Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 29, 2022 | Dec. 02, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 29, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-4365 | |
Entity Registrant Name | OXFORD INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0831862 | |
Entity Address, Address Line One | 999 Peachtree Street, N.E. | |
Entity Address, Address Line Two | Suite 688 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30309 | |
City Area Code | 404 | |
Local Phone Number | 659-2424 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OXM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,768,530 | |
Entity Central Index Key | 0000075288 | |
Current Fiscal Year End Date | --01-28 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Current Assets | |||
Cash and cash equivalents | $ 14,976 | $ 44,859 | $ 37,976 |
Short-term investments | 164,890 | 150,036 | |
Receivables, net | 64,497 | 34,550 | 46,266 |
Inventories, net | 171,639 | 117,709 | 90,981 |
Income tax receivable | 19,740 | 19,728 | 18,085 |
Prepaid expenses and other current assets | 28,643 | 18,599 | 23,609 |
Total Current Assets | 299,495 | 400,335 | 366,953 |
Property and equipment, net | 173,391 | 152,447 | 156,672 |
Intangible assets, net | 287,626 | 155,307 | 155,527 |
Goodwill | 116,268 | 23,869 | 23,909 |
Operating lease assets | 237,078 | 195,100 | 200,508 |
Other assets, net | 26,459 | 30,584 | 29,234 |
Total Assets | 1,140,317 | 957,642 | 932,803 |
Current Liabilities | |||
Accounts payable | 72,932 | 80,753 | 64,709 |
Accrued compensation | 36,150 | 30,345 | 32,744 |
Current portion of operating lease liabilities | 62,349 | 61,272 | 58,287 |
Accrued expenses and other liabilities | 58,964 | 53,796 | 51,432 |
Total Current Liabilities | 230,395 | 226,166 | 207,172 |
Long-term debt | 130,449 | ||
Non-current portion of operating lease liabilities | 225,921 | 199,488 | 206,484 |
Other non-current liabilities | 18,058 | 21,413 | 21,779 |
Deferred income taxes | 2,455 | 2,911 | 1,899 |
Shareholders' Equity | |||
Common stock, $1.00 par value per share | 15,815 | 16,805 | 16,891 |
Additional paid-in capital | 169,063 | 163,156 | 160,421 |
Retained earnings | 351,731 | 331,175 | 321,238 |
Accumulated other comprehensive loss | (3,570) | (3,472) | (3,081) |
Total Shareholders' Equity | 533,039 | 507,664 | 495,469 |
Total Liabilities and Shareholders' Equity | $ 1,140,317 | $ 957,642 | $ 932,803 |
CONSOLIDATED BALANCE SHEETS CON
CONSOLIDATED BALANCE SHEETS CONDENSED (Parenthetical) - $ / shares | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 313,033 | $ 247,729 | $ 1,029,044 | $ 842,163 |
Cost of goods sold | 115,339 | 95,191 | 372,824 | 313,414 |
Gross profit | 197,694 | 152,538 | 656,220 | 528,749 |
SG&A | 175,027 | 137,505 | 495,574 | 420,997 |
Royalties and other operating income | 4,648 | 15,574 | 18,018 | 25,744 |
Operating income | 27,315 | 30,607 | 178,664 | 133,496 |
Interest expense, net | 698 | 222 | 1,214 | 685 |
Earnings before income taxes | 26,617 | 30,385 | 177,450 | 132,811 |
Income tax expense | 6,951 | 4,400 | 43,764 | 26,898 |
Net earnings, basic | 19,666 | 25,985 | 133,686 | 105,913 |
Net earnings, diluted | $ 19,666 | $ 25,985 | $ 133,686 | $ 105,913 |
Net earnings per share: | ||||
Basic (in dollars per share) | $ 1.25 | $ 1.56 | $ 8.36 | $ 6.37 |
Diluted (in dollars per share) | $ 1.22 | $ 1.54 | $ 8.19 | $ 6.29 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,740 | 16,649 | 15,992 | 16,627 |
Diluted (in shares) | 16,139 | 16,872 | 16,333 | 16,841 |
Dividends declared per share (in dollars per share) | $ 0.55 | $ 0.42 | $ 1.65 | $ 1.21 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net earnings | $ 19,666 | $ 25,985 | $ 133,686 | $ 105,913 |
Other comprehensive income (loss), net of taxes: | ||||
Net foreign currency translation adjustment | (450) | 654 | (98) | 583 |
Comprehensive income | $ 19,216 | $ 26,639 | $ 133,588 | $ 106,496 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2022 | Oct. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net earnings | $ 133,686 | $ 105,913 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation | 31,126 | 28,592 |
Amortization of intangible assets | 2,322 | 660 |
Equity compensation expense | 7,796 | 5,854 |
Gain on sale of investment in unconsolidated entity | (11,586) | |
Amortization of deferred financing costs | 258 | 258 |
Change in fair value of contingent consideration | 786 | |
Deferred income taxes | (456) | 3,115 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (21,230) | (14,341) |
Inventories, net | (31,332) | 32,544 |
Income tax receivable | (12) | (109) |
Prepaid expenses and other current assets | (5,644) | (3,238) |
Current liabilities | (23,271) | 10,361 |
Other balance sheet changes | (6,988) | (1,724) |
Cash provided by operating activities | 86,255 | 157,085 |
Cash Flows From Investing Activities: | ||
Acquisitions, net of cash acquired | (263,656) | |
Purchases of property and equipment | (32,331) | (25,132) |
Purchases of short-term investments | (70,000) | (150,000) |
Proceeds from short-term investments | 234,837 | |
Proceeds from sale of investment in unconsolidated entity | 14,586 | |
Other investing activities | 1,450 | (2,000) |
Cash used in investing activities | (129,700) | (162,546) |
Cash Flows From Financing Activities: | ||
Repayment of revolving credit arrangements | (45,262) | |
Proceeds from revolving credit arrangements | 175,711 | |
Repurchase of common stock | (86,804) | |
Proceeds from issuance of common stock | 1,263 | 1,044 |
Repurchase of equity awards for employee tax withholding liabilities | (3,166) | (2,983) |
Cash dividends paid | (26,572) | (20,447) |
Other financing activities | (2,010) | (749) |
Cash provided by (used in) financing activities | 13,160 | (23,135) |
Net change in cash and cash equivalents | (30,285) | (28,596) |
Effect of foreign currency translation on cash and cash equivalents | 402 | 559 |
Cash and cash equivalents at the beginning of year | 44,859 | 66,013 |
Cash and cash equivalents at the end of period | $ 14,976 | $ 37,976 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 29, 2022 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation: The preparation of our unaudited condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The significant accounting policies applied during the interim periods presented are consistent with the significant accounting policies described in our Fiscal 2021 Form 10-K. No recently issued guidance adopted in Fiscal 2022 had a material impact on our consolidated financial statements upon adoption or is expected to have a material impact in future periods. On September 19, 2022, we acquired the Johnny Was® lifestyle apparel brand and its related assets and operations, which is discussed in further detail in Note 7 of these unaudited condensed consolidated financial statements. Also, in Fiscal 2021, we exited our Lanier Apparel business, as discussed in Note 11 of our consolidated financial statements of our Fiscal 2021 Form 10-K. Johnny Was in Fiscal 2022 and Lanier Apparel in Fiscal 2021 are each disclosed as separate operating groups in Note 2 of these unaudited condensed consolidated financial statements. Recently Issued Accounting Standards Applicable to Future Periods Recent accounting pronouncements pending adoption are either not applicable or not expected to have a material impact on our consolidated financial statements. Recent Macroeconomic Conditions The COVID-19 pandemic has had a significant effect on overall economic conditions and our operations in recent years. In Fiscal 2021, the economic environment improved significantly with a rebound in retail traffic starting in March 2021 and other improvements as the year progressed, although certain stores were closed for portions of Fiscal 2021, particularly in the First Quarter of Fiscal 2021. This exceptionally strong consumer demand, along with the strength of our brands, resulted in record earnings for us during Fiscal 2021 and the First Nine Months of Fiscal 2022. The strong earnings in recent periods are despite certain challenges in the retail apparel market, including labor shortages, supply chain disruptions and product and operating cost increases in Fiscal 2021 and Fiscal 2022. We, as well as others in our industry, have increased prices to attempt to offset inflationary pressures. There can be no assurance that the strong consumer demand of Fiscal 2021 and Fiscal 2022 will continue for our business or the broader retail apparel market. There remains significant uncertainty in the macroeconomic environment as to the impact of changing consumer discretionary spending habits, recent supply chain and other business disruptions, ongoing operating cost increases and other inflationary pressures, rising interest rates, the duration and severity of the pandemic and general economic conditions. Thus, the ultimate impact of these items on our business remains uncertain at this time. |
Operating Group Information
Operating Group Information | 9 Months Ended |
Oct. 29, 2022 | |
Operating Group Information | |
Operating Group Information | 2. Operating Group Information: Tommy Bahama, Lilly Pulitzer and Johnny Was each design, source, market and distribute apparel and related products bearing their respective trademarks and may license their trademarks for other product categories. The Emerging Brands operating group, which was organized in Fiscal 2022, consists of the operations of our smaller, earlier stage Southern Tide, TBBC and Duck Head brands. In prior years, Southern Tide was reported as a separate operating group, while both TBBC and Duck Head were included in Corporate and Other. All prior year amounts have been restated to conform to the current year presentation. Each of the smaller brands included in Emerging Brands designs, sources, markets and distributes apparel and related products bearing its respective trademarks and is supported by Oxford’s emerging brands team that provides certain support functions to the smaller brands, including marketing and advertising execution, customer relationship management and analysis and other functions. The shared resources provide for operating efficiencies and enhanced knowledge sharing across our smaller brands. Corporate and Other is a reconciling category for reporting purposes and includes our corporate offices, substantially all financing activities, the elimination of inter-segment sales, any other items that are not allocated to the operating groups, including LIFO inventory accounting adjustments, and the operations of our Lyons, Georgia distribution center and our Oxford America business, which we exited in Fiscal 2022. The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other. Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Net sales Tommy Bahama $ 178,645 $ 148,454 $ 650,677 $ 513,985 Lilly Pulitzer 84,053 72,157 264,763 233,066 Johnny Was (1) 22,661 — 22,661 — Emerging Brands 26,912 22,082 88,588 67,336 Lanier Apparel — 4,232 — 24,743 Corporate and Other 762 804 2,355 3,033 Consolidated net sales $ 313,033 $ 247,729 $ 1,029,044 $ 842,163 Depreciation and amortization Tommy Bahama $ 6,576 $ 6,895 $ 20,110 $ 20,801 Lilly Pulitzer 3,288 2,445 9,384 6,833 Johnny Was (1) 2,184 — 2,184 — Emerging Brands 391 324 1,143 955 Lanier Apparel — 27 — 88 Corporate and Other 197 186 627 575 Consolidated depreciation and amortization $ 12,636 $ 9,877 $ 33,448 $ 29,252 Operating income (loss) Tommy Bahama $ 18,984 $ 5,531 $ 130,508 $ 73,515 Lilly Pulitzer 12,688 15,985 60,358 61,713 Johnny Was (1) 117 — 117 — Emerging Brands 3,729 4,103 15,456 13,565 Lanier Apparel — 348 — 2,053 Corporate and Other (8,203) 4,640 (27,775) (17,350) Consolidated operating income 27,315 30,607 $ 178,664 $ 133,496 Interest expense, net 698 222 1,214 685 Earnings before income taxes $ 26,617 $ 30,385 $ 177,450 $ 132,811 October 29, 2022 January 29, 2022 October 30, 2021 Assets Tommy Bahama (2) $ 544,947 $ 531,678 $ 531,534 Lilly Pulitzer (3) 192,609 176,757 173,104 Johnny Was (4) 350,212 — — Emerging Brands (5) 83,280 66,825 54,532 Lanier Apparel (6) — 207 3,261 Corporate and Other (7) (30,731) 182,175 170,372 Consolidated Total Assets $ 1,140,317 $ 957,642 $ 932,803 (1) Amount included for Johnny Was represents the post-acquisition period only. (2) Increase in Tommy Bahama total assets from October 30, 2021 includes increases in inventories and receivables partially offset by reductions in non-current assets, including operating lease assets and property and equipment. (3) Increase in Lilly Pulitzer total assets from October 30, 2021 includes increases in inventories and property and equipment partially offset by reductions in operating lease assets. (4) The Johnny Was business was acquired on September 19, 2022. (5) Increase in Emerging Brands total assets from October 30, 2021 includes increases in inventories and non-current assets, including operating lease assets and property and equipment. (6) Decrease in Lanier Apparel total assets from October 30, 2021 is due to the exit of the Lanier Apparel business during Fiscal 2021. (7) Decrease in Corporate and Other total assets from October 30, 2021 includes reductions in short-term investments, cash and cash equivalents, which were used to fund a portion of the acquisition purchase price for Johnny Was, and reductions in inventories, which was primarily due to the change in the LIFO reserve, and reductions in other non-current assets. The tables below quantify net sales, for each operating group and in total (in thousands), and the percentage of net sales by distribution channel for each operating group and in total, for each quarter or nine month period presented, except that the amounts included for Johnny Was represent the post-acquisition period only. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding. Third Quarter Fiscal 2022 Net Sales Retail E-commerce Restaurant Wholesale Other Tommy Bahama $ 178,645 44 % 20 % 13 % 23 % — % Lilly Pulitzer 84,053 27 % 62 % — % 11 % — % Johnny Was (1) 22,661 38 % 41 % — % 21 % — % Emerging Brands 26,912 5 % 40 % — % 55 % — % Lanier Apparel — — % — % — % — % — % Corporate and Other 762 — % — % — % 47 % 53 % Total $ 313,033 36 % 34 % 7 % 22 % — % Third Quarter Fiscal 2021 Net Sales Retail E-commerce Restaurant Wholesale Other Tommy Bahama $ 148,454 47 % 22 % 13 % 18 % — % Lilly Pulitzer 72,157 31 % 58 % — % 11 % — % Johnny Was — — % — % — — % — % Emerging Brands 22,082 4 % 34 % — % 62 % — % Lanier Apparel 4,232 — % — % — % 100 % — % Corporate and Other 804 — % — % — % 67 % 33 % Total $ 247,729 37 % 33 % 8 % 21 % — % First Nine Months 2022 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 650,677 46 % 23 % 12 % 19 % — % Lilly Pulitzer 264,763 34 % 49 % — % 17 % — % Johnny Was (1) 22,661 38 % 41 % — % 21 % — % Emerging Brands 88,588 5 % 39 % — % 56 % — % Lanier Apparel — — % — % — % — % — % Corporate and Other 2,355 — % — % — % 50 % 50 % Consolidated net sales $ 1,029,044 39 % 31 % 8 % 21 % — % First Nine Months 2021 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 513,985 46 % 24 % 14 % 16 % — % Lilly Pulitzer 233,066 35 % 48 % — % 17 % — % Johnny Was — — % — % — % — % — % Emerging Brands 67,336 4 % 37 % — % 59 % — % Lanier Apparel 24,743 — % — % — % 100 % — % Corporate and Other 3,033 — % — % — % 65 % 35 % Consolidated net sales $ 842,163 38 % 31 % 8 % 22 % — % (1) Amount included for Johnny Was represents the period from September 19, 2022 through October 29, 2022 only. |
Revenue Recognition and Receiva
Revenue Recognition and Receivables | 9 Months Ended |
Oct. 29, 2022 | |
Revenue Recognition and Receivables | |
Revenue Recognition and Receivables | 3. Revenue Recognition and Receivables: The table below quantifies net sales by distribution channel (in thousands) for each period presented. Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Retail $ 112,344 $ 92,579 $ 402,400 $ 319,493 E-commerce 107,756 82,402 323,045 261,393 Restaurant 23,157 19,748 81,333 70,784 Wholesale 69,292 52,658 220,707 189,133 Other 484 342 1,559 1,360 Net sales $ 313,033 $ 247,729 $ 1,029,044 $ 842,163 An estimated sales return liability of $9 million, $11 million and $7 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of October 29, 2022, January 29, 2022 and October 30, 2021, respectively. As of October 29, 2022, January 29, 2022 and October 30, 2021, prepaid expenses and other current assets included $4 million, $4 million and $3 million, respectively, representing the estimated value of inventory for expected direct to consumer and wholesale sales returns. Substantially all amounts recognized in receivables, net represent trade receivables related to contracts with customers. In the ordinary course of our wholesale operations, we offer discounts, allowances and cooperative advertising support to and accept returns from certain of our wholesale customers for certain products. As of October 29, 2022, January 29, 2022 and October 30, 2021, reserve balances recorded as a reduction to receivables related to these items were $5 million, $3 million and $5 million, respectively. As of October 29, 2022, January 29, 2022 and October 30, 2021, our provision for credit losses related to receivables included in our consolidated balance sheets was $1 million, $1 million and $2 million, respectively. In both the First Nine Months of Fiscal 2022 and the First Nine Months of Fiscal 2021, provisions for credit losses expense included in our consolidated statement of operations and the write-offs of credit losses were less than $1 million. Contract liabilities for gift cards purchased by consumers and merchandise credits received by customers but not yet redeemed, less any breakage income recognized to date, is included in accrued expenses and other liabilities in our consolidated balance sheet and totaled $17 million, $16 million and $14 million as of October 29, 2022, January 29, 2022, and October 30, 2021, respectively. |
Leases
Leases | 9 Months Ended |
Oct. 29, 2022 | |
Leases | |
Leases | 4. Leases: For the First Nine Months of Fiscal 2022 operating lease expense, which includes amounts used in determining the operating lease liability and operating lease asset, was $43 million and variable lease expense was $31 million, resulting in total lease expense of $75 million compared to $70 million of total lease expense in the First Nine Months of Fiscal 2021. Cash paid for lease amounts included in the measurement of operating lease liabilities in the First Nine Months of Fiscal 2022 was $53 million, while cash paid for lease amounts included in the measurement of operating lease liabilities in the First Nine Months of Fiscal 2021 was $53 million. As of October 29, 2022, the stated lease liability payments for the fiscal years specified below were as follows (in thousands): Operating lease Remainder of 2022 $ 15,300 2023 79,865 2024 63,653 2025 47,707 2026 40,493 2027 27,146 After 2027 52,525 Total lease payments $ 326,689 Less: Difference between discounted and undiscounted lease payments 38,419 Present value of lease liabilities $ 288,270 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 29, 2022 | |
Income Taxes | |
Income Taxes | 5. Income Taxes: The income tax expense in both the First Nine Months of Fiscal 2022 and the First Nine Months of Fiscal 2021 included the benefit of the utilization of certain net operating loss carryforward amounts in certain state and foreign jurisdictions, the recognition of certain tax credit amounts and the vesting of restricted stock awards at a price higher than the grant date fair value. These favorable items were partially offset by certain unfavorable permanent items which are not deductible for income tax purposes. Additionally, and more significantly, the income tax expense in the First Nine Months of Fiscal 2021 included the benefit of a $2 million net reduction in uncertain tax positions resulting from the settlement of those uncertain tax position amounts in the First Quarter of Fiscal 2021 and the utilization of benefits associated with certain capital losses to substantially offset the gain recognized on the sale of an unconsolidated entity in the Third Quarter of Fiscal 2021. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 29, 2022 | |
Shareholders' Equity | |
Shareholders' Equity | 6. Shareholders’ Equity: During both the First Quarter of Fiscal 2022 and the First Quarter of Fiscal 2021, we repurchased $3 million of shares from our employees to cover employee tax liabilities related to the vesting of shares of our common stock. The following tables detail the changes (in thousands) in our common stock, additional paid-in capital ("APIC"), retained earnings and accumulated other comprehensive (loss) income ("AOCI"), for each period presented. Fiscal 2021 Common Stock APIC Retained Earnings AOCI Total January 30, 2021 $ 16,889 $ 156,508 $ 235,995 $ (3,664) $ 405,728 Comprehensive income — — 28,468 391 28,859 Shares issued under equity plans 39 283 — — 322 Compensation expense for equity awards — 2,227 — — 2,227 Repurchase of shares (34) (2,949) — — (2,983) Dividends declared — — (6,252) — (6,252) May 1, 2021 $ 16,894 $ 156,069 $ 258,211 $ (3,273) $ 427,901 Comprehensive income — — 51,460 (462) 50,998 Shares issued under equity plans 1 341 — — 342 Compensation expense for equity awards — 1,673 — — 1,673 Repurchase of shares — — — — — Dividends declared — — (7,215) — (7,215) July 31, 2021 $ 16,895 $ 158,083 $ 302,456 $ (3,735) $ 473,699 Comprehensive income — — 25,985 654 26,639 Shares issued under equity plans (4) 386 — — 382 Compensation expense for equity awards — 1,952 — — 1,952 Repurchase of shares — — — — — Dividends declared — — (7,203) — (7,203) October 30, 2021 $ 16,891 $ 160,421 $ 321,238 $ (3,081) $ 495,469 Comprehensive income — — 25,408 (391) 25,017 Shares issued under equity plans 5 401 — — 406 Compensation expense for equity awards — 2,334 — — 2,334 Repurchase of shares (91) — (8,268) — (8,359) Dividends declared — — (7,203) — (7,203) January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 First Nine Months Fiscal 2022 Common Stock APIC Retained Earnings AOCI Total January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 Comprehensive income — — 57,408 477 57,885 Shares issued under equity plans 5 387 — — 392 Compensation expense for equity awards — 2,725 — — 2,725 Repurchase of shares (526) (3,131) (42,375) — (46,032) Dividends declared — — (9,214) — (9,214) April 30, 2022 $ 16,284 $ 163,137 $ 336,994 $ (2,995) $ 513,420 Comprehensive income — — 56,612 (125) 56,487 Shares issued under equity plans 15 475 — — 490 Compensation expense for equity awards — 2,527 — — 2,527 Repurchase of shares (339) — (29,475) — (29,814) Dividends declared — — (9,094) — (9,094) July 30, 2022 $ 15,960 $ 166,139 $ 355,037 $ (3,120) $ 534,016 Comprehensive income — — 19,666 (450) 19,216 Shares issued under equity plans 1 379 — — 380 Compensation expense for equity awards 2,545 — — 2,545 Repurchase of shares (146) — (13,977) — (14,123) Dividends declared — — (8,995) — (8,995) October 29, 2022 $ 15,815 $ 169,063 $ 351,731 $ (3,570) $ 533,039 During the First Quarter of Fiscal 2022, we granted 0.1 million service-based restricted share units, subject to the recipient remaining an employee through the May 2025 vesting date. Additionally, during the First Quarter of Fiscal 2022, we granted 0.1 million total shareholder return-based (“TSR-based”) restricted share units at target subject to (1) our achievement of a specified TSR-based ranking by Oxford relative to a comparator group during a period of approximately three years from the date of grant and (2) the recipient remaining an employee through the May 2025 vesting date. The number of shares ultimately earned for the TSR-based restricted share units will be between 0% and 200% of the restricted share units at target. Neither the service-based or TSR-based restricted share units are included in the table above as the awards are not outstanding shares. Both the service-based and TSR-based restricted share units are entitled to dividend equivalents for dividends declared on our common stock during the vesting period, with the dividend equivalents for the service-based restricted share units payable at the time of the payment of the respective dividend and the dividend equivalents for the TSR-based restricted share units payable after vesting of the restricted shares solely attributable to the number of shares actually earned. Neither the service-based or TSR-based restricted share units have any voting rights during the vesting period. Both the service-based and TSR-based restricted share units granted during the First Quarter of Fiscal 2022 include certain clauses related to accelerated vesting upon the occurrence of qualifying retirement, death or disability of the employee prior to the vesting date. Our stock incentive plans are described in Note 8 to our consolidated financial statements included in our Fiscal 2021 Form 10-K. |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 29, 2022 | |
Business Combinations | |
Business Combinations | 7. Business Combinations: The purchase price for the acquisition of Johnny Was totaled $270 million in cash, subject to adjustment based on net working capital as of the closing date of the acquisition. After giving effect to the preliminary estimated working capital adjustment, which we expect to finalize near the end of the fiscal year, the purchase price paid at closing was $271 million, including acquired cash of $7 million. We used cash and short-term investments on hand and borrowings under our Fourth Amended and Restated Credit Agreement (as amended, the “U.S. Revolving Credit Agreement”) to fund the transaction. There are no contingent consideration arrangements associated with this transaction. Transaction and integration costs related to this acquisition, which primarily consist of representation and warranty insurance, integration costs, due diligence costs, legal fees and other costs, total approximately $3 million as of October 29, 2022 and are included in SG&A in our consolidated statements of operations in the First Nine Months of Fiscal 2022. These costs are included in Corporate and Other in Note 2. We may incur additional integration costs in future periods. Our allocation of the purchase price to the estimated fair values of the acquired assets and liabilities, including intangible assets, customer relationships, operating lease amounts, property and equipment, working capital amounts and other amounts, is preliminary. The allocation of purchase price will be revised during the one year allocation period, as appropriate, as we obtain new information about the fair values of these assets and liabilities as of the acquisition date and finalize our valuation estimates. Changes in future periods to the amounts allocated to the various assets and liabilities could be material. The following table summarizes our preliminary allocation of the purchase price for the Johnny Was acquisition (in thousands): Johnny Was acquisition Cash and cash equivalents $ 7,288 Receivables 10,258 Inventories (1) 23,283 Prepaid expenses 4,417 Property and equipment 21,212 Intangible assets 134,640 Goodwill 92,457 Operating lease assets 54,485 Other non-current assets 656 Accounts payable, accrued expenses and other liabilities (30,743) Non-current portion of operating lease liabilities (47,009) Purchase price $ 270,944 (1) Includes a preliminary estimate for the step-up of acquired inventory from cost to fair value of $4 million pursuant to the purchase method of accounting. This step-up amount will be recognized in cost of goods sold as the acquired inventory is sold, including $1 million recognized in our consolidated statement of operations in the Third Quarter of Fiscal 2022. The remainder of the step-up is expected to be recognized in the Fourth Quarter of Fiscal 2022. Goodwill, which is expected be deductible for federal income tax purposes, represents the amount by which the cost to acquire Johnny Was exceeds the fair value of individual acquired assets less liabilities of the business at acquisition. Intangible assets allocated in connection with our preliminary purchase price allocation consisted of the following (in thousands): Johnny Was Useful life acquisition Finite lived intangible assets acquired, primarily consisting of customer relationships 8 - 13 years $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 The consolidated pro forma information presented below (in thousands, except per share data) gives effect to the September 19, 2022 acquisition of Johnny Was as if the acquisition had occurred as of the beginning of Fiscal 2021. The information presented below is for illustrative purposes only, is not indicative of results that would have been achieved if the acquisition had occurred as of the beginning of Fiscal 2021 and is not intended to be a projection of future results of operations. The consolidated pro forma information has been prepared from the Johnny Was and our historical statements of operations for the periods presented, including without limitation, purchase accounting adjustments, but excluding any seller specific management/advisory or similar expenses and any synergies or operating cost reductions that may be achieved from the combined operations in the future. Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Net sales $ 344,058 $ 294,416 $ 1,163,889 $ 976,718 Earnings before income taxes $ 36,085 $ 33,424 $ 198,341 $ 135,889 Net earnings $ 26,767 $ 28,264 $ 149,354 $ 108,221 Earnings per share: Basic $ 1.70 $ 1.70 $ 9.34 $ 6.51 Diluted $ 1.66 $ 1.68 $ 9.14 $ 6.43 The Third Quarter of Fiscal 2022 and the First Nine Months of Fiscal 2022, as well as the Third Quarter of Fiscal 2021, pro forma information above includes amortization of acquired intangible assets, but excludes the transaction expenses associated with the transaction and the incremental cost of goods sold associated with the step-up of inventory at acquisition that will be recognized by us in our Fiscal 2022 consolidated statement of operations. The First Nine Months of Fiscal 2021 pro forma information above includes amortization of acquired intangible assets, transaction expenses and integration costs associated with the transaction and incremental cost of goods sold associated with the step-up of inventory at acquisition. Additionally, the pro forma adjustments for each period prior to the date of acquisition reflect an estimate of incremental interest expense associated with additional borrowings and income tax expense that would have been incurred subsequent to the acquisition. We believe that the acquisition of Johnny Was further advances our strategic goal of owning a diversified portfolio of lifestyle brands. The acquisition provides strategic benefits through growth opportunities and further diversification of our business. |
Debt
Debt | 9 Months Ended |
Oct. 29, 2022 | |
Debt | |
Debt | 8. Debt: |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 29, 2022 | |
Subsequent Event | |
Subsequent Event | 9. Subsequent Event: |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 29, 2022 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation: The preparation of our unaudited condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The significant accounting policies applied during the interim periods presented are consistent with the significant accounting policies described in our Fiscal 2021 Form 10-K. No recently issued guidance adopted in Fiscal 2022 had a material impact on our consolidated financial statements upon adoption or is expected to have a material impact in future periods. On September 19, 2022, we acquired the Johnny Was® lifestyle apparel brand and its related assets and operations, which is discussed in further detail in Note 7 of these unaudited condensed consolidated financial statements. Also, in Fiscal 2021, we exited our Lanier Apparel business, as discussed in Note 11 of our consolidated financial statements of our Fiscal 2021 Form 10-K. Johnny Was in Fiscal 2022 and Lanier Apparel in Fiscal 2021 are each disclosed as separate operating groups in Note 2 of these unaudited condensed consolidated financial statements. |
Recently Issued Accounting Standards Applicable to Future Periods | Recently Issued Accounting Standards Applicable to Future Periods Recent accounting pronouncements pending adoption are either not applicable or not expected to have a material impact on our consolidated financial statements. |
Recent Macroeconomic Conditions | Recent Macroeconomic Conditions The COVID-19 pandemic has had a significant effect on overall economic conditions and our operations in recent years. In Fiscal 2021, the economic environment improved significantly with a rebound in retail traffic starting in March 2021 and other improvements as the year progressed, although certain stores were closed for portions of Fiscal 2021, particularly in the First Quarter of Fiscal 2021. This exceptionally strong consumer demand, along with the strength of our brands, resulted in record earnings for us during Fiscal 2021 and the First Nine Months of Fiscal 2022. The strong earnings in recent periods are despite certain challenges in the retail apparel market, including labor shortages, supply chain disruptions and product and operating cost increases in Fiscal 2021 and Fiscal 2022. We, as well as others in our industry, have increased prices to attempt to offset inflationary pressures. There can be no assurance that the strong consumer demand of Fiscal 2021 and Fiscal 2022 will continue for our business or the broader retail apparel market. There remains significant uncertainty in the macroeconomic environment as to the impact of changing consumer discretionary spending habits, recent supply chain and other business disruptions, ongoing operating cost increases and other inflationary pressures, rising interest rates, the duration and severity of the pandemic and general economic conditions. Thus, the ultimate impact of these items on our business remains uncertain at this time. |
Operating Group Information (Ta
Operating Group Information (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Operating Group Information | |
Schedule of financial information by operating group | The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other. Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Net sales Tommy Bahama $ 178,645 $ 148,454 $ 650,677 $ 513,985 Lilly Pulitzer 84,053 72,157 264,763 233,066 Johnny Was (1) 22,661 — 22,661 — Emerging Brands 26,912 22,082 88,588 67,336 Lanier Apparel — 4,232 — 24,743 Corporate and Other 762 804 2,355 3,033 Consolidated net sales $ 313,033 $ 247,729 $ 1,029,044 $ 842,163 Depreciation and amortization Tommy Bahama $ 6,576 $ 6,895 $ 20,110 $ 20,801 Lilly Pulitzer 3,288 2,445 9,384 6,833 Johnny Was (1) 2,184 — 2,184 — Emerging Brands 391 324 1,143 955 Lanier Apparel — 27 — 88 Corporate and Other 197 186 627 575 Consolidated depreciation and amortization $ 12,636 $ 9,877 $ 33,448 $ 29,252 Operating income (loss) Tommy Bahama $ 18,984 $ 5,531 $ 130,508 $ 73,515 Lilly Pulitzer 12,688 15,985 60,358 61,713 Johnny Was (1) 117 — 117 — Emerging Brands 3,729 4,103 15,456 13,565 Lanier Apparel — 348 — 2,053 Corporate and Other (8,203) 4,640 (27,775) (17,350) Consolidated operating income 27,315 30,607 $ 178,664 $ 133,496 Interest expense, net 698 222 1,214 685 Earnings before income taxes $ 26,617 $ 30,385 $ 177,450 $ 132,811 October 29, 2022 January 29, 2022 October 30, 2021 Assets Tommy Bahama (2) $ 544,947 $ 531,678 $ 531,534 Lilly Pulitzer (3) 192,609 176,757 173,104 Johnny Was (4) 350,212 — — Emerging Brands (5) 83,280 66,825 54,532 Lanier Apparel (6) — 207 3,261 Corporate and Other (7) (30,731) 182,175 170,372 Consolidated Total Assets $ 1,140,317 $ 957,642 $ 932,803 (1) Amount included for Johnny Was represents the post-acquisition period only. (2) Increase in Tommy Bahama total assets from October 30, 2021 includes increases in inventories and receivables partially offset by reductions in non-current assets, including operating lease assets and property and equipment. (3) Increase in Lilly Pulitzer total assets from October 30, 2021 includes increases in inventories and property and equipment partially offset by reductions in operating lease assets. (4) The Johnny Was business was acquired on September 19, 2022. (5) Increase in Emerging Brands total assets from October 30, 2021 includes increases in inventories and non-current assets, including operating lease assets and property and equipment. (6) Decrease in Lanier Apparel total assets from October 30, 2021 is due to the exit of the Lanier Apparel business during Fiscal 2021. (7) Decrease in Corporate and Other total assets from October 30, 2021 includes reductions in short-term investments, cash and cash equivalents, which were used to fund a portion of the acquisition purchase price for Johnny Was, and reductions in inventories, which was primarily due to the change in the LIFO reserve, and reductions in other non-current assets. |
Schedule of net sales by operating group | The tables below quantify net sales, for each operating group and in total (in thousands), and the percentage of net sales by distribution channel for each operating group and in total, for each quarter or nine month period presented, except that the amounts included for Johnny Was represent the post-acquisition period only. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding. Third Quarter Fiscal 2022 Net Sales Retail E-commerce Restaurant Wholesale Other Tommy Bahama $ 178,645 44 % 20 % 13 % 23 % — % Lilly Pulitzer 84,053 27 % 62 % — % 11 % — % Johnny Was (1) 22,661 38 % 41 % — % 21 % — % Emerging Brands 26,912 5 % 40 % — % 55 % — % Lanier Apparel — — % — % — % — % — % Corporate and Other 762 — % — % — % 47 % 53 % Total $ 313,033 36 % 34 % 7 % 22 % — % Third Quarter Fiscal 2021 Net Sales Retail E-commerce Restaurant Wholesale Other Tommy Bahama $ 148,454 47 % 22 % 13 % 18 % — % Lilly Pulitzer 72,157 31 % 58 % — % 11 % — % Johnny Was — — % — % — — % — % Emerging Brands 22,082 4 % 34 % — % 62 % — % Lanier Apparel 4,232 — % — % — % 100 % — % Corporate and Other 804 — % — % — % 67 % 33 % Total $ 247,729 37 % 33 % 8 % 21 % — % First Nine Months 2022 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 650,677 46 % 23 % 12 % 19 % — % Lilly Pulitzer 264,763 34 % 49 % — % 17 % — % Johnny Was (1) 22,661 38 % 41 % — % 21 % — % Emerging Brands 88,588 5 % 39 % — % 56 % — % Lanier Apparel — — % — % — % — % — % Corporate and Other 2,355 — % — % — % 50 % 50 % Consolidated net sales $ 1,029,044 39 % 31 % 8 % 21 % — % First Nine Months 2021 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 513,985 46 % 24 % 14 % 16 % — % Lilly Pulitzer 233,066 35 % 48 % — % 17 % — % Johnny Was — — % — % — % — % — % Emerging Brands 67,336 4 % 37 % — % 59 % — % Lanier Apparel 24,743 — % — % — % 100 % — % Corporate and Other 3,033 — % — % — % 65 % 35 % Consolidated net sales $ 842,163 38 % 31 % 8 % 22 % — % (1) Amount included for Johnny Was represents the period from September 19, 2022 through October 29, 2022 only. |
Revenue Recognition and Recei_2
Revenue Recognition and Receivables (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Revenue Recognition and Receivables | |
Schedule of net sales by distribution channel | The table below quantifies net sales by distribution channel (in thousands) for each period presented. Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Retail $ 112,344 $ 92,579 $ 402,400 $ 319,493 E-commerce 107,756 82,402 323,045 261,393 Restaurant 23,157 19,748 81,333 70,784 Wholesale 69,292 52,658 220,707 189,133 Other 484 342 1,559 1,360 Net sales $ 313,033 $ 247,729 $ 1,029,044 $ 842,163 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Leases | |
Schedule of lease liability payments | As of October 29, 2022, the stated lease liability payments for the fiscal years specified below were as follows (in thousands): Operating lease Remainder of 2022 $ 15,300 2023 79,865 2024 63,653 2025 47,707 2026 40,493 2027 27,146 After 2027 52,525 Total lease payments $ 326,689 Less: Difference between discounted and undiscounted lease payments 38,419 Present value of lease liabilities $ 288,270 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Shareholders' Equity | |
Schedule of stockholders equity | The following tables detail the changes (in thousands) in our common stock, additional paid-in capital ("APIC"), retained earnings and accumulated other comprehensive (loss) income ("AOCI"), for each period presented. Fiscal 2021 Common Stock APIC Retained Earnings AOCI Total January 30, 2021 $ 16,889 $ 156,508 $ 235,995 $ (3,664) $ 405,728 Comprehensive income — — 28,468 391 28,859 Shares issued under equity plans 39 283 — — 322 Compensation expense for equity awards — 2,227 — — 2,227 Repurchase of shares (34) (2,949) — — (2,983) Dividends declared — — (6,252) — (6,252) May 1, 2021 $ 16,894 $ 156,069 $ 258,211 $ (3,273) $ 427,901 Comprehensive income — — 51,460 (462) 50,998 Shares issued under equity plans 1 341 — — 342 Compensation expense for equity awards — 1,673 — — 1,673 Repurchase of shares — — — — — Dividends declared — — (7,215) — (7,215) July 31, 2021 $ 16,895 $ 158,083 $ 302,456 $ (3,735) $ 473,699 Comprehensive income — — 25,985 654 26,639 Shares issued under equity plans (4) 386 — — 382 Compensation expense for equity awards — 1,952 — — 1,952 Repurchase of shares — — — — — Dividends declared — — (7,203) — (7,203) October 30, 2021 $ 16,891 $ 160,421 $ 321,238 $ (3,081) $ 495,469 Comprehensive income — — 25,408 (391) 25,017 Shares issued under equity plans 5 401 — — 406 Compensation expense for equity awards — 2,334 — — 2,334 Repurchase of shares (91) — (8,268) — (8,359) Dividends declared — — (7,203) — (7,203) January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 First Nine Months Fiscal 2022 Common Stock APIC Retained Earnings AOCI Total January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 Comprehensive income — — 57,408 477 57,885 Shares issued under equity plans 5 387 — — 392 Compensation expense for equity awards — 2,725 — — 2,725 Repurchase of shares (526) (3,131) (42,375) — (46,032) Dividends declared — — (9,214) — (9,214) April 30, 2022 $ 16,284 $ 163,137 $ 336,994 $ (2,995) $ 513,420 Comprehensive income — — 56,612 (125) 56,487 Shares issued under equity plans 15 475 — — 490 Compensation expense for equity awards — 2,527 — — 2,527 Repurchase of shares (339) — (29,475) — (29,814) Dividends declared — — (9,094) — (9,094) July 30, 2022 $ 15,960 $ 166,139 $ 355,037 $ (3,120) $ 534,016 Comprehensive income — — 19,666 (450) 19,216 Shares issued under equity plans 1 379 — — 380 Compensation expense for equity awards 2,545 — — 2,545 Repurchase of shares (146) — (13,977) — (14,123) Dividends declared — — (8,995) — (8,995) October 29, 2022 $ 15,815 $ 169,063 $ 351,731 $ (3,570) $ 533,039 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Business Combinations | |
Summary of our preliminary allocation of the purchase price | Johnny Was acquisition Cash and cash equivalents $ 7,288 Receivables 10,258 Inventories (1) 23,283 Prepaid expenses 4,417 Property and equipment 21,212 Intangible assets 134,640 Goodwill 92,457 Operating lease assets 54,485 Other non-current assets 656 Accounts payable, accrued expenses and other liabilities (30,743) Non-current portion of operating lease liabilities (47,009) Purchase price $ 270,944 (1) Includes a preliminary estimate for the step-up of acquired inventory from cost to fair value of $4 million pursuant to the purchase method of accounting. This step-up amount will be recognized in cost of goods sold as the acquired inventory is sold, including $1 million recognized in our consolidated statement of operations in the Third Quarter of Fiscal 2022. The remainder of the step-up is expected to be recognized in the Fourth Quarter of Fiscal 2022. |
Summary of Intangible assets allocated in connection with our preliminary purchase price allocation | Johnny Was Useful life acquisition Finite lived intangible assets acquired, primarily consisting of customer relationships 8 - 13 years $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 |
Schedule of pro forma statements of operations | |
Schedule of pro forma statements of operations | Third Quarter First Nine Months Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Net sales $ 344,058 $ 294,416 $ 1,163,889 $ 976,718 Earnings before income taxes $ 36,085 $ 33,424 $ 198,341 $ 135,889 Net earnings $ 26,767 $ 28,264 $ 149,354 $ 108,221 Earnings per share: Basic $ 1.70 $ 1.70 $ 9.34 $ 6.51 Diluted $ 1.66 $ 1.68 $ 9.14 $ 6.43 |
Operating Group Information - F
Operating Group Information - Financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Operating groups | ||||
Net sales | $ 313,033 | $ 247,729 | $ 1,029,044 | $ 842,163 |
Depreciation and amortization | 12,636 | 9,877 | 33,448 | 29,252 |
Operating income (loss) | 27,315 | 30,607 | 178,664 | 133,496 |
Interest expense, net | 698 | 222 | 1,214 | 685 |
Earnings before income taxes | 26,617 | 30,385 | 177,450 | 132,811 |
Corporate and Other | ||||
Operating groups | ||||
Net sales | 762 | 804 | 2,355 | 3,033 |
Depreciation and amortization | 197 | 186 | 627 | 575 |
Operating income (loss) | (8,203) | 4,640 | (27,775) | (17,350) |
Tommy Bahama | Operating Segments | ||||
Operating groups | ||||
Net sales | 178,645 | 148,454 | 650,677 | 513,985 |
Depreciation and amortization | 6,576 | 6,895 | 20,110 | 20,801 |
Operating income (loss) | 18,984 | 5,531 | 130,508 | 73,515 |
Lilly Pulitzer | Operating Segments | ||||
Operating groups | ||||
Net sales | 84,053 | 72,157 | 264,763 | 233,066 |
Depreciation and amortization | 3,288 | 2,445 | 9,384 | 6,833 |
Operating income (loss) | 12,688 | 15,985 | 60,358 | 61,713 |
Johnny Was | Operating Segments | ||||
Operating groups | ||||
Net sales | 22,661 | 22,661 | ||
Depreciation and amortization | 2,184 | 2,184 | ||
Operating income (loss) | 117 | 117 | ||
Emerging Brands | Operating Segments | ||||
Operating groups | ||||
Net sales | 26,912 | 22,082 | 88,588 | 67,336 |
Depreciation and amortization | 391 | 324 | 1,143 | 955 |
Operating income (loss) | $ 3,729 | 4,103 | $ 15,456 | 13,565 |
Lanier Apparel | Operating Segments | ||||
Operating groups | ||||
Net sales | 4,232 | 24,743 | ||
Depreciation and amortization | 27 | 88 | ||
Operating income (loss) | $ 348 | $ 2,053 |
Operating Group Information - A
Operating Group Information - Assets (Details) - USD ($) $ in Thousands | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Operating groups | |||
Assets | $ 1,140,317 | $ 957,642 | $ 932,803 |
Corporate and Other | |||
Operating groups | |||
Assets | (30,731) | 182,175 | 170,372 |
Tommy Bahama | Operating Segments | |||
Operating groups | |||
Assets | 544,947 | 531,678 | 531,534 |
Lilly Pulitzer | Operating Segments | |||
Operating groups | |||
Assets | 192,609 | 176,757 | 173,104 |
Johnny Was [Member] | Operating Segments | |||
Operating groups | |||
Assets | 350,212 | ||
Emerging Brands | Operating Segments | |||
Operating groups | |||
Assets | $ 83,280 | 66,825 | 54,532 |
Lanier Apparel | Operating Segments | |||
Operating groups | |||
Assets | $ 207 | $ 3,261 |
Operating Group Information - S
Operating Group Information - Sales by operating group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Operating groups | ||||
Net sales | $ 313,033 | $ 247,729 | $ 1,029,044 | $ 842,163 |
Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales | 178,645 | 148,454 | 650,677 | 513,985 |
Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales | 84,053 | 72,157 | 264,763 | 233,066 |
Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales | 22,661 | 22,661 | ||
Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales | 26,912 | 22,082 | 88,588 | 67,336 |
Operating Segments | Lanier Apparel | ||||
Operating groups | ||||
Net sales | 4,232 | 24,743 | ||
Corporate and Other | ||||
Operating groups | ||||
Net sales | 762 | 804 | 2,355 | 3,033 |
Retail | ||||
Operating groups | ||||
Net sales | $ 112,344 | $ 92,579 | $ 402,400 | $ 319,493 |
Net sales (as a percent) | 36% | 37% | 39% | 38% |
Retail | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 44% | 47% | 46% | 46% |
Retail | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 27% | 31% | 34% | 35% |
Retail | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 38% | 38% | ||
Retail | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 5% | 4% | 5% | 4% |
E-commerce | ||||
Operating groups | ||||
Net sales | $ 107,756 | $ 82,402 | $ 323,045 | $ 261,393 |
Net sales (as a percent) | 34% | 33% | 31% | 31% |
E-commerce | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 20% | 22% | 23% | 24% |
E-commerce | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 62% | 58% | 49% | 48% |
E-commerce | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 41% | 41% | ||
E-commerce | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 40% | 34% | 39% | 37% |
Restaurant | ||||
Operating groups | ||||
Net sales | $ 23,157 | $ 19,748 | $ 81,333 | $ 70,784 |
Net sales (as a percent) | 7% | 8% | 8% | 8% |
Restaurant | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 13% | 13% | 12% | 14% |
Wholesale | ||||
Operating groups | ||||
Net sales | $ 69,292 | $ 52,658 | $ 220,707 | $ 189,133 |
Net sales (as a percent) | 22% | 21% | 21% | 22% |
Wholesale | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 23% | 18% | 19% | 16% |
Wholesale | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 11% | 11% | 17% | 17% |
Wholesale | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 21% | 21% | ||
Wholesale | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 55% | 62% | 56% | 59% |
Wholesale | Operating Segments | Lanier Apparel | ||||
Operating groups | ||||
Net sales (as a percent) | 100% | 100% | ||
Wholesale | Corporate and Other | ||||
Operating groups | ||||
Net sales (as a percent) | 47% | 67% | 50% | 65% |
Other | ||||
Operating groups | ||||
Net sales | $ 484 | $ 342 | $ 1,559 | $ 1,360 |
Other | Corporate and Other | ||||
Operating groups | ||||
Net sales (as a percent) | 53% | 33% | 50% | 35% |
Revenue Recognition and Recei_3
Revenue Recognition and Receivables - Net sales by distribution channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Revenue | ||||
Net sales | $ 313,033 | $ 247,729 | $ 1,029,044 | $ 842,163 |
Retail | ||||
Revenue | ||||
Net sales | 112,344 | 92,579 | 402,400 | 319,493 |
E-commerce | ||||
Revenue | ||||
Net sales | 107,756 | 82,402 | 323,045 | 261,393 |
Restaurant | ||||
Revenue | ||||
Net sales | 23,157 | 19,748 | 81,333 | 70,784 |
Wholesale | ||||
Revenue | ||||
Net sales | 69,292 | 52,658 | 220,707 | 189,133 |
Other | ||||
Revenue | ||||
Net sales | $ 484 | $ 342 | $ 1,559 | $ 1,360 |
Revenue Recognition and Recei_4
Revenue Recognition and Receivables - Credit losses and receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Jan. 29, 2022 | |
Revenue | |||
Sales return liability | $ 9 | $ 7 | $ 11 |
Value of inventory for wholesale and direct to consumer sales returns | 4 | 3 | 4 |
Receivable reserve | 5 | 5 | 3 |
Credit loss reserve | 1 | 2 | 1 |
Contract liabilities | 17 | 14 | $ 16 |
Maximum | |||
Revenue | |||
Write-off of credit losses | $ 1 | $ 1 |
Leases - Expense (Details)
Leases - Expense (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2022 | Oct. 30, 2021 | |
Leases | ||
Operating lease expense | $ 43 | |
Variable lease expense | 31 | |
Total lease expense | 75 | $ 70 |
Cash paid for lease liabilities | $ 53 | $ 53 |
Maximum | ||
Leases | ||
Lease term | 10 years |
Leases - Lease liability paymen
Leases - Lease liability payment schedule (Details) $ in Thousands | Oct. 29, 2022 USD ($) |
Required lease liability payments due | |
Remainder of 2022 | $ 15,300 |
2023 | 79,865 |
2024 | 63,653 |
2025 | 47,707 |
2026 | 40,493 |
2027 | 27,146 |
After 2027 | 52,525 |
Total lease payments | 326,689 |
Less: Difference between discounted and undiscounted lease payments | 38,419 |
Present value of lease liabilities | $ 288,270 |
Operating Lease, Liability, Statement of Financial Position | Current portion of operating lease liabilities, Non-current portion of operating lease liabilities |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Income taxes | ||||
Effective income tax expense (benefit) rate (as a percent) | 26.10% | 14.50% | 24.70% | 20.30% |
Net reduction in uncertain tax positions resulting from the settlement of uncertain tax position | $ 2 | |||
Minimum | ||||
Income taxes | ||||
Typical effective income tax expense (benefit) rate (as a percent) | 25% | 25% | ||
Maximum | ||||
Income taxes | ||||
Typical effective income tax expense (benefit) rate (as a percent) | 26% | 26% |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 08, 2022 | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | Oct. 29, 2022 | |
Share Repurchases | |||||
Purchase of shares from employees to cover employee tax liabilities of vesting of shares | $ 3 | $ 3 | |||
Open Market Stock Repurchase Program | |||||
Share Repurchases | |||||
Repurchase of shares (in shares) | 91 | 976 | |||
Repurchase of shares | $ 8 | $ 87 | |||
Amount authorized for repurchase | 100 | ||||
Amount remaining available for repurchase | 5 | ||||
Open Market Stock Repurchase Program | Subsequent Event | |||||
Share Repurchases | |||||
Repurchase of shares (in shares) | 47 | ||||
Repurchase of shares | $ 5 | ||||
Amount remaining available for repurchase | $ 0 | ||||
Existing Board of Directors' authorization | |||||
Share Repurchases | |||||
Amount remaining available for repurchase | $ 55 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Shareholders' Equity | |||||||||
Beginning Balance | $ 534,016 | $ 513,420 | $ 507,664 | $ 495,469 | $ 473,699 | $ 427,901 | $ 405,728 | $ 507,664 | $ 405,728 |
Comprehensive income | 19,216 | 56,487 | 57,885 | 25,017 | 26,639 | 50,998 | 28,859 | 133,588 | 106,496 |
Shares issued under equity plans | 380 | 490 | 392 | 406 | 382 | 342 | 322 | ||
Compensation expense for equity awards | 2,545 | 2,527 | 2,725 | 2,334 | 1,952 | 1,673 | 2,227 | ||
Repurchase of shares | (14,123) | (29,814) | (46,032) | (8,359) | (2,983) | ||||
Dividends declared | (8,995) | (9,094) | (9,214) | (7,203) | (7,203) | (7,215) | (6,252) | ||
Ending Balance | 533,039 | 534,016 | 513,420 | 507,664 | 495,469 | 473,699 | 427,901 | 533,039 | 495,469 |
Common Stock | |||||||||
Shareholders' Equity | |||||||||
Beginning Balance | 15,960 | 16,284 | 16,805 | 16,891 | 16,895 | 16,894 | 16,889 | 16,805 | 16,889 |
Shares issued under equity plans | 1 | 15 | 5 | 5 | (4) | 1 | 39 | ||
Repurchase of shares | (146) | (339) | (526) | (91) | (34) | ||||
Ending Balance | 15,815 | 15,960 | 16,284 | 16,805 | 16,891 | 16,895 | 16,894 | 15,815 | 16,891 |
Additional Paid-In Capital | |||||||||
Shareholders' Equity | |||||||||
Beginning Balance | 166,139 | 163,137 | 163,156 | 160,421 | 158,083 | 156,069 | 156,508 | 163,156 | 156,508 |
Shares issued under equity plans | 379 | 475 | 387 | 401 | 386 | 341 | 283 | ||
Compensation expense for equity awards | 2,545 | 2,527 | 2,725 | 2,334 | 1,952 | 1,673 | 2,227 | ||
Repurchase of shares | (3,131) | (2,949) | |||||||
Ending Balance | 169,063 | 166,139 | 163,137 | 163,156 | 160,421 | 158,083 | 156,069 | 169,063 | 160,421 |
Retained Earnings | |||||||||
Shareholders' Equity | |||||||||
Beginning Balance | 355,037 | 336,994 | 331,175 | 321,238 | 302,456 | 258,211 | 235,995 | 331,175 | 235,995 |
Comprehensive income | 19,666 | 56,612 | 57,408 | 25,408 | 25,985 | 51,460 | 28,468 | ||
Repurchase of shares | (13,977) | (29,475) | (42,375) | (8,268) | |||||
Dividends declared | (8,995) | (9,094) | (9,214) | (7,203) | (7,203) | (7,215) | (6,252) | ||
Ending Balance | 351,731 | 355,037 | 336,994 | 331,175 | 321,238 | 302,456 | 258,211 | 351,731 | 321,238 |
Accumulated Other Comprehensive (Loss) Income | |||||||||
Shareholders' Equity | |||||||||
Beginning Balance | (3,120) | (2,995) | (3,472) | (3,081) | (3,735) | (3,273) | (3,664) | (3,472) | (3,664) |
Comprehensive income | (450) | (125) | 477 | (391) | 654 | (462) | 391 | ||
Ending Balance | $ (3,570) | $ (3,120) | $ (2,995) | $ (3,472) | $ (3,081) | $ (3,735) | $ (3,273) | $ (3,570) | $ (3,081) |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted share units (Details) shares in Millions | 3 Months Ended |
Apr. 30, 2022 shares | |
Restricted share units, Vesting based on service | |
Equity Compensation | |
Granted/issued (in shares) | 0.1 |
Restricted share units, Vesting based on performance (TSR- based) | |
Equity Compensation | |
Granted/issued (in shares) | 0.1 |
Comparative period | 3 years |
Restricted share units, Vesting based on performance (TSR- based) | Minimum | |
Equity Compensation | |
Shares earned as a percent of share target | 0% |
Restricted share units, Vesting based on performance (TSR- based) | Maximum | |
Equity Compensation | |
Shares earned as a percent of share target | 200% |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 19, 2022 | Oct. 29, 2022 | |
Business Combinations | ||
Acquisitions, net of cash acquired | $ 263,656 | |
Johnny Was (JW Holdings, LLC) | ||
Business Combinations | ||
Voting interest (as a percent) | 100% | |
Purchase price paid | $ 270,000 | |
Purchase price | 270,944 | |
Acquisitions, cash acquired | 7,000 | |
Contingent consideration | 0 | |
Transaction and integration costs | $ 3,000 |
Business Combinations - Prelimi
Business Combinations - Preliminary allocation of purchase price (Details) - USD ($) $ in Thousands | Sep. 19, 2022 | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Business Combinations | ||||
Goodwill | $ 116,268 | $ 23,869 | $ 23,909 | |
Johnny Was (JW Holdings, LLC) | ||||
Business Combinations | ||||
Cash and cash equivalents | $ 7,288 | |||
Receivables | 10,258 | |||
Inventories | 23,283 | |||
Prepaid expenses | 4,417 | |||
Property and equipment | 21,212 | |||
Intangible assets | 134,640 | |||
Goodwill | 92,457 | |||
Operating lease assets | 54,485 | |||
Other non-current assets | 656 | |||
Accounts payable, accrued expenses and other liabilities | (30,743) | |||
Non-current portion of operating lease liabilities | (47,009) | |||
Purchase price | 270,944 | |||
Step-up of acquired inventory from cost to fair value | 4,000 | |||
Step up amount recognized | $ 1,000 |
Business Combinations - Intangi
Business Combinations - Intangible asset (Details) - Johnny Was (JW Holdings, LLC) $ in Thousands | Sep. 19, 2022 USD ($) |
Business Combinations | |
Intangible assets | $ 134,640 |
Trade names and trademarks | |
Business Combinations | |
Trade names and trademarks | 77,900 |
Customer Relationships | |
Business Combinations | |
Finite lived intangible assets acquired, primarily consisting of customer relationships | $ 56,740 |
Customer Relationships | Maximum | |
Business Combinations | |
Useful life | 13 years |
Business Combinations - Proform
Business Combinations - Proforma (Details) - Johnny Was (JW Holdings, LLC) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Business Combinations | ||||
Net sales | $ 344,058 | $ 294,416 | $ 1,163,889 | $ 976,718 |
Earnings before income taxes | 36,085 | 33,424 | 198,341 | 135,889 |
Net earnings | $ 26,767 | $ 28,264 | $ 149,354 | $ 108,221 |
Earnings per share: | ||||
Basic | $ 1.70 | $ 1.70 | $ 9.34 | $ 6.51 |
Diluted | $ 1.66 | $ 1.68 | $ 9.14 | $ 6.43 |
Debt (Details)
Debt (Details) - US Revolving Credit Agreement - USD ($) $ in Millions | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Debt | |||
Debt outstanding | $ 130 | $ 0 | $ 0 |
Unused availability | $ 160 | $ 322 | $ 322 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Nov. 14, 2022 USD ($) |
Subsequent Event. | Owner of Miramonte Resort & Spa, Indian Wells, California | |
Subsequent Events | |
Payment for indirect minority ownership interest | $ 8 |