Operating Group Information

6 Months Ended

Jul. 30, 2022

Operating Group Information

Operating Group Information

2.    Operating Group Information:   We identify our operating groups based on the way our management organizes the components of our business for purposes of allocating resources and assessing performance. Our operating group structure reflects a brand-focused management approach, emphasizing operational coordination and resource

allocation across each brand’s direct to consumer, wholesale and licensing operations, as applicable. Our business is organized as our Tommy Bahama, Lilly Pulitzer and Emerging Brands operating groups, along with the results of the Lanier Apparel operating group as it was wound down in Fiscal 2021.

Tommy Bahama and Lilly Pulitzer each design, source, market and distribute apparel and related products bearing their respective trademarks and license their trademarks for other product categories. The Emerging Brands operating group 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.

In Fiscal 2022, we organized our smaller brands into the Emerging Brands operating group. Each of these smaller brands are supported by Oxford’s emerging brands team that provides certain support functions to our three 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 the three 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 are in process of exiting in Fiscal 2022. For a more extensive description of our Tommy Bahama and Lilly Pulitzer operating groups, see Part I, Item 1. Business included in our Fiscal 2021 Form 10-K.

The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other.

	Second Quarter				First Half
	Fiscal 2022		Fiscal 2021		Fiscal 2022		Fiscal 2021
Net sales
Tommy Bahama	$	243,965	$	208,833	$	472,032	$	365,531
Lilly Pulitzer		88,665		87,333		180,710		160,909
Emerging Brands		29,913		22,822		61,676		45,253
Lanier Apparel		—		8,492		—		20,511
Corporate and Other		887		1,192		1,593		2,230
Consolidated net sales	$	363,430	$	328,672	$	716,011	$	594,434
Depreciation and amortization
Tommy Bahama	$	6,916	$	6,866	$	13,534	$	13,906
Lilly Pulitzer		3,121		2,289		6,096		4,388
Emerging Brands		393		321		752		631
Lanier Apparel		—		25		—		61
Corporate and Other		192		191		430		389
Consolidated depreciation and amortization	$	10,622	$	9,692	$	20,812	$	19,375
Operating income (loss)
Tommy Bahama	$	58,918	$	47,324	$	111,524	$	67,984
Lilly Pulitzer		21,492		25,783		47,670		45,728
Emerging Brands		3,991		4,500		11,727		9,461
Lanier Apparel		—		850		—		1,705
Corporate and Other		(9,030)		(10,461)		(19,572)		(21,989)
Consolidated operating income		75,371		67,996	$	151,349	$	102,889
Interest expense, net		274		211		516		463
Earnings before income taxes	$	75,097	$	67,785	$	150,833	$	102,426

	July 30, 2022		January 29, 2022		July 31, 2021
Assets
Tommy Bahama (1)	$	524,765	$	531,678	$	528,517
Lilly Pulitzer (2)		198,681		176,757		178,025
Emerging Brands (3)		76,368		66,825		49,719
Lanier Apparel (4)		—		207		7,679
Corporate and Other (5)		157,388		182,175		167,809
Consolidated Total Assets	$	957,202	$	957,642	$	931,749

(1) Decrease in Tommy Bahama total assets from July 31, 2021 includes reductions in operating lease assets and property and equipment partially offset by higher inventories, receivables and prepaid expenses.

(2) Increase in Lilly Pulitzer total assets from July 31, 2021 includes increases in inventories and property and equipment partially offset by reductions in operating lease assets.

(3) Increase in Emerging Brands total assets from July 31, 2021 includes increases in inventories, receivables, fixed assets and property and equipment.

(4) Decrease in Lanier Apparel total assets from July 31, 2021 is due to the exit of the Lanier Apparel business during Fiscal 2021. The July 31, 2021 amounts primarily consisted of receivables, inventories and property and equipment.

(5) Decrease in Corporate and Other total assets from July 31, 2021 includes reductions in inventories, which was primarily due to the change in the LIFO reserve, and other non-current assets, partially offset by the net impact of increased short-term investments and reductions in cash and cash equivalents as well as an increase in prepaid expenses.

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 period presented. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding.

	Second Quarter Fiscal 2022
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	243,965	48	%	28	%	11	%	13	%	—	%
Lilly Pulitzer		88,665	40	%	43	%	—	%	17	%	—	%
Emerging Brands		29,913	7	%	46	%	—	%	47	%	—	%
Lanier Apparel		—	—	%	—	%	—	%	—	%	—	%
Corporate and Other		887	—	%	—	%	—	%	57	%	43	%
Total	$	363,430	42	%	33	%	8	%	17	%	—	%

	Second Quarter Fiscal 2021
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	208,833	48	%	27	%	12	%	13	%	—	%
Lilly Pulitzer		87,333	38	%	46	%	—	%	16	%	—	%
Emerging Brands		22,822	6	%	41	%	—	%	53	%	—	%
Lanier Apparel		8,492	—	%	—	%	—	%	100	%	—	%
Corporate and Other		1,192	—	%	—	%	—	%	75	%	25	%
Total	$	328,672	41	%	32	%	8	%	19	%	—	%

	First Half 2022
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	472,032	47	%	24	%	12	%	17	%	—	%
Lilly Pulitzer		180,710	37	%	43	%	—	%	20	%	—	%
Emerging Brands		61,676	6	%	38	%	—	%	56	%	—	%
Lanier Apparel		—	—	%	—	%	—	%	—	%	—	%
Corporate and Other		1,593	—	%	—	%	—	%	51	%	49	%
Consolidated net sales	$	716,011	41	%	30	%	8	%	21	%	—	%

	First Half 2021
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	365,531	45	%	25	%	14	%	16	%	—	%
Lilly Pulitzer		160,909	37	%	44	%	—	%	19	%	—	%
Emerging Brands		45,253	4	%	38	%	—	%	58	%	—	%
Lanier Apparel		20,511	—	%	—	%	—	%	100	%	—	%
Corporate and Other		2,230	—	%	—	%	—	%	64	%	36	%
Consolidated net sales	$	594,434	38	%	30	%	9	%	23	%	—	%