text: **Revenue Recognition**
  We recognize revenue from sales at our retail stores at the point of sale, net of estimated sales returns and excluding sales taxes. Revenue 
  from sales to customers shipped directly from our stores, website and catalog, which includes shipping revenue when applicable, is 
  recognized upon estimated receipt by the customer. We estimate customer merchandise returns based on historical return patterns and 
  reduce sales and cost of sales accordingly. 
  
  Although we believe we have sufficient current and historical knowledge to record reasonable estimates of sales returns, there is a possibility 
  that actual returns could differ from recorded amounts. In the past three years, there were no significant changes in customer behavior and 
  we have made no material changes to our estimates included in the calculations of our sales return reserve. A 10% change in the sales 
  return reserve would have had a $10 impact on our net earnings for the year ended January 31, 2015. 
  
  **Inventory**
  Our merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail 
  method, the valuation of inventories and the resulting gross margins are determined by applying a calculated cost-to-retail ratio to the retail 
  value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory 
  markdowns taken on the selling floor. To determine if the retail value of our inventory should be marked down, we consider current and 
  anticipated demand, customer preferences, age of the merchandise and fashion trends. Inherent in the retail inventory method are certain 
  management judgments that may affect the ending inventory valuation as well as gross margin. 