Operating Group Information

6 Months Ended

Aug. 01, 2020

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 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 inventory 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, Duck Head and our Lyons, Georgia distribution center. As a result of certain organizational and management reporting changes in the First Quarter of Fiscal 2020, our Duck Head operations, which were previously included in Lanier Apparel, are considered part of and included in Corporate and Other. All prior period amounts for Lanier Apparel and Corporate and Other have been restated to conform to the presentation in the current period.

The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other. 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 2019.

	Second Quarter				First Half
	Fiscal 2020		Fiscal 2019		Fiscal 2020		Fiscal 2019
Net sales
Tommy Bahama	$	95,254	$	188,870	$	182,238	$	353,600
Lilly Pulitzer		73,860		75,555		123,009		148,150
Lanier Apparel		8,450		20,466		19,175		46,620
Southern Tide		8,812		12,468		17,113		26,602
Corporate and Other		5,612		4,641		10,796		9,001
Consolidated net sales	$	191,988	$	302,000	$	352,331	$	583,973
Depreciation and amortization
Tommy Bahama	$	9,194	$	6,907	$	16,994	$	13,747
Lilly Pulitzer		3,015		2,381		5,331		5,064
Lanier Apparel		247		141		349		281
Southern Tide		169		135		313		269
Corporate and Other		333		285		664		625
Consolidated depreciation and amortization	$	12,958	$	9,849	$	23,651	$	19,986
Operating income (loss)
Tommy Bahama	$	(12,712)	$	23,218	$	(36,074)	$	38,410
Lilly Pulitzer		16,264		20,449		20,410		35,701
Lanier Apparel		(6,134)		400		(8,771)		1,767
Southern Tide		(979)		1,834		(64,345)		4,351
Corporate and Other		(4,456)		(5,642)		(4,726)		(10,228)
Consolidated operating (loss) income		(8,017)		40,259	$	(93,506)	$	70,001
Interest expense, net		676		419		1,334		1,090
(Loss) earnings before income taxes	$	(8,693)	$	39,840	$	(94,840)	$	68,911

	August 1, 2020		February 1, 2020		August 3, 2019
Assets
Tommy Bahama (1)	$	605,448	$	668,197	$	655,836
Lilly Pulitzer (2)		191,099		199,913		208,121
Lanier Apparel (3)		31,740		43,533		43,545
Southern Tide (4)		32,918		99,667		98,036
Corporate and Other (5)		91,344		22,059		4,656
Consolidated Total Assets	$	952,549	$	1,033,369	$	1,010,194

(1) Decrease in Tommy Bahama total assets from February 1, 2020 was primarily due to lower operating lease assets, receivables, fixed assets and inventories. Decrease in Tommy Bahama total assets from August 3, 2019 was primarily due to the same reasons except that inventories increased from August 3, 2019.

(2) Decrease in Lilly Pulitzer total assets from February 1, 2020 was primarily due to lower operating lease assets and fixed assets. Decrease in Lilly Pulitzer total assets from August 3, 2019 was primarily due to lower inventories, operating lease assets and fixed assets.

(3) Decrease in Lanier Apparel total assets from February 1, 2020 and August 3, 2019 was primarily due to lower receivables.

(4) Decrease in Southern Tide total assets from February 1, 2020 and August 3, 2019 was primarily due to the $60 million impairment charge for goodwill and intangible assets as well as lower inventories and receivables.

(5) Increase in Corporate and Other total assets from February 1, 2020 and August 3, 2019 was primarily due to increased cash and cash equivalents, as well as increased non-current income tax receivables, investments in unconsolidated entities and inventories.

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.

	Second Quarter Fiscal 2020
	Net Sales		Retail		E-commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	95,254	33	%	48	%	9	%	10	%	—	%
Lilly Pulitzer		73,860	14	%	71	%	—	%	15	%	—	%
Lanier Apparel		8,450	—	%	1	%	—	%	99	%	—	%
Southern Tide		8,812	5	%	43	%	—	%	52	%	—	%
Corporate and Other		5,612	—	%	78	%	—	%	16	%	6	%
Total	$	191,988	22	%	56	%	4	%	18	%	—	%

	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		20,466	—	%	—	%	—	%	100	%	—	%
Southern Tide		12,468	—	%	22	%	—	%	78	%	—	%
Corporate and Other		4,641	—	%	61	%	—	%	31	%	8	%
Total	$	302,000	44	%	23	%	7	%	26	%	—	%

	First Half Fiscal 2020
	Net Sales		Retail		E‑commerce		Restaurant		Wholesale		Other
Tommy Bahama	$	182,238	35	%	39	%	11	%	15	%	—	%
Lilly Pulitzer		123,009	18	%	62	%	—	%	20	%	—	%
Lanier Apparel		19,175	—	%	—	%	—	%	100	%	—	%
Southern Tide		17,113	3	%	32	%	—	%	65	%	—	%
Corporate and Other		10,796	—	%	70	%	—	%	24	%	6	%
Consolidated net sales	$	352,331	25	%	45	%	6	%	24	%	—	%

	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		46,620	—	%	—	%	—	%	100	%	—	%
Southern Tide		26,602	—	%	17	%	—	%	83	%	—	%
Corporate and Other		9,001	—	%	62	%	—	%	29	%	9	%
Consolidated net sales	$	583,973	41	%	20	%	8	%	31	%	—	%