Operating Group Information

6 Months Ended

Aug. 03, 2019

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 primarily operated through our Tommy Bahama, Lilly Pulitzer, Lanier Apparel and Southern Tide operating groups.

Tommy Bahama, Lilly Pulitzer and Southern Tide each design, source, market and distribute apparel and related products bearing their respective trademarks and license their trademarks for other product categories, while Lanier Apparel designs, sources and distributes branded and private label men’s tailored clothing, sportswear and other products. 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 and any other items that are not allocated to the operating groups, including LIFO accounting adjustments. Because our LIFO inventory pool does not correspond to our operating group definitions, LIFO inventory accounting adjustments are not allocated to the operating groups. Corporate and Other also includes the operations of other businesses which are not included in our operating groups, including the operations of TBBC and our Lyons, Georgia distribution center. For a more extensive description of our operating groups, see Part I, Item 1. Business included in our Annual Report on Form 10-K for Fiscal 2018.

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

	Second Quarter				First Half
	Fiscal 2019		Fiscal 2018		Fiscal 2019		Fiscal 2018
Net sales
Tommy Bahama	$	188,870	$	192,728	$	353,600	$	359,860
Lilly Pulitzer		75,555		71,623		148,150		140,250
Lanier Apparel		20,905		23,860		47,494		43,769
Southern Tide		12,468		11,777		26,602		25,249
Corporate and Other		4,202		2,653		8,127		6,141
Total net sales	$	302,000	$	302,641	$	583,973	$	575,269
Depreciation and amortization
Tommy Bahama	$	6,907	$	8,260	$	13,747	$	15,326
Lilly Pulitzer		2,381		2,624		5,064		5,103
Lanier Apparel		141		139		281		280
Southern Tide		135		136		269		261
Corporate and Other		285		312		625		627
Total depreciation and amortization	$	9,849	$	11,471	$	19,986	$	21,597
Operating income (loss)
Tommy Bahama	$	23,218	$	20,621	$	38,410	$	34,924
Lilly Pulitzer		20,449		18,421		35,701		34,247
Lanier Apparel		253		825		1,435		1,187
Southern Tide		1,834		1,420		4,351		3,907
Corporate and Other		(5,495)		(4,774)		(9,896)		(9,379)
Total operating income		40,259		36,513	$	70,001	$	64,886
Interest expense, net		419		602		1,090		1,383
Earnings before income taxes	$	39,840	$	35,911	$	68,911	$	63,503

The tables below quantify, for each operating group and in total, the amount of net sales by distribution channel (in thousands) and as a percentage of net sales for each period presented.

	Second Quarter Fiscal 2019
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	188,870	50	%	23	%	11	%	16	%	—	%
Lilly Pulitzer		75,555	51	%	29	%	—	%	20	%	—	%
Lanier Apparel		20,905	—	%	2	%	—	%	98	%	—	%
Southern Tide		12,468	—	%	22	%	—	%	78	%	—	%
Corporate and Other		4,202	—	%	62	%	—	%	29	%	9	%
Total	$	302,000	44	%	23	%	7	%	26	%	—	%

	Second Quarter Fiscal 2018
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	192,728	50	%	21	%	11	%	18	%	—	%
Lilly Pulitzer		71,623	52	%	27	%	—	%	21	%	—	%
Lanier Apparel		23,860	—	%	—	%	—	%	100	%	—	%
Southern Tide		11,777	—	%	20	%	—	%	80	%	—	%
Corporate and Other		2,653	—	%	51	%	—	%	22	%	27	%
Total	$	302,641	45	%	21	%	7	%	27	%	—	%

	First Half Fiscal 2019
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	353,600	49	%	19	%	13	%	19	%	—	%
Lilly Pulitzer		148,150	46	%	27	%	—	%	27	%	—	%
Lanier Apparel		47,494	—	%	1	%	—	%	99	%	—	%
Southern Tide		26,602	—	%	17	%	—	%	83	%	—	%
Corporate and Other		8,127	—	%	62	%	—	%	29	%	9	%
Total net sales	$	583,973	41	%	20	%	8	%	31	%	—	%

	First Half Fiscal 2018
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	359,860	49	%	18	%	13	%	20	%	—	%
Lilly Pulitzer		140,250	48	%	26	%	—	%	26	%	—	%
Lanier Apparel		43,769	—	%	—	%	—	%	100	%	—	%
Southern Tide		25,249	—	%	16	%	—	%	84	%	—	%
Corporate and Other		6,141	—	%	56	%	—	%	23	%	21	%
Total net sales	$	575,269	42	%	19	%	8	%	31	%	—	%