Tuesday Morning (TUEMQ) 10-Q 5 Feb 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Feb. 03, 2020
Cover [Abstract]
Entity Registrant Name	TUESDAY MORNING CORP/DE
Entity Central Index Key	0000878726
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	TUES
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.01 per share
Entity Incorporation, State or Country Code	DE
Security Exchange Name	NASDAQ
Entity Shell Company	false
Entity File Number	0-19658
Entity Tax Identification Number	75-2398532
Entity Address, Address Line One	6250 LBJ Freeway
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	387-3562
Entity Common Stock, Shares Outstanding		48,024,022
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 4,903	$ 11,395
Inventories	204,008	237,895
Prepaid expenses	5,262	5,388
Assets held for sale	4,601
Other current assets	2,861	1,822
Total Current Assets	221,635	256,500
Property and equipment, net	101,252	110,146
Operating lease right-of-use assets	355,187
Deferred financing costs	885	994
Other assets	2,561	2,881
Total Assets	681,520	370,521
Current liabilities:
Accounts payable	72,945	91,251
Accrued liabilities	44,963	45,923
Operating lease liabilities	71,590
Total Current Liabilities	189,498	137,174
Operating lease liabilities — non-current	310,814
Borrowings under revolving credit facility	3,600	34,650
Deferred rent		23,551
Asset retirement obligation — non-current	3,002	3,002
Other liabilities — non-current	1,149	835
Total Liabilities	508,063	199,212
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; 49,820,109 shares issued and 48,036,448 shares outstanding at December 31, 2019 and 48,466,930 shares issued and 46,683,269 shares outstanding at June 30, 2019	462	465
Additional paid-in capital	242,899	241,456
Retained deficit	(63,092)	(63,800)
Less: 1,783,661 common shares in treasury, at cost, at December 31, 2019 and 1,783,661 common shares in treasury, at cost, at June 30, 2019	(6,812)	(6,812)
Total Stockholders’ Equity	173,457	171,309
Total Liabilities and Stockholders’ Equity	$ 681,520	$ 370,521

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Jun. 30, 2019
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	49,820,109	48,466,930
Common stock, shares outstanding	48,036,448	46,683,269
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		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net sales	$ 324,414	$ 338,418	$ 548,853	$ 565,731
Cost of sales	218,638	221,673	361,945	366,568
Gross profit	105,776	116,745	186,908	199,163
Selling, general and administrative expenses	94,677	100,437	184,460	190,442
Operating income	11,099	16,308	2,448	8,721
Other income/(expense):
Interest expense	(726)	(767)	(1,391)	(1,355)
Other income, net	166	242	234	432
Other income/(expense) total	(560)	(525)	(1,157)	(923)
Income before income taxes	10,539	15,783	1,291	7,798
Income tax benefit	(398)	(223)	(18)	(99)
Net income	$ 10,937	$ 16,006	$ 1,309	$ 7,897
Net income per common share:
Basic	$ 0.24	$ 0.35	$ 0.03	$ 0.17
Diluted	$ 0.24	$ 0.35	$ 0.03	$ 0.17
Weighted average number of common shares:
Basic	45,218	44,733	45,086	44,612
Diluted	45,218	44,736	45,086	44,618
Dividends per common share	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Treasury Stock
Balance at Jun. 30, 2018	$ 180,254	$ 469	$ 237,957	$ (51,360)	$ (6,812)
Balance (in shares) at Jun. 30, 2018		45,865,000
Net income	7,897			7,897
Share-based compensation	1,759		1,759
Shares issued in connection with exercises of employee stock options	7		7
Shares issued in connection with exercises of employee stock options (in shares)		3,000
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		933,000
Balance at Dec. 31, 2018	189,917	$ 469	239,723	(43,463)	(6,812)
Balance (in shares) at Dec. 31, 2018		46,801,000
Balance at Sep. 30, 2018	172,916	$ 469	238,728	(59,469)	(6,812)
Balance (in shares) at Sep. 30, 2018		46,987,000
Net income	16,006			16,006
Share-based compensation	988		988
Shares issued in connection with exercises of employee stock options	7		7
Shares issued in connection with exercises of employee stock options (in shares)		3,000
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		(189,000)
Balance at Dec. 31, 2018	189,917	$ 469	239,723	(43,463)	(6,812)
Balance (in shares) at Dec. 31, 2018		46,801,000
Balance at Jun. 30, 2019	$ 171,309	$ 465	241,456	(63,800)	(6,812)
Balance (in shares) at Jun. 30, 2019	46,683,269	46,683,000
Net income	$ 1,309			1,309
Share-based compensation	1,441		1,441
Shares issued or canceled in connection with employee stock incentive plans and related tax effect		$ (3)	3
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		1,353,000
Cumulative effect of accounting change	(601)			(601)
Balance at Dec. 31, 2019	$ 173,457	$ 462	242,899	(63,092)	(6,812)
Balance (in shares) at Dec. 31, 2019	48,036,448	48,036,000
Balance at Sep. 30, 2019	$ 161,799	$ 462	242,179	(74,030)	(6,812)
Balance (in shares) at Sep. 30, 2019		47,738,000
Net income	10,937			10,937
Share-based compensation	720		720
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		298,000
Balance at Dec. 31, 2019	$ 173,457	$ 462	$ 242,899	$ (63,092)	$ (6,812)
Balance (in shares) at Dec. 31, 2019	48,036,448	48,036,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 1,309	$ 7,897
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,807	13,283
Amortization of financing fees	108	158
(Gain)/loss on disposal of assets	137	(18)
Share-based compensation	1,559	1,832
Construction allowances from landlords	483	598
Change in operating assets and liabilities:
Inventories	33,769	7,389
Prepaid and other current assets	(578)	(42)
Accounts payable	(23,263)	(15,244)
Accrued liabilities	1,424	15,869
Operating lease assets and liabilities	219
Deferred rent		(38)
Income taxes payable	46	73
Other liabilities — non-current	101	957
Net cash provided by operating activities	28,121	32,714
Cash flows from investing activities:
Capital expenditures	(8,365)	(8,067)
Purchases of intellectual property	(20)	(273)
Proceeds from sales of assets	22	21
Net cash used in investing activities	(8,363)	(8,319)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	142,300	86,600
Repayments of borrowings under revolving credit facility	(173,350)	(120,080)
Change in cash overdraft	4,957	5,770
Payments on finance leases	(157)	(81)
Proceeds from exercise of stock options and stock purchase plan purchases		7
Net cash used in financing activities	(26,250)	(27,784)
Net decrease in cash and cash equivalents	(6,492)	(3,389)
Cash and cash equivalents, beginning of period	11,395	9,510
Cash and cash equivalents, end of period	$ 4,903	$ 6,121

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 31, 2019
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, 2019. The consolidated balance sheet at June 30, 2019 has been derived from the audited consolidated financial statements at that date. These interim financial statements do 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, 2019. The results of operations for the three and six months ended December 31, 2019 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2020, which we refer to as fiscal 2020, due in part to the seasonality of our business. Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income in any period. 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. Accounting Pronouncement Recently Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”). ASC 842 requires entities (“lessees”) that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASC 842, a right-of-use asset and lease liability is 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. In addition, ASC 842 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We adopted ASC 842 effective July 1, 2019 on a modified retrospective basis. We elected the transition option that allows entities to only apply the standard at the adoption date and not apply the provisions to comparative periods; therefore, prior periods were not restated. This transition option allows the recognition of a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. Our adoption of the standard resulted in a cumulative effect adjustment to retained earnings of $0.6 million, as of July 1, 2019. We elected certain practical expedients permitted under the transition guidance, including the package of practical expedients, which allows us to not reassess whether existing contracts contain leases, the lease classification of existing leases, or initial direct costs for existing leases. We elected not to separate lease and non-lease components for new and modified leases and not to recognize a right-of-use asset and a lease liability for leases with an initial term of 12 months or less. We did not elect the hindsight practical expedient. The adoption of the standard did not materially impact our consolidated net income or liquidity, and did not have an impact on debt-covenant compliance under our current revolving credit agreement. See Note 5 for additional information.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition — Our revenue is earned from sales of merchandise within our stores and is recorded at the point of sale and conveyance of merchandise to customers. Revenue is measured based on the amount of consideration that we expect to receive, reduced by point of sale discounts and estimates for sales returns, and excludes sales tax. Payment for our sales is due at the time of sale. We maintain a reserve for estimated returns, as well as a corresponding returns asset, and we use historical customer return behavior to estimate our reserve requirements. No impairment of the returns asset was identified or recorded as of December 31, 2019. Gift cards are sold to customers in our stores and we issue gift cards for merchandise returns in our stores. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or if the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance and the breakage amounts are included in net sales in the Consolidated Statement of Operations. Breakage income recognized was $0.1 million in the second quarter of fiscal 2020 and was $0.2 million in the second quarter of fiscal 2019. Breakage income recognized was $0.2 million in the first six months of fiscal 2020 and was $0.3 million in the first six months of fiscal 2019. The gift card liability is included in “Accrued liabilities” in the Consolidated Balance Sheet.

Share-Based Incentive Plans

Share-Based Incentive Plans	6 Months Ended
	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Incentive Plans	3. Share-based incentive plans — Stock Option Awards. Stock options were awarded under the 2008 Plan and the 2014 Plan with a strike price at the fair market value equal to the closing price of our common stock on the date of the grant 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 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 December 31, 2019 range between $1.64 per share and $20.91 per share. The 2008 Plan terminated as to new awards as of September 16, 2014. There were 2.1 million shares available for grant under the 2014 Plan at December 31, 2019. Restricted Stock Awards —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 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. The 2014 Plan also authorizes the issuance of restricted stock units which, upon vesting, provide for the issuance of an equivalent number of shares of common stock or a cash payment based on the value of our common stock at vesting. Restricted units are not transferable and do not provide voting or dividend rights. Shares and units are valued at the fair market value of our common stock on the date of the grant. Shares and units may be subject to certain performance requirements. If the performance requirements are not met, the restricted shares or units are forfeited. Under the 2008 Plan and the 2014 Plan, as of December 31, 2019, there were 2,737,884 shares of restricted stock and 1,558,138 restricted stock units 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 $2.33 and $1.76 per share, respectively. Performance-Based Restricted Stock Awards and Performance-Based Stock Option Awards. As of December 31, 2019 there were 1,679,047 unvested performance-based restricted stock awards and performance-based restricted stock units payable in cash outstanding under the 2014 Plan. Share-based Compensation Costs. Share-based compensation costs were recognized as follows (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Amortization of share-based compensation during the period $ 721 $ 988 $ 1,441 $ 1,759 Amounts capitalized in ending inventory (190 ) (332 ) (391 ) (617 ) Amounts recognized and charged to cost of sales 323 452 509 690 Amounts charged against income for the period before tax $ 854 $ 1,108 $ 1,559 $ 1,832

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	4. 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.

Leases

Leases	6 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	5. — We conduct substantially all operations from leased facilities, with the exception of the corporate headquarters in Dallas and the Dallas warehouse, distribution and retail complex, which are owned facilities. The other warehouse facilities across the country and all other retail store locations are under operating leases that will expire over the next 1 to 11 years. Many of our leases include options to renew at our discretion. We include the lease renewal option periods in the calculation of our operating lease assets and liabilities when it is reasonably certain that we will renew the lease. We also lease certain equipment under finance leases that expire generally within 60 months. As discussed in Note 1, we adopted ASC 842 effective July 1, 2019 using the modified retrospective adoption method, which resulted in an adjustment to opening retained earnings of $0.6 million as of July 1, 2019 to recognize impairment of the opening right-of-use asset balance for two stores for which assets had been previously impaired under ASC 360, “Property, Plant, and Equipment.” We utilized the simplified transition option available in ASC 842, which allowed the continued application of the legacy guidance in ASC 840, including disclosure requirements, in the comparative periods presented in the year of adoption. We determine whether an agreement contains a lease at inception based on our right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Lease liabilities represent the present value of future lease payments and the right-of-use (ROU) assets represent our right to use the underlying assets for the respective lease terms. The operating lease liability is measured as the present value of the unpaid lease payments and the ROU asset is derived from the calculation of the operating lease liability. As our leases do not generally provide an implicit rate, we use our incremental borrowing rate as the discount rate to calculate the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate that would be required to borrow over a similar term, on a collateralized basis in a similar economic environment. Rent escalations occurring during the term of the leases are included in the calculation of the future minimum lease payments and the rent expense related to these leases is recognized on a straight-line basis over the lease term. In addition to minimum lease payments, certain leases require payment of a proportionate share of real estate taxes and certain building operating expenses allocated on a percentage of sales in excess of a specified base. These variable lease costs are not included in the measurement of the ROU asset or lease liability due to unpredictability of the payment amount and are recorded as lease expense in the period incurred. The ROU asset is adjusted to account for previously recorded lease-related expenses such as deferred rent and other lease liabilities. Our lease agreements do not contain residual value guarantees or significant restrictions or covenants other than those customary in such arrangements. The components of lease cost are as follows (in thousands): Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Operating lease cost $ 23,424 $ 47,550 Variable lease cost 6,328 12,823 Finance lease cost: Amortization of right-of-use assets 71 142 Interest on lease liabilities 8 16 Total lease cost $ 29,831 $ 60,531 The table below presents additional information related to the Company’s leases as of December 31, 2019: As of December 31, 2019 Weighted average remaining lease term (in years) Operating leases 6.2 Finance leases 3.1 Weighted average discount rate Operating leases 5.8 % Finance leases 3.8 % Other information related to leases, including supplemental disclosures of cash flow information, is as follows (in thousands): Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,787 $ 44,037 Operating cash flows from finance leases 8 16 Financing cash flows from finance leases 71 142 Right-of-use assets obtained in exchange for operating lease liabilities (1,929 ) 10,573 Maturities of lease liabilities were as follows as of December 31, 2019 (in thousands): Operating Leases Finance Leases Total Fiscal year: 2020 (remaining) $ 46,580 $ 154 $ 46,734 2021 85,509 315 85,824 2022 73,375 236 73,611 2023 63,488 97 63,585 2024 54,627 10 54,637 2025 47,274 — 47,274 Thereafter 86,542 — 86,542 Total lease payments $ 457,395 $ 812 $ 458,207 Less: Interest 74,991 43 75,034 Total lease liabilities $ 382,404 $ 769 $ 383,173 Less: Current lease liabilities 71,590 293 71,883 Non-current lease liabilities $ 310,814 $ 476 $ 311,290 Current and non-current finance lease liabilities are recorded in “Accrued liabilities” and “Other liabilities – non-current,” respectively, on our consolidated balance sheet. As of December 31, 2019, there were no operating lease payments for legally binding minimum lease payments for leases signed but not yet commenced.

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Common Share	6. Earnings per common share — The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net income $ 10,937 $ 16,006 $ 1,309 $ 7,897 Less: Income to participating securities (267 ) (159 ) (15 ) (96 ) Net income attributable to common shares $ 10,670 $ 15,847 $ 1,294 $ 7,801 Weighted average number of common shares outstanding — basic 45,218 44,733 45,086 44,612 Effect of dilutive stock equivalents — 3 — 6 Weighted average number of common shares outstanding — diluted 45,218 44,736 45,086 44,618 Net income per common share — basic $ 0.24 $ 0.35 $ 0.03 $ 0.17 Net income per common share — diluted $ 0.24 $ 0.35 $ 0.03 $ 0.17 For the quarters ended December 31, 2019 and December 31, 2018, options representing the rights to purchase approximately 2.8 million weighted average shares and 4.0 million weighted average shares were not included in the diluted income per share calculation, because the assumed exercise of such options would have been anti-dilutive. For the six months ended December 31, 2019 and December 31, 2018, options and awards representing rights to purchase approximately 3.0 million weighted average shares and 3.9 million weighted average shares were excluded from the diluted income per share calculation, because the assumed exercise of such options and awards would have been anti-dilutive.

Revolving Credit Facility

Revolving Credit Facility	6 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Revolving Credit Facility	7. Revolving credit facility — We are party to 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 January 29, 2024 (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, in some instances, limits 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 are required to, 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 December 31, 2019, we were in compliance with all of the Revolving Credit Facility covenants. At December 31, 2019, we had $3.6 million outstanding under the Revolving Credit Facility, $8.8 million of outstanding letters of credit and availability of $91.4 million. Letters of credit under the Revolving Credit Facility are generally 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 the prime rate, or LIBOR, 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 second quarter of the current fiscal year from the Revolving Credit Facility of $0.7 million was comprised of interest of $0.6 million, commitment fees of less than $0.1 million and the amortization of financing fees of less than $0.1 million. Interest expense for the second quarter of the prior fiscal year from the Revolving Credit Facility of $0.8 million was comprised of interest of $0.6 million, commitment fees of $0.1 million and the amortization of financing fees of $0.1 million. Interest expense for the first six months of the current fiscal year from the Revolving Credit Facility of $1.4 million was comprised of interest of $1.1 million, commitment fees of $0.2 million and the amortization of financing fees of $0.1 million. Interest expense for the second quarter of the prior fiscal year from the Revolving Credit Facility of $1.4 million was comprised of interest of $1.0 million, commitment fees of $0.2 million and the amortization of financing fees of $0.2 million. The fair value of the Company’s debt approximated its carrying amount as of December 31, 2019.

Depreciation

Depreciation	6 Months Ended
	Dec. 31, 2019
Property Plant And Equipment [Abstract]
Depreciation	8. Depreciation — Accumulated depreciation of owned property and equipment as of December 31, 2019 and June 30, 2019 was $175.5 million and $179.7 million, respectively. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the Company ceases depreciation and records the assets at the lower of fair value, net of selling costs, or the carrying amount of the asset. As of December 31, 2019, we committed to a plan to sell certain non-core property associated with our Dallas distribution center facility and concluded that the criteria were met for recording these assets as held for sale. The estimated fair value of these assets was higher than the carrying amount, therefore the assets were reclassified on our balance sheet from Property and equipment, net to Assets held for sale at their carrying amount, with no impact to the statement of operations.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	9. 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 2014. 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 December 31, 2019 and 2018 were (3.8%) and (1.4%), respectively. The effective tax rates for the six months ended December 31, 2019 and 2018 were (1.4%) and (1.3%), 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 the effects of the valuation allowance.

Cash and Cash Equivalents

Cash and Cash Equivalents	6 Months Ended
	Dec. 31, 2019
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	10. 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. As of December 31, 2019 and June 30, 2019, credit card receivables from third party consumer credit card providers were $2.0 million and $9.7 million, respectively. Such receivables are generally collected within one week of the balance sheet date.

Intellectual Property

Intellectual Property	6 Months Ended
	Dec. 31, 2019
Intangible Assets Net Excluding Goodwill [Abstract]
Intellectual Property	11. 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 fiscal quarter, and may be reviewed more frequently if indicators of impairment are present. As of December 31, 2019, the carrying value of the intellectual property, which included indefinite-lived trademarks, was $1.3 million, and no impairment was identified or recorded.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Accounting Pronouncement Recently Adopted	Accounting Pronouncement Recently Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”). ASC 842 requires entities (“lessees”) that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASC 842, a right-of-use asset and lease liability is 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. In addition, ASC 842 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We adopted ASC 842 effective July 1, 2019 on a modified retrospective basis. We elected the transition option that allows entities to only apply the standard at the adoption date and not apply the provisions to comparative periods; therefore, prior periods were not restated. This transition option allows the recognition of a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. Our adoption of the standard resulted in a cumulative effect adjustment to retained earnings of $0.6 million, as of July 1, 2019. We elected certain practical expedients permitted under the transition guidance, including the package of practical expedients, which allows us to not reassess whether existing contracts contain leases, the lease classification of existing leases, or initial direct costs for existing leases. We elected not to separate lease and non-lease components for new and modified leases and not to recognize a right-of-use asset and a lease liability for leases with an initial term of 12 months or less. We did not elect the hindsight practical expedient. The adoption of the standard did not materially impact our consolidated net income or liquidity, and did not have an impact on debt-covenant compliance under our current revolving credit agreement. See Note 5 for additional information.

Share-Based Incentive Plans (Ta

Share-Based Incentive Plans (Tables)	6 Months Ended
	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Recognized Share-Based Compensation Costs	Share-based compensation costs were recognized as follows (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Amortization of share-based compensation during the period $ 721 $ 988 $ 1,441 $ 1,759 Amounts capitalized in ending inventory (190 ) (332 ) (391 ) (617 ) Amounts recognized and charged to cost of sales 323 452 509 690 Amounts charged against income for the period before tax $ 854 $ 1,108 $ 1,559 $ 1,832

Leases (Tables)

Leases (Tables)	6 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Components of Lease Cost	The components of lease cost are as follows (in thousands): Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Operating lease cost $ 23,424 $ 47,550 Variable lease cost 6,328 12,823 Finance lease cost: Amortization of right-of-use assets 71 142 Interest on lease liabilities 8 16 Total lease cost $ 29,831 $ 60,531
Schedule of Additional Information Related to Leases	The table below presents additional information related to the Company’s leases as of December 31, 2019: As of December 31, 2019 Weighted average remaining lease term (in years) Operating leases 6.2 Finance leases 3.1 Weighted average discount rate Operating leases 5.8 % Finance leases 3.8 %
Schedule of Other Information Related to Leases Including Supplemental Disclosures of Cash Flow Information	Other information related to leases, including supplemental disclosures of cash flow information, is as follows (in thousands): Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,787 $ 44,037 Operating cash flows from finance leases 8 16 Financing cash flows from finance leases 71 142 Right-of-use assets obtained in exchange for operating lease liabilities (1,929 ) 10,573
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities were as follows as of December 31, 2019 (in thousands): Operating Leases Finance Leases Total Fiscal year: 2020 (remaining) $ 46,580 $ 154 $ 46,734 2021 85,509 315 85,824 2022 73,375 236 73,611 2023 63,488 97 63,585 2024 54,627 10 54,637 2025 47,274 — 47,274 Thereafter 86,542 — 86,542 Total lease payments $ 457,395 $ 812 $ 458,207 Less: Interest 74,991 43 75,034 Total lease liabilities $ 382,404 $ 769 $ 383,173 Less: Current lease liabilities 71,590 293 71,883 Non-current lease liabilities $ 310,814 $ 476 $ 311,290

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Loss Per Common Share	The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net income $ 10,937 $ 16,006 $ 1,309 $ 7,897 Less: Income to participating securities (267 ) (159 ) (15 ) (96 ) Net income attributable to common shares $ 10,670 $ 15,847 $ 1,294 $ 7,801 Weighted average number of common shares outstanding — basic 45,218 44,733 45,086 44,612 Effect of dilutive stock equivalents — 3 — 6 Weighted average number of common shares outstanding — diluted 45,218 44,736 45,086 44,618 Net income per common share — basic $ 0.24 $ 0.35 $ 0.03 $ 0.17 Net income per common share — diluted $ 0.24 $ 0.35 $ 0.03 $ 0.17 For the quarters ended December 31, 2019 and December 31, 2018, options representing the rights to purchase approximately 2.8 million weighted average shares and 4.0 million weighted average shares were not included in the diluted income per share calculation, because the assumed exercise of such options would have been anti-dilutive. For the six months ended December 31, 2019 and December 31, 2018, options and awards representing rights to purchase approximately 3.0 million weighted average shares and 3.9 million weighted average shares were excluded from the diluted income per share calculation, because the assumed exercise of such options and awards would have been anti-dilutive.

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	Jul. 01, 2019	Dec. 31, 2019
Change In Accounting Estimate [Line Items]
Operating lease assets		$ 355,187
Operating lease liabilities		$ 382,404
ASU 2016-02
Change In Accounting Estimate [Line Items]
Cumulative effect adjustment to retained earnings	$ 600
Operating lease assets	350,000
Operating lease liabilities	$ 375,000

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Impairment charges			$ 0
Breakage
Disaggregation Of Revenue [Line Items]
Breakage income recognized	$ 100,000	$ 200,000	$ 200,000	$ 300,000

Share-Based Incentive Plans - N

Share-Based Incentive Plans - Narrative (Details)	6 Months Ended
	Dec. 31, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of stock options outstanding, low end of range | $ / shares	$ 1.64
Exercise price of stock option outstanding, high end of range | $ / shares	$ 20.91
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 | shares	2,100,000
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, Restricted Stock Units Payable in Cash
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding | shares	1,679,047
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 | shares	2,737,884
Weighted average grant date fair value of awards granted (in dollars per share) | $ / shares	$ 2.33
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
2008 and 2014 Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding | shares	1,558,138
Weighted average grant date fair value of awards granted (in dollars per share) | $ / shares	$ 1.76
2008 and 2014 Plan | Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 and 2014 Plan | Restricted Stock Units | 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 Recognized Share-Based Compensation Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Share-based incentive plans
Share-based compensation	$ 854	$ 1,108	$ 1,559	$ 1,832
Amounts capitalized in ending inventory	(190)	(332)	(391)	(617)
Share Based Compensation Amortization
Share-based incentive plans
Share-based compensation	721	988	1,441	1,759
Cost of Sales
Share-based incentive plans
Share-based compensation	$ 323	$ 452	$ 509	$ 690

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	6 Months Ended
	Dec. 31, 2019	Jul. 01, 2019
Lessee Lease Description [Line Items]
Existence of option to renew	true
Operating lease not yet commenced	$ 0
ASU 2016-02
Lessee Lease Description [Line Items]
ASU adoption status	true
ASU adoption date	Jul. 1, 2019
ASU adoption approach	Modified Retrospective
Retained Earnings | ASU 2016-02
Lessee Lease Description [Line Items]
Effect of adoption of ASU 2016-09		$ 600,000
Warehouse Facility and Retail Store Location | Minimum
Lessee Lease Description [Line Items]
Operating lease term of contract	1 year
Warehouse Facility and Retail Store Location | Maximum
Lessee Lease Description [Line Items]
Operating lease term of contract	11 years
Equipment | Maximum
Lessee Lease Description [Line Items]
Finance lease term of contract	60 months

Leases - Components of Lease Co

Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 23,424	$ 47,550
Variable lease cost	6,328	12,823
Amortization of right-of-use assets	71	142
Interest on lease liabilities	8	16
Total lease cost	$ 29,831	$ 60,531

Leases - Schedule of Additional

Leases - Schedule of Additional Information Related to Leases (Detail)	Dec. 31, 2019
Weighted average remaining lease term (in years)
Operating leases	6 years 2 months 12 days
Finance leases	3 years 1 month 6 days
Operating leases	5.80%
Finance leases	3.80%

Leases - Schedule of Other Info

Leases - Schedule of Other Information Related to Leases Including Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 22,787	$ 44,037
Operating cash flows from finance leases	8	16
Financing cash flows from finance leases	71	142
Right-of-use assets obtained in exchange for operating lease liabilities	$ (1,929)	$ 10,573

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Operating Leases Fiscal year:
2020 (remaining)	$ 46,580
2021	85,509
2022	73,375
2023	63,488
2024	54,627
2025	47,274
Thereafter	86,542
Total lease payments	457,395
Less: Interest	74,991
Total lease liabilities	382,404
Less: Current lease liabilities	71,590
Non-current lease liabilities	310,814
Finance Leases Fiscal year:
2020 (remaining)	154
2021	315
2022	236
2023	97
2024	10
Total lease payments	812
Less: Interest	43
Total lease liabilities	769
Less: Current lease liabilities	293
Non-current lease liabilities	476
Total Fiscal year:
2020 (remaining)	46,734
2021	85,824
2022	73,611
2023	63,585
2024	54,637
2025	47,274
Thereafter	86,542
Total lease payments	458,207
Less: Interest	75,034
Total lease liabilities	383,173
Less: Current lease liabilities	71,883
Non-current lease liabilities	$ 311,290

Earnings Per Common Share - Com

Earnings Per Common Share - Computation of Basic and Diluted Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 10,937	$ 16,006	$ 1,309	$ 7,897
Less: Income to participating securities	(267)	(159)	(15)	(96)
Net income attributable to common shares	$ 10,670	$ 15,847	$ 1,294	$ 7,801
Weighted average number of common shares outstanding — basic	45,218	44,733	45,086	44,612
Effect of dilutive stock equivalents		3		6
Weighted average number of common shares outstanding — diluted	45,218	44,736	45,086	44,618
Net income per common share — basic	$ 0.24	$ 0.35	$ 0.03	$ 0.17
Net income per common share — diluted	$ 0.24	$ 0.35	$ 0.03	$ 0.17

Earnings Per Common Share - Nar

Earnings Per Common Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Equity Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted average shares excluded from computation of diluted income (loss) per share	2.8	4	3	3.9

Revolving Credit Facility - Nar

Revolving Credit Facility - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Line Of Credit Facility [Line Items]
Revolving credit facility outstanding amount	$ 3,600,000		$ 3,600,000		$ 34,650,000
Revolving credit facility, description of variable rate basis			one- month LIBOR
Amortization of financing fees			$ 108,000	$ 158,000
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			Jan. 29, 2024
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	$ 3,600,000		$ 3,600,000
Outstanding letters of credit	8,800,000		8,800,000
Availability under the credit facility	91,400,000		$ 91,400,000
Frequency of commitment fee payment			Payable quarterly
Interest expense	700,000	$ 800,000	$ 1,400,000	1,400,000
Commitment fees		100,000	200,000	200,000
Interest expense, debt	$ 600,000	600,000	1,100,000	1,000,000
Amortization of financing fees		$ 100,000	$ 100,000	$ 200,000
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%
Commitment fees	$ 100,000
Amortization of financing fees	$ 100,000

Depreciation - Narrative (Detai

Depreciation - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Property Plant And Equipment [Abstract]
Accumulated depreciation	$ 175.5	$ 179.7

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - Subsidiary	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Number of subsidiaries filing income tax returns in the U.S. federal jurisdiction, and various state jurisdictions	1		1
Effective tax rate	(3.80%)	(1.40%)	(1.40%)	(1.30%)

Cash and Cash Equivalents - Nar

Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Cash And Cash Equivalents [Abstract]
Credit card receivables from third party consumer credit card providers	$ 2	$ 9.7

Intellectual Property - Narrati

Intellectual Property - Narrative (Details) - Intellectual Property	6 Months Ended
	Dec. 31, 2019USD ($)
Indefinite Lived Intangible Assets By Major Class [Line Items]
Carrying value of intellectual property	$ 1,300,000
Impairment of intellectual property	$ 0