Operating Group Information

9 Months Ended

Nov. 02, 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.

	Third Quarter				First Nine Months
	Fiscal 2019		Fiscal 2018		Fiscal 2019		Fiscal 2018
Net sales
Tommy Bahama	$	127,023	$	123,130	$	480,623	$	482,990
Lilly Pulitzer		71,659		68,213		219,809		208,463
Lanier Apparel		29,377		29,037		76,871		72,806
Southern Tide		9,102		9,496		35,704		34,745
Corporate and Other		4,060		3,786		12,187		9,927
Total net sales	$	241,221	$	233,662	$	825,194	$	808,931
Depreciation and amortization
Tommy Bahama	$	7,073	$	7,131	$	20,820	$	22,457
Lilly Pulitzer		2,554		2,624		7,618		7,727
Lanier Apparel		146		144		427		424
Southern Tide		135		133		404		394
Corporate and Other		285		304		910		931
Total depreciation and amortization	$	10,193	$	10,336	$	30,179	$	31,933
Operating income (loss)
Tommy Bahama	$	(7,739)	$	(5,141)	$	30,671	$	29,783
Lilly Pulitzer		10,988		9,576		46,689		43,823
Lanier Apparel		1,952		2,261		3,387		3,448
Southern Tide		526		492		4,877		4,399
Corporate and Other		(3,133)		(3,483)		(13,029)		(12,862)
Total operating income		2,594		3,705	$	72,595	$	68,591
Interest expense, net		81		489		1,171		1,872
Earnings before income taxes	$	2,513	$	3,216	$	71,424	$	66,719

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

	Third Quarter Fiscal 2019
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	127,023	46	%	14	%	14	%	26	%	—	%
Lilly Pulitzer		71,659	35	%	55	%	—	%	10	%	—	%
Lanier Apparel		29,377	—	%	1	%	—	%	99	%	—	%
Southern Tide		9,102	—	%	19	%	—	%	81	%	—	%
Corporate and Other		4,060	—	%	57	%	—	%	36	%	7	%
Total	$	241,221	35	%	26	%	7	%	32	%	—	%

	Third Quarter Fiscal 2018
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	123,130	46	%	14	%	13	%	27	%	—	%
Lilly Pulitzer		68,213	35	%	53	%	—	%	12	%	—	%
Lanier Apparel		29,037	—	%	—	%	—	%	100	%	—	%
Southern Tide		9,496	—	%	16	%	—	%	84	%	—	%
Corporate and Other		3,786	—	%	50	%	—	%	34	%	16	%
Total	$	233,662	35	%	24	%	7	%	34	%	—	%

	First Nine Months Fiscal 2019
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	480,623	48	%	18	%	13	%	21	%	—	%
Lilly Pulitzer		219,809	43	%	36	%	—	%	21	%	—	%
Lanier Apparel		76,871	—	%	1	%	—	%	99	%	—	%
Southern Tide		35,704	—	%	18	%	—	%	82	%	—	%
Corporate and Other		12,187	—	%	60	%	—	%	32	%	8	%
Total net sales	$	825,194	39	%	22	%	8	%	31	%	—	%

	First Nine Months Fiscal 2018
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	482,990	48	%	17	%	13	%	22	%	—	%
Lilly Pulitzer		208,463	44	%	35	%	—	%	21	%	—	%
Lanier Apparel		72,806	—	%	—	%	—	%	100	%	—	%
Southern Tide		34,745	—	%	16	%	—	%	84	%	—	%
Corporate and Other		9,927	—	%	54	%	—	%	27	%	19	%
Total net sales	$	808,931	40	%	20	%	8	%	32	%	—	%