Operating Groups

3 Months Ended

May 04, 2024

Operating Groups

Operating Groups

2.    Operating Group Information:  We identify our operating groups based on the way our management organizes the components of our business for the 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, Johnny Was and Emerging Brands operating groups.

Corporate and Other is a reconciling category for reporting purposes and includes our corporate offices, substantially all financing activities, the elimination of any sales between operating groups, any other items that are not allocated to the operating groups, including LIFO inventory accounting adjustments. The accounting policies of the reportable operating segments are the same as those described in our Fiscal 2023 Form 10-K.

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

	First Quarter
	Fiscal 2024		Fiscal 2023
Net sales
Tommy Bahama	$	225,617	$	239,435
Lilly Pulitzer		88,421		97,450
Johnny Was		51,212		49,491
Emerging Brands		33,001		33,991
Corporate and Other		(67)		(270)
Consolidated net sales	$	398,184	$	420,097
Depreciation and amortization
Tommy Bahama	$	7,193	$	5,984
Lilly Pulitzer		4,594		3,392
Johnny Was		4,006		5,192
Emerging Brands		614		425
Corporate and Other		134		179
Consolidated depreciation and amortization	$	16,541	$	15,172
Operating income (loss)
Tommy Bahama	$	42,639	$	55,521
Lilly Pulitzer		15,544		24,516
Johnny Was		333		2,484
Emerging Brands		3,798		3,913
Corporate and Other		(9,863)		(6,133)
Consolidated operating income	$	52,451	$	80,301
Interest expense, net		874		2,342
Earnings before income taxes	$	51,577	$	77,959

	May 4, 2024		February 3, 2024		April 29, 2023
Assets
Tommy Bahama (1)	$	607,069	$	556,431	$	576,867
Lilly Pulitzer (2)		208,182		194,871		215,842
Johnny Was (3)		246,229		251,429		330,321
Emerging Brands (4)		103,995		98,816		92,959
Corporate and Other (5)		(8,499)		(3,703)		(21,759)
Consolidated Total Assets	$	1,156,976	$	1,097,844	$	1,194,230

(1) Increase in Tommy Bahama total assets from April 29, 2023, includes increases in operating lease assets and property and equipment partially offset by decreases in inventories and receivables.

(2) Decrease in Lilly Pulitzer total assets from April 29, 2023, includes a decrease in inventories.

(3) Decrease in Johnny Was total assets from April 29, 2023, relates primarily to the impairment charges for goodwill and intangible assets recorded in the Fourth Quarter of Fiscal 2023.

(4) Increase in Emerging Brands total assets from April 29, 2023, includes increases in operating lease assets and property and equipment from the opening of new retail store locations. Goodwill and intangible assets also increased related to the acquisition of Jack Rogers and three former Southern Tide Signature Stores in the Fourth Quarter of Fiscal 2023. These increases were partially offset by reductions in inventories.

(5) Increase in Corporate and Other total assets from April 29, 2023, relates primarily due to the impact of LIFO accounting.

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.

	First Quarter Fiscal 2024
	Net Sales		Retail		E-commerce		Food & Beverage		Wholesale		Other
Tommy Bahama	$	225,617	45	%	21	%	15	%	19	%	—	%
Lilly Pulitzer		88,421	35	%	46	%	—	%	19	%	—	%
Johnny Was		51,212	37	%	40	%	—	%	23	%	—	%
Emerging Brands		33,001	15	%	36	%	—	%	49	%	—	%
Corporate and Other		(67)	—	%	—	%	—	%	—	%	NM	%
Total	$	398,184	39	%	30	%	9	%	22	%	—	%

	First Quarter Fiscal 2023
	Net Sales		Retail		E-commerce		Food & Beverage		Wholesale		Other
Tommy Bahama	$	239,435	44	%	21	%	13	%	22	%	—	%
Lilly Pulitzer		97,450	34	%	47	%	—	%	19	%	—	%
Johnny Was		49,491	36	%	38	%	—		26	%	—	%
Emerging Brands		33,991	7	%	36	%	—	%	57	%	—	%
Corporate and Other		(270)	—	%	—	%	—	%	—	%	NM	%
Total	$	420,097	37	%	30	%	8	%	25	%	—	%