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ATLANTA , March 23, 2023 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fourth quarter and full fiscal year 2022 ended January 28, 2023.
Consolidated net sales for the full fiscal 2022 year increased 24% to $1.41 billion compared to $1.14 billion in fiscal 2021. Earnings per share (EPS) on a GAAP basis increased 31% to $10.19 compared to $7.78 in fiscal 2021. On an adjusted basis, EPS increased 36% to $10.88 compared to $7.99 in fiscal 2021.
Consolidated net sales in the fourth quarter of fiscal 2022 increased 28% to $382 million compared to $300 million in the fourth quarter of fiscal 2021. EPS on a GAAP basis increased to $2.00 compared to $1.50 in the fourth quarter of fiscal 2021. On an adjusted basis, EPS increased to $2.28 compared to $1.68 in the fourth quarter of fiscal 2021.
Tom Chubb, Chairman and CEO, commented, “I am extremely proud of our team for delivering record results for both the fourth quarter and full year. Our strategy of creating aspirational lifestyles through compelling product collections, inspiring advertising campaigns and uplifting shopping experiences is resonating with customers across our powerful portfolio of leading brands. Fiscal 2022 was highlighted by robust organic growth in all brands and all channels of distribution with sales in Tommy Bahama, our largest brand, up 22%, Lilly Pulitzer up 13% and the Emerging Brands Group up 29%. Our performance also benefitted from Johnny Was, a fantastic brand and business we added to our portfolio in the third quarter. The combination of our top-line performance, meaningful gross margin expansion and expense leverage fueled a 36% year-over-year increase in adjusted earnings per share to a record $10.88.
Our plan for fiscal 2023 is to capitalize on the momentum we’ve built across our portfolio of brands to drive double digit top- and bottom-line growth. We are excited about our plans for 2023 and believe continued consumer interest in elegant casualwear, moving to warmer climates and travel are all macro trends that play to our strengths. We believe these factors position us well to deliver another year of excellent results.”
Mr. Chubb concluded, “At the foundation of our company and the source of all our success is our incredible team of people. We are enormously grateful for each and every one of them and all that they do.”
Fiscal 2022 versus Fiscal 2021
| Net Sales by Operating Group | Fourth Quarter | Fiscal Year | ||||
| ($ in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change |
| Tommy Bahama | $229.6 | $210.3 | 9% | $880.2 | $724.3 | 22% |
| Lilly Pulitzer | 74.5 | 65.9 | 13% | 339.3 | 299.0 | 13% |
| Emerging Brands | 27.9 | 22.7 | 23% | 116.5 | 90.1 | 29% |
| Other | 0.6 | 0.8 | nm | 3.0 | 3.9 | nm |
| Acquired or Exited Businesses | ||||||
| Johnny Was (acquired 9/19/2022) | 49.9 | 0.0 | nm | 72.6 | 0.0 | nm |
| Lanier Apparel (exited 3Q21) | 0.0 | 0.1 | nm | 0.0 | 24.9 | nm |
| Total Company | $382.5 | $299.9 | 28% | $1,412 | $1,142 | 24% |
Balance Sheet and Liquidity
Inventory increased $102 million on a LIFO basis and $106 million, or 58%, on a FIFO basis compared to the end of the fourth quarter of fiscal 2021. Inventory balances at January 28, 2023 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) $20 million of Johnny Was inventory, (ii) the early receipt of incremental inventory of approximately $25 million to mitigate risks of supply chain delays or disruptions, (iii) anticipated sales increases in fiscal 2023 and (iv) higher product costs. Compared to the end of the fourth quarter of fiscal 2019, on a FIFO basis, inventory increased by 37% while sales for fiscal 2023 are expected to be 44% to 48% higher than fiscal 2019.
As of January 28, 2023, the Company had $119 million of borrowings outstanding under its revolving credit agreement, compared to no borrowings at the end of the prior year. Also, the Company had $9 million of cash and cash equivalents versus $210 million of cash, cash equivalents and short-term investments at the end of the fourth quarter of fiscal 2021. Both the increase in debt outstanding and reduction in cash, cash equivalents and short-term investments were due to the acquisition of Johnny Was in fiscal 2022.
On March 6, 2023, the Company amended its revolving credit facility, which extended the maturity date from July 2024 to March 2028 and increased the spreads on the variable interest rate borrowings by approximately 25 basis points.
Dividend and Share Repurchase
The Board of Directors declared a quarterly cash dividend of $0.65 per share, which represents an 18% increase over its previous quarterly dividend rate of $0.55. The dividend is payable on April 28, 2023 to shareholders of record as of the close of business on April 14, 2023. The Company has paid dividends every quarter since it became publicly owned in 1960.
During the fourth quarter of fiscal 2022, the Company completed the $100 million 10b5-1 share repurchase plan entered into in December 2021. Under this plan, the Company repurchased approximately 1.1 million shares (representing over 6% of total shares outstanding) at an average price of $90 per share. This consists of $8 million in the fourth quarter of fiscal 2021 and $92 million in fiscal 2022. As of January 28, 2023, the Company has $50 million remaining under its Board of Directors’ prior share repurchase authorization.
Outlook
For fiscal 2023, a 53-week year ending on February 3, 2024, the Company initiated sales and EPS guidance. The Company expects net sales in a range of $1.62 billion to $1.66 billion as compared to net sales of $1.41 billion in fiscal 2022. In fiscal 2023, GAAP EPS is expected to be between $10.86 and $11.26 compared to fiscal 2022 GAAP EPS of $10.19. Adjusted EPS is expected to be between $11.50 and $11.90, compared to fiscal 2022 adjusted EPS of $10.88.
For the first quarter of fiscal 2023, the Company expects net sales to be between $405 million and $425 million compared to net sales of $353 million in the first quarter of fiscal 2022. GAAP EPS is expected to be in a range of $3.44 to $3.64 in the first quarter compared to GAAP EPS of $3.45 in the first quarter of fiscal 2022. Adjusted EPS is expected to be between $3.60 and $3.80 compared to adjusted EPS of $3.50 in the first quarter of fiscal 2022.
The Company anticipates higher interest expense at $5 million to $6 million, with about half that interest expense in the first quarter, as the Company expects to significantly reduce debt during the year. This compares to $3 million in the full year of 2022. The Company’s effective tax rate is expected to be between 25% and 26%.
Capital expenditures in fiscal 2023 are expected to be approximately $90 million compared to $47 million in fiscal 2022. The planned increase is primarily due to increased investment in various technology systems initiatives, the commencement of a significant multi-year project at the Company's Lyons, Georgia distribution center to enhance its direct-to-consumer throughput capabilities, increased Marlin Bar openings in Fiscal 2023, the addition of Johnny Was, which is increasing its store count by 10 or more stores this year, and increases in store openings in other brands.
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 April 6, 2023 by dialing (412) 317-6671 access code 13736865.
About Oxford
Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly Pulitzer®, Johnny Was®, 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, 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, rising interest rates, concerns about the stability of the banking industry or general economic uncertainty; acquisition activities (such as our recent acquisition of Johnny Was), including our ability to integrate key functions, recognize anticipated synergies and minimize related disruptions or distractions to our business as a result of these activities; the impact of the coronavirus (COVID-19) pandemic on our business, operations and financial results; supply chain disruptions; costs and availability of labor and freight deliveries, including our ability to appropriately staff our retail stores and restaurants; costs of products as well as the raw materials used in those products, as well as our ability to pass along price increases to consumers; energy costs; our ability to be more hyper-digital and respond to rapidly changing consumer expectations; the ability of business partners, including suppliers, vendors, wholesale customers, licensees, logistics providers and landlords, to meet their obligations to us and/or continue our business relationship to the same degree; 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; the level of our indebtedness, including the risks associated with heightened interest rates on the debt and the potential impact on our ability to operate and expand our business; 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 and/or real estate markets; the timing and cost of retail store and food and beverage location openings and remodels, technology implementations and other capital expenditures; store closures or other operating restrictions due to COVID-19, natural disaster or otherwise; expected outcomes of pending or potential litigation and regulatory actions; the increased consumer, employee and regulatory focus on environmental, social and governance issues; the regulation or prohibition of goods sourced, or containing raw materials or components, from certain regions and our ability to evidence compliance; access to capital and/or credit markets; factors that could affect our consolidated effective tax rate; the risk of impairment to goodwill and other intangible assets; 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)
| January 28, 2023 | January 29, 2022 | |||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 8,826 | $ | 44,859 | ||
| Short-term investments | — | 164,890 | ||||
| Receivables, net | 43,986 | 31,588 | ||||
| Inventories, net | 220,138 | 117,709 | ||||
| Income tax receivable | 19,440 | 19,728 | ||||
| Prepaid expenses and other current assets | 38,073 | 21,561 | ||||
| Total Current Assets | $ | 330,463 | $ | 400,335 | ||
| Property and equipment, net | 177,584 | 152,447 | ||||
| Intangible assets, net | 283,845 | 155,307 | ||||
| Goodwill | 120,498 | 23,869 | ||||
| Operating lease assets | 240,690 | 195,100 | ||||
| Other assets, net | 35,585 | 30,584 | ||||
| Total Assets | $ | 1,188,665 | $ | 957,642 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 94,611 | $ | 80,753 | ||
| Accrued compensation | 35,022 | 30,345 | ||||
| Current portion of operating lease liabilities | 73,865 | 61,272 | ||||
| Accrued expenses and other liabilities | 66,141 | 53,796 | ||||
| Total Current Liabilities | $ | 269,639 | $ | 226,166 | ||
| Long-term debt | 119,011 | — | ||||
| Non-current portion of operating lease liabilities | 220,709 | 199,488 | ||||
| Other non-current liabilities | 20,055 | 21,413 | ||||
| Deferred income taxes | 2,981 | 2,911 | ||||
| Shareholders’ Equity | ||||||
| Common stock, $1.00 par value per share | 15,774 | 16,805 | ||||
| Additional paid-in capital | 172,175 | 163,156 | ||||
| Retained earnings | 370,145 | 331,175 | ||||
| Accumulated other comprehensive loss | (1,824 | ) | (3,472 | ) | ||
| Total Shareholders’ Equity | $ | 556,270 | $ | 507,664 | ||
| Total Liabilities and Shareholders’ Equity | $ | 1,188,665 | $ | 957,642 | ||
Oxford Industries, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Fourth Quarter
| Fiscal 2022 | Fiscal 2021 | Fiscal 2022 | Fiscal 2021 | ||||||
| Net sales | $ | 382,484 | $ | 299,916 | $ | 1,411,528 | $ | 1,142,079 | |
| Cost of goods sold | 149,849 | 122,447 | 522,673 | 435,861 | |||||
| Gross profit | $ | 232,635 | $ | 177,469 | $ | 888,855 | $ | 706,218 | |
| SG&A | 196,430 | 152,639 | 692,004 | 573,636 | |||||
| Royalties and other operating income | 3,905 | 7,177 | 21,923 | 32,921 | |||||
| Operating income | $ | 40,110 | $ | 32,007 | $ | 218,774 | $ | 165,503 | |
| Interest expense, net | 1,835 | 259 | 3,049 | 944 | |||||
| Earnings before income taxes | $ | 38,275 | $ | 31,748 | $ | 215,725 | $ | 164,559 | |
| Income tax expense | 6,226 | 6,340 | 49,990 | 33,238 | |||||
| Net earnings | $ | 32,049 | $ | 25,408 | $ | 165,735 | $ | 131,321 | |
Net earnings per share: | |||||||||
| Basic | $ | 2.05 | $ | 1.53 | $ | 10.42 | $ | 7.90 | |
| Diluted | $ | 2.00 | $ | 1.50 | $ | 10.19 | $ | 7.78 | |
| Weighted average shares outstanding: | |||||||||
| Basic | 15,632 | 16,645 | 15,902 | 16,631 | |||||
| Diluted | 16,037 | 16,955 | 16,259 | 16,869 | |||||
| Dividends declared per share | $ | 0.55 | $ | 0.42 | $ | 2.20 | $ | 1.63 | |
| Oxford Industries, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||
| Fiscal 2022 | Fiscal 2021 | |||||
| Cash Flows From Operating Activities: | ||||||
| Net earnings | $ | 165,735 | $ | 131,321 | ||
| Adjustments to reconcile net earnings to cash flows from operating activities: | ||||||
| Depreciation | 41,503 | 39,062 | ||||
| Amortization of intangible assets | 6,102 | 880 | ||||
| Impairment of property and equipment | 1,430 | 1,656 | ||||
| Equity compensation expense | 10,577 | 8,186 | ||||
| Gain on sale of investment in unconsolidated entity | — | (11,586 | ) | |||
| Gain on sale of property and equipment | (600 | ) | (2,669 | ) | ||
| Amortization of deferred financing costs | 344 | 344 | ||||
| Change in fair value of contingent consideration | — | 1,188 | ||||
| Deferred income taxes | (1,867 | ) | 4,054 | |||
| Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||||||
| Receivables, net | (1,966 | ) | (15 | ) | ||
| Inventories, net | (78,966 | ) | 5,378 | |||
| Income tax receivable | 288 | (1,753 | ) | |||
| Prepaid expenses and other current assets | (12,793 | ) | (889 | ) | ||
| Current liabilities | 8,635 | 27,585 | ||||
| Other non-current assets, net | 14,233 | 37,534 | ||||
| Other non-current liabilities | (27,045 | ) | (42,270 | ) | ||
| Cash provided by operating activities | $ | 125,610 | $ | 198,006 | ||
| Cash Flows From Investing Activities: | ||||||
| Acquisitions, net of cash acquired | (263,648 | ) | — | |||
| Purchases of property and equipment | (46,668 | ) | (31,894 | ) | ||
| Purchases of short-term investments | (70,000 | ) | (165,000 | ) | ||
| Proceeds from short-term investments | 234,852 | — | ||||
| Proceeds from sale of investment in unconsolidated entity | — | 14,586 | ||||
| Other investing activities | (6,283 | ) | 736 | |||
| Cash used in investing activities | $ | (151,747 | ) | $ | (181,572 | ) |
| Cash Flows From Financing Activities: | ||||||
| Repayment of revolving credit arrangements | (145,894 | ) | — | |||
| Proceeds from revolving credit arrangements | 264,905 | — | ||||
| Repurchase of common stock | (91,674 | ) | (8,359 | ) | ||
| Proceeds from issuance of common stock | 1,599 | 1,452 | ||||
| Repurchase of equity awards for employee tax withholding liabilities | (3,166 | ) | (2,983 | ) | ||
| Cash dividends paid | (35,287 | ) | (27,536 | ) | ||
| Other financing activities | (2,010 | ) | (749 | ) | ||
| Cash used in financing activities | $ | (11,527 | ) | $ | (38,175 | ) |
| Net change in cash and cash equivalents | (37,664 | ) | (21,741 | ) | ||
| Effect of foreign currency translation on cash and cash equivalents | 1,631 | 587 | ||||
| Cash and cash equivalents at the beginning of year | 44,859 | 66,013 | ||||
| Cash and cash equivalents at the end of period | $ | 8,826 | $ | 44,859 | ||
Oxford Industries, Inc.
Reconciliations of Certain Non-GAAP Financial Information
(in millions, except per share amounts)
(unaudited)
Fourth Quarter
| AS REPORTED | Fiscal 2022 | Fiscal 2021 | % Change | Fiscal 2022 | Fiscal 2021 | % Change | |||||||||
| Tommy Bahama | |||||||||||||||
| Net sales | $ | 229.6 | $ | 210.3 | 9.1% | $ | 880.2 | $ | 724.3 | 21.5% | |||||
| Gross profit | $ | 147.8 | $ | 132.9 | 11.2% | $ | 567.6 | $ | 459.6 | 23.5% | |||||
| Gross margin | 64.4% | 63.2% | 64.5% | 63.5% | |||||||||||
| Operating income | $ | 42.3 | $ | 38.2 | 10.6% | $ | 172.8 | $ | 111.7 | 54.6% | |||||
| Operating margin | 18.4% | 18.2% | 19.6% | 15.4% | |||||||||||
| Lilly Pulitzer | |||||||||||||||
| Net sales | $ | 74.5 | $ | 65.9 | 13.0% | $ | 339.3 | $ | 299.0 | 13.5% | |||||
| Gross profit | $ | 45.2 | $ | 39.4 | 14.6% | $ | 225.0 | $ | 201.1 | 11.9% | |||||
| Gross margin | 60.7% | 59.8% | 66.3% | 67.3% | |||||||||||
| Operating income | $ | 6.7 | $ | 1.9 | 256.8% | $ | 67.1 | $ | 63.6 | 5.5% | |||||
| Operating margin | 9.0% | 2.9% | 19.8% | 21.3% | |||||||||||
| Johnny Was(1) | |||||||||||||||
| Net sales | $ | 49.9 | $ | 0.0 | 100.0% | $ | 72.6 | $ | 0.0 | 100.0% | |||||
| Gross profit | $ | 30.2 | $ | 0.0 | 100.0% | $ | 44.8 | $ | 0.0 | 100.0% | |||||
| Gross margin | 60.4% | 0.0% | 61.7% | 0.0% | |||||||||||
| Operating income (loss) | $ | (1.7) | $ | 0.0 | 100.0% | $ | (1.5) | $ | 0.0 | 100.0% | |||||
| Operating margin | (3.3)% | 0.0% | (2.1)% | 0.0% | |||||||||||
| Emerging Brands (2) | |||||||||||||||
| Net sales | $ | 27.9 | $ | 22.7 | 22.8% | $ | 116.5 | $ | 90.1 | 29.4% | |||||
| Gross profit | $ | 9.1 | $ | 11.4 | (20.0)% | $ | 53.0 | $ | 47.7 | 11.2% | |||||
| Gross margin | 32.7% | 50.1% | 45.5% | 52.9% | |||||||||||
| Operating income | $ | 0.1 | $ | 3.1 | (95.3)% | $ | 15.6 | $ | 16.6 | (6.3)% | |||||
| Operating margin | 0.5% | 13.6% | 13.4% | 18.5% | |||||||||||
| Lanier Apparel | |||||||||||||||
| Net sales | $ | 0.0 | $ | 0.1 | (100.0)% | $ | 0.0 | $ | 24.9 | (100.0)% | |||||
| Gross profit | $ | 0.0 | $ | 0.0 | (100.0)% | $ | 0.0 | $ | 12.3 | (100.0)% | |||||
| Gross margin | 0.0% | 0.9% | 0.0% | 49.3% | |||||||||||
| Operating income | $ | 0.0 | $ | 2.8 | (100.0)% | $ | 0.0 | $ | 4.9 | (100.0)% | |||||
| Operating margin | 0.0% | NM | 0.0% | 19.7% | |||||||||||
| Corporate and Other (2) | |||||||||||||||
| Net sales | $ | 0.6 | $ | 0.8 | (28.7)% | $ | 3.0 | $ | 3.9 | (23.6)% | |||||
| Gross profit | $ | 0.4 | $ | (6.2) | NM | $ | (1.5) | $ | (14.4) | NM | |||||
| Operating loss | $ | (7.4) | $ | (14.0) | NM | $ | (35.1) | $ | (31.4) | NM | |||||
| Consolidated | |||||||||||||||
| Net sales | $ | 382.5 | $ | 299.9 | 27.5% | $ | 1,411.5 | $ | 1,142.1 | 23.6% | |||||
| Gross profit | $ | 232.6 | $ | 177.5 | 31.1% | $ | 888.9 | $ | 706.2 | 25.9% | |||||
| Gross margin | 60.8% | 59.2% | 63.0% | 61.8% | |||||||||||
| SG&A | $ | 196.4 | $ | 152.6 | 28.7% | $ | 692.0 | $ | 573.6 | 20.6% | |||||
| SG&A as % of net sales | 51.4% | 50.9% | 49.0% | 50.2% | |||||||||||
| Operating income | $ | 40.1 | $ | 32.0 | 25.3% | $ | 218.8 | $ | 165.5 | 32.2% | |||||
| Operating margin | 10.5% | 10.7% | 15.5% | 14.5% | |||||||||||
| Earnings before income taxes | $ | 38.3 | $ | 31.7 | 20.6% | $ | 215.7 | $ | 164.6 | 31.1% | |||||
| Net earnings | $ | 32.0 | $ | 25.4 | 26.1% | $ | 165.7 | $ | 131.3 | 26.2% | |||||
| Net earnings per diluted share | $ | 2.00 | $ | 1.50 | 33.3% | $ | 10.19 | $ | 7.78 | 31.0% | |||||
| Weighted average shares outstanding - diluted | 16.0 | 17.0 | (5.4)% | 16.3 | 16.9 | (3.6)% | |||||||||
Fourth Quarter
| ADJUSTMENTS | Fiscal 2022 | Fiscal 2021 | % Change | Fiscal 2022 | Fiscal 2021 | % Change | |||||||||
| LIFO adjustments(3) | $ | (0.4) | $ | 6.3 | $ | 2.7 | $ | 15.9 | |||||||
| Inventory step-up charge in Johnny Was(4) | $ | 2.9 | $ | 0.0 | $ | 4.2 | $ | 0.0 | |||||||
| Lanier Apparel exit charges in cost of goods sold(5) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | (2.8) | |||||||
| Tommy Bahama lease termination charges(6) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 4.9 | |||||||
| Amortization of Johnny Was intangible assets(7) | $ | 3.6 | $ | 0.0 | $ | 5.2 | $ | 0.0 | |||||||
| Amortization of Southern Tide intangible assets(8) | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.3 | |||||||
| TBBC change in fair value of contingent consideration(9) | $ | 0.0 | $ | 0.4 | $ | 0.0 | $ | 1.2 | |||||||
| Lanier Apparel exit charges in SG&A(10) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 3.8 | |||||||
| Gain on sale of Lanier Apparel distribution center(11) | $ | 0.0 | $ | (2.7) | $ | 0.0 | $ | (2.7) | |||||||
| Transaction expenses and integration costs associated with the Johnny | |||||||||||||||
| Was acquisition(12) | $ | 0.0 | $ | 0.0 | $ | 2.8 | $ | 0.0 | |||||||
| Gain on sale of investment in unconsolidated entity(13) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | (11.6) | |||||||
| Impact of income taxes(14) | $ | (1.5) | $ | (1.1) | $ | (3.7) | $ | (5.4) | |||||||
| Adjustment to net earnings(15) | $ | 4.5 | $ | 3.0 | $ | 11.2 | $ | 3.5 | |||||||
| AS ADJUSTED | |||||||||||||||
| Tommy Bahama | |||||||||||||||
| Net sales | $ | 229.6 | $ | 210.3 | 9.1% | $ | 880.2 | $ | 724.3 | 21.5% | |||||
| Gross profit | $ | 147.8 | $ | 132.9 | 11.2% | $ | 567.6 | $ | 459.6 | 23.5% | |||||
| Gross margin | 64.4% | 63.2% | 64.5% | 63.5% | |||||||||||
| Operating income | $ | 42.3 | $ | 38.2 | 10.6% | $ | 172.8 | $ | 116.6 | 48.2% | |||||
| Operating margin | 18.4% | 18.2% | 19.6% | 16.1% | |||||||||||
| Lilly Pulitzer | |||||||||||||||
| Net sales | $ | 74.5 | $ | 65.9 | 13.0% | $ | 339.3 | $ | 299.0 | 13.5% | |||||
| Gross profit | $ | 45.2 | $ | 39.4 | 14.6% | $ | 225.0 | $ | 201.1 | 11.9% | |||||
| Gross margin | 60.7% | 59.8% | 66.3% | 67.3% | |||||||||||
| Operating income | $ | 6.7 | $ | 1.9 | 256.8% | $ | 67.1 | $ | 63.6 | 5.5% | |||||
| Operating margin | 9.0% | 2.9% | 19.8% | 21.3% | |||||||||||
| Johnny Was(1) | |||||||||||||||
| Net sales | $ | 49.9 | $ | 0.0 | 100.0% | $ | 72.6 | $ | 0.0 | 100.0% | |||||
| Gross profit | $ | 33.0 | $ | 0.0 | 100.0% | $ | 49.0 | $ | 0.0 | 100.0% | |||||
| Gross margin | 66.1% | 0.0% | 67.5% | 0.0% | |||||||||||
| Operating income | $ | 4.7 | $ | 0.0 | 100.0% | $ | 7.9 | $ | 0.0 | 100.0% | |||||
| Operating margin | 9.5% | 0.0% | 10.9% | 0.0% | |||||||||||
| Emerging Brands (2) | |||||||||||||||
| Net sales | $ | 27.9 | $ | 22.7 | 22.8% | $ | 116.5 | $ | 90.1 | 29.4% | |||||
| Gross profit | $ | 9.1 | $ | 11.4 | (20.0)% | $ | 53.0 | $ | 47.7 | 11.2% | |||||
| Gross margin | 32.7% | 50.1% | 45.5% | 52.9% | |||||||||||
| Operating income | $ | 0.1 | $ | 3.6 | (95.9)% | $ | 15.6 | $ | 18.1 | (13.9)% | |||||
| Operating margin | 0.5% | 15.7% | 13.4% | 20.1% | |||||||||||
| Lanier Apparel | |||||||||||||||
| Net sales | $ | 0.0 | $ | 0.1 | (100.0)% | $ | 0.0 | $ | 24.9 | (100.0)% | |||||
| Gross profit | $ | 0.0 | $ | 0.0 | (100.0)% | $ | 0.0 | $ | 9.4 | (100.0)% | |||||
| Gross margin | 0.0% | NM | 0.0% | 37.9% | |||||||||||
| Operating income | $ | 0.0 | $ | 0.2 | (100.0)% | $ | 0.0 | $ | 3.2 | (100.0)% | |||||
| Operating margin | 0.0% | NM | 0.0% | 12.8% | |||||||||||
| Corporate and Other (2) | |||||||||||||||
| Net sales | $ | 0.6 | $ | 0.8 | (28.7)% | $ | 3.0 | $ | 3.9 | (23.6)% | |||||
| Gross profit | $ | (0.0) | $ | 0.0 | NM | $ | 1.2 | $ | 1.4 | NM | |||||
| Operating loss | $ | (7.8) | $ | (7.8) | NM | $ | (29.7) | $ | (27.1) | NM | |||||
| Consolidated | |||||||||||||||
| Net sales | $ | 382.5 | $ | 299.9 | 27.5% | $ | 1,411.5 | $ | 1,142.1 | 23.6% | |||||
| Gross profit | $ | 235.1 | $ | 183.7 | 27.9% | $ | 895.8 | $ | 719.3 | 24.5% | |||||
| Gross margin | 61.5% | 61.3% | 63.5% | 63.0% | |||||||||||
| SG&A | $ | 192.9 | $ | 152.2 | 26.8% | $ | 684.0 | $ | 563.5 | 21.4% | |||||
| SG&A as % of net sales | 50.4% | 50.7% | 48.5% | 49.3% | |||||||||||
| Operating income | $ | 46.1 | $ | 36.1 | 27.8% | $ | 233.6 | $ | 174.4 | 34.0% | |||||
| Operating margin | 12.1% | 12.0% | 16.6% | 15.3% | |||||||||||
| Earnings before income taxes | $ | 44.3 | $ | 35.8 | 23.6% | $ | 230.6 | $ | 173.5 | 32.9% | |||||
| Net earnings | $ | 36.5 | $ | 28.4 | 28.6% | $ | 176.9 | $ | 134.8 | 31.2% | |||||
| Net earnings per diluted share | $ | 2.28 | $ | 1.68 | 35.7% | $ | 10.88 | $ | 7.99 | 36.2% | |||||
| Fourth Quarter | Fourth Quarter | Fourth Quarter | ||||||||
| Fiscal 2022 | Fiscal 2022 | Fiscal 2021 | Fiscal 2022 | Fiscal 2021 | ||||||
| Actual | Guidance(16) | Actual | Actual | Actual | ||||||
| Net earnings per diluted share: | ||||||||||
| GAAP basis | $ | 2.00 | $ | 1.70 - 1.85 | $ | 1.50 | $ | 10.19 | $ | 7.78 |
| LIFO adjustments(17) | (0.02) | 0.00 | 0.27 | 0.12 | 0.70 | |||||
| Inventory step-up charge in Johnny Was(18) | 0.13 | 0.14 | 0.00 | 0.20 | 0.00 | |||||
| Tommy Bahama lease termination charges(19) | 0.00 | 0.00 | 0.00 | 0.00 | 0.21 | |||||
| Amortization of recently acquired intangible assets(20) | 0.17 | 0.17 | 0.00 | 0.24 | 0.01 | |||||
| TBBC change in fair value of contingent consideration(21) | 0.00 | 0.00 | 0.02 | 0.00 | 0.05 | |||||
| Lanier Apparel exit charges(22) | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | |||||
| Gain on sale of Lanier Apparel distribution center (23) | 0.00 | 0.00 | (0.12) | 0.00 | (0.12) | |||||
| Transaction expenses and integration costs associated with the | ||||||||||
| Johnny Was acquisition(24) | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | |||||
| Gain on sale of investment in unconsolidated entity(25) | 0.00 | 0.00 | 0.00 | 0.00 | (0.68) | |||||
| As adjusted(15) | $ | 2.28 | $ | 2.01 - 2.16 | $ | 1.68 | $ | 10.88 | $ | 7.99 |
| First Quarter | First Quarter | ||||
| Fiscal 2023 Guidance(26) | Fiscal 2022 Actual | ||||
| Net earnings per diluted share: | |||||
| GAAP basis | $ | 3.44 - 3.64 | $ | 3.45 | |
| LIFO adjustments(17) | 0.00 | 0.05 | |||
| Amortization of recently acquired intangible assets(20) | 0.16 | 0.00 | |||
| As adjusted(15) | $ | 3.60 - 3.80 | $ | 3.50 | |
Fiscal 2023 Guidance(27) | Fiscal 2022 Actual | ||||
| Net earnings per diluted share: | |||||
| GAAP basis | $ | 10.86 - 11.26 | $ | 10.19 | |
| LIFO adjustments(17) | 0.00 | 0.12 | |||
| Inventory step-up charge in Johnny Was(18) | 0.00 | 0.20 | |||
| Amortization of recently acquired intangible assets(20) | 0.64 | 0.24 | |||
| Transaction expenses and integration costs associated with the | |||||
| Johnny Was acquisition(24) | 0.00 | 0.13 | |||
| As adjusted(15) | $ | 11.50 - 11.90 | $ | 10.88 | |
(1) Johnny Was was acquired on September 19, 2022 and results presented reflect Johnny Was operations subsequent to the acquisition date.
(2) Beginning in Fiscal 2022, the Company combined Southern Tide, The Beaufort Bonnet Company (TBBC) and Duck Head into the Emerging Brands operating group. Previously, Southern Tide was a separately reported operating group and TBBC and Duck Head were included in Corporate and Other. All prior periods have been restated to conform to the current period presentation.
(3) LIFO adjustments represents the impact of LIFO accounting adjustments. These adjustments are included in cost of goods sold in Corporate and Other.
(4) Inventory step-up charge in Johnny Was represents the impact of purchase accounting adjustments resulting from the step-up of inventory at acquisition of the Johnny Was business. These charges are included in cost of goods sold in Johnny Was.
(5) 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. These amounts are included in cost of goods sold in Lanier Apparel.
(6) Tommy Bahama lease termination charges represents the charges associated with the termination of the Tommy Bahama New York office and showroom lease in Fiscal 2021. These charges are included in SG&A in Tommy Bahama.
(7) Amortization of Johnny Was intangible assets represents the amortization related to intangible assets acquired as part of the Johnny Was acquisition. These charges are included in SG&A in Johnny Was.
(8) 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.
(9) TBBC change in fair value of contingent consideration represents the impact relating to the change in the fair value of contingent consideration related to the TBBC acquisition. These charges are included in SG&A in Emerging Brands.
(10) 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.
(11) Gain on sale of Lanier Apparel distribution center represents the impact resulting from the sale of the Lanier Apparel Toccoa, Georgia distribution center in Fiscal 2021. This gain is included in royalties and other income in Lanier Apparel.
(12) Transaction expenses and integration costs associated with the Johnny Was acquisition are included in SG&A in Corporate and Other.
(13) Gain on sale of investment in unconsolidated entity represents the impact 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 minimal income tax expense associated with this gain. This gain is included in royalties and other income in Corporate and Other.
(14) 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.
(15) Amounts in columns may not add due to rounding.
(16) Guidance as issued on December 7, 2022.
(17) 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.
(18) Inventory step-up charge in Johnny Was represents the impact, net of income taxes, on net earnings per share of purchase accounting adjustments resulting from the step-up of inventory at acquisition of the Johnny Was business. No additional inventory step-up charge is expected in future periods.
(19) 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.
(20) Amortization of recently acquired intangible assets represents the impact, net of income taxes, on net earnings per share resulting from the amortization of intangible assets acquired as part of the Johnny Was and Southern Tide acquisitions. The projected amortization for Fiscal 2023 is expected to be approximately $14 million, or $0.64 per share, based on the preliminary estimate of purchase price allocation of the Johnny Was acquisition.
(21) TBBC change in fair value of contingent consideration represents the impact, net of income taxes, on net earnings per share relating to the change in the fair value of contingent consideration related to the TBBC acquisition.
(22) 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.
(23) 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.
(24) Transaction expenses and integration costs associated with the Johnny Was acquisition represents the impact of transaction costs and integration costs, net of income taxes, on net earnings per share.
(25) 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 minimal income tax expense associated with this gain.
(26) Guidance as issued on March 23, 2023.
(27) Guidance as issued on March 23, 2023. Fiscal 2023 is a 53 week year ending on February 3, 2024, with the additional week included in the fourth quarter of Fiscal 2023.
Direct to Consumer 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-food & beverage | 21 | 21 | 21 | 21 |
| Outlet | 35 | 35 | 35 | 35 |
| Total Tommy Bahama | 160 | 160 | 159 | 158 |
| Lilly Pulitzer full-price retail store | 59 | 59 | 59 | 58 |
| Johnny Was | ||||
| Full-price retail store | — | — | — | — |
| Outlet | — | — | — | — |
| Total Johnny Was | — | — | — | — |
| Emerging Brands | ||||
| Southern Tide full-price retail store | 4 | 4 | 4 | 4 |
| TBBC full-price retail store | — | — | — | 1 |
| Total Oxford | 223 | 223 | 222 | 221 |
Fiscal 2022 | ||||
| Tommy Bahama | ||||
| Full-price retail store | 102 | 102 | 102 | 103 |
| Retail-food & beverage | 21 | 21 | 21 | 21 |
| Outlet | 35 | 35 | 35 | 33 |
| Total Tommy Bahama | 158 | 158 | 158 | 157 |
| Lilly Pulitzer full-price retail store | 59 | 58 | 59 | 59 |
| Johnny Was | ||||
| Full-price retail store | — | — | 64 | 65 |
| Outlet | — | — | 2 | 2 |
| Total Johnny Was | — | — | 66 | 67 |
| Emerging Brands | ||||
| Southern Tide full-price retail store | 4 | 5 | 5 | 6 |
| TBBC full-price retail store | 1 | 2 | 2 | 3 |
| Total Oxford | 222 | 223 | 290 | 292 |