Cover Page
Cover Page - shares | 3 Months Ended | |
Oct. 28, 2023 | Dec. 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38291 | |
Entity Registrant Name | STITCH FIX, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-5026540 | |
Entity Address, Address Line One | 1 Montgomery Street | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94104 | |
City Area Code | 415 | |
Local Phone Number | 882-7765 | |
Title of 12(b) Security | Class A common stock, par value $0.00002 per share | |
Trading Symbol | SFIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001576942 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-03 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 92,485,905 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 25,405,020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 256,898 | $ 239,437 |
Short-term investments | 5,440 | 18,161 |
Inventory, net | 160,720 | 130,548 |
Prepaid expenses and other current assets | 24,789 | 27,692 |
Current assets, discontinued operations | 2,438 | 9,623 |
Total current assets | 450,285 | 425,461 |
Property and equipment, net | 71,490 | 79,757 |
Operating lease right-of-use assets | 98,645 | 104,533 |
Other long-term assets | 2,830 | 2,681 |
Long-term assets, discontinued operations | 788 | 2,046 |
Total assets | 624,038 | 614,478 |
Current liabilities: | ||
Accounts payable | 131,444 | 96,730 |
Operating lease liabilities | 27,650 | 28,210 |
Accrued liabilities | 75,114 | 69,893 |
Gift card liability | 9,826 | 10,328 |
Deferred revenue | 10,702 | 11,366 |
Other current liabilities | 9,479 | 8,802 |
Current liabilities, discontinued operations | 6,678 | 12,782 |
Total current liabilities | 270,893 | 238,111 |
Operating lease liabilities, net of current portion | 118,741 | 125,418 |
Other long-term liabilities | 3,664 | 3,639 |
Total liabilities | 393,298 | 367,168 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 635,164 | 615,236 |
Accumulated other comprehensive income (loss) | (481) | 527 |
Accumulated deficit | (373,903) | (338,413) |
Treasury stock, at cost – 2,302,141 and 2,302,141 shares as of October 28, 2023, and July 29, 2023, respectively | (30,042) | (30,042) |
Total stockholders’ equity | 230,740 | 247,310 |
Total liabilities and stockholders’ equity | 624,038 | 614,478 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 1 | 1 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 28, 2023 | Jul. 29, 2023 |
Treasury stock (in shares) | 2,302,141 | 2,302,141 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 94,788,046 | 90,217,226 |
Common stock, shares outstanding (in shares) | 92,485,905 | 90,217,226 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 25,405,020 | 25,405,020 |
Common stock, shares outstanding (in shares) | 25,405,020 | 25,405,020 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||
Revenue, net | $ 364,785 | $ 443,741 |
Cost of goods sold | 205,682 | 256,431 |
Gross profit | 159,103 | 187,310 |
Selling, general, and administrative expenses | 187,764 | 235,846 |
Operating loss | (28,661) | (48,536) |
Interest income | 2,248 | 748 |
Other income (expense), net | 411 | (177) |
Loss before income taxes | (26,002) | (47,965) |
Provision for income taxes | 169 | 187 |
Net loss from continuing operations | (26,171) | (48,152) |
Loss from discontinued operations, net of income taxes | (9,319) | (7,766) |
Net loss | (35,490) | (55,918) |
Other comprehensive income (loss): | ||
Change in unrealized loss on available-for-sale securities, net of tax | 121 | (186) |
Foreign currency translation | (1,129) | (1,612) |
Total other comprehensive loss, net of tax | (1,008) | (1,798) |
Comprehensive loss | $ (36,498) | $ (57,716) |
Loss per share from continuing operations, attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.22) | $ (0.43) |
Diluted (in dollars per share) | (0.22) | (0.43) |
Loss per share from discontinued operations, attributable to common stockholders: | ||
Basic (in dollars per share) | (0.08) | (0.07) |
Diluted (in dollars per share) | (0.08) | (0.07) |
Loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | (0.30) | (0.50) |
Diluted (in dollars per share) | $ (0.30) | $ (0.50) |
Weighted-average shares used to compute loss per share attributable to common stockholders: | ||
Basic (in shares) | 116,645,160 | 112,359,901 |
Diluted (in shares) | 116,645,160 | 112,359,901 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock |
Stockholders' equity, beginning balance (in shares) at Jul. 30, 2022 | 111,592,931 | |||||
Stockholders' equity, beginning balance at Jul. 30, 2022 | $ 322,651 | $ 2 | $ 522,658 | $ (3,527) | $ (166,440) | $ (30,042) |
Stockholders' equity, beginning balance (in shares) at Jul. 30, 2022 | (2,302,141) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings (in shares) | 1,517,266 | |||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | (3,753) | (3,753) | ||||
Stock-based compensation | 33,585 | 33,585 | ||||
Net loss | (55,918) | (55,918) | ||||
Other comprehensive loss, net of tax | (1,798) | (1,798) | ||||
Stockholders' equity, ending balance (in shares) at Oct. 29, 2022 | 113,110,197 | |||||
Stockholders' equity, ending balance at Oct. 29, 2022 | 294,767 | $ 2 | 552,490 | (5,325) | (222,358) | $ (30,042) |
Stockholders' equity, ending balance (in shares) at Oct. 29, 2022 | (2,302,141) | |||||
Stockholders' equity, beginning balance (in shares) at Jul. 29, 2023 | 117,924,387 | |||||
Stockholders' equity, beginning balance at Jul. 29, 2023 | $ 247,310 | $ 2 | 615,236 | 527 | (338,413) | $ (30,042) |
Stockholders' equity, beginning balance (in shares) at Jul. 29, 2023 | (2,302,141) | (2,302,141) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings (in shares) | 2,268,679 | |||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | $ (4,172) | (4,172) | ||||
Stock-based compensation | 24,100 | 24,100 | ||||
Net loss | (35,490) | (35,490) | ||||
Other comprehensive loss, net of tax | (1,008) | (1,008) | ||||
Stockholders' equity, ending balance (in shares) at Oct. 28, 2023 | 120,193,066 | |||||
Stockholders' equity, ending balance at Oct. 28, 2023 | $ 230,740 | $ 2 | $ 635,164 | $ (481) | $ (373,903) | $ (30,042) |
Stockholders' equity, ending balance (in shares) at Oct. 28, 2023 | (2,302,141) | (2,302,141) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Cash Flows from Operating Activities from Continuing Operations | ||
Net loss from continuing operations | $ (26,171) | $ (48,152) |
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities from continuing operations: | ||
Change in inventory reserves | 3,083 | 203 |
Stock-based compensation expense | 19,902 | 31,129 |
Depreciation and amortization | 13,784 | 9,846 |
Other | 19 | 31 |
Change in operating assets and liabilities: | ||
Inventory | (33,255) | (21,802) |
Prepaid expenses and other assets | 2,800 | (786) |
Income tax receivables | 0 | 26,640 |
Operating lease right-of-use assets and liabilities | (1,349) | (278) |
Accounts payable | 34,709 | (1,187) |
Accrued liabilities | 7,502 | 4,284 |
Deferred revenue | (664) | (714) |
Gift card liability | (503) | (533) |
Other liabilities | 702 | (255) |
Net cash provided by (used in) operating activities from continuing operations | 20,559 | (1,574) |
Cash Flows from Investing Activities from Continuing Operations | ||
Proceeds from sale of property and equipment | 21 | 0 |
Purchases of property and equipment | (3,653) | (5,888) |
Purchases of securities available-for-sale | 0 | (258) |
Sales of securities available-for-sale | 0 | 4,145 |
Maturities of securities available-for-sale | 12,820 | 0 |
Net cash provided by (used in) investing activities from continuing operations | 9,188 | (2,001) |
Cash Flows from Financing Activities from Continuing Operations | ||
Payments for tax withholdings related to vesting of restricted stock units | (4,008) | (3,664) |
Other | (100) | (117) |
Net cash used in financing activities from continuing operations | (4,108) | (3,781) |
Net increase (decrease) in cash and cash equivalents from continuing operations | 25,639 | (7,356) |
Cash Flows from Discontinued Operations | ||
Net cash used in operating activities from discontinued operations | (6,119) | (8,474) |
Net cash used in investing activities from discontinued operations | 0 | (256) |
Net cash used in financing activities from discontinued operations | (164) | (89) |
Net decrease in cash and cash equivalents from discontinued operations | (6,283) | (8,819) |
Effect of exchange rate changes on cash and cash equivalents | (1,895) | (1,414) |
Net increase (decrease) in cash and cash equivalents | 17,461 | (17,589) |
Cash and cash equivalents at beginning of period | 239,437 | 130,935 |
Cash and cash equivalents at end of period | 256,898 | 113,346 |
Supplemental Disclosure | ||
Cash paid for income taxes | 386 | 83 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | 1,099 | 1,579 |
Capitalized stock-based compensation | $ 1,303 | $ 1,871 |
Description of Business
Description of Business | 3 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Stitch Fix, Inc. (“we,” “our,” “us,” or “the Company”) delivers personalization to our clients through the pairing of data science and human judgment. Currently, clients can engage with us in one of two ways that, combined, form an ecosystem of personalized experiences across styling, shopping, and inspiration: (1) by receiving a personalized shipment of items informed by our algorithms and sent by a Stitch Fix stylist (a “Fix”); or (2) by purchasing directly from our website or mobile app based on a personalized assortment of outfit and item recommendations (“Freestyle”). Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any. Freestyle utilizes our algorithms to recommend a personalized assortment of outfit and item recommendations that will update throughout the day and will continue to evolve as we learn more about the client. We are incorporated in Delaware and have operations in the United States. Previously, we also had operations in the United Kingdom (“UK”). On August 24, 2023, we ended the consultation period required by UK law, and made the decision to exit our business and wind down our operations in the UK. As of October 28, 2023, we ceased operations of our UK business, and met the requirements to report the UK business as a discontinued operation for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal year ending August 3, 2024 (“fiscal 2024”) consists of 53 weeks, with the extra week occurring in the fourth fiscal quarter ending August 3, 2024. The fiscal year ending July 29, 2023 (“fiscal 2023”) consisted of 52 weeks. The accompanying unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 3, 2024, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended July 29, 2023 (the “2023 Annual Report”). Discontinued Operations During the first quarter of fiscal 2024, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. Accordingly, the condensed consolidated financial statements reflect the results of the UK business as a discontinued operation for all periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to the Company's continuing operations. Refer to Note 12, “Discontinued Operations” for further details. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and the accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, and revenue recognition. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Significant Accounting Policies Unless noted below, there have been no changes to the Company’s significant accounting policies, as described in our 2023 Annual Report, that had a material impact on these condensed consolidated financial statements and related notes. Short-Term Investments Our short-term investments have been classified and accounted for as available-for-sale securities. The allowance for expected credit losses on our available-for-sale debt securities was immaterial at both October 28, 2023 and July 29, 2023. We have elected to present accrued interest receivable separately from short-term investments in the condensed consolidated balance sheets. Accrued interest receivable, which was immaterial at both October 28, 2023 and July 29, 2023, is recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. We did not write off any accrued interest receivable during the three months ended October 28, 2023 or October 29, 2022. Inventory, net Inventory, net consists of finished goods recorded at the lower of cost or net realizable value using the first-in-first-out (FIFO) method. Gross inventory costs include both merchandise costs and in-bound freight costs. Inventory, net includes reserves for excess and slow-moving inventory we expect to write off based on historical trends, damaged inventory, and shrinkage. Our total inventory reserves were $41.8 million and $38.7 million as of October 28, 2023 and July 29, 2023, respectively. At both October 28, 2023 and July 29, 2023, we recorded additional specific reserves related to excess and slow-moving seasonal inventory. Aside from these specific reserves, we have not made any material changes to our assumptions included in the calculations of the lower of cost or net realizable value reserves at October 28, 2023 or July 29, 2023. Foreign Currency As of October 28, 2023, we ceased operations of our UK business and met the requirements to report the UK business as a discontinued operation. The functional currency of our UK business is the British pound sterling. We translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. Prior to being classified as a discontinued operation, we recorded translation gains and losses in accumulated other comprehensive income (loss) (“AOCI”) as a component of stockholders’ equity. During the three months ended October 28, 2023, historical foreign currency translation losses, which were previously recognized in AOCI, were fully reclassified from equity to loss from discontinued operations, net of income taxes in the condensed consolidated statements of operations and comprehensive loss. Refer to Note 7, “Accumulated Other Comprehensive Income (Loss)” and Note 12, “Discontinued Operations” for further details. Net foreign exchange transaction gains and losses attributable to continuing operations resulting from the conversion of the transaction currency to functional currency are recorded in other income (expense), net from continuing operations in the condensed consolidated statements of operations and comprehensive loss. Fair Value Measurements We apply fair value accounting for assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis, using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows: • Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2: Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level 3: Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. Revenue Recognition We generate revenue primarily from the sale of merchandise to clients in a Fix and when clients purchase merchandise directly from Freestyle. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix or merchandise to be delivered on a specified date. Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a Freestyle purchase, control is transferred and revenue is recognized upon shipment to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. Our refund reserve is included in accrued liabilities in the condensed consolidated balance sheets. We have five types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used, and (v) cash collections of Freestyle purchases, which are included in deferred revenue and are recognized as revenue upon shipment. We expect deferred revenue for upfront styling fees, Freestyle orders, and Style Pass annual fees to be recognized within one year. On average, our gift card liability and other current liabilities are also recognized within one year. The following table summarizes the balances of contractual liabilities included in deferred revenue, gift card liability, and other current liabilities as of the dates indicated: (in thousands) October 28, 2023 July 29, 2023 Deferred revenue: Upfront styling fees $ 5,862 $ 6,075 Style Pass annual fees 3,950 4,521 Freestyle orders 890 770 Total deferred revenue $ 10,702 $ 11,366 Gift card liability $ 9,826 $ 10,328 Other current liabilities: Referral credits $ 430 $ 362 The following table summarizes revenue recognized during the three months ended October 28, 2023, that was previously included in deferred revenue, gift card liability, and other current liabilities at July 29, 2023: (in thousands) Revenue Recognized From Amounts Previously Included in Deferred Balances at July 29, 2023 Upfront styling fees $ 5,986 Style Pass annual fees 2,114 Freestyle orders 554 Gift card liability 1,013 Referral credits 87 Concentration of Credit Risks We are subject to concentrations of credit risk, principally from cash and cash equivalents and investment securities. The majority of our cash is held by two financial institutions within the United States. Our cash balances held by these institutions exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net for the three months ended October 28, 2023 or October 29, 2022. Recently Issued and Adopted Accounting Pronouncements There are no new recently issued or adopted accounting pronouncements that are expected to have a material impact on the condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial instruments consist of cash, cash equivalents, investments, accounts payable, and accrued liabilities. At October 28, 2023 and July 29, 2023, the carrying values of cash, accounts payable, and accrued liabilities approximated fair value due to their short-term nature. We measure our cash equivalents and investments at fair value within Level 1 or Level 2 of the fair value hierarchy because we value these investments using unadjusted, quoted market prices; or alternative pricing sources and models utilizing market observable inputs, respectively. Our cash equivalents and investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis as of October 28, 2023 and July 29, 2023 were as follows: October 28, 2023 July 29, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 154,424 $ — $ — $ 154,424 $ 80,251 $ — $ — $ 80,251 Investments: U.S. Treasury securities 268 — — 268 7,226 — — 7,226 Corporate bonds — 5,172 — 5,172 — 10,935 — 10,935 Total $ 154,692 $ 5,172 $ — $ 159,864 $ 87,477 $ 10,935 $ — $ 98,412 There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 during the three months ended October 28, 2023 or October 29, 2022. The following table sets forth the amortized cost, gross unrealized losses, and fair values of our investments accounted for as available-for-sale securities as of October 28, 2023 and July 29, 2023: October 28, 2023 July 29, 2023 (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value Investments: U.S. Treasury securities $ 269 $ (1) $ 268 $ 7,266 $ (40) $ 7,226 Corporate bonds 5,224 (52) 5,172 11,069 (134) 10,935 Total $ 5,493 $ (53) $ 5,440 $ 18,335 $ (174) $ 18,161 The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of October 28, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 268 $ (1) $ — $ — $ 268 $ (1) Corporate bonds — — 5,172 (52) 5,172 (52) Total $ 268 $ (1) $ 5,172 $ (52) $ 5,440 $ (53) The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 29, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 265 $ (1) $ 6,961 $ (39) $ 7,226 $ (40) Corporate bonds — — 10,935 (134) 10,935 (134) Total $ 265 $ (1) $ 17,896 $ (173) $ 18,161 $ (174) The total fair value of investments in a continuous unrealized loss and the related gross unrealized losses have both decreased since July 29, 2023, due to maturities and approaching maturities of our investments during the three months ended October 28, 2023. We evaluate securities for expected credit losses on a quarterly basis with consideration given to the financial condition and near-term prospects of the issuer, whether we intend to sell the securities, and whether it is more likely than not that we will be required to sell the securities before recovery of their amortized cost basis. As of October 28, 2023, the losses on our available-for-sale securities were directly related to the increase in market interest rates and not the creditworthiness of the issuers. We have the current intent and ability to retain these securities until maturity or recovery of the amortized cost basis. Therefore, expected credit losses as of October 28, 2023 were immaterial. The fair values of available-for-sale securities by contractual maturity as of October 28, 2023 were as follows: October 28, 2023 (in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total Investments: U.S. Treasury securities $ 268 $ — $ — $ 268 Corporate bonds 5,172 — — 5,172 Total $ 5,440 $ — $ — $ 5,440 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Oct. 28, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) October 28, 2023 July 29, 2023 Compensation and related benefits $ 16,725 $ 12,836 Advertising 6,322 6,625 Sales taxes 6,696 5,358 Shipping and freight 8,130 8,628 Accrued accounts payable 4,544 4,058 Inventory purchases 21,835 22,684 Sales refund reserve 7,137 6,509 Other 3,725 3,195 Total accrued liabilities $ 75,114 $ 69,893 |
Credit Agreement
Credit Agreement | 3 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement Prior to December 4, 2023, we were party to an amended and restated credit agreement, entered into June 2, 2021 and amended on July 29, 2022 (the “Amended Credit Agreement”) with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor of Silicon Valley Bank)), and other lenders, to provide a revolving line of credit of up to $100.0 million, including a letter of credit sub-facility in the aggregate amount of $30.0 million, and a swingline sub-facility in the aggregate amount of $40.0 million. We also had the option to request an incremental facility of up to $150.0 million from one or more of the lenders under the Amended Credit Agreement. As of October 28, 2023, we did not have any borrowings outstanding under the Amended Credit Agreement and we had $79.1 million in borrowing capacity as reduced by outstanding letters of credit. On December 4, 2023, we entered into a first lien credit agreement with Citibank, N.A., as agent and lender, which provides for a $50.0 million revolving credit facility maturing on December 4, 2026 (the “2023 Credit Facility”). Upon entry into the 2023 Credit Facility, the Amended Credit Agreement was terminated. The 2023 Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $30.0 million. Availability of the 2023 Credit Facility will be based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable, credit card receivables, and inventory as reduced by certain reserves, if any. Our initial borrowing availability is $50.0 million. The 2023 Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee equal to 0.30% based on the average daily undrawn potion of the 2023 Credit Facility, payable quarterly. The interest rate applicable to the 2023 Credit Facility will be, at our option, either (a) the Adjusted Term SOFR rate for the applicable interest period (subject to a 0.00% floor), plus a margin of 2.00% or (b) the Base Rate plus a margin of 2.00%. The Base Rate is the highest of (a) the federal funds rate plus 0.50%, (b) the Wall Street Journal prime rate and (c) the Adjusted Term SOFR rate for a one month interest period plus 1.00%. Debt under the 2023 Credit Facility is guaranteed by substantially all of our material domestic subsidiaries and is secured by substantially all of our and such subsidiaries’ assets. The 2023 Credit Facility contains affirmative and negative covenants, indemnification provisions, and events of default. The 2023 Credit Facility also contains financial covenants that require us to maintain a minimum liquidity level and a minimum total consolidated fixed charge coverage ratio during the periods set forth in the 2023 Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although we cannot predict with assurance the outcome of any litigation or tax matters, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on our operating results, financial position, and cash flows. On August 26, 2022, a class action lawsuit alleging violations of federal securities laws was filed by certain of our stockholders in the U.S. District Court for the Northern District of California, naming as defendants us and certain of our officers and directors. An amended complaint was filed on August 15, 2023. The lawsuit alleges violations of the Securities Exchange Act of 1934, as amended, by us and our officers for allegedly making materially false and misleading statements regarding our Freestyle offering between December 2020 and June 2022. The plaintiffs seek unspecified monetary damages and other relief. The Company filed a motion to dismiss on November 1, 2023. On March 17, 2023, a derivative action was filed against our directors in the same court, alleging the same violations of securities laws as alleged in the Class Action and breach of fiduciary duties. There have been no other material changes to our commitments and contingencies disclosed in our 2023 Annual Report. Indemnifications |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Oct. 28, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The tables below present the changes in AOCI by component and, if applicable, the reclassifications out of AOCI for the periods presented: For the Three Months Ended October 28, 2023 October 29, 2022 (in thousands) Available-for-sale Securities Foreign Currency Translation Total Available-for-sale Securities Foreign Currency Translation Total Beginning balance $ (602) $ 1,129 $ 527 $ (2,340) $ (1,187) $ (3,527) Other comprehensive income (loss) before reclassifications (1) 121 (2,274) (2,153) (168) (1,612) (1,780) Amounts reclassified from AOCI — — — (18) — (18) Release of cumulative foreign currency translation adjustments associated with discontinued operations (2) — 1,145 1,145 — — — Net change in AOCI 121 (1,129) (1,008) (186) (1,612) (1,798) Ending balance $ (481) $ — $ (481) $ (2,526) $ (2,799) $ (5,325) (1) There was no associated income tax effect for losses on available-for-sale securities for the three months ended October 28, 2023 or October 29, 2022, as we have recorded a valuation allowance against these deferred tax balances. (2) During the three months ended October 28, 2023, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. Accordingly, historical foreign currency translation losses, which were previously recognized in AOCI, were fully reclassified from stockholders’ equity to loss from discontinued operations, net of income taxes in the condensed consolidated statements of operations and comprehensive loss. Refer to Note 2, “Summary of Significant Accounting Policies” and Note 12, “Discontinued Operations” for further details. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Oct. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Plans 2011 Equity Incentive Plan In 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provided for the grant of stock-based awards to employees, directors, and non-employees under terms and provisions established by the Board of Directors. The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options, as well as restricted stock units (“RSU”), restricted stock awards (“RSA”), and stock appreciation rights. Only incentive and nonqualified stock options were granted under the 2011 Plan. Employee stock option awards generally vested 25% on the first anniversary of the grant date with the remaining shares subject to the option vesting ratably over the next three years subject to the employee’s continued service with the Company. Options generally expire after 10 years. Effective upon our initial public offering in 2017, the 2011 Plan was replaced by the 2017 Incentive Plan. 2017 Incentive Plan In November 2017, our Board of Directors and stockholders adopted our 2017 Incentive Plan (the “2017 Plan”). The remaining shares available for issuance under our 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees, including employees of our subsidiary, and for the grant of nonqualified stock options, stock appreciation rights, RSAs, RSU awards, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our subsidiaries. Employee stock option awards generally begin to vest six months after the grant date with the remaining shares subject to the option vesting ratably over the next thirty months. Options generally expire after 10 years. RSU awards made to employees generally vest ratably on a quarterly basis subject to the employee’s continued service with the Company. As of October 28, 2023, the number of shares authorized for issuance under the 2017 Plan was 44,038,883 shares of Class A common stock, and the number of shares available for grant was 5,252,851. 2019 Inducement Plan In October 2019, our Board of Directors adopted our 2019 Inducement Plan (the “2019 Plan”). Our 2019 Plan provides for the grant of Class A nonqualified stock options and RSU awards to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. As of October 28, 2023, the number of shares authorized for issuance under the 2019 Plan was 10,750,000 shares of Class A common stock and the number of shares available for grant was 1,805,478. Stock Options Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at July 29, 2023 8,106,110 $ 7.06 8.78 $ 4,770 Granted — — Exercised — — Cancelled (474,413) 10.95 Balance at October 28, 2023 7,631,697 $ 6.82 8.54 $ 17 During the three months ended October 28, 2023 and October 29, 2022, no options were granted to employees. Restricted Stock Units RSU award activity under the 2017 Plan and 2019 Plan was as follows: Unvested RSUs Class A Common Stock Weighted- Unvested at July 29, 2023 11,455,577 $ 10.47 Granted 9,161,252 3.07 Vested (2,268,679) 7.51 Forfeited (1,550,475) 9.61 Unvested at October 28, 2023 16,797,675 $ 6.91 Performance-Based Stock Awards The Company incurs stock-based compensation expense under compensation arrangements with certain of its employees under which the Company will settle bonuses for a fixed dollar amount by issuing a variable number of restricted stock units. The awards have both service and performance conditions. During the three months ended October 28, 2023, the Company issued 848,489 RSUs based on the Company’s trailing seven days average share price, following the Company’s public release of fiscal 2023 financial results. Stock-based compensation expense is recorded over the fiscal year in which performance is assessed. Stock-Based Compensation Expense Stock-based compensation expense for options and RSUs granted to employees was $19.9 million for the three months ended October 28, 2023, and $31.1 million for the three months ended October 29, 2022. Stock-based compensation expense is included in selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. As of October 28, 2023, the total unrecognized compensation expense related to unvested options and RSUs, net of estimated forfeitures, was $111.2 million, which we expect to recognize over an estimated weighted average period of 1.8 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate from income (loss) from continuing operations for the periods presented: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Loss from continuing operations before income taxes $ (26,002) $ (47,965) Provision for income taxes 169 187 Effective tax rate (0.7) % (0.4) % Our continuing operations are subject to income taxes in the United States. Our effective tax rate for the three months ended October 28, 2023 differs from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three months ended October 28, 2023 is primarily comprised of state taxes. Our effective tax rate for the three months ended October 29, 2022 differed from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three months ended October 29, 2022 is primarily comprised of state taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. |
Net Loss Per Share from Continu
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders | 3 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders | Net Loss Per Share from Continuing Operations Attributable to Common Stockholders Basic and diluted loss per share from continuing operations attributable to common stockholders is presented in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock. Basic net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted loss per share from continuing operations, net loss from continuing operations attributable to common stockholders for basic loss per share is adjusted by the effect of dilutive securities. Diluted net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. In periods of loss, there are no potentially dilutive common shares to add to the weighted-average number of common shares outstanding. The undistributed losses are allocated based on the contractual participation rights of the Class A and Class B common shares as if the losses for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed loss is allocated on a proportionate basis. The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share from continuing operations attributable to Class A and Class B common stockholders: For the Three Months Ended (in thousands, except share and per share amounts) October 28, 2023 October 29, 2022 Numerator: Net loss from continuing operations attributable to Class A and Class B common stockholders $ (26,171) $ (48,152) Denominator: Weighted-average shares of common stock - basic 116,645,160 112,359,901 Weighted-average shares of common stock - diluted 116,645,160 112,359,901 Loss per share from continuing operations attributable to Class A and Class B common stockholders: Basic $ (0.22) $ (0.43) Diluted $ (0.22) $ (0.43) As the Company has reported net loss from continuing operations for each of the periods presented, all potentially dilutive securities were considered antidilutive. The following common stock equivalents were excluded from the computation of diluted loss per share from continuing operations because their effect would have been antidilutive for the periods presented: For the Three Months Ended October 28, 2023 October 29, 2022 Restricted stock units that settle into Class A common stock 16,797,675 17,381,827 Stock options to purchase Class A common stock 6,826,227 3,341,137 Stock options to purchase Class B common stock 805,470 1,040,311 Total 24,429,372 21,763,275 Share Repurchase Program In January 2022, the Company's Board of Directors authorized a share repurchase program to repurchase up to $150.0 million of our outstanding Class A common stock, with no expiration date (the “2022 Repurchase Program”). The actual timing, number, and value of shares repurchased in the future will be determined by the Company in its discretion and will depend on a number of factors, including market conditions, applicable legal requirements, our capital needs, and whether there is a better alternative use of capital. |
Restructuring
Restructuring | 3 Months Ended |
Oct. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In June 2022, we announced a restructuring plan (the “2022 Restructuring Plan”) to reduce our future fixed and variable operating costs and allow us to centralize key capabilities, strengthen decision-making to drive efficiencies, and ensure we are allocating resources to our most critical priorities. In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2023, we implemented a plan of termination (“January 2023 Reduction in Force”). The January 2023 Reduction in Force reduced our then-current employee workforce by approximately 6%, including approximately 20% of our then-salaried positions. During fiscal 2023, we recorded an aggregate $36.4 million of restructuring charges related to this action, primarily consisting of severance and employee-related benefits; impairment related to a portion of our corporate office space; and accelerated depreciation expense related to assets at our Salt Lake City fulfillment center, which were not transferred to other fulfillment centers in our network and for which we did not have immediate plans to use. In furtherance of and as an expansion of the 2022 Restructuring Plan, in June 2023, we announced the intended closures of our fulfillment centers in Bethlehem, Pennsylvania and Dallas, Texas (the “Bethlehem and Dallas Closures”). During fiscal 2023, we recorded an aggregate $2.6 million related to this action, primarily consisting of severance and employee-related benefits, and accelerated depreciation expense and other restructuring costs. During the three months ended October 28, 2023, we recorded $8.0 million, primarily related to the Bethlehem and Dallas closures, as detailed below. The components of total restructuring charges were as follows: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Cash restructuring charges: Severance and employee-related benefits $ 2,462 $ 927 Other 648 — Non-cash restructuring charges: Accelerated depreciation 4,178 — Other 662 — Total restructuring (1) $ 7,950 $ 927 (1) Recorded in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the condensed consolidated balance sheets: (in thousands) Severance and Employee Related Benefits and Other Balance at July 29, 2023 $ 1,923 Charges incurred 3,110 Cash payments (2,266) Balance at October 28, 2023 $ 2,767 We estimate that we will incur between $1 million and $3 million in additional cash restructuring charges related to the Bethlehem and Dallas Closures, which primarily consist of severance and employee-related benefits, and to a lesser extent, transportation costs to redistribute inventory to other fulfillment centers, and other closure costs. We estimate that we will also incur between $5 million and $6 million in additional accelerated depreciation expense and other non-cash restructuring costs. We expect these expenses will be incurred over the next two fiscal quarters, with substantially all of the cash payments to be completed by the end of the third fiscal quarter ending April 27, 2024. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Oct. 28, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In June 2023, we announced that we would enter a consultation period, in accordance with UK law, to explore exiting the market in the UK. On August 24, 2023, we ended the consultation period, and made the decision to exit our business and wind down our operations in the UK. During the first quarter of fiscal 2024, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. As a result, the UK business is presented in the accompanying condensed financial statements as a discontinued operation for all periods presented. Cash from our UK business is recorded as continuing operations on the condensed consolidated balance sheets, as any cash remaining after the settlement of outstanding liabilities related to the UK business is expected to be repatriated into the U.S. The following table summarizes the major classes of assets and liabilities of discontinued operations, which are summarized separately in the condensed consolidated balance sheets: (in thousands) October 28, 2023 July 29, 2023 Inventory, net 609 6,628 Prepaid expenses and other current assets 1,829 2,995 Current assets, discontinued operations 2,438 9,623 Operating lease right-of-use assets 504 1,565 Other long-term assets 284 481 Long-term assets, discontinued operations 788 2,046 Total assets, discontinued operations $ 3,226 $ 11,669 Accounts payable $ 598 $ 2,586 Operating lease liabilities 50 1,132 Accrued liabilities 5,963 8,903 Other current liabilities 67 161 Current liabilities, discontinued operations 6,678 12,782 Total liabilities, discontinued operations $ 6,678 $ 12,782 The key components of loss from discontinued operations were as follows: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Revenue, net $ 8,558 $ 11,852 Cost of goods sold 6,490 7,401 Gross profit 2,068 4,451 Selling, general, and administrative expenses 10,135 11,045 Operating loss (8,067) (6,594) Interest income 187 26 Other expense, net (1) (1,143) (1,108) Loss before income taxes (9,023) (7,676) Income tax expense 296 90 Loss from discontinued operations, net of income taxes $ (9,319) $ (7,766) (1) Represents the loss from the release of historical foreign currency translation adjustments related to the UK business. Refer to Note 2, “Summary of Significant Accounting Policies” for further details. For the three months ended October 28, 2023, we recorded $4.9 million of expense associated with the exit of the UK business, which consisted primarily of severance and employee-related benefits, and early contract termination charges. These charges were recorded in selling, general, and administrative expenses from discontinued operations. During fiscal 2023, we recorded an aggregate $4.7 million of expenses related to the exit and wind down of the UK business, primarily consisting of liability to account for losses expected to arise from firm purchase commitments for future receipts of inventory in the UK; asset impairment charges related to the property and equipment in the UK; and a specific inventory reserve to record anticipated losses on inventory in the UK at the lower of cost or net realizable value, based on projected sales through the exit of this business. These charges were recorded in both cost of goods sold and selling, general, and administrative expenses from discontinued operations. Related to the UK exit, we estimate that we will incur between $1 million and $2 million in additional cash costs associated with the exit of the UK business. We expect these remaining expenses to be incurred over the next fiscal quarter, with substantially all of these cash payments to be completed by our fiscal quarter ending January 27, 2024. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Oct. 28, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On December 4, 2023, we entered into a first lien credit agreement with Citibank, N.A., as agent and lender, which provides for a $50.0 million revolving credit facility maturing on December 4, 2026. The 2023 Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $30.0 million. Availability of the 2023 Credit Facility will be based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable, credit card receivables, and inventory as reduced by certain reserves, if any. Upon entry into the 2023 Credit Facility, our existing first lien amended and restated credit agreement, entered into June 2, 2021 and amended on July 29, 2022, with Silicon Valley Bank, as administrative agent and lender, and the other lenders party thereto, was terminated. Refer to Note 5, “Credit Agreement” for additional information regarding the 2023 Credit Facility. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (35,490) | $ (55,918) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 28, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During our last fiscal quarter, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company’s securities set forth in the table below: Type of Trading Arrangement Name and Position Action Date Rule 10b5-1 Non-Rule 10b5-1 Total Shares of Class A Common Stock Total Shares of Class B Common Stock Expiration Date Katrina Lake, Executive Chairperson Adoption 9/27/2023 X 2,500,000 12/11/2024 |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Katrina Lake [Member] | |
Trading Arrangements, by Individual | |
Name | Katrina Lake |
Title | Executive Chairperson |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 9/27/2023 |
Arrangement Duration | 441 days |
Aggregate Available | 2,500,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal year ending August 3, 2024 (“fiscal 2024”) consists of 53 weeks, with the extra week occurring in the fourth fiscal quarter ending August 3, 2024. The fiscal year ending July 29, 2023 (“fiscal 2023”) consisted of 52 weeks. The accompanying unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 3, 2024, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended July 29, 2023 (the “2023 Annual Report”). Discontinued Operations |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and the accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, and revenue recognition. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. |
Short-Term Investments | Short-Term Investments Our short-term investments have been classified and accounted for as available-for-sale securities. The allowance for expected credit losses on our available-for-sale debt securities was immaterial at both October 28, 2023 and July 29, 2023. We have elected to present accrued interest receivable separately from short-term investments in the condensed consolidated balance sheets. Accrued interest receivable, which was immaterial at both October 28, 2023 and July 29, 2023, is recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. We did not write off any accrued interest receivable during the three months ended October 28, 2023 or October 29, 2022. |
Inventory, net | Inventory, net Inventory, net consists of finished goods recorded at the lower of cost or net realizable value using the first-in-first-out (FIFO) method. Gross inventory costs include both merchandise costs and in-bound freight costs. |
Foreign Currency | Foreign Currency As of October 28, 2023, we ceased operations of our UK business and met the requirements to report the UK business as a discontinued operation. The functional currency of our UK business is the British pound sterling. We translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. Prior to being classified as a discontinued operation, we recorded translation gains and losses in accumulated other comprehensive income (loss) (“AOCI”) as a component of stockholders’ equity. During the three months ended October 28, 2023, historical foreign currency translation losses, which were previously recognized in AOCI, were fully reclassified from equity to loss from discontinued operations, net of income taxes in the condensed consolidated statements of operations and comprehensive loss. Refer to Note 7, “Accumulated Other Comprehensive Income (Loss)” and Note 12, “Discontinued Operations” for further details. Net foreign exchange transaction gains and losses attributable to continuing operations resulting from the conversion of the transaction currency to functional currency are recorded in other income (expense), net from continuing operations in the condensed consolidated statements of operations and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements We apply fair value accounting for assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis, using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows: • Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2: Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level 3: Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of merchandise to clients in a Fix and when clients purchase merchandise directly from Freestyle. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix or merchandise to be delivered on a specified date. Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a Freestyle purchase, control is transferred and revenue is recognized upon shipment to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. Our refund reserve is included in accrued liabilities in the condensed consolidated balance sheets. We have five types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used, and (v) cash collections of Freestyle purchases, which are included in deferred revenue and are recognized as revenue upon shipment. We expect deferred revenue for upfront styling fees, Freestyle orders, and Style Pass annual fees to be recognized within one year. On average, our gift card liability and other current liabilities are also recognized within one year. |
Concentration of Credit Risks | Concentration of Credit Risks We are subject to concentrations of credit risk, principally from cash and cash equivalents and investment securities. The majority of our cash is held by two financial institutions within the United States. Our cash balances held by these institutions exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net for the three months ended October 28, 2023 or October 29, 2022. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements There are no new recently issued or adopted accounting pronouncements that are expected to have a material impact on the condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Summary of Contractual Liabilities and Revenue Recognized | The following table summarizes the balances of contractual liabilities included in deferred revenue, gift card liability, and other current liabilities as of the dates indicated: (in thousands) October 28, 2023 July 29, 2023 Deferred revenue: Upfront styling fees $ 5,862 $ 6,075 Style Pass annual fees 3,950 4,521 Freestyle orders 890 770 Total deferred revenue $ 10,702 $ 11,366 Gift card liability $ 9,826 $ 10,328 Other current liabilities: Referral credits $ 430 $ 362 The following table summarizes revenue recognized during the three months ended October 28, 2023, that was previously included in deferred revenue, gift card liability, and other current liabilities at July 29, 2023: (in thousands) Revenue Recognized From Amounts Previously Included in Deferred Balances at July 29, 2023 Upfront styling fees $ 5,986 Style Pass annual fees 2,114 Freestyle orders 554 Gift card liability 1,013 Referral credits 87 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Short-term and Long-term Investments Accounted for as Available-for-sale Measured at Fair Value on Recurring Basis | Our cash equivalents and investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis as of October 28, 2023 and July 29, 2023 were as follows: October 28, 2023 July 29, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 154,424 $ — $ — $ 154,424 $ 80,251 $ — $ — $ 80,251 Investments: U.S. Treasury securities 268 — — 268 7,226 — — 7,226 Corporate bonds — 5,172 — 5,172 — 10,935 — 10,935 Total $ 154,692 $ 5,172 $ — $ 159,864 $ 87,477 $ 10,935 $ — $ 98,412 |
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value of Available-for-sale Investments | The following table sets forth the amortized cost, gross unrealized losses, and fair values of our investments accounted for as available-for-sale securities as of October 28, 2023 and July 29, 2023: October 28, 2023 July 29, 2023 (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value Investments: U.S. Treasury securities $ 269 $ (1) $ 268 $ 7,266 $ (40) $ 7,226 Corporate bonds 5,224 (52) 5,172 11,069 (134) 10,935 Total $ 5,493 $ (53) $ 5,440 $ 18,335 $ (174) $ 18,161 |
Schedule of Unrealized Loss on Investments | The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of October 28, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 268 $ (1) $ — $ — $ 268 $ (1) Corporate bonds — — 5,172 (52) 5,172 (52) Total $ 268 $ (1) $ 5,172 $ (52) $ 5,440 $ (53) The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 29, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 265 $ (1) $ 6,961 $ (39) $ 7,226 $ (40) Corporate bonds — — 10,935 (134) 10,935 (134) Total $ 265 $ (1) $ 17,896 $ (173) $ 18,161 $ (174) |
Schedule of Fair Value of Available-for-sale Securities By Contractual Maturity | The fair values of available-for-sale securities by contractual maturity as of October 28, 2023 were as follows: October 28, 2023 (in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total Investments: U.S. Treasury securities $ 268 $ — $ — $ 268 Corporate bonds 5,172 — — 5,172 Total $ 5,440 $ — $ — $ 5,440 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) October 28, 2023 July 29, 2023 Compensation and related benefits $ 16,725 $ 12,836 Advertising 6,322 6,625 Sales taxes 6,696 5,358 Shipping and freight 8,130 8,628 Accrued accounts payable 4,544 4,058 Inventory purchases 21,835 22,684 Sales refund reserve 7,137 6,509 Other 3,725 3,195 Total accrued liabilities $ 75,114 $ 69,893 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The tables below present the changes in AOCI by component and, if applicable, the reclassifications out of AOCI for the periods presented: For the Three Months Ended October 28, 2023 October 29, 2022 (in thousands) Available-for-sale Securities Foreign Currency Translation Total Available-for-sale Securities Foreign Currency Translation Total Beginning balance $ (602) $ 1,129 $ 527 $ (2,340) $ (1,187) $ (3,527) Other comprehensive income (loss) before reclassifications (1) 121 (2,274) (2,153) (168) (1,612) (1,780) Amounts reclassified from AOCI — — — (18) — (18) Release of cumulative foreign currency translation adjustments associated with discontinued operations (2) — 1,145 1,145 — — — Net change in AOCI 121 (1,129) (1,008) (186) (1,612) (1,798) Ending balance $ (481) $ — $ (481) $ (2,526) $ (2,799) $ (5,325) (1) There was no associated income tax effect for losses on available-for-sale securities for the three months ended October 28, 2023 or October 29, 2022, as we have recorded a valuation allowance against these deferred tax balances. (2) During the three months ended October 28, 2023, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. Accordingly, historical foreign currency translation losses, which were previously recognized in AOCI, were fully reclassified from stockholders’ equity to loss from discontinued operations, net of income taxes in the condensed consolidated statements of operations and comprehensive loss. Refer to Note 2, “Summary of Significant Accounting Policies” and Note 12, “Discontinued Operations” for further details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at July 29, 2023 8,106,110 $ 7.06 8.78 $ 4,770 Granted — — Exercised — — Cancelled (474,413) 10.95 Balance at October 28, 2023 7,631,697 $ 6.82 8.54 $ 17 |
Schedule of Unvested Restricted Stock Units Activity | RSU award activity under the 2017 Plan and 2019 Plan was as follows: Unvested RSUs Class A Common Stock Weighted- Unvested at July 29, 2023 11,455,577 $ 10.47 Granted 9,161,252 3.07 Vested (2,268,679) 7.51 Forfeited (1,550,475) 9.61 Unvested at October 28, 2023 16,797,675 $ 6.91 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate from Income | The following table summarizes our effective tax rate from income (loss) from continuing operations for the periods presented: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Loss from continuing operations before income taxes $ (26,002) $ (47,965) Provision for income taxes 169 187 Effective tax rate (0.7) % (0.4) % |
Net Loss Per Share from Conti_2
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS | The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share from continuing operations attributable to Class A and Class B common stockholders: For the Three Months Ended (in thousands, except share and per share amounts) October 28, 2023 October 29, 2022 Numerator: Net loss from continuing operations attributable to Class A and Class B common stockholders $ (26,171) $ (48,152) Denominator: Weighted-average shares of common stock - basic 116,645,160 112,359,901 Weighted-average shares of common stock - diluted 116,645,160 112,359,901 Loss per share from continuing operations attributable to Class A and Class B common stockholders: Basic $ (0.22) $ (0.43) Diluted $ (0.22) $ (0.43) |
Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share | The following common stock equivalents were excluded from the computation of diluted loss per share from continuing operations because their effect would have been antidilutive for the periods presented: For the Three Months Ended October 28, 2023 October 29, 2022 Restricted stock units that settle into Class A common stock 16,797,675 17,381,827 Stock options to purchase Class A common stock 6,826,227 3,341,137 Stock options to purchase Class B common stock 805,470 1,040,311 Total 24,429,372 21,763,275 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges | The components of total restructuring charges were as follows: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Cash restructuring charges: Severance and employee-related benefits $ 2,462 $ 927 Other 648 — Non-cash restructuring charges: Accelerated depreciation 4,178 — Other 662 — Total restructuring (1) $ 7,950 $ 927 (1) Recorded in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the condensed consolidated balance sheets: (in thousands) Severance and Employee Related Benefits and Other Balance at July 29, 2023 $ 1,923 Charges incurred 3,110 Cash payments (2,266) Balance at October 28, 2023 $ 2,767 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Oct. 28, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations, Assets and Liabilities and Components of Loss | The following table summarizes the major classes of assets and liabilities of discontinued operations, which are summarized separately in the condensed consolidated balance sheets: (in thousands) October 28, 2023 July 29, 2023 Inventory, net 609 6,628 Prepaid expenses and other current assets 1,829 2,995 Current assets, discontinued operations 2,438 9,623 Operating lease right-of-use assets 504 1,565 Other long-term assets 284 481 Long-term assets, discontinued operations 788 2,046 Total assets, discontinued operations $ 3,226 $ 11,669 Accounts payable $ 598 $ 2,586 Operating lease liabilities 50 1,132 Accrued liabilities 5,963 8,903 Other current liabilities 67 161 Current liabilities, discontinued operations 6,678 12,782 Total liabilities, discontinued operations $ 6,678 $ 12,782 The key components of loss from discontinued operations were as follows: For the Three Months Ended (in thousands) October 28, 2023 October 29, 2022 Revenue, net $ 8,558 $ 11,852 Cost of goods sold 6,490 7,401 Gross profit 2,068 4,451 Selling, general, and administrative expenses 10,135 11,045 Operating loss (8,067) (6,594) Interest income 187 26 Other expense, net (1) (1,143) (1,108) Loss before income taxes (9,023) (7,676) Income tax expense 296 90 Loss from discontinued operations, net of income taxes $ (9,319) $ (7,766) (1) Represents the loss from the release of historical foreign currency translation adjustments related to the UK business. Refer to Note 2, “Summary of Significant Accounting Policies” for further details. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jul. 29, 2023 |
Accounting Policies [Abstract] | ||
Inventory reserves | $ 41.8 | $ 38.7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Contractual Liabilities and Revenue Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 | Oct. 28, 2023 | |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 11,366 | $ 10,702 |
Upfront styling fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 6,075 | 5,862 |
Revenue recognized | 5,986 | |
Style Pass annual fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 4,521 | 3,950 |
Revenue recognized | 2,114 | |
Freestyle orders | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 770 | 890 |
Revenue recognized | 554 | |
Gift card liability | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 10,328 | 9,826 |
Revenue recognized | 1,013 | |
Total deferred revenue | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 11,366 | 10,702 |
Referral credits | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 362 | $ 430 |
Revenue recognized | $ 87 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis Based on Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 5,440 | $ 18,161 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 159,864 | 98,412 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 154,692 | 87,477 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 5,172 | 10,935 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 154,424 | 80,251 |
Fair Value, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 154,424 | 80,251 |
Fair Value, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 268 | 7,226 |
U.S. Treasury securities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 268 | 7,226 |
U.S. Treasury securities | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 268 | 7,226 |
U.S. Treasury securities | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
U.S. Treasury securities | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,172 | 10,935 |
Corporate bonds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,172 | 10,935 |
Corporate bonds | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Corporate bonds | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,172 | 10,935 |
Corporate bonds | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 5,493 | $ 18,335 |
Gross Unrealized Losses | (53) | (174) |
Fair Value | 5,440 | 18,161 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 269 | 7,266 |
Gross Unrealized Losses | (1) | (40) |
Fair Value | 268 | 7,226 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,224 | 11,069 |
Gross Unrealized Losses | (52) | (134) |
Fair Value | $ 5,172 | $ 10,935 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Loss on Investments (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | $ 268 | $ 265 |
Available-for-sale, unrealized losses, less than 12 months | (1) | (1) |
Available-for-sale, fair value, more than 12 months | 5,172 | 17,896 |
Available-for-sale, unrealized losses, more than 12 months | (52) | (173) |
Available-for-sale, fair value, total | 5,440 | 18,161 |
Available-for-sale, unrealized losses, total | (53) | (174) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | 268 | 265 |
Available-for-sale, unrealized losses, less than 12 months | (1) | (1) |
Available-for-sale, fair value, more than 12 months | 0 | 6,961 |
Available-for-sale, unrealized losses, more than 12 months | 0 | (39) |
Available-for-sale, fair value, total | 268 | 7,226 |
Available-for-sale, unrealized losses, total | (1) | (40) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | 0 | 0 |
Available-for-sale, unrealized losses, less than 12 months | 0 | 0 |
Available-for-sale, fair value, more than 12 months | 5,172 | 10,935 |
Available-for-sale, unrealized losses, more than 12 months | (52) | (134) |
Available-for-sale, fair value, total | 5,172 | 10,935 |
Available-for-sale, unrealized losses, total | $ (52) | $ (134) |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | $ 5,440 | |
Over One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Total | 5,440 | $ 18,161 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 268 | |
Over One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Total | 268 | 7,226 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 5,172 | |
Over One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Total | $ 5,172 | $ 10,935 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Payables and Accruals [Abstract] | ||
Compensation and related benefits | $ 16,725 | $ 12,836 |
Advertising | 6,322 | 6,625 |
Sales taxes | 6,696 | 5,358 |
Shipping and freight | 8,130 | 8,628 |
Accrued accounts payable | 4,544 | 4,058 |
Inventory purchases | 21,835 | 22,684 |
Sales refund reserve | 7,137 | 6,509 |
Other | 3,725 | 3,195 |
Total accrued liabilities | $ 75,114 | $ 69,893 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) | Dec. 04, 2023 | Jun. 02, 2021 | Oct. 28, 2023 |
Credit Facility | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Credit sublimit | 30,000,000 | ||
Swingline provision | 40,000,000 | ||
Option increase amount | $ 150,000,000 | ||
Credit Facility | Credit Agreement | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 79,100,000 | ||
Credit Facility | 2023 Credit Facility | Citibank, N.A. | Subsequent event | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
2023 Credit Facility | Credit Agreement | Subsequent event | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | $ 30,000,000 | ||
Commitment fee percentage | 0.30% | ||
Basis spread on variable rate | 0% | ||
2023 Credit Facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Subsequent event | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2% | ||
2023 Credit Facility | Credit Agreement | Base Rate | Subsequent event | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2% | ||
2023 Credit Facility | Credit Agreement | Federal Funds Rate | Subsequent event | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
2023 Credit Facility | Credit Agreement | Eurodollar | Subsequent event | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | $ 247,310,000 | $ 322,651,000 |
Release of cumulative foreign currency translation adjustments associated with discontinued operations | (1,129,000) | (1,612,000) |
Total other comprehensive loss, net of tax | (1,008,000) | (1,798,000) |
Stockholders' equity, ending balance | 230,740,000 | 294,767,000 |
Losses on available-for-sale securities | 0 | 0 |
Total | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | 527,000 | (3,527,000) |
Other comprehensive income (loss) before reclassifications | (2,153,000) | (1,780,000) |
Amounts reclassified from AOCI | 0 | (18,000) |
Release of cumulative foreign currency translation adjustments associated with discontinued operations | 1,145,000 | 0 |
Total other comprehensive loss, net of tax | (1,008,000) | (1,798,000) |
Stockholders' equity, ending balance | (481,000) | (5,325,000) |
Available-for-sale Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | (602,000) | (2,340,000) |
Other comprehensive income (loss) before reclassifications | 121,000 | (168,000) |
Amounts reclassified from AOCI | 0 | (18,000) |
Release of cumulative foreign currency translation adjustments associated with discontinued operations | 0 | 0 |
Total other comprehensive loss, net of tax | 121,000 | (186,000) |
Stockholders' equity, ending balance | (481,000) | (2,526,000) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | 1,129,000 | (1,187,000) |
Other comprehensive income (loss) before reclassifications | (2,274,000) | (1,612,000) |
Amounts reclassified from AOCI | 0 | 0 |
Release of cumulative foreign currency translation adjustments associated with discontinued operations | 1,145,000 | 0 |
Total other comprehensive loss, net of tax | (1,129,000) | (1,612,000) |
Stockholders' equity, ending balance | $ 0 | $ (2,799,000) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of average share price | 7 days | |
Unrecognized compensation expense related to unvested options and RSUs, net of forfeitures | $ 111.2 | |
Unrecognized compensation expense related to unvested options weighted average recognition period | 1 year 9 months 18 days | |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 19.9 | $ 31.1 |
2017 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 5,252,851 | |
2017 Incentive Plan | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 44,038,883 | |
2019 Inducement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 1,805,478 | |
2019 Inducement Plan | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 10,750,000 | |
Stock Options | 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting percentage | 25% | |
Award vesting period | 3 years | |
Options exercisable period | 10 years | |
Stock Options | 2017 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercisable period | 10 years | |
Stock Options | 2017 Incentive Plan | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 6 months | |
Stock Options | 2017 Incentive Plan | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 30 months | |
Performance-Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 848,489 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2011, 2017, and 2019 Plans - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Oct. 28, 2023 | Jul. 29, 2023 | |
Number of Options | ||
Outstanding, beginning balance (in shares) | 8,106,110 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Cancelled (in shares) | (474,413) | |
Outstanding, ending balance (in shares) | 7,631,697 | 8,106,110 |
Weighted- Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 7.06 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Cancelled (in dollars per share) | 10.95 | |
Outstanding, ending balance (in dollars per share) | $ 6.82 | $ 7.06 |
Weighted- Average Remaining Contractual Life (in years) | ||
Outstanding, weighted-average remaining contractual life | 8 years 6 months 14 days | 8 years 9 months 10 days |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, aggregate intrinsic value | $ 17 | $ 4,770 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Award Activity (Details) - Class A Common Stock - Restricted stock units that settle into Class A common stock | 3 Months Ended |
Oct. 28, 2023 $ / shares shares | |
Class A Common Stock | |
Unvested, beginning balance (in shares) | shares | 11,455,577 |
Granted (in shares) | shares | 9,161,252 |
Vested (in shares) | shares | (2,268,679) |
Forfeited (in shares) | shares | (1,550,475) |
Unvested, ending balance (in shares) | shares | 16,797,675 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 10.47 |
Granted (in dollars per share) | $ / shares | 3.07 |
Vested (in dollars per share) | $ / shares | 7.51 |
Forfeited (in dollars per share) | $ / shares | 9.61 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 6.91 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate from Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Income Tax Disclosure [Abstract] | ||
Loss from continuing operations before income taxes | $ (26,002) | $ (47,965) |
Provision for income taxes | $ 169 | $ 187 |
Effective tax rate | (0.70%) | (0.40%) |
Net Loss Per Share from Conti_3
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders - Additional Information (Details) | 3 Months Ended | |
Oct. 28, 2023 USD ($) vote class | Jan. 31, 2022 USD ($) | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of new classes of common stock authorized | class | 2 | |
Common stock, conversion ratio | 1 | |
Aggregate purchase price | $ | $ 120,000,000 | |
Class A Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Share repurchase amount | $ | $ 150,000,000 | |
Class A Common Stock | IPO | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of votes per share | vote | 1 | |
Class B Common Stock | IPO | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of votes per share | vote | 10 |
Net Loss Per Share from Conti_4
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Numerator: | ||
Net loss from continuing operations attributable to Class A and Class B common stockholders | $ (26,171) | $ (48,152) |
Denominator: | ||
Weighted-average shares of common stock - basic (in shares) | 116,645,160 | 112,359,901 |
Weighted-average shares of common stock - diluted (in shares) | 116,645,160 | 112,359,901 |
Loss per share from continuing operations attributable to Class A and Class B common stockholders: | ||
Basic (in dollars per share) | $ (0.22) | $ (0.43) |
Diluted (in dollars per share) | $ (0.22) | $ (0.43) |
Net Loss Per Share from Conti_5
Net Loss Per Share from Continuing Operations Attributable to Common Stockholders - Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 24,429,372 | 21,763,275 |
Restricted stock units that settle into Class A common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 16,797,675 | 17,381,827 |
Stock Options | Class A Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 6,826,227 | 3,341,137 |
Stock Options | Class B Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 805,470 | 1,040,311 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | Jul. 29, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3,110 | ||
June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated, period percent | 6% | ||
Restructuring charges | $ 7,950 | $ 927 | |
June 9th, 2022 Restructuring Plan | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8,000 | ||
June 9th, 2022 Restructuring Plan | Minimum | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional cash restructuring charges | 1,000 | ||
June 9th, 2022 Restructuring Plan | Maximum | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional cash restructuring charges | 3,000 | ||
June 9th, 2022 Restructuring Plan | Severance and employee-related benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,462 | $ 927 | $ 36,400 |
June 9th, 2022 Restructuring Plan | Severance and employee-related benefits | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2,600 | ||
June 9th, 2022 Restructuring Plan | Accelerated Depreciation And Other Restructuring Charges | Minimum | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5,000 | ||
June 9th, 2022 Restructuring Plan | Accelerated Depreciation And Other Restructuring Charges | Maximum | Bethlehem, Pennsylvania and Dallas, Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 6,000 | ||
June 9th, 2022 Restructuring Plan | Salaried Employees | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated, period percent | 20% |
Restructuring - Components of R
Restructuring - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | Jul. 29, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3,110 | ||
June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7,950 | $ 927 | |
Severance and employee-related benefits | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,462 | 927 | $ 36,400 |
Other | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 648 | 0 | |
Accelerated depreciation | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4,178 | 0 | |
Other | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 662 | $ 0 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges Rollforward (Details) $ in Thousands | 3 Months Ended |
Oct. 28, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 1,923 |
Charges incurred | 3,110 |
Cash payments | (2,266) |
Restructuring reserve, ending balance | $ 2,767 |
Discontinued Operations - Major
Discontinued Operations - Major Classes of Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jul. 29, 2023 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets, discontinued operations | $ 2,438 | $ 9,623 |
Long-term assets, discontinued operations | 788 | 2,046 |
Current liabilities, discontinued operations | 6,678 | 12,782 |
Discontinued Operations | Operation of UK Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventory, net | 609 | 6,628 |
Prepaid expenses and other current assets | 1,829 | 2,995 |
Current assets, discontinued operations | 2,438 | 9,623 |
Operating lease right-of-use assets | 504 | 1,565 |
Other long-term assets | 284 | 481 |
Long-term assets, discontinued operations | 788 | 2,046 |
Total assets, discontinued operations | 3,226 | 11,669 |
Accounts payable | 598 | 2,586 |
Operating lease liabilities | 50 | 1,132 |
Accrued liabilities | 5,963 | 8,903 |
Other current liabilities | 67 | 161 |
Current liabilities, discontinued operations | 6,678 | 12,782 |
Total liabilities, discontinued operations | $ 6,678 | $ 12,782 |
Discontinued Operations - Compo
Discontinued Operations - Components of Loss from Discontinued Operations (Details) - Discontinued Operations - Operation of UK Business - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | $ 8,558 | $ 11,852 |
Cost of goods sold | 6,490 | 7,401 |
Gross profit | 2,068 | 4,451 |
Selling, general, and administrative expenses | 10,135 | 11,045 |
Operating loss | (8,067) | (6,594) |
Interest income | 187 | 26 |
Other expense, net | (1,143) | (1,108) |
Loss from discontinued operations, net of income taxes | (9,023) | (7,676) |
Income tax expense | 296 | 90 |
Loss from discontinued operations, net of income taxes | $ (9,319) | $ (7,766) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Oct. 28, 2023 | Jul. 29, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restructuring charges | $ 3,110 | |
Discontinued Operations | Operation of UK Business | UNITED KINGDOM | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restructuring charges | 4,900 | |
Discontinued Operations | Operation of UK Business | UNITED KINGDOM | Minimum | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Additional cash restructuring charges | 1,000 | |
Discontinued Operations | Operation of UK Business | UNITED KINGDOM | Maximum | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Additional cash restructuring charges | $ 2,000 | |
Discontinued Operations | Operation of UK Business | Facility Closing | UNITED KINGDOM | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restructuring charges | $ 4,700 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Dec. 04, 2023 | Jun. 02, 2021 |
Credit Facility | Credit Agreement | ||
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |
Credit Facility | 2023 Credit Facility | Citibank, N.A. | Subsequent event | ||
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |
2023 Credit Facility | Credit Agreement | Subsequent event | ||
Subsequent Event [Line Items] | ||
Letters of credit outstanding, amount | $ 30,000,000 |