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Oxford: Owner of Tommy Bahama and Lilly Pulitzer Reports Record First Quarter Earnings, Raises Full Year Guidance

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In this article:
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  • First quarter sales increased 33%, exceeding high end of revenue guidance range

  • First quarter operating margin expanded 840 basis points to 21.5% on a GAAP basis and 700 basis points to 21.8% on an adjusted basis over fiscal 2021

  • Record first quarter GAAP EPS of $3.45 and adjusted EPS of $3.50 exceeded high end of guidance range

  • Raises full-year EPS guidance to $9.55 - $9.95 on a GAAP basis and $9.60 - $10.00 on an adjusted basis

ATLANTA, June 08, 2022 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2022 first quarter ended April 30, 2022.

Consolidated net sales in the first quarter of fiscal 2022 increased 33% to $353 million compared to $266 million in the first quarter of fiscal 2021. Earnings per share (EPS) on a GAAP basis increased to $3.45 compared to $1.70 in the first quarter of fiscal 2021. On an adjusted basis, EPS increased to $3.50 compared to $1.89 in the first quarter of fiscal 2021.

Thomas C. Chubb III, Chairman and CEO, commented, “After posting record earnings throughout fiscal 2021, we are delighted to be reporting a terrific first quarter in fiscal 2022.  Across our entire portfolio we drove excellent results, with all brands and all channels of distribution delivering strong year over year gains.  As more and more people are returning to social events, leisure travel and even the more casually-attired post-pandemic physical workplace, consumers are increasingly attracted to our happy, upbeat brands and the beautiful products we provide which are both true to our brands’ unique DNA and relevant to today’s consumer and marketplace.”

“We were extremely pleased with the strong top and bottom line results we achieved in our largest brand, Tommy Bahama.  Sales in Tommy Bahama grew by 46% while operating margin expanded 990 basis points to 23%. We are also proud of the 25% sales growth and characteristically strong 28% operating margin we recorded in Lilly Pulitzer and the excellent growth in sales and operating profit at our newly-designated Emerging Brands operating group which includes Southern Tide, The Beaufort Bonnet Company and Duck Head. Our significant beat in the first quarter and the momentum we’ve seen so far in the second quarter give us confidence to raise our sales and EPS guidance for the year.”

Mr. Chubb concluded, “Over the last two years, our incredible team of people worked very hard to position ourselves to emerge from the pandemic stronger than we went in. We are grateful to our associates for all that they do to delight our customers and deliver excellent long-term value for our shareholders.”

First Quarter of Fiscal 2022 versus Fiscal 2021

Net Sales by Operating Group

First Quarter

($ in millions)

 

2022

 

2021

% Change

Tommy Bahama

$

228.1

$

156.7

46

%

Lilly Pulitzer

 

92.0

 

73.6

25

%

Emerging Brands

 

31.8

 

22.4

42

%

Lanier Apparel (exited)

 

0.0

 

12.0

nm

 

Other

 

0.7

 

1.0

nm

 

Total Company

$

352.6

$

265.8

33

%

 

 

 

 

 

 

 

  • Retail sales of $136 million were 49% higher than the first quarter of fiscal 2021, with growth in all parts of the country.

  • Full price e-commerce sales grew 20% to $89 million compared to the first quarter of fiscal 2021, with growth in all brands. In addition, Lilly Pulitzer generated $7 million of flash clearance sales reflecting its change in the timing of flash events to clear certain resort season goods in April rather than later in the year.

  • Restaurant sales grew 23% to $31 million compared to the first quarter of fiscal 2021, driven by strong performance and fewer operating restrictions related to COVID-19 in Tommy Bahama’s 21 food and beverage locations.

  • Wholesale sales of $89 million were 42% higher than the first quarter of fiscal 2021, excluding $12 million of prior-period sales related to Lanier Apparel, with stronger spring orders and a shift in some initial spring shipments from the fourth quarter of fiscal 2021 into the first quarter of fiscal 2022.

  • Gross margin increased to 64.2% compared to 62.7% in the first quarter of fiscal 2021, driven primarily by a shift in sales mix towards direct to consumer channels, the net favorable impact of LIFO accounting and higher initial product margins which were partially offset by higher freight costs. On an adjusted basis, gross margin increased 50 basis points to 64.5% compared to 64.0% in the first quarter of fiscal 2021.

  • SG&A as a percentage of net sales was 44.6% compared to 51.6% in the first quarter of fiscal 2021, reflecting meaningful operating leverage. SG&A was $157 million compared to $137 million in the first quarter of fiscal 2021, increasing primarily due to higher employment costs, variable expenses and advertising costs to support sales growth.

  • Royalties and other operating income increased by 29% to $7 million with growth in royalties in both Tommy Bahama and Lilly Pulitzer.

  • Operating income increased to $76 million, or 21.5% of sales, compared to $35 million, or 13.1% of sales, in the first quarter of fiscal 2021. On an adjusted basis, operating income increased to $77 million, or 21.8% of sales, compared to $39 million, or 14.8% of sales, in the first quarter of fiscal 2021 with operating margin expansion in Tommy Bahama, Lilly Pulitzer and Emerging Brands operating groups.

  • The effective tax rate in the first quarter of fiscal 2022 was 24% versus 18% in the prior year as the first quarter of 2021 benefited from more significant favorable items.

Balance Sheet and Liquidity

On a FIFO basis, inventory increased 18% compared to the end of the first quarter of fiscal 2021 to support planned sales growth in each brand. On a LIFO basis, inventory increased 13% compared to the end of the first quarter of fiscal 2021.

As of April 30, 2022, the Company had a strong liquidity position with $166 million of cash, cash equivalents and short-term investments versus $92 million at the end of the first quarter of fiscal 2021. The increase in cash and short-term investments was driven by strong operating cash flows, which exceeded capital expenditures, share repurchases, and dividend payments. The Company had no borrowings outstanding under its revolving credit agreement during either the first quarter of fiscal 2022 or fiscal 2021.

Dividend and Share Repurchase

The Board of Directors declared a quarterly cash dividend of $0.55 per share. The dividend is payable on July 29, 2022 to shareholders of record as of the close of business on July 15, 2022. The Company has paid dividends every quarter since it became publicly owned in 1960.

To date, the Company has repurchased approximately 800,000 shares, or nearly 5% of total shares outstanding, for $70 million, including $8 million in the fourth quarter of 2021, $43 million in the first quarter of 2022, and $19 million subsequent to quarter-end under its December 7, 2021 $150 million share repurchase authorization and associated $100 million 10b5-1 trading plan.

Outlook

The Company initiated its guidance for the second quarter of fiscal 2022, ending on July 30, 2022. The Company expects net sales to be between $350 million and $370 million compared to net sales of $329 million in the second quarter of fiscal 2021, which included $8 million of Lanier Apparel sales. Both GAAP and adjusted EPS are expected to be in a range of $3.30 to $3.50 in the second quarter. This compares with EPS of $3.05 on a GAAP basis and $3.24 on an adjusted basis in the second quarter of fiscal 2021.

For fiscal 2022, the Company raised its previously issued guidance. The Company now expects net sales in a range of $1.285 billion to $1.325 billion as compared to net sales of $1.142 billion in fiscal 2021. In fiscal 2022, GAAP EPS is expected to be between $9.55 and $9.95. Adjusted EPS is expected to be between $9.60 and $10.00. This compares to GAAP EPS of $7.78 and adjusted EPS of $7.99 in fiscal 2021.

The Company’s effective tax rate is expected to be between 24% and 25% for both the second quarter and fiscal 2022.

Capital expenditures in fiscal 2022 are expected to be approximately $50 million, primarily reflecting investments in information technology initiatives, the development of new direct to consumer locations, including construction of a new Marlin Bar opening in 2023 in Palm Beach Gardens, and remodeling existing stores. Capital expenditures were $32 million in fiscal 2021.

Conference Call

The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company’s website at www.oxfordinc.com. A replay of the call will be available through June 22, 2022 by dialing (412) 317-6671 access code 13730041.

About Oxford

Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly Pulitzer®, Southern Tide®, The Beaufort Bonnet Company® and Duck Head® lifestyle brands. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford's website at www.oxfordinc.com.

Basis of Presentation

All per share information is presented on a diluted basis.

Beginning in the first quarter of fiscal 2022, the Company combined Southern Tide, The Beaufort Bonnet Company and Duck Head into the Emerging Brands operating group. Previously, Southern Tide was a separately reported operating group and The Beaufort Bonnet Company and Duck Head were included in Corporate and Other. All prior periods have been restated to conform to the current period presentation. Attached to this press release are schedules showing fiscal 2021 operating results by quarter for the new presentation.

Non-GAAP Financial Information

The Company reports its consolidated financial statements in accordance with generally accepted accounting principles (GAAP).  To supplement these consolidated financial results, management believes that a presentation and discussion of certain financial measures on an adjusted basis, which exclude certain non-operating or discrete gains, charges or other items, may provide a more meaningful basis on which investors may compare the Company’s ongoing results of operations between periods.  These measures include adjusted earnings, adjusted earnings per share, adjusted gross profit, adjusted gross margin, adjusted SG&A, and adjusted operating income, among others.

Management uses these non-GAAP financial measures in making financial, operational, and planning decisions to evaluate the Company’s ongoing performance. Management also uses these adjusted financial measures to discuss its business with investment and other financial institutions, its board of directors and others.  Reconciliations of these adjusted measures to the most directly comparable financial measures calculated in accordance with GAAP are presented in tables included at the end of this release.

Safe Harbor

This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which typically are not historical in nature. We intend for all forward-looking statements contained herein, in our press releases or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Such statements are subject to a number of risks, uncertainties and assumptions including, without limitation, the impact of the coronavirus (COVID-19) pandemic on our business, operations and financial results, including due to uncertainties about scope and duration, supply chain disruptions, future store closures or other operating restrictions or the impact on consumer traffic, any or all of which may also affect many of the following risks; demand for our products, which may be impacted by competitive conditions and/or evolving consumer shopping patterns; macroeconomic factors that may impact consumer discretionary spending and pricing levels for apparel and related products, many of which may be impacted by current inflationary pressures; supply chain disruptions, including the potential lack of inventory to support demand for our products, which may be impacted by capacity constraints, closed factories, and cost and availability of freight deliveries; costs and availability of labor; costs of products as well as the raw materials used in those products; energy costs; our ability to be more hyper-digital and respond to rapidly changing consumer expectations; the ability of business partners, including suppliers, vendors, licensees and landlords, to meet their obligations to us and/or continue our business relationship to the same degree in light of current or future staffing shortages, liquidity challenges and/or bankruptcy filings; retention of and disciplined execution by key management and other critical personnel; cybersecurity breaches and ransomware attacks, as well as our and our third party vendors’ ability to properly collect, use, manage and secure business, consumer and employee data; changes in international, federal or state tax, trade and other laws and regulations, including the potential imposition of additional duties; the timing of shipments requested by our wholesale customers; weather; fluctuations and volatility in global financial markets; the timing and cost of store and restaurant openings and remodels, technology implementations and other capital expenditures; acquisition activities, including our ability to timely recognize expected synergies from acquisitions; expected outcomes of pending or potential litigation and regulatory actions; the increased consumer, employee and regulatory focus on climate change and environmental, social, and governance issues; access to capital and/or credit markets; factors that could affect our consolidated effective tax rate; and geopolitical risks, including those related to the ongoing conflict in Ukraine. Forward-looking statements reflect our expectations at the time such forward-looking statements are made, based on information available at such time, and are not guarantees of performance. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I. Item 1A. Risk Factors contained in our Annual Report on Form 10-K for Fiscal 2021, and those described from time to time in our future reports filed with the SEC. We caution that one should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact:                 Jevon Strasser                                                        
E-mail:                InvestorRelations@oxfordinc.com



 

Oxford Industries, Inc.

Consolidated Balance Sheets

(in thousands, except par amounts)

(unaudited)

 

April 30,

 

May 1,

 

2022

 

2021

ASSETS

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

31,799

 

 

$

92,086

 

Short-term investments

 

134,327

 

 

 

 

Receivables, net

 

74,374

 

 

 

67,658

 

Inventories, net

 

122,760

 

 

 

108,810

 

Income tax receivable

 

19,741

 

 

 

17,830

 

Prepaid expenses and other current assets

 

24,911

 

 

 

22,355

 

Total Current Assets

$

407,912

 

 

$

308,739

 

Property and equipment, net

 

150,393

 

 

 

157,553

 

Intangible assets, net

 

155,080

 

 

 

155,967

 

Goodwill

 

23,870

 

 

 

23,930

 

Operating lease assets

 

182,345

 

 

 

221,647

 

Other assets, net

 

27,417

 

 

 

33,146

 

Total Assets

$

947,017

 

 

$

900,982

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable

$

68,641

 

 

$

72,323

 

Accrued compensation

 

26,477

 

 

 

31,578

 

Current portion of operating lease liabilities

 

54,642

 

 

 

60,226

 

Accrued expenses and other liabilities

 

76,657

 

 

 

60,963

 

Total Current Liabilities

$

226,417

 

 

$

225,090

 

Long-term debt

 

 

 

 

 

Non-current portion of operating lease liabilities

 

185,365

 

 

 

226,358

 

Other non-current liabilities

 

19,600

 

 

 

21,270

 

Deferred income taxes

 

2,215

 

 

 

363

 

Shareholders’ Equity

 

 

 

 

 

Common stock, $1.00 par value per share

 

16,284

 

 

 

16,894

 

Additional paid-in capital

 

163,137

 

 

 

156,069

 

Retained earnings

 

336,994

 

 

 

258,211

 

Accumulated other comprehensive loss

 

(2,995

)

 

 

(3,273

)

Total Shareholders’ Equity

$

513,420

 

 

$

427,901

 

Total Liabilities and Shareholders’ Equity

$

947,017

 

 

$

900,982

 

 

 

 

 

 

 

 

 


 

Oxford Industries, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

First Quarter

 

Fiscal 2022

 

Fiscal 2021

Net sales

$

352,581

 

 

$

265,762

 

Cost of goods sold

 

126,204

 

 

 

99,177

 

Gross profit

$

226,377

 

 

$

166,585

 

SG&A

 

157,412

 

 

 

137,125

 

Royalties and other operating income

 

7,013

 

 

 

5,433

 

Operating income

$

75,978

 

 

$

34,893

 

Interest expense, net

 

242

 

 

 

252

 

Earnings before income taxes

$

75,736

 

 

$

34,641

 

Income tax expense

 

18,328

 

 

 

6,173

 

Net earnings

$

57,408

 

 

$

28,468

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

3.52

 

 

$

1.72

 

Diluted

$

3.45

 

 

$

1.70

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

16,316

 

 

 

16,594

 

Diluted

 

16,622

 

 

 

16,792

 

Dividends declared per share

$

0.55

 

 

$

0.37

 

 

 

 

 

 

 

 

 


 

Oxford Industries, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

First Quarter

 

Fiscal 2022

 

Fiscal 2021

Cash Flows From Operating Activities:

 

 

 

 

 

Net earnings

$

57,408

 

 

$

28,468

 

Adjustments to reconcile net earnings to cash flows from operating activities:

 

 

 

 

 

Depreciation

 

9,963

 

 

 

9,463

 

Amortization of intangible assets

 

227

 

 

 

220

 

Equity compensation expense

 

2,725

 

 

 

2,227

 

Amortization of deferred financing costs

 

86

 

 

 

86

 

Deferred income taxes

 

(727

)

 

 

1,584

 

Changes in operating assets and liabilities, net of acquisitions and dispositions:

 

 

 

 

 

Receivables, net

 

(39,834

)

 

 

(37,219

)

Inventories, net

 

(5,054

)

 

 

14,902

 

Income tax receivable

 

(13

)

 

 

145

 

Prepaid expenses and other current assets

 

(6,314

)

 

 

(1,980

)

Current liabilities

 

3,498

 

 

 

27,211

 

Other balance sheet changes

 

515

 

 

 

(4,102

)

Cash provided by operating activities

$

22,480

 

 

$

41,005

 

Cash Flows From Investing Activities:

 

 

 

 

 

Purchases of property and equipment

 

(9,280

)

 

 

(4,925

)

Purchases of short-term investments

 

(15,000

)

 

 

 

Proceeds from short-term investments

 

45,000

 

 

 

 

Other investing activities

 

 

 

 

(500

)

Cash provided by (used in) investing activities

$

20,720

 

 

$

(5,425

)

Cash Flows From Financing Activities:

 

 

 

 

 

Repurchase of common stock

 

(42,867

)

 

 

 

Proceeds from issuance of common stock

 

392

 

 

 

322

 

Repurchase of equity awards for employee tax withholding liabilities

 

(3,166

)

 

 

(2,983

)

Cash dividends paid

 

(9,020

)

 

 

(6,252

)

Other financing activities

 

(2,010

)

 

 

(749

)

Cash used in financing activities

$

(56,671

)

 

$

(9,662

)

Net change in cash and cash equivalents

 

(13,471

)

 

 

25,918

 

Effect of foreign currency translation on cash and cash equivalents

 

411

 

 

 

155

 

Cash and cash equivalents at the beginning of year

 

44,859

 

 

 

66,013

 

Cash and cash equivalents at the end of period

$

31,799

 

 

$

92,086

 

 

 

 

 

 

 

 

 


 

Oxford Industries, Inc.

Reconciliations of Certain Non-GAAP Financial Information

(in millions, except per share amounts)

(unaudited)

 

First Quarter

AS REPORTED

Fiscal 2022

 

Fiscal 2021

 

% Change

Tommy Bahama

 

 

 

 

 

 

Net sales

$

228.1

 

 

$

156.7

 

 

45.5

%

Gross profit

$

147.3

 

 

$

101.5

 

 

45.1

%

Gross margin

 

64.6

%

 

 

64.8

%

 

 

Operating income

$

52.6

 

 

$

20.7

 

 

154.6

%

Operating margin

 

23.1

%

 

 

13.2

%

 

 

Lilly Pulitzer

 

 

 

 

 

 

Net sales

$

92.0

 

 

$

73.6

 

 

25.1

%

Gross profit

$

63.5

 

 

$

51.2

 

 

24.1

%

Gross margin

 

69.0

%

 

 

69.6

%

 

 

Operating income

$

26.2

 

 

$

19.9

 

 

31.3

%

Operating margin

 

28.4

%

 

 

27.1

%

 

 

Emerging Brands

 

 

 

 

 

 

Net sales

$

31.8

 

 

$

22.4

 

 

41.6

%

Gross profit

$

16.3

 

 

$

12.1

 

 

35.1

%

Gross margin

 

51.5

%

 

 

53.9

%

 

 

Operating income

$

7.7

 

 

$

5.0

 

 

55.9

%

Operating margin

 

24.4

%

 

 

22.1

%

 

 

Lanier Apparel

 

 

 

 

 

 

Net sales

$

0.0

 

 

$

12.0

 

 

(100.0

)%

Gross profit

$

0.0

 

 

$

4.3

 

 

(100.0

)%

Gross margin

 

NM

 

 

 

35.7

%

 

 

Operating income

$

0.0

 

 

$

0.9

 

 

(100.0

)%

Operating margin

 

NM

 

 

 

7.1

%

 

 

Corporate and Other

 

 

 

 

 

 

Net sales

$

0.7

 

 

$

1.0

 

 

(32.0

)%

Gross profit

$

(0.8

)

 

$

(2.5

)

 

NM

 

Operating loss

$

(10.5

)

 

$

(11.5

)

 

NM

 

Consolidated

 

 

 

 

 

 

Net sales

$

352.6

 

 

$

265.8

 

 

32.7

%

Gross profit

$

226.4

 

 

$

166.6

 

 

35.9

%

Gross margin

 

64.2

%

 

 

62.7

%

 

 

SG&A

$

157.4

 

 

$

137.1

 

 

14.8

%

SG&A as % of net sales

 

44.6

%

 

 

51.6

%

 

 

Operating income

$

76.0

 

 

$

34.9

 

 

117.7

%

Operating margin

 

21.5

%

 

 

13.1

%

 

 

Earnings before income taxes

$

75.7

 

 

$

34.6

 

 

118.6

%

Net earnings

$

57.4

 

 

$

28.5

 

 

101.7

%

Net earnings per diluted share

$

3.45

 

 

$

1.70

 

 

102.9

%

Weighted average shares outstanding - diluted

 

16.6

 

 

 

16.8

 

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

 


 

 

 

First Quarter

ADJUSTMENTS

Fiscal 2022

 

Fiscal 2021

 

% Change

LIFO adjustments(1)

$

1.0

 

 

$

3.1

 

 

 

Lanier Apparel exit charges in cost of goods sold(2)

$

0.0

 

 

$

0.5

 

 

 

Amortization of Southern Tide intangible assets(3)

$

0.0

 

 

$

0.1

 

 

 

Lanier Apparel exit charges in SG&A(4)

$

0.0

 

 

$

0.8

 

 

 

Impact of income taxes(5)

$

(0.3

)

 

$

(1.1

)

 

 

Adjustment to net earnings(6)

$

0.8

 

 

$

3.3

 

 

 

AS ADJUSTED

 

 

 

 

 

 

Tommy Bahama

 

 

 

 

 

 

Net sales

$

228.1

 

 

$

156.7

 

 

45.5

%

Gross profit

$

147.3

 

 

$

101.5

 

 

45.1

%

Gross margin

 

64.6

%

 

 

64.8

%

 

 

Operating income

$

52.6

 

 

$

20.7

 

 

154.6

%

Operating margin

 

23.1

%

 

 

13.2

%

 

 

Lilly Pulitzer

 

 

 

 

 

 

Net sales

$

92.0

 

 

$

73.6

 

 

25.1

%

Gross profit

$

63.5

 

 

$

51.2

 

 

24.1

%

Gross margin

 

69.0

%

 

 

69.6

%

 

 

Operating income

$

26.2

 

 

$

19.9

 

 

31.3

%

Operating margin

 

28.4

%

 

 

27.1

%

 

 

Emerging Brands

 

 

 

 

 

 

Net sales

$

31.8

 

 

$

22.4

 

 

41.6

%

Gross profit

$

16.3

 

 

$

12.1

 

 

35.1

%

Gross margin

 

51.5

%

 

 

53.9

%

 

 

Operating income

$

7.7

 

 

$

5.0

 

 

53.7

%

Operating margin

 

24.4

%

 

 

22.4

%

 

 

Lanier Apparel

 

 

 

 

 

 

Net sales

$

0.0

 

 

$

12.0

 

 

(100.0

)%

Gross profit

$

0.0

 

 

$

4.8

 

 

(100.0

)%

Gross margin

 

NM

 

 

 

39.5

%

 

 

Operating income

$

0.0

 

 

$

2.1

 

 

(100.0

)%

Operating margin

 

NM

 

 

 

17.7

%

 

 

Corporate and Other

 

 

 

 

 

 

Net sales

$

0.7

 

 

$

1.0

 

 

(32.0

)%

Gross profit

$

0.2

 

 

$

0.5

 

 

NM

 

Operating loss

$

(9.5

)

 

$

(8.5

)

 

NM

 

Consolidated

 

 

 

 

 

 

Net sales

$

352.6

 

 

$

265.8

 

 

32.7

%

Gross profit

$

227.4

 

 

$

170.1

 

 

33.7

%

Gross margin

 

64.5

%

 

 

64.0

%

 

 

SG&A

$

157.4

 

 

$

136.2

 

 

15.5

%

SG&A as % of net sales

 

44.6

%

 

 

51.3

%

 

 

Operating income

$

77.0

 

 

$

39.3

 

 

95.9

%

Operating margin

 

21.8

%

 

 

14.8

%

 

 

Earnings before income taxes

$

76.7

 

 

$

39.1

 

 

96.5

%

Net earnings

$

58.2

 

 

$

31.7

 

 

83.3

%

Net earnings per diluted share

$

3.50

 

 

$

1.89

 

 

85.2

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

First Quarter

 

 

First Quarter

 

 

Fiscal 2022

 

 

Fiscal 2022

 

 

Fiscal 2021

 

 

Actual

 

 

Guidance(7)

 

 

Actual

Net earnings per diluted share:

 

 

 

 

 

 

 

 

GAAP basis

$

3.45

 

$

2.65 - 2.85

 

$

1.70

LIFO adjustments(8)

 

0.05

 

 

0.00

 

 

0.14

Amortization of recently acquired intangible assets(9)

 

0.00

 

 

0.00

 

 

0.00

Lanier Apparel exit charges(10)

 

0.00

 

 

0.00

 

 

0.06

As adjusted(6)

$

3.50

 

$

2.65 - 2.85

 

$

1.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

Second Quarter

 

 

 

 

 

Fiscal 2022

 

 

Fiscal 2021

 

 

 

 

 

Guidance(11)

 

 

Actual

 

 

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

GAAP basis

$

3.30-3.50

 

$

3.05

 

 

 

LIFO adjustments(8)

 

0.00

 

 

0.19

 

 

 

Amortization of recently acquired intangible assets(9)

 

0.00

 

 

0.00

 

 

 

Lanier Apparel exit charges(10)

 

0.00

 

 

(0.01)

 

 

 

As adjusted(6)

$

3.30-3.50

 

$

3.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year

 

 

Full Year

 

 

 

 

 

Fiscal 2022

 

 

Fiscal 2021

 

 

 

 

 

Guidance(11)

 

 

Actual

 

 

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

GAAP basis

$

9.55-9.95

 

$

7.78

 

 

 

LIFO adjustments(8)

 

0.05

 

 

0.70

 

 

 

Amortization of recently acquired intangible assets(9)

 

0.00

 

 

0.01

 

 

 

Tommy Bahama lease termination charges(12)

 

0.00

 

 

0.21

 

 

 

Lanier Apparel exit charges(10)

 

0.00

 

 

0.04

 

 

 

Change in fair value of contingent consideration(13)

 

0.00

 

 

0.05

 

 

 

Gain on sale of Lanier Apparel distribution center(14)

 

0.00

 

 

(0.12)

 

 

 

Gain on sale of investment in unconsolidated entity(15)

 

0.00

 

 

(0.68)

 

 

 

As adjusted(6)

$

9.60-10.00

 

$

7.99

 

 

 

 

 

 

 

 

 

 

 

 


 

Restated Operating Group Amounts by Quarter for Fiscal 2021

The tables below restate the net sales and operating income for each operating group by quarter to reflect the impact of combining Southern Tide, TBBC and Duck Head in the Emerging Brands Group. Previously Southern Tide was reported as a separate operating group, while TBBC and Duck Head were included in Corporate and Other.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2021

 

 

First

 

Second

 

Third

 

Fourth

 

Full

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Year(6)

Net sales, GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tommy Bahama

 

$

156.7

 

 

$

208.8

 

 

$

148.5

 

 

$

210.3

 

 

$

724.3

 

Lilly Pulitzer

 

 

73.6

 

 

 

87.3

 

 

 

72.2

 

 

 

65.9

 

 

 

299.0

 

Emerging Brands

 

 

22.4

 

 

 

22.8

 

 

 

22.1

 

 

 

22.7

 

 

 

90.1

 

Lanier Apparel

 

 

12.0

 

 

 

8.5

 

 

 

4.2

 

 

 

0.1

 

 

 

24.9

 

Corporate and Other

 

 

1.0

 

 

 

1.2

 

 

 

0.8

 

 

 

0.8

 

 

 

3.9

 

Total(6)

 

$

265.8

 

 

$

328.7

 

 

$

247.7

 

 

$

299.9

 

 

$

1,142.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income, GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tommy Bahama

 

$

20.7

 

 

$

47.3

 

 

$

5.5

 

 

$

38.2

 

 

$

111.7

 

Lilly Pulitzer

 

 

19.9

 

 

 

25.8

 

 

 

16.0

 

 

 

1.9

 

 

 

63.6

 

Emerging Brands

 

 

5.0

 

 

 

4.5

 

 

 

4.1

 

 

 

3.1

 

 

 

16.6

 

Lanier Apparel

 

 

0.9

 

 

 

0.9

 

 

 

0.3

 

 

 

2.8

 

 

 

4.9

 

Corporate and Other

 

 

(11.5

)

 

 

(10.5

)

 

 

4.6

 

 

 

(14.0

)

 

 

(31.4

)

Total(6)

 

$

34.9

 

 

$

68.0

 

 

$

30.6

 

 

$

32.0

 

 

$

165.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tommy Bahama lease termination charges(16)

 

$

-

 

 

$

-

 

 

$

4.9

 

 

$

-

 

 

$

4.9

 

Amortization of Southern Tide intangible assets(3)

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.3

 

Change in fair value of contingent consideration(17)

 

 

-

 

 

 

-

 

 

 

0.8

 

 

 

0.4

 

 

 

1.2

 

Lanier Apparel exit charges(18)

 

 

1.3

 

 

 

(0.2

)

 

 

(0.1

)

 

 

-

 

 

 

1.0

 

Gain on sale of Lanier Apparel distribution center(19)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2.7

)

 

 

(2.7

)

LIFO adjustments(1)

 

 

3.1

 

 

 

4.4

 

 

 

2.2

 

 

 

6.3

 

 

 

15.9

 

Gain on sale of investment in unconsolidated entity(20)

 

 

-

 

 

 

-

 

 

 

(11.6

)

 

 

-

 

 

 

(11.6

)

Total adjustments(6)

 

$

4.4

 

 

$

4.2

 

 

$

(3.8

)

 

$

4.1

 

 

$

8.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income, as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tommy Bahama

 

$

20.7

 

 

$

47.3

 

 

$

10.4

 

 

$

38.2

 

 

$

116.6

 

Lilly Pulitzer

 

 

19.9

 

 

 

25.8

 

 

 

16.0

 

 

 

1.9

 

 

 

63.6

 

Emerging Brands

 

 

5.0

 

 

 

4.6

 

 

 

5.0

 

 

 

3.6

 

 

 

18.1

 

Lanier Apparel

 

 

2.1

 

 

 

0.7

 

 

 

0.2

 

 

 

0.2

 

 

 

3.2

 

Corporate and Other

 

 

(8.5

)

 

 

(6.1

)

 

 

(4.7

)

 

 

(7.8

)

 

 

(27.1

)

Total(6)

 

$

39.3

 

 

$

72.2

 

 

$

26.8

 

 

$

36.1

 

 

$

174.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

(1) LIFO adjustments represents the impact of LIFO accounting adjustments. These adjustments are included in cost of goods sold in Corporate and Other.

(2) Lanier Apparel exit charges in cost of goods sold relate to amounts resulting from the exit of the Lanier Apparel business, which was completed in Fiscal 2021. These amounts in Fiscal 2021 relate to estimates of inventory markdowns and costs related to the Merida, Mexico manufacturing facility, which ceased operations in Fiscal 2020. These amounts are included in cost of goods sold in Lanier Apparel.

(3) Amortization of Southern Tide intangible assets represents the amortization related to intangible assets acquired as part of the Southern Tide acquisition. These charges are included in SG&A in Emerging Brands.

(4) Lanier Apparel exit charges in SG&A relate to amounts resulting from the exit of the Lanier Apparel business, which was completed in Fiscal 2021. These charges in Fiscal 2021 primarily consist of employee charges for retention and severance and termination charges related to certain license agreements. These charges are included in SG&A in Lanier Apparel.

(5) Impact of income taxes represents the estimated tax impact of the above adjustments based on the estimated applicable tax rate on current year earnings in the respective jurisdiction.

(6) Amounts in columns may not add due to rounding.

(7) Guidance as issued on March 23, 2022.

(8) LIFO adjustments represents the impact, net of income taxes, on net earnings per share resulting from LIFO accounting adjustments. No estimate for LIFO accounting adjustments is reflected in the guidance for any future periods.

(9) Amortization of recently acquired intangible assets represents the impact, net of income taxes, on net earnings per share resulting from the amortization of intangible assets acquired as part of the Southern Tide acquisition.

(10) Lanier Apparel exit charges represents the impact, net of income taxes, on net earnings per share resulting from the exit of the Lanier Apparel business, which was completed in Fiscal 2021. These charges in Fiscal 2021 include amounts related to estimates of inventory markdowns, costs related to the Merida, Mexico manufacturing facility, employee charges and termination charges related to certain license agreements.

(11) Guidance as issued on June 8, 2022.

(12) Tommy Bahama lease termination charges represents the impact, net of income taxes, on net earnings per share of the charges associated with the termination of the Tommy Bahama New York office and showroom lease in Fiscal 2021.

(13) Change in fair value of contingent consideration represents the impact, net of income taxes, on net earnings per share relating to the change in the fair value of contingent consideration related to the TBBC acquisition.

(14) Gain on sale of Lanier Apparel distribution center represents the impact, net of income taxes, on net earnings per share resulting from the sale of the Lanier Apparel Toccoa, Georgia distribution center in Fiscal 2021.

(15) Gain on sale of investment in unconsolidated entity represents the impact, net of income taxes, on net earnings per share relating to the gain recognized on the sale of the ownership interest in an unconsolidated entity in Fiscal 2021. Due to the utilization of benefits associated with certain capital losses to substantially offset the gain there was no significant income tax expense associated with this gain.

(16) Tommy Bahama lease termination charges represents charges associated with the termination of the Tommy Bahama New York office and showroom lease in Fiscal 2021. These charges are included in SG&A in Tommy Bahama.

(17) Change in fair value of contingent consideration represents the impact related to the change in the fair value of contingent consideration related to the TBBC acquisition. These charges are included in SG&A in Emerging Brands.

(18) Lanier Apparel exit charges represents the impact resulting from the exit of the Lanier Apparel business, which was completed in Fiscal 2021. These charges in Fiscal 2021 include amounts related to estimates of inventory markdowns, costs related to the Merida, Mexico manufacturing facility, employee charges and termination charges related to certain license agreements.

(19) Gain on sale of Lanier Apparel distribution center represents the gain recognized on the sale of the Lanier Apparel Toccoa, Georgia distribution center in Fiscal 2021. This gain is included in royalties and other income in Lanier Apparel.

(20) Gain on sale of investment in unconsolidated entity represents the gain recognized on the sale of the ownership interest in an unconsolidated entity in Fiscal 2021. This gain is included in royalties and other income in Corporate and Other.

 

 


 

 

 

 

 

Location Count

 

End of Q1

End of Q2

End of Q3

End of Q4

 

 

 

 

 

Fiscal 2021

 

 

 

 

Tommy Bahama

 

 

 

 

Full-price retail store

104

104

103

102

Retail-restaurant

21

21

21

21

Outlet

35

35

35

35

Total Tommy Bahama

160

160

159

158

Lilly Pulitzer

59

59

59

58

Emerging Brands

 

 

 

 

Southern Tide

4

4

4

4

TBBC

1

Oxford Total

223

223

222

221

 

 

 

 

 

Fiscal 2022

 

 

 

 

Tommy Bahama

 

 

 

 

Full-price retail store

102

Retail-restaurant

21

Outlet

35

Total Tommy Bahama

158

Lilly Pulitzer

59

Emerging Brands

 

 

 

 

Southern Tide

4

TBBC

1

Oxford Total

222