Operating Groups

3 Months Ended

Apr. 29, 2023

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. With our acquisition of Johnny Was on September 19, 2022, 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 inter-segment sales, any other items that are not allocated to the operating groups, including LIFO inventory accounting adjustments, and the operations of our Lyons, Georgia distribution center and our Oxford America business, which we exited in Fiscal 2022. The accounting policies of the reportable operating segments are the same as those described in our Annual Report on Form 10-K for Fiscal 2022.

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

	First Quarter
	Fiscal 2023		Fiscal 2022
Net sales
Tommy Bahama	$	239,435	$	228,067
Lilly Pulitzer		97,450		92,045
Johnny Was (1)		49,491		—
Emerging Brands		33,991		31,763
Corporate and Other		(270)		706
Consolidated net sales	$	420,097	$	352,581
Depreciation and amortization
Tommy Bahama	$	5,984	$	6,618
Lilly Pulitzer		3,392		2,975
Johnny Was (1)		5,192		—
Emerging Brands		425		359
Corporate and Other		179		238
Consolidated depreciation and amortization	$	15,172	$	10,190
Operating income (loss)
Tommy Bahama	$	55,521	$	52,606
Lilly Pulitzer		24,516		26,178
Johnny Was (1)		2,484		—
Emerging Brands		3,913		7,736
Corporate and Other		(6,133)		(10,542)
Consolidated operating income	$	80,301	$	75,978
Interest expense, net		2,342		242
Earnings before income taxes	$	77,959	$	75,736

	April 29, 2023		January 28, 2023		April 30, 2022
Assets
Tommy Bahama (2)	$	576,867	$	569,833	$	542,734
Lilly Pulitzer (3)		215,842		211,119		194,091
Johnny Was (1)		330,321		334,603		—
Emerging Brands (4)		92,959		91,306		72,728
Corporate and Other (5)		(21,759)		(18,196)		137,464
Consolidated Total Assets	$	1,194,230	$	1,188,665	$	947,017

(1) The Johnny Was business was acquired on September 19, 2022.

(2) Increase in Tommy Bahama total assets from April 30, 2022, includes increases in inventories and operating lease assets partially offset by reductions in property and equipment.

(3) Increase in Lilly Pulitzer total assets from April 30, 2022, includes increases in inventories and property and equipment partially offset by reductions in operating lease assets.

(4) Increase in Emerging Brands total assets from April 30, 2022, includes increases in inventories, operating lease assets, property and equipment and other non-current assets.

(5) Decrease in Corporate and Other total assets from April 30, 2022, includes reductions in short-term investments and cash and cash equivalents, which were used to fund a portion of the acquisition purchase price for Johnny Was.

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 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	%	—	%

	First Quarter Fiscal 2022
	Net Sales		Retail		E-commerce		Food & Beverage		Wholesale		Other
Tommy Bahama	$	228,067	45	%	20	%	14	%	21	%	—	%
Lilly Pulitzer		92,045	34	%	44	%	—	%	22	%	—	%
Johnny Was (1)		—	—	%	—	%	—		—	%	—	%
Emerging Brands		31,763	5	%	30	%	—	%	65	%	—	%
Corporate and Other		706	—	%	—	%	—	%	43	%	57	%
Total	$	352,581	39	%	27	%	9	%	25	%	—	%

(1) The Johnny Was business was acquired on September 19, 2022.