balance at July 4, 2015 $ 5,241
Schedule of considerations of at-risk assets	The following table presents the Company’s considerations of at-risk assets for the fiscal years ended July 4, 2015 , July 5, 2014 and July 6, 2013 , respectively: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 Number of stores identified as at risk and evaluated for impairment 28 38 42 Number of stores identified as at risk, but not impaired (21 ) (10 ) (18 ) Number of stores identified as at risk with impairment 7 28 24 Total carrying amount of stores identified as at risk prior to any impairment charges taken $ 4.4 $ 8.4 $ 7.1 Total carrying amount of stores identified as at risk, but not impaired (3.9 ) (1.2 ) (3 ) Total carrying amount of stores identified for impairment 0.5 7.2 4.1 Impairment charges recorded during the period (0.5 ) (7.0 ) (3.8 ) Remaining carrying amount of stores identified for impairment after impairment charges taken $ — $ 0.2 $ 0.3

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Summary of inventories	The Company’s inventories consist of: As of July 4, 2015 July 5, 2014 (In thousands) Raw materials $ 548 $ 1,206 Merchandise available for sale 30,769 30,477 Inventories $ 31,317 $ 31,683

Lease Obligations (Tables)

Lease Obligations (Tables)	12 Months Ended
	Jul. 04, 2015
Leases [Abstract]
Schedule of future minimum lease payments for noncancellable leases	Future minimum lease payments for noncancellable leases at July 4, 2015 are as follows: Operating Leases (in thousands) Fiscal year 2016 $ 45,239 2017 36,913 2018 30,787 2019 25,265 2020 22,658 Thereafter 52,381 Total minimum lease payments $ 213,243

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Jul. 04, 2015
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): As of July 4, 2015 July 5, 2014 Gift certificates, gift cards and store credits $ 4,984 $ 5,176 Employee compensation 9,772 9,802 Sales/use tax payable 3,525 3,466 Deferred revenue 3,179 3,994 Capital expenditures 1,678 1,852 Lease obligation costs — 6,385 Other 5,079 8,602 Total $ 28,217 $ 39,277
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 5, 2014 $ 6,385 $ 1,000 $ 7,385 Costs incurred in fiscal 2015 1,252 896 2,148 Cash payments/or markdowns applied (7,637 ) (1,896 ) (9,533 ) Balance as of July 4, 2015 $ — $ — $ — The Company had $1.9 million accrued as of July 5, 2014 for future severance costs associated with a restructuring that occurred in fiscal 2014 as follows (in thousands): Total Balance at July 5, 2014 $ 1,944 Costs incurred in fiscal 2015 — Cash payments (1,944 ) Balance at July 4, 2015 $ —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Significant 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 4, 2015 July 5, 2014 July 6, 2013 (in thousands) Current: Federal $ — $ — $ — State 214 (440 ) (34 ) Foreign 278 (204 ) (1,475 ) 492 (644 ) (1,509 ) Deferred: Federal — — 21,753 State — — 6,417 Foreign 153 481 324 153 481 28,494 Provision (benefit) from continuing operations $ 645 $ (163 ) $ 26,985
Components of earnings (loss) from continuing operations before income taxes	The components of earnings (loss) from continuing operations before income taxes are as follows: Fiscal Year Ended July 4, 2015 July 5, 2014 July 6, 2013 (in thousands) United States $ (32,896 ) $ (69,191 ) $ (53,643 ) Foreign 8,167 9,779 11,483 Total income (loss) from continuing operations before income taxes $ (24,729 ) $ (59,412 ) $ (42,160 )
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 4, 2015 July 5, 2014 July 6, 2013 Federal statutory rate (35.0 )% (35.0 )% (35.0 )% State rate, net of federal benefit (1.9 ) (3.2 ) (3.3 ) Tax-exempt interest — — (0.2 ) Stock-based compensation 1.0 0.1 0.4 Valuation allowance 41.4 39.3 101.1 Foreign deferred tax adjustment (1.5 ) (0.8 ) 0.2 Tax reserve adjustment — (0.5 ) 0.5 Other (1.4 ) (0.2 ) 0.3 Effective tax rate 2.6 % (0.3 )% 64.0 %
Significant components of deferred tax assets (liabilities)	Significant components of the Company’s deferred tax assets (liabilities) are as follows: July 4, 2015 July 5, 2014 (in thousands) Current: Gift certificates, gift cards and store credits $ 1,178 $ 1,204 Inventory 2,292 2,399 Other accrued expenses 1,113 3,142 Deferred revenue 882 1,158 Accrued vacation 774 702 State taxes (1 ) (61 ) Prepaid expenses (884 ) (699 ) Tax credit and net operating loss carryovers 0 154 Other 12 3 Total current 5,366 8,002 Valuation allowance (5,290 ) (7,939 ) Current deferred tax assets (liabilities), net 76 63 Non-Current: Basis difference in fixed assets 14,734 15,005 Deferred rent 5,902 6,528 Stock based compensation 1,726 4,348 Foreign tax credit 1,571 1,101 Tax credit and net operating loss carryovers 56,771 42,625 Construction allowance (5,951 ) (5,265 ) Unrealized loss on ARS 1,432 1,339 Indirect benefit from uncertain tax positions 45 42 Other — 253 Total non-current 76,230 65,976 Valuation allowance (76,306 ) (65,885 ) Non-current deferred tax assets, net (76 ) 91 Deferred tax assets, net $ — $ 154
Reconciliation of unrecognized tax benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: July 4, 2015 July 5, 2014 July 6, 2013 (in thousands) Balance as of beginning of period $ 384 $ 898 $ 1,756 Additions for tax positions taken during the current year — — 511 Additions for tax positions taken during prior years — — 77 Reductions for tax positions taken during the current year — (272 ) — Settlements — (180 ) (37 ) Expirations of statues of limitations — (62 ) (1,409 ) Balance as of end of period $ 384 $ 384 $ 898

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jul. 04, 2015
Property, Plant and Equipment [Abstract]
Summary of property and equipment	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 except for depreciation expense related to our distribution center which is included in cost of sales. 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 Property and equipment consist of the following: As of July 4, 2015 July 5, 2014 (in thousands) Leasehold improvements $ 128,220 $ 121,346 Furniture, fixtures and equipment 50,337 51,107 Computer hardware and software 57,064 48,815 Land and buildings 29,478 29,478 Construction in progress 4,431 14,984 Total 269,530 265,730 Less: Accumulated depreciation (176,301 ) (172,090 ) Property and equipment, net $ 93,229 $ 93,640

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Jul. 04, 2015
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 4, 2015 : Options Outstanding Options Vested and Exercisable Exercise Prices Number (in thousands) Weighted Average Remaining Life (in years) Weighted Average Exercise Price Number (in thousands) Weighted Average Exercise Price $2.34 to $3.81 84 9.20 $2.38 1 $3.81 $3.99 to $3.99 299 7.45 3.99 288 3.99 $4.02 to $5.35 325 7.27 5.00 132 5.00 $5.36 to $5.64 279 8.14 5.52 82 5.54 $5.70 to $6.29 427 6.20 6.03 304 6.12 $6.33 to $7.14 221 5.19 6.57 208 6.56 $7.37 to $7.37 337 5.64 7.37 260 7.37 $7.39 to $7.64 379 2.33 7.61 361 7.61 $7.87 to $15.01 266 3.51 10.27 260 10.31 $16.21 to $24.68 40 1.18 19.89 39 19.89 2,657 1,935
Summary of stock option activity	The following table summarizes stock option activity: Shares Outstanding (Amounts in thousands) Weighted Average Exercise Price of Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding, July 5, 2014 4,942 $ 6.34 Granted 82 2.34 Exercised — — Cancelled (2,367 ) 5.92 Outstanding, July 4, 2015 2,657 $ 6.58 5.72 $ — Exercisable, July 4, 2015 1,935 $ 7.04 4.96 $ — Options vested and expected to vest—end of period 2,466 $ 6.72 5.52 $ —
Summary of RSU activity	The following table summarizes RSU activity: Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, July 5, 2014 557 $ 5.50 Granted 1,881 2.65 Cancelled (149 ) 4.22 Vested (99 ) 2.96 Nonvested, July 4, 2015 2,190 $ 4.87
Summary of weighted average assumptions used in option pricing model	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 4, 2015 , July 5, 2014 and July 6, 2013 : July 4, 2015 July 5, 2014 July 6, Expected dividend rate 2.56 % 1.64 % 2.26 % Volatility 51.8 % 42.1 % 45.5 % Risk-free interest rate 1.7 % 1.6 % 0.8 % Expected lives (years) 4.33 4.51 4.50 Fair value per option granted $ 0.84 $ 1.80 $ 1.40

Quarterly Financial Informati35

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Jul. 04, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	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. 2015 Quarter Ended October 4 January 3 April 4 July 4 (in thousands, except per share data) Net sales $ 102,156 $ 128,914 $ 92,668 $ 104,259 Gross margin 32,770 47,907 28,187 36,317 Selling, general and administrative expenses 42,127 47,816 39,047 41,288 (Loss) income from operations (9,357 ) 91 (10,860 ) (4,971 ) (Loss) income from continuing operations before income taxes (8,950 ) 119 (10,817 ) (5,081 ) Loss from continuing operations, net of tax (8,986 ) (20 ) (10,892 ) (5,476 ) (Loss) income from discontinued operations, net of tax (1,831 ) (365 ) (354 ) 253 Net loss (10,817 ) (385 ) (11,246 ) (5,223 ) Basic per share amount Loss from continuing operations, net of tax $ (0.11 ) $ — $ (0.14 ) $ (0.07 ) Loss from discontinued operations, net of tax (0.03 ) — — — Net loss $ (0.14 ) $ — $ (0.14 ) $ (0.07 ) Diluted per share amount Loss from continuing operations, net of tax $ (0.11 ) $ — $ (0.14 ) $ (0.07 ) Loss from discontinued operation, net of tax (0.03 ) — — — Net loss $ (0.14 ) $ — $ (0.14 ) $ (0.07 ) 2014 Quarter Ended October 5 January 4 April 5 (1) July 5 (1)(2)(3) (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 operations, net of tax (0.02 ) (0.01 ) (0.02 ) (0.13 ) Net loss $ (0.13 ) $ (0.07 ) $ (0.31 ) $ (0.43 ) (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) 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. (3) Selling, general and administrative expenses in the fourth fiscal quarter includes $4.0 million in severance costs.

Summary of Significant Accoun36

Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 04, 2015USD ($)brandStoresegmentstate$ / sharesshares	Jul. 05, 2014USD ($)$ / sharesshares	Jul. 06, 2013USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of specialty retail stores | Store	200
Number of states where specialty retail stores operated | state	34
Number of international stores | Store	89
Number of reportable segments | segment	1
Number of brands with product line of similar nature | brand	2
Revenue percentage of international retail stores	8.00%	8.00%	8.00%
Fiscal period duration (in days)	364 days	364 days	371 days
Available for sale securities | $	$ 5,241	$ 11,941
Raw materials | $	$ 548	1,206
Period for unredeemed store credits recognized (in years)	3 years
Period for unredeemed gift certificates recognized (in years)	4 years
Estimated number of years for historical redemption patterns to determine gift card breakage income	4 years
Advertising expense | $	$ 17,800	$ 27,400	$ 23,200
Restricted stock units, granted (in shares)	1,881,000
Restricted stock units, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.65
Risk free volatility rate	51.80%	42.10%	45.50%
Risk free interest rate	1.70%	1.60%	0.80%
Expected dividend rate	2.56%	1.64%	2.26%
Purchase of shares on anti-dilutive options	3,700,000	4,800,000	5,500,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of business days in which credit and debit card transaction are processed	1 day
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of business days in which credit and debit card transaction are processed	2 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, granted (in shares)		132,138
Restricted stock units, vesting period (in years)		3 years
Restricted stock units, weighted average grant date fair value (in dollars per share) | $ / shares		$ 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%
RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based compensation percentage		0.00%
RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based compensation percentage		200.00%

Summary of Significant Accoun37

Summary of Significant Accounting Policies - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of year	$ 413	$ 97	$ 1,255
Charged to expense	215	505	101
Write offs	(113)	(189)	(1,259)
Balance at end of year	$ 515	$ 413	$ 97

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Jul. 04, 2015
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment useful life	39 years 6 months
Leasehold improvements
Property, Plant and Equipment [Line Items]
Leasehold improvements useful life description	10 years or term of lease, whichever is shorter
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment useful life	10 years
Furniture, fixtures, equipment and vehicles
Property, Plant and Equipment [Line Items]
Property and equipment useful life	5 years
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment useful life	3 years

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Summary of Changes in Returns Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	$ 655	$ 703	$ 817
Charged to cost and expense	19,157	18,782	15,224
Returns	(19,115)	(18,830)	(15,338)
Balance at end of year	$ 697	$ 655	$ 703

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Reconciliation of Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Details) - shares shares in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding	79,616	79,234	81,847
Incremental shares from assumed issuance of stock options and RSUs	0	0	0
Diluted weighted average number of shares outstanding	79,616	79,234	81,847

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Accumulated Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 185,131	$ 259,500	$ 362,120
Other comprehensive income (loss)	(4,937)	2,377	632
Ending balance	151,568	185,131	259,500
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	6,795	7,028
Other comprehensive income (loss), net of tax, before reclassification adjustments	(4,812)	(233)
Other comprehensive income (loss)	(4,812)	(233)
Ending balance	1,983	6,795	7,028
Fair Value Adjustment for ARS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3,634)	(6,244)
Other comprehensive income (loss), net of tax, before reclassification adjustments	(125)	2,610
Other comprehensive income (loss)	(125)	2,610
Ending balance	(3,759)	(3,634)	(6,244)
Accumulated Other Comprehensive Income Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	3,161	784	152
Other comprehensive income (loss)	(4,937)	2,377	632
Ending balance	$ (1,776)	$ 3,161	$ 784

Discontinued Operation of 2b 42

Discontinued Operation of 2b Stores - Additional Information (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reserve for future costs associated with discontinued operations	$ 0	$ 7,385

Discontinued Operation of 2b 43

Discontinued Operation of 2b Stores - Discontinued Operation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Discontinued Operations and Disposal Groups [Abstract]
Net sales	$ 349	$ 21,418	$ 21,516
Cost of sales, including production and occupancy	1,528	18,692	17,414
Gross margin	(1,179)	2,726	4,102
Selling, general and administrative expenses	1,118	16,857	12,375
Loss from discontinued operations, before income tax provision	(2,297)	(14,131)	(8,273)
Tax provision	0	2	2
Loss from discontinued operations, net of tax provision	$ (2,297)	$ (14,133)	$ (8,275)

Discontinued Operation of 2b 44

Discontinued Operation of 2b Stores - Reserve Roll Forward (Details) - Discontinued Operations $ in Thousands	12 Months Ended
	Jul. 04, 2015USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	$ 7,385
Costs incurred in current fiscal year	2,148
Cash payments/or markdowns applied	(9,533)
Restructuring reserve ending balance	0
Lease Obligations
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	6,385
Costs incurred in current fiscal year	1,252
Cash payments/or markdowns applied	(7,637)
Restructuring reserve ending balance	0
Other Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	1,000
Costs incurred in current fiscal year	896
Cash payments/or markdowns applied	(1,896)
Restructuring reserve ending balance	$ 0

Investments - Additional Inform

Investments - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities	$ 5,241	$ 11,941
Long term available for sale securities
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities	5,200
Temporary impairment charge	$ 3,800
Investment maturity date range year start	2,031
Investments maturity date range year end	2,033
Long term available for sale securities | AA rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio	22.00%	19.00%
Long term available for sale securities | B- rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio	78.00%
Long term available for sale securities | AAA rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio		21.00%
Long term available for sale securities | A rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio		23.00%
Long term available for sale securities | BBB rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio		20.00%
Long term available for sale securities | CCC rated investments
Schedule of Available-for-sale Securities [Line Items]
Weighted percentage of Company's ARS portfolio		17.00%

Investments - Summary of Invest

Investments - Summary of Investments (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Short term | Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 17,880	$ 18,665
Unrealized Losses Less Than 12 Months	0	0
Unrealized Losses 12 Months or Greater	0	0
Estimated Fair Value	17,880	18,665
Long term | Auction rate securities
Schedule of Available-for-sale Securities [Line Items]
Cost	9,000	15,575
Unrealized Losses Less Than 12 Months	0	0
Unrealized Losses 12 Months or Greater	3,759	3,634
Estimated Fair Value	$ 5,241	$ 11,941

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average interest rate	0.10%
Carrying amount of non-current available for sale securities	$ 9
Estimated fair value of non-current available for sale securities	5.2
Impairment charges related to under-performing stores	$ 0.5	$ 7	$ 3.8
Weighted average cost of capital (as a percent)	11.00%
Percentage of undiscounted cash flows that exceeded net carrying amount	199.00%	447.00%	472.00%
LIBOR
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated interest rate	6.04%
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated timing (in years)	11 years
Annual revenue growth rates	2.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated timing (in years)	14 years
Annual revenue growth rates	5.00%

Fair Value Measurements - Items

Fair Value Measurements - Items Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-current available for sale securities	$ 5,200
Fair value measurements on a recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	14,426	$ 46,423
Current available for sale securities	17,880	18,665
Non-current available for sale securities	5,241	11,941
Total	37,547	77,029
Fair value measurements on a recurring basis | (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	14,426	$ 46,423
Current available for sale securities	0
Non-current available for sale securities	0
Total	14,426	$ 46,423
Fair value measurements on a recurring basis | (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Current available for sale securities	17,880	18,665
Non-current available for sale securities	0	0
Total	17,880	18,665
Fair value measurements on a recurring basis | (Level 3)
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	5,241	11,941
Total	$ 5,241	$ 11,941

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) $ in Thousands	12 Months Ended
	Jul. 04, 2015USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 11,941
Total gains or (losses) (realized or unrealized):
Included in earnings	0
Included in other comprehensive income	(125)
Settlements	(6,575)
Balance at end of period	$ 5,241

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Consideration of At-Risk Assets (Details) $ in Millions	12 Months Ended
	Jul. 04, 2015USD ($)Store	Jul. 05, 2014USD ($)Store	Jul. 06, 2013USD ($)Store
Fair Value Disclosures [Abstract]
Number of stores identified as at risk and evaluated for impairment | Store	28	38	42
Number of stores identified as at risk, but not impaired | Store	(21)	(10)	(18)
Number of stores identified as at risk with impairment | Store	7	28	24
Total carrying amount of stores identified as at risk prior to any impairment charges taken	$ 4.4	$ 8.4	$ 7.1
Total carrying amount of stores identified as at risk, but not impaired	(3.9)	(1.2)	(3)
Total carrying amount of stores identified for impairment	0.5	7.2	4.1
Impairment charges recorded during the period	(0.5)	(7)	(3.8)
Remaining carrying amount of stores identified for impairment after impairment charges taken	$ 0	$ 0.2	$ 0.3

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 548	$ 1,206
Merchandise available for sale	30,769	30,477
Inventories	$ 31,317	$ 31,683

Credit Facilities (Details)

Credit Facilities (Details) $ in Millions	Jul. 04, 2015USD ($)
Stand-by letter of credit
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding	$ 3.8

Lease Obligations - Additional

Lease Obligations - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Leases [Abstract]
Rent expense under operating leases	$ 80.4	$ 86.9	$ 94.1
Other lease-required expenses	$ 27.1	$ 28.4	$ 31.3

Lease Obligations - Schedule of

Lease Obligations - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Jul. 04, 2015USD ($)
Fiscal year
2,016	$ 45,239
2,017	36,913
2,018	30,787
2,019	25,265
2,020	22,658
Thereafter	52,381
Total minimum lease payments	$ 213,243

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Payables and Accruals [Abstract]
Gift certificates, gift cards and store credits	$ 4,984	$ 5,176
Employee compensation	9,772	9,802
Sales/use tax payable	3,525	3,466
Deferred revenue	3,179	3,994
Capital expenditures	1,678	1,852
Lease obligation costs	0	6,385
Other	5,079	8,602
Total	$ 28,217	$ 39,277

Accrued Liabilities - Schedul56

Accrued Liabilities - Schedule of Severance Costs (Details) - Employee severance $ in Thousands	12 Months Ended
	Jul. 04, 2015USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	$ 1,944
Costs incurred in fiscal 2015	0
Cash payments	(1,944)
Restructuring reserve ending balance	$ 0

Intangible Asset (Details)

Intangible Asset (Details) $ in Millions	Jul. 04, 2015USD ($)
Trademark
Indefinite-lived Intangible Assets [Line Items]
Purchase price of indefinite-lived intangible asset	$ 0.9

Income Taxes - Summary of Compo

Income Taxes - Summary of Components of Provision for Income Taxes Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Current:
Federal	$ 0	$ 0	$ 0
State	214	(440)	(34)
Foreign	278	(204)	(1,475)
Income taxes expense (benefit), total	492	(644)	(1,509)
Deferred:
Federal	0	0	21,753
State	0	0	6,417
Foreign	153	481	324
Income taxes expense (benefit), total	153	481	28,494
Provision (benefit) from continuing operations	$ 645	$ (163)	$ 26,985

Income Taxes - Components of Ea

Income Taxes - Components of Earnings (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Oct. 04, 2014	Jul. 05, 2014	Apr. 05, 2014	Jan. 04, 2014	Oct. 05, 2013	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Income Tax Disclosure [Abstract]
United States									$ (32,896)	$ (69,191)	$ (53,643)
Foreign									8,167	9,779	11,483
Loss from continuing operations, before income taxes	$ (5,081)	$ (10,817)	$ 119	$ (8,950)	$ (24,093)	$ (22,847)	$ (4,428)	$ (8,044)	$ (24,729)	$ (59,412)	$ (42,160)

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Federal Statutory Tax Rate With Effective Income Tax Rate (Details)	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Income Tax Disclosure [Abstract]
Federal statutory rate	(35.00%)	(35.00%)	(35.00%)
State rate, net of federal benefit	(1.90%)	(3.20%)	(3.30%)
Tax-exempt interest	(0.00%)	(0.00%)	(0.20%)
Stock-based compensation	1.00%	0.10%	0.40%
Valuation allowance	41.40%	39.30%	101.10%
Foreign deferred tax adjustment	(1.50%)	(0.80%)	0.20%
Tax reserve adjustment	0.00%	(0.50%)	0.50%
Other	(1.40%)	(0.20%)	0.30%
Effective tax rate	2.60%	(0.30%)	64.00%

Income Taxes - Significant Comp

Income Taxes - Significant Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Current:
Gift certificates, gift cards and store credits	$ 1,178	$ 1,204
Inventory	2,292	2,399
Other accrued expenses	1,113	3,142
Deferred revenue	882	1,158
Accrued vacation	774	702
State taxes	(1)	(61)
Prepaid expenses	(884)	(699)
Tax credit and net operating loss carryovers	0	154
Other	12	3
Total current	5,366	8,002
Valuation allowance	(5,290)	(7,939)
Current deferred tax assets (liabilities), net	76	63
Non-Current:
Basis difference in fixed assets	14,734	15,005
Deferred rent	5,902	6,528
Stock based compensation	1,726	4,348
Foreign tax credit	1,571	1,101
Tax credit and net operating loss carryovers	56,771	42,625
Construction allowance	(5,951)	(5,265)
Unrealized loss on ARS	1,432	1,339
Indirect benefit from uncertain tax positions	45	42
Other	0	253
Total non-current	76,230	65,976
Valuation allowance	(76,306)	(65,885)
Non-current deferred tax assets, net	(76)	91
Deferred tax assets, net	$ 0	$ 154

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013	Jun. 30, 2012
Operating Loss Carryforwards [Line Items]
Increase in valuation allowance	$ 7,800
Unrecognized tax benefits in interest and penalties	0	$ (100)	$ (300)
Accrual of interest and penalties	0	0
Unrecognized tax benefits	384	$ 384	$ 898	$ 1,756
Unrecognized tax benefits that would affect the effective tax rate	300
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	146,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	104,800
Tax credit carry forwards	100
Foreign
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	2,600
Tax credit carry forwards	$ 1,600

Income Taxes - Reconciliation63

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance as of beginning of period	$ 384	$ 898	$ 1,756
Additions for tax positions taken during the current year	0	0	511
Additions for tax positions taken during prior years	0	0	77
Reductions for tax positions taken during the current year	0	(272)	0
Settlements	0	(180)	(37)
Expirations of statues of limitations	0	(62)	(1,409)
Balance as of end of period	$ 384	$ 384	$ 898

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jul. 05, 2014
Property, Plant and Equipment [Line Items]
Total	$ 269,530	$ 265,730
Less: Accumulated depreciation	(176,301)	(172,090)
Property and equipment, net	93,229	93,640
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	128,220	121,346
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total	50,337	51,107
Computer hardware and software
Property, Plant and Equipment [Line Items]
Total	57,064	48,815
Land and buildings
Property, Plant and Equipment [Line Items]
Total	29,478	29,478
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 4,431	$ 14,984

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) $ in Millions	12 Months Ended
	Jul. 04, 2015USD ($)yrh	Jul. 05, 2014USD ($)	Jul. 06, 2013USD ($)
Compensation and Retirement Disclosure [Abstract]
Minimum period of employment required to qualify under 401(k) plan (in months)	6 months
Minimum age required to qualify under 401(k) plan | yr	21
Annual working hours of employees | h	1,000
Percentage of gross wages employee can defer	75.00%
Matching contribution (as a percent)	10.00%
Defined Contribution Plan, Employer Matching Contribution, Incremental Percent of Match	10.00%
Company contributions to the plan	$ 0.4	$ 0	$ 0.5

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
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)	$ 0.001	$ 0.001
Shares outstanding exercisable	1,935,328	3,512,000	2,894,000
Weighted average exercise price of share exercisable (in dollars per share)	$ 7.04	$ 6.62	$ 8.04
Intrinsic value of stock options exercised	$ 0	$ 0.1	$ 0.1
Cash received from stock options exercised	0	0.1	0.4
Tax benefit realized from stock options exercised	0	0.1	0.1
Share-based compensation expense	2.4	$ 3.7	$ 3.1
Unrecognized compensation cost	$ 2.3
Weighted-average period of unrecognized compensation cost	1 year 9 months 11 days
1997 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum term of stock options and related awards	10 years
Common stock shares authorized and unissued	11,050,957
Common stock shares available for future grant	6,223,772
1998 Employee Stock Purchase Plan
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	7,400	9,800	10,600
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of options and restricted stock units granted		3 years
Employees | 1997 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of options and restricted stock units granted	4 years
Percentage vested on anniversary date	25.00%
Directors | 1997 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of options and restricted stock units granted	4 years
Percentage vested on anniversary date	25.00%
Directors | RSUs | 1997 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of options and restricted stock units granted	1 year

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Stock Options Outstanding (Details) - Jul. 04, 2015 - $ / shares shares in Thousands	Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number (in shares)	2,657
Options Outstanding, Weighted Average Remaining Life
Options Outstanding, Weighted Average Exercise Price (in dollars per share)
Options Vested and Exercisable, Number (in shares)	1,935
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)
$2.34 to $3.81
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	$ 2.34
Upper range limit (in dollars per share)	$ 3.81
Options Outstanding, Number (in shares)	84
Options Outstanding, Weighted Average Remaining Life	9 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.38
Options Vested and Exercisable, Number (in shares)	1
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.81
$3.99 to $3.99
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	3.99
Upper range limit (in dollars per share)	$ 3.99
Options Outstanding, Number (in shares)	299
Options Outstanding, Weighted Average Remaining Life	7 years 5 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.99
Options Vested and Exercisable, Number (in shares)	288
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.99
$4.02 to $5.35
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)	$ 5.35
Options Outstanding, Number (in shares)	325
Options Outstanding, Weighted Average Remaining Life	7 years 3 months 7 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5
Options Vested and Exercisable, Number (in shares)	132
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5
$5.36 to $5.64
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	5.36
Upper range limit (in dollars per share)	$ 5.64
Options Outstanding, Number (in shares)	279
Options Outstanding, Weighted Average Remaining Life	8 years 1 month 21 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.52
Options Vested and Exercisable, Number (in shares)	82
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.54
$5.70 to $6.29
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	5.70
Upper range limit (in dollars per share)	$ 6.29
Options Outstanding, Number (in shares)	427
Options Outstanding, Weighted Average Remaining Life	6 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.03
Options Vested and Exercisable, Number (in shares)	304
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.12
$6.33 to $7.14
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	6.33
Upper range limit (in dollars per share)	$ 7.14
Options Outstanding, Number (in shares)	221
Options Outstanding, Weighted Average Remaining Life	5 years 2 months 9 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.57
Options Vested and Exercisable, Number (in shares)	208
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.56
$7.37 to $7.37
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	7.37
Upper range limit (in dollars per share)	$ 7.37
Options Outstanding, Number (in shares)	337
Options Outstanding, Weighted Average Remaining Life	5 years 7 months 21 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.37
Options Vested and Exercisable, Number (in shares)	260
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 7.37
$7.39 to $7.64
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)	$ 7.64
Options Outstanding, Number (in shares)	379
Options Outstanding, Weighted Average Remaining Life	2 years 3 months 29 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.61
Options Vested and Exercisable, Number (in shares)	361
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 7.61
$7.87 to $15.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	7.87
Upper range limit (in dollars per share)	$ 15.01
Options Outstanding, Number (in shares)	266
Options Outstanding, Weighted Average Remaining Life	3 years 6 months 4 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.27
Options Vested and Exercisable, Number (in shares)	260
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.31
$16.21 to $24.68
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower range limit (in dollars per share)	16.21
Upper range limit (in dollars per share)	$ 24.68
Options Outstanding, Number (in shares)	40
Options Outstanding, Weighted Average Remaining Life	1 year 2 months 5 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 19.89
Options Vested and Exercisable, Number (in shares)	39
Options Vested and Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 19.89

Shareholders' Equity - Summar68

Shareholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Shares Outstanding
Beginning balance (in shares)	4,942
Granted (in shares)	82
Exercised (in shares)	0
Cancelled (in shares)	(2,367)
Ending balance (in shares)	2,657
Shares Outstanding, Exercisable (in shares)	1,935
Shares Outstanding, Options vested and expected to vest (in shares)	2,466
Weighted Average Exercise Price of Share
Beginning balance (in dollars per share)	$ 6.34
Granted (in dollars per share)	2.34
Exercised (in dollars per share)	0
Cancelled (in dollars per share)	5.92
Ending balance (in dollars per share)	6.58
Weighted Average Exercise Price of Share, Exercisable (in dollars per share)	7.04	$ 6.62	$ 8.04
Weighted Average Exercise Price of Share, Options vested and expected to vest (in dollars per share)	$ 6.72
Weighted Average Remaining Contractual Term, Outstanding	5 years 8 months 19 days
Weighted Average Remaining Contractual Term, Exercisable	4 years 11 months 16 days
Weighted Average Remaining Contractual Term, Options vested and expected to vest	5 years 6 months 7 days
Aggregate Intrinsic Value, Outstanding	$ 0
Aggregate Intrinsic Value, Outstanding, Exercisable	0
Aggregate Intrinsic Value, Options vested and expected to vest	$ 0

Shareholders' Equity - Summar69

Shareholders' Equity - Summary of RSU Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Jul. 04, 2015
Shares
Beginning balance (in shares)	557
Granted (in shares)	1,881
Cancelled (in shares)	(149)
Vested (in shares)	(99)
Ending balance (in shares)	2,190
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in dollars per share)	$ 5.50
Granted (in dollars per share)	2.65
Cancelled (in dollars per share)	4.22
Vested (in dollars per share)	2.96
Ending balance (in dollars per share)	$ 4.87

Shareholders' Equity - Summar70

Shareholders' Equity - Summary of Weighted Average Assumptions Used in Option Pricing Model for Stock Options Granted (Details) - $ / shares	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Equity [Abstract]
Expected dividend rate	2.56%	1.64%	2.26%
Volatility (as a percent)	51.80%	42.10%	45.50%
Risk-free interest rate	1.70%	1.60%	0.80%
Expected lives	4 years 3 months 29 days	4 years 6 months 4 days	4 years 6 months
Fair value per option granted (in dollars per share)	$ 0.84	$ 1.80	$ 1.40

Related Party Transactions (Det

Related Party Transactions (Details) - Consulting services - USD ($) $ in Millions	12 Months Ended
	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Manny Mashouf, Chairman of the Board
Related Party Transaction [Line Items]
Related party, payments for services	$ 0.7	$ 0.6	$ 0.3
Paul Mashouf, Son of Chairmen of the Board
Related Party Transaction [Line Items]
Related party, payments for services	$ 0	$ 0.1	$ 0.2

Quarterly Financial Informati72

Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Oct. 04, 2014	Jul. 05, 2014	Apr. 05, 2014	Jan. 04, 2014	Oct. 05, 2013	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 104,259	$ 92,668	$ 128,914	$ 102,156	$ 103,569	$ 89,019	$ 123,261	$ 109,268	$ 427,997	$ 425,117	$ 463,169
Gross margin	36,317	28,187	47,907	32,770	32,005	24,500	42,000	39,622	145,181	138,127	154,195
Selling, general and administrative expenses	41,288	39,047	47,816	42,127	56,093	47,365	46,514	47,824	170,278	197,796	197,170
(Loss) income from operations	(4,971)	(10,860)	91	(9,357)	(24,088)	(22,865)	(4,514)	(8,202)	(25,097)	(59,669)	(42,975)
(Loss) income from continuing operations before income taxes	(5,081)	(10,817)	119	(8,950)	(24,093)	(22,847)	(4,428)	(8,044)	(24,729)	(59,412)	(42,160)
Loss from continuing operations, net of tax	(5,476)	(10,892)	(20)	(8,986)	(24,228)	(22,754)	(4,369)	(7,898)	(25,374)	(59,249)	(69,145)
(Loss) income from discontinued operations, net of tax	253	(354)	(365)	(1,831)	(10,259)	(1,522)	(1,096)	(1,256)	(2,297)	(14,133)	(8,275)
Net loss	$ (5,223)	$ (11,246)	$ (385)	$ (10,817)	$ (34,487)	$ (24,276)	$ (5,465)	$ (9,154)	$ (27,671)	$ (73,382)	$ (77,420)
Basic per share amount
Income (loss) from continuing operations, net of tax (in dollars per share)	$ (0.07)	$ (0.14)	$ 0	$ (0.11)	$ (0.30)	$ (0.29)	$ (0.06)	$ (0.11)	$ (0.32)	$ (0.75)	$ (0.84)
Loss from discontinued operations, net of tax (in dollars per share)	0	0	0	(0.03)	(0.13)	(0.02)	(0.01)	(0.02)	(0.03)	(0.18)	(0.10)
Net loss (in dollars per share)	(0.07)	(0.14)	0	(0.14)	(0.43)	(0.31)	(0.07)	(0.13)	(0.35)	(0.93)	(0.94)
Diluted per share amount
Income (loss) from continuing operations, net of tax (in dollars per share)	(0.07)	(0.14)	0	(0.11)	(0.30)	(0.29)	(0.06)	(0.11)	(0.32)	(0.75)	(0.84)
Loss from discontinued operations, net of tax (in dollars per share)	0	0	0	(0.03)	(0.13)	(0.02)	(0.01)	(0.02)	(0.03)	(0.18)	(0.10)
Net loss (in dollars per share)	$ (0.07)	$ (0.14)	$ 0	$ (0.14)	$ (0.43)	$ (0.31)	$ (0.07)	$ (0.13)	$ (0.35)	$ (0.93)	$ (0.94)

Quarterly Financial Informati73

Quarterly Financial Information (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Jul. 05, 2014	Apr. 05, 2014	Jan. 04, 2014	Oct. 05, 2013	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Quarterly Financial Information Disclosure [Abstract]
Charges for impairment of long lived assets recorded as discontinued operations	$ 3,800	$ 2,700	$ 300	$ 200	$ 480	$ 7,605	$ 7,046
Lease obligations	6,400					6,400
Purchase obligations	1,000					$ 1,000
Severance costs	$ 4,000