UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 28, 2024
_______________________________
Oxford Industries, Inc.
(Exact name of registrant as specified in its charter)
_______________________________
Georgia | 001-04365 | 58-0831862 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
999 Peachtree Street, N.E., Suite 688
Atlanta, Georgia 30309
(Address of Principal Executive Offices) (Zip Code)
(404) 659-2424
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $1 par value | OXM | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On March 28, 2024, Oxford Industries, Inc. issued a press release announcing, among other things, its financial results for the fourth quarter and the fiscal year ended February 3, 2024. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
As provided in General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
(d) Exhibits.
Exhibit Number | ||
99.1 | Press Release of Oxford Industries, Inc., dated March 28, 2024 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Oxford Industries, Inc. | ||
Date: March 28, 2024 | By: | /s/ Suraj A. Palakshappa |
Suraj A. Palakshappa | ||
Senior Vice President | ||
EXHIBIT 99.1
Oxford: Owner of Tommy Bahama, Lilly Pulitzer and Johnny Was Reports Fourth-Quarter and Full-Year Fiscal 2023 Results; Posts 11% Annual Sales Growth; Announces 3% Increase in Quarterly Dividend
ATLANTA, March 28, 2024 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fourth quarter and full fiscal year 2023 ended February 3, 2024.
Consolidated net sales for the full 53-week fiscal 2023 year increased 11% to $1.57 billion compared to $1.41 billion in the 52-week fiscal 2022 year. Earnings per share (EPS) on a GAAP basis decreased 63% to $3.82 compared to $10.19 in fiscal 2022. Fiscal 2023 results include noncash impairment charges totaling $114 million, or $5.32 per share, which are primarily associated with the Johnny Was reporting unit. On an adjusted basis, EPS decreased 7% to $10.15 compared to $10.88 in fiscal 2022.
Consolidated net sales in the 14-week fourth quarter of fiscal 2023 increased 6% to $404 million compared to $382 million in the 13-week fourth quarter of fiscal 2022. Inclusive of the aforementioned noncash impairment charges which were recognized in the fourth quarter of 2023, loss per share on a GAAP basis was $3.85 compared to earnings per share of $2.00 in the fourth quarter of fiscal 2022. On an adjusted basis, EPS decreased to $1.90 compared to $2.28 in the fourth quarter of fiscal 2022.
Tom Chubb, Chairman and CEO, commented, “Fiscal 2023 was highlighted by the second strongest earnings year in our 82-year history and concluded a five-year period during which we delivered compound annual adjusted EPS growth exceeding 18 percent. This strong performance included generating $244 million in cash flow from operations in fiscal 2023, allowing us to invest in both organic growth and acquisitions, return capital to our shareholders via our quarterly dividend and opportunistic share repurchases, and pay down almost all our outstanding debt.
Looking forward to 2024, our strong balance sheet and cash flows have us well positioned to invest further in future growth, which includes expansion of our bricks-and-mortar footprint, including 5 Marlin Bars, and enhancing the efficiency and capacity of our east coast distribution capabilities. While these investments combined with the persistence of a cautious consumer environment will put pressure on near-term EPS, we are excited to continue executing the initiatives that we have in place to bring more consumers into the beautiful universes our brands represent. We are equally as excited to be in a position to announce a 3% increase in our quarterly dividend for 2024.”
Mr. Chubb concluded, “We are very proud of the portfolio of brands we have built and the strong connections we have forged with our customers. Most of all, we are incredibly proud of the amazing team of people that bring our brands to life every day. As always, we are committed to delivering on our near-term targets while staying focused on the initiatives that will strengthen our brands and business fundamentals over the long-term.”
Fiscal 2023 versus Fiscal 2022
Net Sales by Operating Group | Fourth Quarter | Fiscal Year | ||||||||||||||
($ in millions) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||
Tommy Bahama | $243.8 | $229.6 | 6% | $898.8 | $880.2 | 2% | ||||||||||
Lilly Pulitzer | 78.4 | 74.5 | 5% | 343.5 | 339.3 | 1% | ||||||||||
Emerging Brands | 30.1 | 27.9 | 8% | 126.8 | 116.5 | 9% | ||||||||||
Other | (0.1) | 0.6 | nm | (0.5) | 3.0 | nm | ||||||||||
Subtotal | 352.2 | 332.6 | 6% | 1,368.6 | 1,338.9 | 2% | ||||||||||
Johnny Was (1) | 52.2 | 49.9 | 5% | 202.9 | 72.6 | nm | ||||||||||
Total Company | $404.4 | $382.5 | 6% | $1,571.5 | $1,411.5 | 11% |
(1) Johnny Was was acquired on September 19, 2022, and results presented reflect Johnny Was operations subsequent to the acquisition date.
Balance Sheet and Liquidity
Inventory decreased $61 million on a LIFO basis and $51 million, or 18%, on a FIFO basis compared to the end of fiscal 2022. Inventories decreased in our Tommy Bahama, Lilly Pulitzer and Emerging Brands operating groups primarily due to continuing initiatives to focus on closely managing inventory purchases and reducing on-hand inventory levels. The Company believes that inventory levels in all operating groups are appropriate to support anticipated sales plans and anticipated higher inventory turns.
As of February 3, 2024, the Company had $29 million of borrowings outstanding under its revolving credit agreement, compared to $119 million of borrowings outstanding at the end of the prior year. Also, the Company had $8 million of cash and cash equivalents versus $9 million of cash and cash equivalents at the end of the fourth quarter of fiscal 2022.
Dividend
The Board of Directors declared a quarterly cash dividend of $0.67 per share, a 3% increase above the previous dividend payment. The dividend is payable on May 3, 2024 to shareholders of record as of the close of business on April 19, 2024. The Company has paid dividends every quarter since it became publicly owned in 1960.
Outlook
For fiscal 2024 the Company initiated sales and EPS guidance. The Company expects net sales in a range of $1.630 billion to $1.670 billion as compared to net sales of $1.57 billion in fiscal 2023. In fiscal 2024, GAAP EPS is expected to be between $8.80 and $9.20 compared to fiscal 2023 GAAP EPS of $3.82. Adjusted EPS is expected to be between $9.30 and $9.70, compared to fiscal 2023 adjusted EPS of $10.15. Fiscal 2024 EPS figures include a return to a normalized effective tax rate in 2024 after certain favorable discrete items lowered the tax rate in fiscal 2023. The decrease in both GAAP and adjusted EPS reflects a decline in wholesale sales of approximately $10 million for fiscal 2024 with a decline between $15 and $20 million in the first quarter partially offset by modest growth in the remainder of the year.
For the first quarter of fiscal 2024, the Company expects net sales to be between $395 million and $415 million compared to net sales of $420 million in the first quarter of fiscal 2023. GAAP EPS is expected to be in a range of $2.47 to $2.67 in the first quarter compared to GAAP EPS of $3.64 in the first quarter of fiscal 2023. Adjusted EPS is expected to be between $2.60 and $2.80 compared to adjusted EPS of $3.78 in the first quarter of fiscal 2023.
The Company anticipates interest expense of approximately $3 million in fiscal 2024. This compares to $6 million in the full year of 2023. The Company’s effective tax rate is expected to be approximately 25%. In addition to the decline in wholesale sales referenced above, guidance for the first quarter reflects a shift in certain promotional activities at Lilly Pulitzer from events that occurred in the first quarter of fiscal 2023 to the second quarter of fiscal 2024.
Capital expenditures in fiscal 2024 are expected to be approximately $200 million compared to $74 million in fiscal 2023. The increase is primarily related to a multi-year Southeastern United States distribution center enhancement project to build a new facility to ensure best-in-class direct-to-consumer throughput capabilities for Oxford’s brands. The new facility will provide direct-to-consumer support for all of the Company’s brands, including the East Coast operations of Tommy Bahama. The Company anticipates total capital expenditures of $130 million over the life of the project, with the majority of the spend occurring in fiscal 2024 and expect completion of the new facility in fiscal 2025.
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 11, 2024 by dialing (412) 317-6671 access code 13745047.
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.
Noncash Impairment Charges
The Company is required to assess goodwill and other indefinite-lived intangible assets for impairment at least annually. In the fourth quarter of 2023 in connection with the annual budget and planning process for 2024, which drives certain assumptions used in annual goodwill impairment testing, the Company determined the carrying value of goodwill and indefinite lived intangible assets in the Johnny Was reporting unit was greater than its estimated fair value. Accordingly, the Company recorded noncash goodwill and intangible asset impairment charges totaling $111 million for fiscal 2023, which represents $5.21 per share. The impairment charges for Johnny Was reflect the current challenging macroeconomic environment that has resulted in a more cautious consumer and elevated interest rates for prolonged periods. Additional noncash impairment charges of $2 million, representing $0.12 per share, were recorded for fiscal 2023 related to an equity method investment within the Emerging Brands Group.
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 generally 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 macroeconomic factors that may impact consumer discretionary spending and pricing levels for apparel and related products, many of which may be impacted by inflationary pressures, elevated interest rates, concerns about the stability of the banking industry or general economic uncertainty, and the effectiveness of measures to mitigate the impact of these factors; competitive conditions and/or evolving consumer shopping patterns; acquisition activities (such as the 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; supply chain disruptions; costs and availability of labor and freight deliveries, including our ability to appropriately staff our retail stores and food and beverage locations; 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 respond to rapidly changing consumer expectations; unseasonal or extreme weather conditions or natural disasters, including the ultimate impact of the recent wildfires on the island of Maui; 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 as they have historically; 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 and maintain continuity of our information technology systems; the effectiveness of our advertising initiatives in defining, launching and communicating brand-relevant customer experiences; 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; 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; the timing, cost and successful implementation of changes to our distribution network; pandemics or other public health crises; expected outcomes of pending or potential litigation and regulatory actions; the increased consumer, employee and regulatory focus on corporate responsibility 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; risks related to a shutdown of the US government; and geopolitical risks, including ongoing challenges between the United States and China and those related to the ongoing war in Ukraine, the Israel-Hamas war and the conflict in the Red Sea region. 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 Fiscal 2022 Form 10-K, 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: | Brian J. Smith |
E-mail: | InvestorRelations@oxfordinc.com |
Oxford Industries, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except par amounts) | |||||||
(unaudited) | |||||||
February 3, | January 28, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 7,604 | $ | 8,826 | |||
Receivables, net | 63,362 | 43,986 | |||||
Inventories, net | 159,565 | 220,138 | |||||
Income tax receivable | 19,549 | 19,440 | |||||
Prepaid expenses and other current assets | 43,035 | 38,073 | |||||
Total Current Assets | $ | 293,115 | $ | 330,463 | |||
Property and equipment, net | 195,137 | 177,584 | |||||
Intangible assets, net | 262,101 | 283,845 | |||||
Goodwill | 27,190 | 120,498 | |||||
Operating lease assets | 263,934 | 240,690 | |||||
Other assets, net | 32,188 | 32,209 | |||||
Deferred income taxes | 24,179 | 3,376 | |||||
Total Assets | $ | 1,097,844 | $ | 1,188,665 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 85,545 | $ | 94,611 | |||
Accrued compensation | 23,660 | 35,022 | |||||
Current portion of operating lease liabilities | 64,576 | 73,865 | |||||
Accrued expenses and other liabilities | 66,863 | 66,141 | |||||
Total Current Liabilities | $ | 240,644 | $ | 269,639 | |||
Long-term debt | 29,304 | 119,011 | |||||
Non-current portion of operating lease liabilities | 243,703 | 220,709 | |||||
Other non-current liabilities | 23,279 | 20,055 | |||||
Deferred income taxes | — | 2,981 | |||||
Shareholders’ Equity | |||||||
Common stock, $1.00 par value per share | 15,629 | 15,774 | |||||
Additional paid-in capital | 178,567 | 172,175 | |||||
Retained earnings | 369,453 | 370,145 | |||||
Accumulated other comprehensive loss | (2,735 | ) | (1,824 | ) | |||
Total Shareholders’ Equity | $ | 560,914 | $ | 556,270 | |||
Total Liabilities and Shareholders’ Equity | $ | 1,097,844 | $ | 1,188,665 |
Oxford Industries, Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Fourth Quarter | |||||||||||||||
Fiscal 2023 | Fiscal 2022 | Fiscal 2023 | Fiscal 2022 | ||||||||||||
Net sales | $ | 404,429 | $ | 382,484 | $ | 1,571,475 | $ | 1,411,528 | |||||||
Cost of goods sold | 158,121 | 149,849 | 575,890 | 522,673 | |||||||||||
Gross profit | $ | 246,308 | $ | 232,635 | $ | 995,585 | $ | 888,855 | |||||||
SG&A | 217,503 | 196,430 | 820,705 | 692,004 | |||||||||||
Impairment of goodwill, intangible assets and equity method investments | 113,611 | — | 113,611 | — | |||||||||||
Royalties and other operating income | 3,353 | 3,905 | 19,713 | 21,923 | |||||||||||
Operating income (loss) | $ | (81,453 | ) | $ | 40,110 | $ | 80,982 | $ | 218,774 | ||||||
Interest expense, net | 1,180 | 1,835 | 6,036 | 3,049 | |||||||||||
Earnings before income taxes | $ | (82,633 | ) | $ | 38,275 | $ | 74,946 | $ | 215,725 | ||||||
Income tax expense | (22,563 | ) | 6,226 | 14,243 | 49,990 | ||||||||||
Net earnings (loss) | $ | (60,070 | ) | $ | 32,049 | $ | 60,703 | $ | 165,735 | ||||||
Net earnings (loss) per share: | |||||||||||||||
Basic | $ | (3.85 | ) | $ | 2.05 | $ | 3.89 | $ | 10.42 | ||||||
Diluted | $ | (3.85 | ) | $ | 2.00 | $ | 3.82 | $ | 10.19 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 15,592 | 15,632 | 15,590 | 15,902 | |||||||||||
Diluted | 15,592 | 16,037 | 15,906 | 16,259 | |||||||||||
Dividends declared per share | $ | 0.65 | $ | 0.55 | $ | 2.60 | $ | 2.20 |
Oxford Industries, Inc. | |||||||
Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Fiscal 2023 | Fiscal 2022 | ||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 60,703 | $ | 165,735 | |||
Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||
Depreciation | 49,323 | 41,503 | |||||
Amortization of intangible assets | 14,743 | 6,102 | |||||
Impairment of goodwill, intangible assets and equity method investments | 113,611 | — | |||||
Impairment of property and equipment | 584 | 1,430 | |||||
Equity compensation expense | 14,473 | 10,577 | |||||
Gain on sale of property and equipment | (1,756 | ) | (600 | ) | |||
Amortization and write-off of deferred financing costs | 569 | 344 | |||||
Deferred income taxes | (23,890 | ) | (1,867 | ) | |||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | |||||||
Receivables, net | (14,994 | ) | (1,966 | ) | |||
Inventories, net | 62,507 | (78,966 | ) | ||||
Income tax receivable | (109 | ) | 288 | ||||
Prepaid expenses and other current assets | (4,931 | ) | (12,793 | ) | |||
Current liabilities | (28,069 | ) | 8,635 | ||||
Other non-current assets, net | (25,220 | ) | 14,233 | ||||
Other non-current liabilities | 26,740 | (27,045 | ) | ||||
Cash provided by operating activities | $ | 244,284 | $ | 125,610 | |||
Cash Flows From Investing Activities: | |||||||
Acquisitions, net of cash acquired | (11,975 | ) | (263,648 | ) | |||
Purchases of property and equipment | (74,098 | ) | (46,668 | ) | |||
Purchases of short-term investments | — | (70,000 | ) | ||||
Proceeds from short-term investments | — | 234,852 | |||||
Proceeds from the sale of property, plant and equipment | 2,125 | — | |||||
Other investing activities | (33 | ) | (6,283 | ) | |||
Cash used in investing activities | $ | (83,981 | ) | $ | (151,747 | ) | |
Cash Flows From Financing Activities: | |||||||
Repayment of revolving credit arrangements | (477,350 | ) | (145,894 | ) | |||
Proceeds from revolving credit arrangements | 387,643 | 264,905 | |||||
Deferred financing costs paid | (1,661 | ) | — | ||||
Repurchase of common stock | (20,045 | ) | (91,674 | ) | |||
Proceeds from issuance of common stock | 1,911 | 1,599 | |||||
Repurchase of equity awards for employee tax withholding liabilities | (9,941 | ) | (3,166 | ) | |||
Cash dividends paid | (41,729 | ) | (35,287 | ) | |||
Other financing activities | — | (2,010 | ) | ||||
Cash used in financing activities | $ | (161,172 | ) | $ | (11,527 | ) | |
Net change in cash and cash equivalents | (869 | ) | (37,664 | ) | |||
Effect of foreign currency translation on cash and cash equivalents | (353 | ) | 1,631 | ||||
Cash and cash equivalents at the beginning of year | 8,826 | 44,859 | |||||
Cash and cash equivalents at the end of period | $ | 7,604 | $ | 8,826 |
Oxford Industries, Inc. | |||||||||||||||||||||||
Reconciliations of Certain Non-GAAP Financial Information | |||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Fourth Quarter | |||||||||||||||||||||||
AS REPORTED | Fiscal 2023 |
Fiscal 2022 |
% Change | Fiscal 2023 |
Fiscal 2022 |
% Change | |||||||||||||||||
Tommy Bahama | |||||||||||||||||||||||
Net sales | $ | 243.8 | $ | 229.6 | 6.2 | % | $ | 898.8 | $ | 880.2 | 2.1 | % | |||||||||||
Gross profit | $ | 154.4 | $ | 147.8 | 4.5 | % | $ | 579.1 | $ | 567.6 | 2.0 | % | |||||||||||
Gross margin | 63.3 | % | 64.4 | % | 64.4 | % | 64.5 | % | |||||||||||||||
Operating income | $ | 41.9 | $ | 42.3 | (0.9 | )% | $ | 160.5 | $ | 172.8 | (7.1 | )% | |||||||||||
Operating margin | 17.2 | % | 18.4 | % | 17.9 | % | 19.6 | % | |||||||||||||||
Lilly Pulitzer | |||||||||||||||||||||||
Net sales | $ | 78.4 | $ | 74.5 | 5.2 | % | $ | 343.5 | $ | 339.3 | 1.2 | % | |||||||||||
Gross profit | $ | 47.7 | $ | 45.2 | 5.6 | % | $ | 226.2 | $ | 225.0 | 0.5 | % | |||||||||||
Gross margin | 60.9 | % | 60.7 | % | 65.9 | % | 66.3 | % | |||||||||||||||
Operating income | $ | 6.3 | $ | 6.7 | (7.1 | )% | $ | 56.1 | $ | 67.1 | (16.4 | )% | |||||||||||
Operating margin | 8.0 | % | 9.0 | % | 16.3 | % | 19.8 | % | |||||||||||||||
Johnny Was(1) | |||||||||||||||||||||||
Net sales | $ | 52.2 | $ | 49.9 | 4.6 | % | $ | 202.9 | $ | 72.6 | NM | ||||||||||||
Gross profit | $ | 34.3 | $ | 30.2 | 13.6 | % | $ | 137.6 | $ | 44.8 | NM | ||||||||||||
Gross margin | 65.6 | % | 60.4 | % | 67.8 | % | 61.7 | % | |||||||||||||||
Operating loss | $ | (112.0 | ) | $ | (1.7 | ) | NM | $ | (104.8 | ) | $ | (1.5 | ) | NM | |||||||||
Operating margin | (214.5 | )% | (3.3 | )% | (51.6 | )% | (2.1 | )% | |||||||||||||||
Emerging Brands | |||||||||||||||||||||||
Net sales | $ | 30.1 | $ | 27.9 | 7.9 | % | $ | 126.8 | $ | 116.5 | 8.9 | % | |||||||||||
Gross profit | $ | 13.6 | $ | 9.1 | 49.0 | % | $ | 61.8 | $ | 53.0 | 16.6 | % | |||||||||||
Gross margin | 45.1 | % | 32.7 | % | 48.7 | % | 45.5 | % | |||||||||||||||
Operating income | $ | (3.9 | ) | $ | 0.1 | NM | $ | 6.7 | $ | 15.6 | (57.0 | )% | |||||||||||
Operating margin | (13.1 | )% | 0.5 | % | 5.3 | % | 13.4 | % | |||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Net sales | $ | (0.1 | ) | $ | 0.6 | NM | $ | (0.5 | ) | $ | 3.0 | NM | |||||||||||
Gross profit | $ | (3.7 | ) | $ | 0.4 | NM | $ | (9.1 | ) | $ | (1.5 | ) | NM | ||||||||||
Operating loss | $ | (13.6 | ) | $ | (7.4 | ) | NM | $ | (37.6 | ) | $ | (35.1 | ) | NM | |||||||||
Consolidated | |||||||||||||||||||||||
Net sales | $ | 404.4 | $ | 382.5 | 5.7 | % | $ | 1,571.5 | $ | 1,411.5 | 11.3 | % | |||||||||||
Gross profit | $ | 246.3 | $ | 232.6 | 5.9 | % | $ | 995.6 | $ | 888.9 | 12.0 | % | |||||||||||
Gross margin | 60.9 | % | 60.8 | % | 63.4 | % | 63.0 | % | |||||||||||||||
SG&A | $ | 217.5 | $ | 196.4 | 10.7 | % | $ | 820.7 | $ | 692.0 | 18.6 | % | |||||||||||
SG&A as % of net sales | 53.8 | % | 51.4 | % | 52.2 | % | 49.0 | % | |||||||||||||||
Impairment of goodwill, intangible assets and equity method investments | $ | 113.6 | $ | 0.0 | NM | $ | 113.6 | $ | 0.0 | NM | |||||||||||||
Impairment of goodwill, intangible assets and equity method investments as % of net sales | 28.1 | % | — | % | 7.2 | % | — | % | |||||||||||||||
Operating income | $ | (81.5 | ) | $ | 40.1 | (303.1 | )% | $ | 81.0 | $ | 218.8 | (63.0 | )% | ||||||||||
Operating margin | (20.1 | )% | 10.5 | % | 5.2 | % | 15.5 | % | |||||||||||||||
Earnings before income taxes | $ | (82.6 | ) | $ | 38.3 | (315.9 | )% | $ | 74.9 | $ | 215.7 | (65.3 | )% | ||||||||||
Net earnings | $ | (60.1 | ) | $ | 32.0 | (287.4 | )% | $ | 60.7 | $ | 165.7 | (63.4 | )% | ||||||||||
Net earnings per diluted share | $ | (3.85 | ) | $ | 2.00 | (292.5 | )% | $ | 3.82 | $ | 10.19 | (62.5 | )% | ||||||||||
Weighted average shares outstanding - diluted | 15.6 | 16.0 | (2.8 | )% | 15.9 | 16.3 | (2.2 | )% | |||||||||||||||
Fourth Quarter | |||||||||||||||||||||||
ADJUSTMENTS | Fiscal 2023 | Fiscal 2022 |
% Change | Fiscal 2023 | Fiscal 2022 | % Change | |||||||||||||||||
LIFO adjustments(2) | $ | 3.3 | $ | (0.4 | ) | $ | 9.6 | $ | 2.7 | ||||||||||||||
Inventory step-up charge in Johnny Was(3) | $ | 0.0 | $ | 2.9 | $ | 0.0 | $ | 4.2 | |||||||||||||||
Amortization of Johnny Was intangible assets(4) | $ | 3.5 | $ | 3.6 | $ | 13.9 | $ | 5.2 | |||||||||||||||
Transaction expenses and integration costs associated with the Johnny Was acquisition(5) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 2.8 | |||||||||||||||
Gain on sale of Merida manufacturing facility(6) | $ | 0.0 | $ | 0.0 | $ | (1.8 | ) | $ | 0.0 | ||||||||||||||
Johnny Was impairment charges(7) | $ | 111.1 | $ | 0.0 | $ | 111.1 | $ | 0.0 | |||||||||||||||
Impairment of investment in unconsolidated entity(8) | $ | 2.5 | $ | 0.0 | $ | 2.5 | $ | 0.0 | |||||||||||||||
Impact of income taxes(9) | $ | (30.6 | ) | $ | (1.5 | ) | $ | (34.5 | ) | $ | (3.7 | ) | |||||||||||
Adjustment to net earnings(10) | $ | 89.8 | $ | 4.5 | $ | 100.8 | $ | 11.2 | |||||||||||||||
AS ADJUSTED | |||||||||||||||||||||||
Tommy Bahama | |||||||||||||||||||||||
Net sales | $ | 243.8 | $ | 229.6 | 6.2 | % | $ | 898.8 | $ | 880.2 | 2.1 | % | |||||||||||
Gross profit | $ | 154.4 | $ | 147.8 | 4.5 | % | $ | 579.1 | $ | 567.6 | 2.0 | % | |||||||||||
Gross margin | 63.3 | % | 64.4 | % | 64.4 | % | 64.5 | % | |||||||||||||||
Operating income | $ | 41.9 | $ | 42.3 | (0.9 | )% | $ | 160.5 | $ | 172.8 | (7.1 | )% | |||||||||||
Operating margin | 17.2 | % | 18.4 | % | 17.9 | % | 19.6 | % | |||||||||||||||
Lilly Pulitzer | |||||||||||||||||||||||
Net sales | $ | 78.4 | $ | 74.5 | 5.2 | % | $ | 343.5 | $ | 339.3 | 1.2 | % | |||||||||||
Gross profit | $ | 47.7 | $ | 45.2 | 5.6 | % | $ | 226.2 | $ | 225.0 | 0.5 | % | |||||||||||
Gross margin | 60.9 | % | 60.7 | % | 65.9 | % | 66.3 | % | |||||||||||||||
Operating income | $ | 6.3 | $ | 6.7 | (7.1 | )% | $ | 56.1 | $ | 67.1 | (16.4 | )% | |||||||||||
Operating margin | 8.0 | % | 9.0 | % | 16.3 | % | 19.8 | % | |||||||||||||||
Johnny Was(1) | |||||||||||||||||||||||
Net sales | $ | 52.2 | $ | 49.9 | 4.6 | % | $ | 202.9 | $ | 72.6 | NM | ||||||||||||
Gross profit | $ | 34.3 | $ | 33.0 | 3.8 | % | $ | 137.6 | $ | 49.0 | NM | ||||||||||||
Gross margin | 65.6 | % | 66.1 | % | 67.8 | % | 67.5 | % | |||||||||||||||
Operating income | $ | 2.6 | $ | 4.7 | (46.1 | )% | $ | 20.2 | $ | 7.9 | NM | ||||||||||||
Operating margin | 4.9 | % | 9.5 | % | 10.0 | % | 10.9 | % | |||||||||||||||
Emerging Brands | |||||||||||||||||||||||
Net sales | $ | 30.1 | $ | 27.9 | 7.9 | % | $ | 126.8 | $ | 116.5 | 8.9 | % | |||||||||||
Gross profit | $ | 13.6 | $ | 9.1 | 49.0 | % | $ | 61.8 | $ | 53.0 | 16.6 | % | |||||||||||
Gross margin | 45.1 | % | 32.7 | % | 48.7 | % | 45.5 | % | |||||||||||||||
Operating income | $ | (1.5 | ) | $ | 0.1 | NM | $ | 9.2 | $ | 15.6 | (41.1 | )% | |||||||||||
Operating margin | (4.9 | )% | 0.5 | % | 7.2 | % | 13.4 | % | |||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Net sales | $ | (0.1 | ) | $ | 0.6 | NM | $ | (0.5 | ) | $ | 3.0 | NM | |||||||||||
Gross profit | $ | (0.3 | ) | $ | (0.0 | ) | NM | $ | 0.5 | $ | 1.2 | NM | |||||||||||
Operating loss | $ | (10.3 | ) | $ | (7.8 | ) | NM | $ | (29.8 | ) | $ | (29.7 | ) | NM | |||||||||
Consolidated | |||||||||||||||||||||||
Net sales | $ | 404.4 | $ | 382.5 | 5.7 | % | $ | 1,571.5 | $ | 1,411.5 | 11.3 | % | |||||||||||
Gross profit | $ | 249.6 | $ | 235.1 | 6.2 | % | $ | 1,005.2 | $ | 895.8 | 12.2 | % | |||||||||||
Gross margin | 61.7 | % | 61.5 | % | 64.0 | % | 63.5 | % | |||||||||||||||
SG&A | $ | 214.0 | $ | 192.9 | 11.0 | % | $ | 806.9 | $ | 684.0 | 18.0 | % | |||||||||||
SG&A as % of net sales | 52.9 | % | 50.4 | % | 51.3 | % | 48.5 | % | |||||||||||||||
Operating income | $ | 38.9 | $ | 46.1 | (15.5 | )% | $ | 216.3 | $ | 233.6 | (7.4 | )% | |||||||||||
Operating margin | 9.6 | % | 12.1 | % | 13.8 | % | 16.6 | % | |||||||||||||||
Earnings before income taxes | $ | 37.8 | $ | 44.3 | (14.7 | )% | $ | 210.3 | $ | 230.6 | (8.8 | )% | |||||||||||
Net earnings | $ | 29.7 | $ | 36.5 | (18.7 | )% | $ | 161.5 | $ | 176.9 | (8.7 | )% | |||||||||||
Net earnings per diluted share | $ | 1.90 | $ | 2.28 | (16.7 | )% | $ | 10.15 | $ | 10.88 | (6.7 | )% | |||||||||||
Fourth Quarter | Fourth Quarter | Fourth Quarter | |||||||||||||||||
Fiscal 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2023 | Fiscal 2022 | |||||||||||||||
Actual | Guidance(11) | Actual | Actual | Actual | |||||||||||||||
Net earnings (loss) per diluted share: | |||||||||||||||||||
GAAP basis | $ | (3.85 | ) | $ | 1.67 - 1.87 | $ | 2.00 | $ | 3.82 | $ | 10.19 | ||||||||
Johnny Was impairment charges(12) | 5.31 | 0.00 | 0.00 | 5.21 | 0.00 | ||||||||||||||
LIFO adjustments(13) | 0.16 | 0.00 | (0.02 | ) | 0.45 | 0.12 | |||||||||||||
Inventory step-up charge in Johnny Was(14) | 0.00 | 0.00 | 0.13 | 0.00 | 0.20 | ||||||||||||||
Amortization of Johnny Was intangible assets(15) | 0.17 | 0.16 | 0.17 | 0.65 | 0.24 | ||||||||||||||
Transaction expenses and integration costs associated with the Johnny Was acquisition(16) | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | ||||||||||||||
Gain on sale of Merida manufacturing facility(17) | 0.00 | 0.00 | 0.00 | (0.08 | ) | 0.00 | |||||||||||||
Impairment of investment in unconsolidated entity(18) | 0.12 | 0.00 | 0.00 | 0.12 | 0.00 | ||||||||||||||
As adjusted(10) | $ | 1.90 | $ | 1.83 - 2.03 | $ | 2.28 | $ | 10.15 | $ | 10.88 | |||||||||
First Quarter | First Quarter | ||||||||||||||||||
Fiscal 2024 | Fiscal 2023 | ||||||||||||||||||
Guidance(19) | Actual | ||||||||||||||||||
Net earnings per diluted share: | |||||||||||||||||||
GAAP basis | $ | 2.47 - 2.67 | $ | 3.64 | |||||||||||||||
LIFO adjustments(13) | 0.00 | 0.06 | |||||||||||||||||
Amortization of Johnny Was intangible assets(15) | 0.13 | 0.16 | |||||||||||||||||
Gain on sale of Merida manufacturing facility(17) | 0.00 | (0.08 | ) | ||||||||||||||||
As adjusted(10) | $ | 2.60 - 2.80 | $ | 3.78 | |||||||||||||||
Fiscal 2024 | Fiscal 2023 | ||||||||||||||||||
Guidance(19) | Actual | ||||||||||||||||||
Net earnings per diluted share: | |||||||||||||||||||
GAAP basis | $ | $8.80 - $9.20 | $ | 3.82 | |||||||||||||||
Johnny Was impairment charges(12) | 0.00 | 5.21 | |||||||||||||||||
LIFO adjustments(13) | 0.00 | 0.45 | |||||||||||||||||
Amortization of Johnny Was intangible assets(15) | 0.50 | 0.65 | |||||||||||||||||
Gain on sale of Merida manufacturing facility(17) | 0.00 | (0.08 | ) | ||||||||||||||||
Impairment of investment in unconsolidated entity(18) | 0.00 | 0.12 | |||||||||||||||||
As adjusted(10) | $ | 9.30 - 9.70 | $ | 10.15 | |||||||||||||||
(1) Johnny Was was acquired on September 19, 2022 and results presented reflect Johnny Was operations subsequent to the acquisition date. | ||||||||||||||||
(2) LIFO adjustments represents the impact of LIFO accounting adjustments. These adjustments are included in cost of goods sold in Corporate and Other. | ||||||||||||||||
(3) Inventory step-up charge in Johnny Was represents the impact on net earnings of purchase accounting adjustments resulting from the step-up of inventory at acquisition of the Johnny Was business. These charges were included in cost of goods sold in Johnny Was. | ||||||||||||||||
(4) 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. | ||||||||||||||||
(5) Transaction expenses and integration costs associated with the Johnny Was acquisition represents the impact of transaction costs and integration costs on net earnings. These charges were included in SG&A in Corporate and Other. | ||||||||||||||||
(6) Gain on sale of Merida manufacturing facility represents the gain on sale of Oxford's last owned manufacturing facility, which was located in Merida, Mexico and previously operated by the Lanier Apparel operating group. The gain is included in royalties and other operating income in Corporate and Other. | ||||||||||||||||
(7) Johnny Was impairment charges represent the impairment of the Johnny Was goodwill and intangible asset balances. These charges were included in impairment of goodwill, intangible assets and equity method investments in Johnny Was. | ||||||||||||||||
(8) Impairment of investment in unconsolidated entity represents the impairment of the ownership interest in an unconsolidated entity in Fiscal 2023. These charges were included in impairment of goodwill, intangible assets and equity method investments in Emerging Brands. | ||||||||||||||||
(9) Impact of income taxes represents the estimated tax impact of the above adjustments based on the estimated applicable tax rate on current year earnings. | ||||||||||||||||
(10) Amounts in columns may not add due to rounding. | ||||||||||||||||
(11) Guidance as issued on December 6, 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. | ||||||||||||||||
(12) Johnny Was impairment charges represent the impact of the impairment of the Johnny Was goodwill and intangible asset balances, net of income taxes, on net earnings per share. | ||||||||||||||||
(13) 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. | ||||||||||||||||
(14) 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. | ||||||||||||||||
(15) Amortization of Johnny Was 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 acquisition. | ||||||||||||||||
(16) Transaction expenses and integration costs associated with the Johnny Was acquisition represent the impact of transaction costs and integration costs, net of income taxes, on net earnings per share. | ||||||||||||||||
(17) Gain on sale of Merida manufacturing facility represents the gain on sale, net of income taxes, of Oxford's last owned manufacturing facility, which was located in Merida, Mexico. | ||||||||||||||||
(18) Impairment of investment in unconsolidated entity represents the impact, net of income taxes, on net earnings per share relating to the impairment of the ownership interest in an unconsolidated entity in Fiscal 2023. | ||||||||||||||||
(19) Guidance as issued on March 28, 2024. |
Direct to Consumer Location Count | ||||
End of Q1 | End of Q2 | End of Q3 | End of Q4 | |
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 |
Fiscal 2023 | ||||
Tommy Bahama | ||||
Full-price retail store | 103 | 101 | 102 | 102 |
Retail-food & beverage | 21 | 22 | 21 | 22 |
Outlet | 33 | 33 | 34 | 34 |
Total Tommy Bahama | 157 | 156 | 157 | 158 |
Lilly Pulitzer full-price retail store | 59 | 59 | 61 | 60 |
Johnny Was | ||||
Full-price retail store | 65 | 67 | 71 | 72 |
Outlet | 2 | 2 | 2 | 3 |
Total Johnny Was | 67 | 69 | 73 | 75 |
Emerging Brands | ||||
Southern Tide full-price retail store | 9 | 13 | 15 | 19 |
TBBC full-price retail store | 3 | 3 | 3 | 3 |
Total Oxford | 295 | 300 | 309 | 315 |