Revenue Recognition |
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| Revenue Recognition | REVENUE RECOGNITION Disaggregated Revenue The table below disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale revenue, which is not a significant component of total revenue, and is aggregated within the respective brands.
Contract Liability Contract liabilities in the unaudited condensed consolidated balance sheets are comprised of obligations associated with our gift card and customer rewards programs. As of April 29, 2023, January 28, 2023, and April 30, 2022, contract liabilities primarily consisted of gift cards of $35.3 million, $42.6 million and $36.7 million, respectively. For the thirteen weeks ended April 29, 2023, the Company recognized $11.2 million of revenue that was previously included in the gift card contract liability as of January 28, 2023. For the thirteen weeks ended April 30, 2022, the Company recognized $11.5 million of revenue that was previously included in the gift card contract liability as of January 29, 2022.
The Company maintains customer rewards programs in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchases at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of the merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as the rewards are redeemed or expire. While historically this point based program was specific to Soma, during the second quarter of fiscal year 2022, Chico’s FAS extended its point based rewards program to Chico’s and WHBM. As of April 29, 2023, January 28, 2023, and April 30, 2022, the rewards deferred revenue balance was $8.5 million, $7.4 million and $0.8 million, respectively.
Performance Obligation For the thirteen weeks ended April 29, 2023, and April 30, 2022, revenue recognized from performance obligations related to prior periods were not material. Revenue to be recognized in future periods related to performance obligations is not expected to be material.
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