Tuesday Morning (TUEMQ) 10-Q 3 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	May 01, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	TUESDAY MORNING CORP/DE
Entity Central Index Key	878,726
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	TUES
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		45,852,057

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 12,277	$ 6,263
Inventories	244,990	221,906
Prepaid expenses	6,242	6,367
Other current assets	1,245	1,982
Total Current Assets	264,754	236,518
Property and equipment, net	122,115	118,397
Deferred financing costs	750	986
Other assets	2,781	2,252
Total Assets	390,400	358,153
Current liabilities:
Accounts payable	86,662	67,326
Accrued liabilities	43,789	44,260
Income taxes payable	77	11
Total Current Liabilities	130,528	111,597
Borrowings under revolving credit facility	44,400	30,500
Deferred rent	21,645	13,883
Asset retirement obligation — non-current	3,100	2,307
Other liabilities — non-current	835	1,027
Total Liabilities	200,508	159,314
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued or outstanding
Common stock, par value $0.01 per share, authorized 100,000,000 shares; 47,707,544 shares issued and 45,923,883 shares outstanding at March 31, 2018 and 46,904,295 shares issued and 45,120,634 shares outstanding at June 30, 2017	469	469
Additional paid-in capital	237,299	234,604
Retained deficit	(41,064)	(29,422)
Less: 1,783,661 common shares in treasury, at cost, at March 31, 2018 and 1,783,661 common shares in treasury, at cost, at June 30, 2017	(6,812)	(6,812)
Total Stockholders’ Equity	189,892	198,839
Total Liabilities and Stockholders’ Equity	$ 390,400	$ 358,153

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Jun. 30, 2017
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,707,544	46,904,295
Common stock, shares outstanding	45,923,883	45,120,634
Treasury stock, shares	1,783,661	1,783,661

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 223,296	$ 203,001	$ 775,860	$ 743,023
Cost of sales	142,993	135,845	511,922	492,546
Gross profit	80,303	67,156	263,938	250,477
Selling, general and administrative expenses	88,092	81,834	275,445	265,628
Operating loss	(7,789)	(14,678)	(11,507)	(15,151)
Other income/(expense):
Interest expense	(493)	(377)	(1,473)	(1,061)
Other income, net	179	360	907	1,104
Other income/(expense), total	(314)	(17)	(566)	43
Loss before income taxes	(8,103)	(14,695)	(12,073)	(15,108)
Income tax provision/(benefit)	(23)	101	(431)	113
Net loss	$ (8,080)	$ (14,796)	$ (11,642)	$ (15,221)
Net loss per common share:
Basic	$ (0.18)	$ (0.34)	$ (0.26)	$ (0.35)
Diluted	$ (0.18)	$ (0.34)	$ (0.26)	$ (0.35)
Weighted average number of common shares:
Basic	44,365	43,998	44,236	43,915
Diluted	44,365	43,998	44,236	43,915
Dividends per common share	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net cash flows from operating activities:
Net loss	$ (11,642)	$ (15,221)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	19,087	15,635
Amortization of financing fees	236	247
(Gain)/loss on disposal of assets	(69)	1
Gain on sale-leaseback	(371)	(555)
Share-based compensation	2,729	3,224
Deferred income taxes	(571)
Construction allowances from landlords	6,688	1,419
Change in operating assets and liabilities:
Inventories	(23,122)	(25,970)
Prepaid and other assets	883	(427)
Accounts payable	19,396	(12,841)
Accrued liabilities	2,199	937
Deferred rent	1,921	2,666
Income taxes payable	71	(338)
Other liabilities — non-current	367	105
Net cash provided by/(used in) operating activities	17,802	(31,118)
Net cash flows from investing activities:
Capital expenditures	(25,552)	(27,359)
Purchase of intellectual property	(30)	(4)
Proceeds from sale of assets	69	93
Net cash used in investing activities	(25,513)	(27,270)
Net cash flows from financing activities:
Proceeds under revolving credit facility	153,900	152,200
Repayments under revolving credit facility	(140,000)	(111,200)
Change in cash overdraft	(60)	7,000
Purchase of treasury stock		(23)
Proceeds from the exercise of employee stock options	4	8
Payments on capital leases	(119)
Net cash provided by financing activities	13,725	47,985
Net increase/(decrease) in cash and cash equivalents	6,014	(10,403)
Cash and cash equivalents, beginning of period	6,263	14,150
Cash and cash equivalents, end of period	$ 12,277	$ 3,747

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of presentation — The unaudited interim consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These financial statements include all adjustments, consisting only of those of a normal recurring nature, which, in the opinion of management, are necessary to present fairly the results of the interim periods presented and should be read in conjunction with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The consolidated balance sheet at June 30, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The results of operations for the three and nine month periods ended March 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2018, which we refer to as fiscal 2018. We do not present a consolidated statement of comprehensive income as there are no other comprehensive income items in either the current or prior fiscal periods. The preparation of unaudited interim consolidated financial statements, in conformity with GAAP, requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to: inventory valuation under the retail method and estimation of reserves and valuation allowances specifically related to insurance, income taxes and litigation. Actual results could differ materially from these estimates. Our fiscal year ends on June 30 and we operate our business as a single operating segment.

Share-Based Incentive Plans

Share-Based Incentive Plans	9 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Incentive Plans	2. Share-based incentive plans — Stock Option Awards. On November 16, 2016, our stockholders approved amendments to the 2014 Plan to increase the number of shares of the Company’s common stock available for issuance under the 2014 Plan by 2,500,000 shares and to make additional amendments to the 2014 Plan, including (i) reducing the percentage of shares exempt from the minimum vesting requirements under the 2014 Plan, (ii) adding a clawback policy, (iii) generally eliminating the discretion of the Board of Directors to accelerate the vesting of outstanding and unvested awards upon a change of control and (iv) providing that certain shares surrendered in payment of the exercise price of awards or withheld for tax withholding would count against the shares available under the 2014 Plan. Stock options were awarded with a strike price at a fair market value equal to the average of the high and low trading prices of our common stock on the date of grant under the 2004 Plan. Stock options were awarded with a strike price at a fair market value equal to the closing price of our common stock on the date of the grant under the 2008 Plan and the 2014 Plan. Options granted under the 2004 Plan typically vest over periods of one to five years and expire ten years from the date of grant, while options granted under the 2008 Plan and the 2014 Plan typically vest over periods of one to four years and expire ten years from the date of grant. Options granted under the 2004 Plan, the 2008 Plan and the 2014 Plan may have certain performance requirements in addition to service terms. If the performance conditions are not satisfied, the options are forfeited. The exercise prices of stock options outstanding on March 31, 2018, range between $1.24 per share and $20.91 per share. All shares available under the 2004 Plan have been granted. The 2004 Plan and the 2008 Plan terminated as to new awards as of May 17, 2014 and September 16, 2014, respectively. There were 2.9 million shares available for grant under the 2014 Plan at March 31, 2018. Restricted Stock Awards —The 2004 Plan, the 2008 Plan, and the 2014 Plan authorize the grant of restricted stock awards to directors, officers, key employees and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2004 Plan and the 2008 Plan, but restricted stock awards granted under the 2008 Plan are still outstanding. Restricted stock awards are not transferable, but bear certain rights of common stock ownership including voting and dividend rights. Shares are valued at the fair market value of our common stock at the date of award. Shares may be subject to certain performance requirements. If the performance requirements are not met, the restricted shares are forfeited. Under the 2008 Plan and the 2014 Plan, as of March 31, 2018, there were 1,510,757 shares of restricted stock outstanding with award vesting periods, both performance-based and service-based, of one to four years and a weighted average grant date fair value of $4.01 per share. Performance-Based Restricted Stock Awards and Performance-Based Stock Option Awards. As of March 31, 2018 there were 1,562,867 unvested performance-based restricted stock awards and performance-based stock options outstanding under the 2014 Plan. Share-based Compensation Costs. Share-based compensation costs were recognized as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Amortization of share-based compensation during the period $ 860 $ 919 $ 2,691 $ 3,248 Amounts capitalized in ending inventory (318 ) (168 ) (1,041 ) (1,166 ) Amounts recognized and charged to cost of sales 242 157 1,079 1,142 Amounts charged against income for the period before tax $ 784 $ 908 $ 2,729 $ 3,224

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	3. Commitments and contingencies — We are involved in legal and governmental proceedings as part of the normal course of our business. Reserves have been established when a loss is considered probable and are based on management's best estimates of our potential liability in these matters. These estimates have been developed in consultation with internal and external counsel and are based on a combination of litigation and settlement strategies. Management believes that such litigation and claims will be resolved without material effect on our financial position or results of operations. The Company is a defendant in a purported class action lawsuit, Jerry Castillo v. Tuesday Morning Inc The Company is also a defendant in a purported class action lawsuit , Hector Velarde, on behalf of himself and all other similar situated, Pltf. vs. Tuesday Morning, Inc

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	4. Earnings per common share — The following table sets forth the computation of basic and diluted income/(loss) per common share (in thousands, except per share amounts): Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Net loss $ (8,080 ) $ (14,796 ) $ (11,642 ) $ (15,221 ) Less: Income to participating securities — — — — Net loss attributable to common shares $ (8,080 ) $ (14,796 ) $ (11,642 ) $ (15,221 ) Weighted average number of common shares outstanding basic 44,365 43,998 44,236 43,915 Effect of dilutive stock equivalents — — — — Weighted average number of common shares outstanding diluted 44,365 43,998 44,236 43,915 Net loss per common share-basic $ (0.18 ) $ (0.34 ) $ (0.26 ) $ (0.35 ) Net loss per common share-diluted $ (0.18 ) $ (0.34 ) $ (0.26 ) $ (0.35 ) For the quarters and year to date periods ended March 31, 2018 and March 31, 2017, all options representing the rights to purchase shares, respectively, were not included in the dilutive income per share calculation, because the assumed exercise of such options would have been anti-dilutive.

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Revolving Credit Facility	5. Revolving credit facility — We have a credit agreement providing for an asset-based, five-year senior secured revolving credit facility in the amount of up to $180.0 million which matures on August 18, 2020 (the “Revolving Credit Facility”). The availability of funds under the Revolving Credit Facility is limited to the lesser of a calculated borrowing base and the lenders’ aggregate commitments under the Revolving Credit Facility. Our indebtedness under the Revolving Credit Facility is secured by a lien on substantially all of our assets. The Revolving Credit Facility contains certain restrictive covenants, which affect, among others, our ability to incur liens or incur additional indebtedness, change the nature of our business, sell assets or merge or consolidate with any other entity, or make investments or acquisitions unless they meet certain requirements. The Revolving Credit Facility requires that we satisfy a fixed charge coverage ratio at any time that our availability is less than the greater of 10% of our calculated borrowing base or $12.5 million. Our Revolving Credit Facility may, in some instances, limit our ability to pay cash dividends and repurchase our common stock. In order for the borrower under the Revolving Credit Facility, our subsidiary, to make a restricted payment to us for the payment of a dividend or a repurchase of shares, we must, among other things, maintain availability of 20% of the lesser of our calculated borrowing base or our lenders’ aggregate commitments under the Revolving Credit Facility on a pro forma basis for a specified period prior to and immediately following the restricted payment. As of March 31, 2018, we were in compliance with all of the Revolving Credit Facility covenants. At March 31, 2018, we had $44.4 million outstanding under the Revolving Credit Facility, $8.5 million of outstanding letters of credit and availability of $67.0 million. Letters of credit under the Revolving Credit Facility are primarily for self-insurance purposes. We incur commitment fees of up to 0.25% on the unused portion of the Revolving Credit Facility, payable quarterly. Any borrowing under the Revolving Credit Facility incurs interest at LIBOR or the prime rate, plus an applicable margin, at our election (except with respect to swing loans, which incur interest solely at the prime rate plus the applicable margin), subject to a floor of one month LIBOR plus an applicable margin in the case of loans based on the prime rate. Interest expense for the third quarter of the current fiscal year from the Revolving Credit Facility of $0.5 million was comprised of commitment fees of $0.1 million, interest expense of $0.3 million and the amortization of financing fees of $0.1 million. Interest expense for the third quarter of the prior fiscal year from the Revolving Credit Facility of $0.4 million was comprised of commitment fees of $0.1 million, interest expense of $0.2 million and the amortization of financing fees of $0.1 million. Interest expense for the nine months ended March 31, 2018 of $1.5 million was comprised of commitment fees of $0.4 million, interest expense of $0.8 million and the amortization of financing fees of $0.3 million. Interest expense for the nine months ended March 31, 2017 of $1.1 million was comprised of commitment fees of $0.4 million, interest expense of $0.4 million and the amortization of financing fees of $0.3 million. The fair value of the Company’s debt approximated its carrying amount as of March 31, 2018.

Depreciation

Depreciation	9 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Depreciation	6. Depreciation — Accumulated depreciation of owned equipment and property at March 31, 2018 and June 30, 2017 was $152.3 million and $138.3 million, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	7. Income taxes — The Company or one of its subsidiaries files income tax returns in the U.S. federal, state and local taxing jurisdictions. With few exceptions, the Company and its subsidiaries are no longer subject to state and local income tax examinations for years through fiscal 2013. The Internal Revenue Service has concluded an examination of the Company for years ending on or before June 30, 2010. The effective tax rates for the quarters ended March 31, 2018 and March 31, 2017 were 0.3% and (0.7%), respectively. The effective tax rates for the nine months ended March 31, 2018 and March 31, 2017 were 3.6% and (0.7%), respectively. A full valuation allowance is currently recorded against substantially all of the Company’s deferred tax assets. A deviation from the customary relationship between income tax expense/(benefit) and pretax income/(loss) results from utilization of the valuation allowance. The Company’s results of operations included the estimated impact of the enactment of the Tax Cuts and Jobs Act (“TCJA”), which was signed into law on December 22, 2017. Among numerous provisions included in the new law was the reduction of the corporate federal income tax rate from 35% to 21%. The Company continues to assess its accounting for the tax effects of enactment of the TCJA. Final calculations will be completed within the one year measurement period ending December 22, 2018, as required under the rules issued by the SEC. In the second fiscal quarter of 2018, the Company applied the provisions of the newly enacted TCJA, resulting in an approximate $0.5 million income tax benefit connected with future refunds of alternative minimum tax credits no longer requiring a valuation allowance. In the third fiscal quarter of 2018, the Company recognized a $0.1 million additional benefit related to this matter. The impact of the new tax law, including the remeasurement of the Company’s deferred taxes at the new corporate tax rate, did not have a material impact on the Company’s deferred taxes as substantially all of the Company’s net deferred tax assets have corresponding valuation allowances.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Mar. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	8. Cash and cash equivalents — Cash and cash equivalents include credit card receivables and all highly liquid instruments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. At March 31, 2018 and June 30, 2017, credit card receivables from third party consumer credit card providers were $10.7 million and $4.9 million, respectively. Such receivables are generally collected within one week of the balance sheet date.

Intellectual Property

Intellectual Property	9 Months Ended
	Mar. 31, 2018
Intangible Assets Net Excluding Goodwill [Abstract]
Intellectual Property	9. Intellectual property — Our intellectual property primarily consists of indefinite lived trademarks. We evaluate annually whether the trademarks continue to have an indefinite life. Trademarks and other intellectual property are reviewed for impairment annually in the fourth quarter, and may be reviewed more frequently if indicators of impairment are present. As of March 31, 2018, the carrying value of the intellectual property, which included indefinite-lived trademarks, was $1.0 million and no impairment was identified or recorded.

Cease Use Liability

Cease Use Liability	9 Months Ended
	Mar. 31, 2018
Cease Use Liability [Abstract]
Cease Use Liability	10. Cease use liability — Amounts in “Accrued liabilities” and “Other liabilities – non-current” in the Consolidated Balance Sheet at March 31, 2018 include the current and long-term portions, respectively, of accruals for the net present value of future minimum lease payments, net of estimated sublease income, attributable to closed stores with remaining lease obligations. The cease use liability at March 31, 2018 was $0.2 million, all classified as short-term. The short-term and long-term cease use liabilities were $1.0 and $0.5 million, respectively, at June 30, 2017. Expenses related to store closings are included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations.

Sale-leaseback

Sale-leaseback	9 Months Ended
	Mar. 31, 2018
Leases [Abstract]
Sale-leaseback	11. Sale-leaseback — During the fourth quarter of fiscal 2016, we entered into a sale-leaseback transaction to sell two buildings and land utilized in our Dallas distribution center operations, which we do not consider part of our long-term distribution network, and leased back these facilities through December 2017. We have since exercised our option to extend the related lease through March 2018, which was accounted for as an operating lease and has now expired. We had no continuing involvement with the properties sold other than a normal leaseback. The consideration received for the sale, as reduced by closing and transaction costs, was $8.8 million, and the net book value of properties sold was $5.2 million, resulting in a $3.6 million gain. The gain recognized in fiscal year 2016 was $2.5 million, which included the portion of the gain in excess of the present value of the minimum lease payments for the leaseback, and was included in “Other income” in our Consolidated Statement of Operations. During fiscal 2017, we recognized $0.7 million of the gain. During the first nine months of fiscal 2018, we recognized the final $0.4 million of the gain with no remaining deferred gain as of March 31, 2018.

Capital Lease

Capital Lease	9 Months Ended
	Mar. 31, 2018
Leases [Abstract]
Capital Lease	12. Capital lease — During fiscal 2017, we entered into a 5-year capital lease maturing on January 31, 2022 for equipment and software. At March 31, 2018, the capital lease asset balance was $0.7 million, the current lease liability was $0.2 million and the long-term lease liability was $0.4 million. The capital lease asset is amortized on a straight-line basis. During the third fiscal quarter of 2018, the capital lease amortization was less than $0.1 million and was $0.1 million for the nine months ended March 31, 2018.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	13. Recent accounting pronouncements — In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The amendments in ASU 2016-15 should be adopted on a retrospective basis unless it is impracticable to apply, in which case the amendments should be applied prospectively as of the earliest date practicable. The Company currently expects to adopt this standard in the first quarter of fiscal 2019 and is evaluating the impact that this standard will have on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) to reduce the complexity of certain aspects of the accounting for employee share-based payment transactions. ASU 2016-09 involves changes in several aspects of the accounting for share-based payment transactions, including the accounting for the income tax consequences of share-based awards. For public companies, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-09 in the first quarter of fiscal 2018 and elected to continue to estimate forfeitures expected to occur to determine the amount of share based compensation cost to recognize in each period, as permitted by ASU 2016-09. In addition, the adoption of this standard prospectively changes the dilutive earnings per share calculation by removing excess tax benefits and deficiencies from the computation. The adoption of this standard did not materially impact our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to improve financial reporting in connection with leasing transactions. ASU 2016-02 will require entities (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or finance, while the income statement will reflect lease expense for operating leases and amortization/interest expense for finance leases. Accounting by entities that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, ASU 2016-02 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the financial statements. The Company currently expects to adopt this standard in the first quarter of fiscal 2020. While the Company is currently evaluating the provisions of ASU 2016-02 to assess the impact on the Company’s consolidated financial statements and disclosures, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”), which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value, except for companies using the Retail Inventory Method which will continue to use existing impairment models. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The Company adopted ASU 2015-11 in the first quarter of fiscal 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), an updated standard on revenue recognition, and has since modified the standard with additional ASUs. The new guidance provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09. Accordingly, this standard is effective for reporting periods beginning after December 15, 2017, including interim periods within that year. The Company currently expects to adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method and does not expect this standard to have a material impact on its consolidated financial statements, as the vast majority of its revenue is expected to continue to be generated from point-of-sale transactions that are expected to be recognized consistent with its current accounting. In connection with its point-of-sale transactions, for which sales are subject to a right of return, the Company currently expects to use one portfolio for its measurement of the estimated refund liability and return asset upon adoption of the new standard. Additionally, the Company’s current accounting for gift card breakage is consistent with the new standard. The Company is continuing to evaluate whether the new standard will affect its current accounting for customer incentives. The Company is continuing to evaluate the impact that this standard will have on its consolidated financial statements and disclosures.

Recent Accounting Pronounceme19

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	13. Recent accounting pronouncements — In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The amendments in ASU 2016-15 should be adopted on a retrospective basis unless it is impracticable to apply, in which case the amendments should be applied prospectively as of the earliest date practicable. The Company currently expects to adopt this standard in the first quarter of fiscal 2019 and is evaluating the impact that this standard will have on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) to reduce the complexity of certain aspects of the accounting for employee share-based payment transactions. ASU 2016-09 involves changes in several aspects of the accounting for share-based payment transactions, including the accounting for the income tax consequences of share-based awards. For public companies, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-09 in the first quarter of fiscal 2018 and elected to continue to estimate forfeitures expected to occur to determine the amount of share based compensation cost to recognize in each period, as permitted by ASU 2016-09. In addition, the adoption of this standard prospectively changes the dilutive earnings per share calculation by removing excess tax benefits and deficiencies from the computation. The adoption of this standard did not materially impact our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to improve financial reporting in connection with leasing transactions. ASU 2016-02 will require entities (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or finance, while the income statement will reflect lease expense for operating leases and amortization/interest expense for finance leases. Accounting by entities that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, ASU 2016-02 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the financial statements. The Company currently expects to adopt this standard in the first quarter of fiscal 2020. While the Company is currently evaluating the provisions of ASU 2016-02 to assess the impact on the Company’s consolidated financial statements and disclosures, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”), which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value, except for companies using the Retail Inventory Method which will continue to use existing impairment models. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The Company adopted ASU 2015-11 in the first quarter of fiscal 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), an updated standard on revenue recognition, and has since modified the standard with additional ASUs. The new guidance provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09. Accordingly, this standard is effective for reporting periods beginning after December 15, 2017, including interim periods within that year. The Company currently expects to adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method and does not expect this standard to have a material impact on its consolidated financial statements, as the vast majority of its revenue is expected to continue to be generated from point-of-sale transactions that are expected to be recognized consistent with its current accounting. In connection with its point-of-sale transactions, for which sales are subject to a right of return, the Company currently expects to use one portfolio for its measurement of the estimated refund liability and return asset upon adoption of the new standard. Additionally, the Company’s current accounting for gift card breakage is consistent with the new standard. The Company is continuing to evaluate whether the new standard will affect its current accounting for customer incentives. The Company is continuing to evaluate the impact that this standard will have on its consolidated financial statements and disclosures.

Share-Based Incentive Plans (Ta

Share-Based Incentive Plans (Tables)	9 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Share-Based Compensation Costs Recognized	Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Amortization of share-based compensation during the period $ 860 $ 919 $ 2,691 $ 3,248 Amounts capitalized in ending inventory (318 ) (168 ) (1,041 ) (1,166 ) Amounts recognized and charged to cost of sales 242 157 1,079 1,142 Amounts charged against income for the period before tax $ 784 $ 908 $ 2,729 $ 3,224

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income/(Loss) Per Common Share	Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Net loss $ (8,080 ) $ (14,796 ) $ (11,642 ) $ (15,221 ) Less: Income to participating securities — — — — Net loss attributable to common shares $ (8,080 ) $ (14,796 ) $ (11,642 ) $ (15,221 ) Weighted average number of common shares outstanding basic 44,365 43,998 44,236 43,915 Effect of dilutive stock equivalents — — — — Weighted average number of common shares outstanding diluted 44,365 43,998 44,236 43,915 Net loss per common share-basic $ (0.18 ) $ (0.34 ) $ (0.26 ) $ (0.35 ) Net loss per common share-diluted $ (0.18 ) $ (0.34 ) $ (0.26 ) $ (0.35 )

Share-Based Incentive Plans - N

Share-Based Incentive Plans - Narrative (Details) - $ / shares	9 Months Ended
	Mar. 31, 2018	Nov. 16, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of stock options outstanding, low end of range	$ 1.24
Exercise price of stock option outstanding, high end of range	$ 20.91
2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase in number of common stock shares available for issuance		2,500,000
2014 Plan | Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
Shares available for grant	2,900,000
2014 Plan | Stock Option Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2014 Plan | Stock Option Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
2014 Plan | Performance-Based Restricted Stock Awards and Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested restricted stock awards and stock options outstanding	1,562,867
2004 Plan | Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
2004 Plan | Stock Option Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2004 Plan | Stock Option Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	5 years
2008 Plan | Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
2008 Plan | Stock Option Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 Plan | Stock Option Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
2008 and 2014 Plan | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	1,510,757
Weighted average grant date fair value of awards granted	$ 4.01
2008 and 2014 Plan | Restricted Stock Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 and 2014 Plan | Restricted Stock Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years

Share-Based Incentive Plans - S

Share-Based Incentive Plans - Schedule of Share-Based Compensation Costs Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Share-based incentive plans
Share-based compensation	$ 784	$ 908	$ 2,729	$ 3,224
Amounts capitalized in ending inventory	(318)	(168)	(1,041)	(1,166)
Share Based Compensation Amortization
Share-based incentive plans
Share-based compensation	860	919	2,691	3,248
Cost of Sales
Share-based incentive plans
Share-based compensation	$ 242	$ 157	$ 1,079	$ 1,142

Earnings Per Common Share - Com

Earnings Per Common Share - Computation of Basic and Diluted Income/(Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (8,080)	$ (14,796)	$ (11,642)	$ (15,221)
Net loss attributable to common shares	$ (8,080)	$ (14,796)	$ (11,642)	$ (15,221)
Weighted average number of common shares outstanding basic	44,365	43,998	44,236	43,915
Weighted average number of common shares outstanding diluted	44,365	43,998	44,236	43,915
Net loss per common share-basic	$ (0.18)	$ (0.34)	$ (0.26)	$ (0.35)
Net loss per common share-diluted	$ (0.18)	$ (0.34)	$ (0.26)	$ (0.35)

Revolving Credit Facility - Nar

Revolving Credit Facility - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Line Of Credit Facility [Line Items]
Revolving credit facility outstanding amount	$ 44,400,000		$ 44,400,000		$ 30,500,000
Amortization of financing fees			$ 236,000	$ 247,000
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Term of credit facility (in years)			5 years
Maximum borrowing capacity	180,000,000		$ 180,000,000
Revolving credit facility maturity date			Aug. 18, 2020
Availability to be maintained under credit facility	$ 12,500,000		$ 12,500,000
Availability to be maintained under credit facility before restriction on investments, percentage	20.00%		20.00%
Covenant terms			The Revolving Credit Facility requires that we satisfy a fixed charge coverage ratio at any time that our availability is less than the greater of 10% of our calculated borrowing base or $12.5 million.
Revolving credit facility outstanding amount	$ 44,400,000		$ 44,400,000
Outstanding letters of credit	8,500,000		8,500,000
Availability under the credit facility	67,000,000		$ 67,000,000
Frequency of commitment fee payment			Payable quarterly
Revolving credit facility, description of variable rate basis			One month LIBOR
Interest expense	500,000	$ 400,000	$ 1,500,000	1,100,000
Commitment fees	100,000	100,000	400,000	400,000
Interest expense, debt	300,000	200,000	800,000	400,000
Amortization of financing fees	$ 100,000	$ 100,000	$ 300,000	$ 300,000
Revolving Credit Facility | Minimum
Line Of Credit Facility [Line Items]
Availability to be maintained under credit facility, percentage	10.00%		10.00%
Revolving Credit Facility | Maximum
Line Of Credit Facility [Line Items]
Commitment fees (as a percent)			0.25%

Depreciation - Narrative (Detai

Depreciation - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jun. 30, 2017
Property Plant And Equipment [Abstract]
Accumulated depreciation	$ 152.3	$ 138.3

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Thousands	Dec. 22, 2017	Dec. 21, 2017	Mar. 31, 2018USD ($)Subsidiary	Dec. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)Subsidiary	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Number of subsidiaries filing income tax returns in the U.S. federal jurisdiction, and various state jurisdictions | Subsidiary			1			1
Effective tax rate			0.30%		(0.70%)	3.60%	(0.70%)
Corporate federal income tax rate	21.00%	35.00%
Income tax provision/(benefit)			$ (23)	$ (500)	$ 101	$ (431)	$ 113
Additional income tax benefit			$ 100

Cash and Cash Equivalents - Nar

Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jun. 30, 2017
Cash And Cash Equivalents [Abstract]
Credit card receivables from third party consumer credit card providers	$ 10.7	$ 4.9

Intellectual Property - Narrati

Intellectual Property - Narrative (Details) - Indefinite-Lived Trademarks	9 Months Ended
	Mar. 31, 2018USD ($)
Indefinite Lived Intangible Assets By Major Class [Line Items]
Carrying value of intellectual property	$ 1,000,000
Impairment of intellectual property	$ 0

Cease Use Liability - Narrative

Cease Use Liability - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jun. 30, 2017
Cease Use Liability [Abstract]
Short-term cease use liabilities	$ 0.2	$ 1
Long-term cease use liabilities		$ 0.5

Sale-leaseback - Narrative (Det

Sale-leaseback - Narrative (Details)	9 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)Building
Sale Leaseback Transaction [Line Items]
Sale-leaseback transaction, gain recognized in other income	$ 371,000	$ 555,000
Dallas | Buildings and Land
Sale Leaseback Transaction [Line Items]
Sale-leaseback transaction, asset description	Transaction to sell two buildings and land
Transaction to sell, number of buildings | Building				2
Sale-leaseback transaction, extended period	2018-03
Consideration received reduced by closing and transaction costs				$ 8,800,000
Sale-leaseback transaction, net book value				5,200,000
Gain on sale-leaseback transaction				3,600,000
Sale-leaseback transaction, gain recognized in other income	$ 400,000		$ 700,000	$ 2,500,000
Sale-leaseback transaction, remaining deferred gain	$ 0

Capital Lease - Narrative (Deta

Capital Lease - Narrative (Details) - Equipment and Software	3 Months Ended	9 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2018USD ($)
Capital Leased Assets [Line Items]
Term of capital lease		5 years
Capital lease maturity date		Jan. 31, 2022
Capital lease asset	$ 700,000	$ 700,000
Current capital lease liability	200,000	200,000
Long-term capital lease liability	400,000	400,000
Capital lease amortization expense		$ 100,000
Maximum
Capital Leased Assets [Line Items]
Capital lease amortization expense	$ 100,000