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

·26 min read
  • Second quarter sales increased 11%

  • Record second quarter GAAP EPS of $3.49 and adjusted EPS of $3.61

  • Raises full-year sales and EPS guidance

  • Repurchased $30 million of stock in the second quarter

ATLANTA, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2022 second quarter ended July 30th, 2022.

Consolidated net sales in the second quarter of fiscal 2022 increased 11% to $363 million compared to $329 million in the second quarter of fiscal 2021. Earnings per share (EPS) on a GAAP basis increased to $3.49 compared to $3.05 in the second quarter of fiscal 2021. On an adjusted basis, EPS increased to $3.61 compared to $3.24 in the second quarter of fiscal 2021.

Tom Chubb, Chairman and CEO, commented, “We are extremely pleased to be reporting record earnings for the sixth consecutive quarter. The strength of our brands, our products and our customer experiences fueled 14% comparable direct-to-consumer sales growth and expansion of our already robust gross margin. Favorable market conditions during the quarter included the continued return of the consumer to physical retail, the return to in-person work and social events, the growth in year-round population in many of our strongest markets and the rebound in leisure travel. All of these factors, which play to the strength of our portfolio of brands, continue unabated and augur well for the balance of the year.”

Mr. Chubb concluded, “Outstanding results like these are only possible through the effort of outstanding people and we have a team that is second to none. We are grateful to each and every one of our associates for all that they do on behalf of our customers, our communities and in turn our shareholders.”

Second Quarter of Fiscal 2022 versus Fiscal 2021

Net Sales by Operating Group

Second Quarter

($ in millions)

 

2022

 

2021

% Change

Tommy Bahama

$

244.0

$

208.8

17

%

Lilly Pulitzer

 

88.7

 

87.3

2

%

Emerging Brands

 

29.9

 

22.8

31

%

Lanier Apparel (exited)

 

0.0

 

8.5

nm

Other

 

0.9

 

1.2

nm

Total Company

$

363.4

$

328.7

11

%

  • Full-price DTC comp sales increased 14% versus the second quarter of fiscal 2021.

    • Full-price retail sales of $135 million were 14% higher than the second quarter of fiscal 2021.

    • Full price e-commerce sales grew 13% to $119 million compared to the second quarter of fiscal 2021.

  • Outlet sales were $19 million, an 8% increase versus the second quarter of 2021.

  • Restaurant sales grew 6% to $27 million compared to the second quarter of fiscal 2021.

  • Wholesale sales of $63 million were 17% higher than the second quarter of fiscal 2021, excluding $8 million of prior-period sales related to Lanier Apparel, driven by stronger orders this year.

  • Gross margin increased to 63.9% compared to 63.8% in the second quarter of fiscal 2021. On an adjusted basis, gross margin increased to 64.6% compared to 64.3% in the second quarter of fiscal 2021. These gross margin increases were despite a 50 basis points increase in freight costs.

  • SG&A was $163 million compared to $146 million in the second quarter of fiscal 2021, increasing primarily due to higher employment costs, advertising costs and other expenses to support sales growth.

  • Royalties and other operating income increased by 34% to $6 million with growth in royalties in both Tommy Bahama and Lilly Pulitzer.

  • Operating income increased to $75 million, or 20.7% of sales, compared to $68 million, or 20.7% of sales, in the second quarter of fiscal 2021. On an adjusted basis, operating income increased to $78 million, or 21.5% of sales, compared to $72 million, or 22.0% of sales, in the second quarter of fiscal 2021.

  • The effective tax rate in the second quarter of fiscal 2022 was 24.6% versus 24.1% in the prior year.

Balance Sheet and Liquidity

Inventory increased $58 million on a LIFO basis and $71 million, or 53%, on a FIFO basis compared to the end of the second quarter of fiscal 2021. Inventory balances at July 30, 2022 represent a more normalized level after inventory levels were lower than optimal throughout fiscal 2021 when a stronger than expected rebound in consumer demand outpaced inventory purchases. Also, the inventory increase reflects: (i) the early receipt of an incremental $27 million of fall inventory to mitigate supply chain delays or disruptions, (ii) anticipated sales increases in the second half of fiscal 2022 and (iii) higher product costs. Compared to the end of the second quarter of fiscal 2019, on a FIFO basis inventory decreased by 3% while the sales for the first half of fiscal 2022 were 23% higher than the first half of fiscal 2019.

As of July 30, 2022, the Company had a strong liquidity position with $186 million of cash, cash equivalents and short-term investments versus $180 million at the end of the second 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 second 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 October 28, 2022 to shareholders of record as of the close of business on October 14, 2022. The Company has paid dividends every quarter since it became publicly owned in 1960.

To date, the Company has repurchased approximately 970,000 shares, or over 5% of total shares outstanding, for $86 million at an average price of $89 per share under its December 7, 2021 $150 million share repurchase authorization and associated $100 million 10b5-1 trading plan. This consists of $8 million in the fourth quarter of 2021, $43 million in the first quarter of 2022, $30 million in the second quarter of 2022 and $5 million subsequent to quarter-end.

Outlook

For fiscal 2022, the Company raised its previously issued guidance. The Company now expects net sales in a range of $1.300 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 $9.68 and $9.93. Adjusted EPS is expected to be between $9.85 and $10.10. This compares to GAAP EPS of $7.78 and adjusted EPS of $7.99 in fiscal 2021.

The Company initiated its guidance for the third quarter of fiscal 2022, ending on October 29, 2022. The Company expects net sales to be between $270 million and $280 million compared to net sales of $248 million in the third quarter of fiscal 2021, which included $4 million of Lanier Apparel sales. Both GAAP and adjusted EPS are expected to be in a range of $0.90 to $1.05 in the third quarter. This compares with EPS of $1.54 on a GAAP basis and $1.19 on an adjusted basis in the third quarter of fiscal 2021. The Company’s third quarter remains its smallest sales and earnings quarter due to the seasonality of its direct-to-consumer operations.

The Company’s effective tax rate is expected to be between 24% and 25% for 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 September 15, 2022 by dialing (412) 317-6671 access code 13732205.

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.

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 retail store and food and beverage location 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 war between Russia and 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)

 

 

    

July 30,

 

July 31,

 

 

 

2022

 

2021

 

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,269

 

 

$

180,389

 

 

Short-term investments

 

 

154,754

 

 

 

 

 

Receivables, net

 

 

50,757

 

 

 

48,522

 

 

Inventories, net

 

 

135,483

 

 

 

77,330

 

 

Income tax receivable

 

 

19,743

 

 

 

18,085

 

 

Prepaid expenses and other current assets

 

 

29,242

 

 

 

24,720

 

 

Total Current Assets

 

$

421,248

 

 

$

349,046

 

 

Property and equipment, net

 

 

150,887

 

 

 

157,380

 

 

Intangible assets, net

 

 

154,853

 

 

 

155,747

 

 

Goodwill

 

 

23,861

 

 

 

23,897

 

 

Operating lease assets

 

 

179,217

 

 

 

212,217

 

 

Other assets, net

 

 

27,136

 

 

 

33,462

 

 

Total Assets

 

$

957,202

 

 

$

931,749

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

  

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

76,974

 

 

$

62,116

 

 

Accrued compensation

 

 

28,779

 

 

 

34,027

 

 

Current portion of operating lease liabilities

 

 

53,119

 

 

 

58,523

 

 

Accrued expenses and other liabilities

 

 

63,768

 

 

 

65,518

 

 

Total Current Liabilities

 

$

222,640

 

 

$

220,184

 

 

Long-term debt

 

 

 

 

 

 

 

Non-current portion of operating lease liabilities

 

 

180,092

 

 

 

215,434

 

 

Other non-current liabilities

 

 

19,200

 

 

 

21,389

 

 

Deferred income taxes

 

 

1,254

 

 

 

1,043

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

Common stock, $1.00 par value per share

 

 

15,960

 

 

 

16,895

 

 

Additional paid-in capital

 

 

166,139

 

 

 

158,083

 

 

Retained earnings

 

 

355,037

 

 

 

302,456

 

 

Accumulated other comprehensive loss

 

 

(3,120

)

 

 

(3,735

)

 

Total Shareholders’ Equity

 

$

534,016

 

 

$

473,699

 

 

Total Liabilities and Shareholders’ Equity

 

$

957,202

 

 

$

931,749

 

 



Oxford Industries, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

    

Second Quarter

    

First Half

 

 

Fiscal 2022

 

Fiscal 2021

 

Fiscal 2022

 

Fiscal 2021

Net sales

 

$

363,430

 

$

328,672

 

$

716,011

 

$

594,434

Cost of goods sold

 

 

131,281

 

 

119,046

 

 

257,485

 

 

218,223

Gross profit

 

$

232,149

 

$

209,626

 

$

458,526

 

$

376,211

SG&A

 

 

163,135

 

 

146,367

 

 

320,547

 

 

283,492

Royalties and other operating income

 

 

6,357

 

 

4,737

 

 

13,370

 

 

10,170

Operating income

 

$

75,371

 

$

67,996

 

$

151,349

 

$

102,889

Interest expense, net

 

 

274

 

 

211

 

 

516

 

 

463

Earnings before income taxes

 

$

75,097

 

$

67,785

 

$

150,833

 

$

102,426

Income tax expense

 

 

18,485

 

 

16,325

 

 

36,813

 

 

22,498

Net earnings

 

$

56,612

 

$

51,460

 

$

114,020

 

$

79,928

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

 

  

 

 

  

Basic

 

$

3.56

 

$

3.09

 

$

7.07

 

$

4.81

Diluted

 

$

3.49

 

$

3.05

 

$

6.94

 

$

4.75

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

  

 

 

 

Basic

 

 

15,919

 

 

16,637

 

 

16,118

 

 

16,615

Diluted

 

 

16,238

 

 

16,859

 

 

16,430

 

 

16,825

Dividends declared per share

 

$

0.55

 

$

0.42

 

$

1.10

 

$

0.79



Oxford Industries, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

First Half

 

 

Fiscal 2022

    

Fiscal 2021

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net earnings

 

$

114,020

 

 

$

79,928

 

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

 

 

 

 

 

 

Depreciation

 

 

20,358

 

 

 

18,935

 

Amortization of intangible assets

 

 

454

 

 

 

440

 

Equity compensation expense

 

 

5,252

 

 

 

3,901

 

Amortization of deferred financing costs

 

 

172

 

 

 

172

 

Deferred income taxes

 

 

(1,657

)

 

 

2,231

 

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

 

 

  

 

 

 

Receivables, net

 

 

(16,218

)

 

 

(16,617

)

Inventories, net

 

 

(17,867

)

 

 

46,083

 

Income tax receivable

 

 

(15

)

 

 

(110

)

Prepaid expenses and other current assets

 

 

(10,645

)

 

 

(4,352

)

Current liabilities

 

 

(939

)

 

 

24,373

 

Other balance sheet changes

 

 

(2,286

)

 

 

(5,999

)

Cash provided by operating activities

 

$

90,629

 

 

$

148,985

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(19,746

)

 

 

(16,223

)

Purchases of short-term investments

 

 

(70,000

)

 

 

 

Proceeds from short-term investments

 

 

80,000

 

 

 

 

Other investing activities

 

 

(50

)

 

 

(2,000

)

Cash used in investing activities

 

$

(9,796

)

 

$

(18,223

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

Repurchase of common stock

 

 

(72,680

)

 

 

 

Proceeds from issuance of common stock

 

 

882

 

 

 

663

 

Repurchase of equity awards for employee tax withholding liabilities

 

 

(3,166

)

 

 

(2,983

)

Cash dividends paid

 

 

(17,829

)

 

 

(13,353

)

Other financing activities

 

 

(2,010

)

 

 

(749

)

Cash used in financing activities

 

$

(94,803

)

 

$

(16,422

)

Net change in cash and cash equivalents

 

 

(13,970

)

 

 

114,340

 

Effect of foreign currency translation on cash and cash equivalents

 

 

380

 

 

 

36

 

Cash and cash equivalents at the beginning of year

 

 

44,859

 

 

 

66,013

 

Cash and cash equivalents at the end of period

 

$

31,269

 

 

$

180,389

 



Oxford Industries, Inc.

Reconciliations of Certain Non-GAAP Financial Information

(in millions, except per share amounts)

(unaudited)

 

 

Second Quarter

First Half

AS REPORTED

 

 

Fiscal 2022

 

    

Fiscal 2021

% Change

 

 

Fiscal 2022

 

    

Fiscal 2021

% Change

Tommy Bahama

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

244.0

 

 

$

208.8

 

16.8

%

 

$

472.0

 

 

$

365.5

 

29.1

%

Gross profit

 

$

156.8

 

 

$

133.4

 

17.6

%

 

$

304.1

 

 

$

234.9

 

29.5

%

Gross margin

 

 

64.3

%

 

 

63.9

%

 

 

 

64.4

%

 

 

64.3

%

 

Operating income

 

$

58.9

 

 

$

47.3

 

24.5

%

 

$

111.5

 

 

$

68.0

 

64.0

%

Operating margin

 

 

24.2

%

 

 

22.7

%

 

 

 

23.6

%

 

 

18.6

%

 

Lilly Pulitzer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

88.7

 

 

$

87.3

 

1.5

%

 

$

180.7

 

 

$

160.9

 

12.3

%

Gross profit

 

$

63.3

 

 

$

61.9

 

2.4

%

 

$

126.8

 

 

$

113.1

 

12.2

%

Gross margin

 

 

71.4

%

 

 

70.8

%

 

 

 

70.2

%

 

 

70.3

%

 

Operating income

 

$

21.5

 

 

$

25.8

 

(16.6

)%

 

$

47.7

 

 

$

45.7

 

4.2

%

Operating margin

 

 

24.2

%

 

 

29.5

%

 

 

 

26.4

%

 

 

28.4

%

 

Emerging Brands (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

29.9

 

 

$

22.8

 

31.1

%

 

$

61.7

 

 

$

45.3

 

36.3

%

Gross profit

 

$

14.1

 

 

$

12.4

 

13.9

%

 

$

30.5

 

 

$

24.5

 

24.3

%

Gross margin

 

 

47.2

%

 

 

54.4

%

 

 

 

49.4

%

 

 

54.2

%

 

Operating income

 

$

4.0

 

 

$

4.5

 

(11.3

)%

 

$

11.7

 

 

$

9.5

 

24.0

%

Operating margin

 

 

13.3

%

 

 

19.7

%

 

 

 

19.0

%

 

 

20.9

%

 

Lanier Apparel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

0.0

 

 

$

8.5

 

(100.0

)%

 

$

0.0

 

 

$

20.5

 

(100.0

)%

Gross profit

 

$

0.0

 

 

$

5.8

 

(100.0

)%

 

$

0.0

 

 

$

10.1

 

(100.0

)%

Gross margin

 

 

NM

 

 

 

67.9

%

 

 

 

NM

 

 

 

49.0

%

 

Operating income

 

$

0.0

 

 

$

0.9

 

(100.0

)%

 

$

0.0

 

 

$

1.7

 

(100.0

)%

Operating margin

 

 

NM

 

 

 

10.0

%

 

 

 

NM

 

 

 

8.3

%

 

Corporate and Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

0.9

 

 

$

1.2

 

(25.6

)%

 

$

1.6

 

 

$

2.2

 

(28.6

)%

Gross profit

 

$

(2.1

)

 

$

(3.8

)

NM

 

$

(2.9

)

 

$

(6.3

)

NM

 

Operating loss

 

$

(9.0

)

 

$

(10.5

)

NM

 

$

(19.6

)

 

$

(22.0

)

NM

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

363.4

 

 

$

328.7

 

10.6

%

 

$

716.0

 

 

$

594.4

 

20.5

%

Gross profit

 

$

232.1

 

 

$

209.6

 

10.7

%

 

$

458.5

 

 

$

376.2

 

21.9

%

Gross margin

 

 

63.9

%

 

 

63.8

%

 

 

 

64.0

%

 

 

63.3

%

 

SG&A

 

$

163.1

 

 

$

146.4

 

11.5

%

 

$

320.5

 

 

$

283.5

 

13.1

%

SG&A as % of net sales

 

 

44.9

%

 

 

44.5

%

 

 

 

44.8

%

 

 

47.7

%

 

Operating income

 

$

75.4

 

 

$

68.0

 

10.8

%

 

$

151.3

 

 

$

102.9

 

47.1

%

Operating margin

 

 

20.7

%

 

 

20.7

%

 

 

 

21.1

%

 

 

17.3

%

 

Earnings before income taxes

 

$

75.1

 

 

$

67.8

 

10.8

%

 

$

150.8

 

 

$

102.4

 

47.3

%

Net earnings

 

$

56.6

 

 

$

51.5

 

10.0

%

 

$

114.0

 

 

$

79.9

 

42.7

%

Net earnings per diluted share

 

$

3.49

 

 

$

3.05

 

14.4

%

 

$

6.94

 

 

$

4.75

 

46.1

%

Weighted average shares outstanding - diluted

 

 

16.2

 

 

 

16.9

 

(3.7

)%

 

 

16.4

 

 

 

16.8

 

(2.3

)%



 

 

Second Quarter

 

First Half

ADJUSTMENTS

 

 

Fiscal 2022

 

 

Fiscal 2021

% Change

 

 

 

Fiscal 2022

 

 

Fiscal 2021

% Change

LIFO adjustments(2)

 

$

2.7

 

 

$

4.4

 

 

 

 

$

3.7

 

 

$

7.4

 

 

Lanier Apparel exit charges in cost of goods sold(3)

 

$

0.0

 

 

$

(2.6

)

 

 

 

$

0.0

 

 

$

(2.1

)

 

Amortization of Southern Tide intangible assets(4)

 

$

0.0

 

 

$

0.1

 

 

 

 

$

0.0

 

 

$

0.1

 

 

Lanier Apparel exit charges in SG&A(5)

 

$

0.0

 

 

$

2.4

 

 

 

 

$

0.0

 

 

$

3.2

 

 

Impact of income taxes(6)

 

$

(0.7

)

 

$

(1.1

)

 

 

 

$

(0.9

)

 

$

(2.2

)

 

Adjustment to net earnings(7)

 

$

2.1

 

 

$

3.1

 

 

 

 

$

2.8

 

 

$

6.4

 

 

AS ADJUSTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tommy Bahama

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

244.0

 

 

$

208.8

 

16.8

%

 

 

$

472.0

 

 

$

365.5

 

29.1

%

Gross profit

 

$

156.8

 

 

$

133.4

 

17.6

%

 

 

$

304.1

 

 

$

234.9

 

29.5

%

Gross margin

 

 

64.3

%

 

 

63.9

%

 

 

 

 

64.4

%

 

 

64.3

%

 

Operating income

 

$

58.9

 

 

$

47.3

 

24.5

%

 

 

$

111.5

 

 

$

68.0

 

64.0

%

Operating margin

 

 

24.2

%

 

 

22.7

%

 

 

 

 

23.6

%

 

 

18.6

%

 

Lilly Pulitzer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

88.7

 

 

$

87.3

 

1.5

%

 

 

$

180.7

 

 

$

160.9

 

12.3

%

Gross profit

 

$

63.3

 

 

$

61.9

 

2.4

%

 

 

$

126.8

 

 

$

113.1

 

12.2

%

Gross margin

 

 

71.4

%

 

 

70.8

%

 

 

 

 

70.2

%

 

 

70.3

%

 

Operating income

 

$

21.5

 

 

$

25.8

 

(16.6

)%

 

 

$

47.7

 

 

$

45.7

 

4.2

%

Operating margin

 

 

24.2

%

 

 

29.5

%

 

 

 

 

26.4

%

 

 

28.4

%

 

Emerging Brands (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

29.9

 

 

$

22.8

 

31.1

%

 

 

$

61.7

 

 

$

45.3

 

36.3

%

Gross profit

 

$

14.1

 

 

$

12.4

 

13.9

%

 

 

$

30.5

 

 

$

24.5

 

24.3

%

Gross margin

 

 

47.2

%

 

 

54.4

%

 

 

 

 

49.4

%

 

 

54.2

%

 

Operating income

 

$

4.0

 

 

$

4.6

 

(12.7

)%

 

 

$

11.7

 

 

$

9.6

 

22.1

%

Operating margin

 

 

13.3

%

 

 

20.0

%

 

 

 

 

19.0

%

 

 

21.2

%

 

Lanier Apparel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

0.0

 

 

$

8.5

 

(100.0

)%

 

 

$

0.0

 

 

$

20.5

 

(100.0

)%

Gross profit

 

$

0.0

 

 

$

3.2

 

(100.0

)%

 

 

$

0.0

 

 

$

7.9

 

(100.0

)%

Gross margin

 

 

NM

 

 

 

37.3

%

 

 

 

 

 

NM

 

 

 

38.6

%

 

Operating income

 

$

0.0

 

 

$

0.7

 

(100.0

)%

 

 

$

0.0

 

 

$

2.8

 

(100.0

)%

Operating margin

 

 

NM

 

 

 

7.8

%

 

 

 

 

 

NM

 

 

 

13.6

%

 

Corporate and Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

0.9

 

 

$

1.2

 

(25.6

)%

 

 

$

1.6

 

 

$

2.2

 

(28.6

)%

Gross profit

 

$

0.6

 

 

$

0.6

 

NM

 

 

 

$

0.8

 

 

$

1.1

 

NM

 

Operating loss

 

$

(6.3

)

 

$

(6.1

)

NM

 

 

 

$

(15.8

)

 

$

(14.6

)

NM

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

363.4

 

 

$

328.7

 

10.6

%

 

 

$

716.0

 

 

$

594.4

 

20.5

%

Gross profit

 

$

234.9

 

 

$

211.4

 

11.1

%

 

 

$

462.3

 

 

$

381.5

 

21.2

%

Gross margin

 

 

64.6

%

 

 

64.3

%

 

 

 

 

64.6

%

 

 

64.2

%

 

SG&A

 

$

163.1

 

 

$

143.9

 

13.4

%

 

 

$

320.5

 

 

$

280.1

 

14.4

%

SG&A as % of net sales

 

 

44.9

%

 

 

43.8

%

 

 

 

 

44.8

%

 

 

47.1

%

 

Operating income

 

$

78.1

 

 

$

72.2

 

8.1

%

 

 

$

155.1

 

 

$

111.5

 

39.0

%

Operating margin

 

 

21.5

%

 

 

22.0

%

 

 

 

 

21.7

%

 

 

18.8

%

 

Earnings before income taxes

 

$

77.8

 

 

$

72.0

 

8.1

%

 

 

$

154.6

 

 

$

111.1

 

39.2

%

Net earnings

 

$

58.7

 

 

$

54.6

 

7.4

%

 

 

$

116.8

 

 

$

86.3

 

35.3

%

Net earnings per diluted share

 

$

3.61

 

 

$

3.24

 

11.4

%

 

 

$

7.11

 

 

$

5.13

 

38.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Second Quarter

 

Second Quarter

 

Second Quarter

 

First Half

 

First Half

 

 

 

 

Fiscal 2022

 

Fiscal 2022

 

Fiscal 2021

 

Fiscal 2022

 

Fiscal 2021

 

 

 

 

Actual

 

Guidance(8)

 

Actual

 

Actual

 

Actual

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis

 

$

3.49

$

3.30 - 3.50

$

3.05

$

6.94

$

4.75

 

LIFO adjustments(9)

 

 

0.13

 

0.00

 

0.19

 

0.17

 

0.33

 

Amortization of recently acquired intangible assets(10)

 

 

0.00

 

0.00

 

0.00

 

0.00

 

0.01

 

Lanier Apparel exit charges(11)

 

 

0.00

 

0.00

 

(0.01)

 

0.00

 

0.05

 

As adjusted(7)

 

$

3.61

$

3.30 - 3.50

$

3.24

$

7.11

$

5.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

Fiscal 2021

 

 

 

 

 

 

 

 

 

 

Guidance(12)

 

Actual

 

 

 

 

 

 

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis

 

$

0.90-1.05

$

1.54

 

 

 

 

 

 

 

LIFO adjustments(9)

 

 

0.00

 

0.10

 

 

 

 

 

 

 

Amortization of recently acquired intangible assets(10)

 

 

0.00

 

0.00

 

 

 

 

 

 

 

Tommy Bahama lease termination changes(13)

 

 

0.00

 

0.21

 

 

 

 

 

 

 

Change in fair value of contingent consideration(14)

 

 

0.00

 

0.03

 

 

 

 

 

 

 

Lanier Apparel exit charges(11)

 

 

0.00

 

(0.01)

 

 

 

 

 

 

 

Gain on sale of investment in unconsolidated entity(15)

 

 

0.00

 

(0.68)

 

 

 

 

 

 

 

As adjusted(7)

 

$

0.90-1.05

$

1.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Fourth Quarter

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

Fiscal 2021

 

 

 

 

 

 

 

 

 

 

Guidance(12)

 

Actual

 

 

 

 

 

 

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis

 

$

1.84-1.94

$

1.50

 

 

 

 

 

 

 

LIFO adjustments(9)

 

 

0.00

 

0.27

 

 

 

 

 

 

 

Amortization of recently acquired intangible assets(10)

 

 

0.00

 

0.00

 

 

 

 

 

 

 

Change in fair value of contingent consideration(14)

 

 

0.00

 

0.02

 

 

 

 

 

 

 

Gain on sale of Lanier Apparel distribution center(16)

 

 

0.00

 

(0.12)

 

 

 

 

 

 

 

As adjusted(7)

 

$

1.84-1.94

$

1.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year

 

Full Year

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

Fiscal 2021

 

 

 

 

 

 

 

 

 

 

Guidance(12)

 

Actual

 

 

 

 

 

 

 

Net earnings per diluted share:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis

 

$

9.68-9.93

$

7.78

 

 

 

 

 

 

 

LIFO adjustments(9)

 

 

0.17

 

0.70

 

 

 

 

 

 

 

Amortization of recently acquired intangible assets(10)

 

 

0.00

 

0.01

 

 

 

 

 

 

 

Tommy Bahama lease termination charges(13)

 

 

0.00

 

0.21

 

 

 

 

 

 

 

Change in fair value of contingent consideration(14)

 

 

0.00

 

0.05

 

 

 

 

 

 

 

Lanier Apparel exit charges(11)

 

 

0.00

 

0.04

 

 

 

 

 

 

 

Gain on sale of Lanier Apparel distribution center(16)

 

 

0.00

 

(0.12)

 

 

 

 

 

 

 

Gain on sale of investment in unconsolidated entity(15)

 

 

0.00

 

(0.68)

 

 

 

 

 

 

 

As adjusted(7)

 

$

9.85-10.10

$

7.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(1) Beginning in 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. Net sales and operating income, as restated to conform to the current period presentation, for each operating group for each quarter of Fiscal 2021 were disclosed the Company's Form 8-K filed on June 8, 2022.

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

(3) 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 primarily consist of 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.

(4) 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.

(5) 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 amounts 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.

(6) 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.

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

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

(9) 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.

(10) Amortization of recently acquired intangible assets represents the impact, net of income taxes, on net earnings per share in Fiscal 2021 resulting from the amortization of intangible assets acquired as part of the Southern Tide acquisition.

(11) 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 amounts in Fiscal 2021 primarily consist of estimates of inventory markdowns, costs related to the Merida, Mexico manufacturing facility, employee charges and termination charges related to certain license agreements.

(12) Guidance as issued on September 1, 2022.

(13) 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.

(14) Change in fair value of contingent consideration represents the impact, net of income taxes, on net earnings per share in Fiscal 2021 relating to the change in the fair value of contingent consideration related to the TBBC acquisition.

(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) 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

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

102

Retail-restaurant

21

21

Outlet

35

35

Total Tommy Bahama

158

158

Lilly Pulitzer

59

58

Emerging Brands

 

 

 

 

Southern Tide

4

5

TBBC

1

2

Oxford Total

222

223