Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Mar. 25, 2022 | Jul. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 29, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-4365 | ||
Entity Registrant Name | OXFORD INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | GA | ||
Entity Tax Identification Number | 58-0831862 | ||
Entity Address, Address Line One | 999 Peachtree Street, N.E. | ||
Entity Address, Address Line Two | Suite 688 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30309 | ||
City Area Code | 404 | ||
Local Phone Number | 659-2424 | ||
Title of 12(b) Security | Common Stock, $1 par value | ||
Trading Symbol | OXM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,167,095,666 | ||
Entity Common Stock, Shares Outstanding | 16,466,183 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 42 | ||
Entity Central Index Key | 0000075288 | ||
Current Fiscal Year End Date | --01-29 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 44,859 | $ 66,013 |
Short-term investments | 164,890 | 0 |
Receivables, net | 34,550 | 30,418 |
Inventories, net | 117,709 | 123,543 |
Income tax receivable | 19,728 | 17,975 |
Prepaid expenses and other current assets | 18,599 | 20,367 |
Total Current Assets | 400,335 | 258,316 |
Property and equipment, net | 152,447 | 159,732 |
Intangible assets, net | 155,307 | 156,187 |
Goodwill | 23,869 | 23,910 |
Operating lease assets | 195,100 | 233,775 |
Other assets, net | 30,584 | 33,714 |
Total Assets | 957,642 | 865,634 |
Current Liabilities | ||
Accounts payable | 80,753 | 71,148 |
Accrued compensation | 30,345 | 18,897 |
Current portion of operating lease liabilities | 61,272 | 60,886 |
Accrued expenses and other liabilities | 53,796 | 45,321 |
Total Current Liabilities | 226,166 | 196,252 |
Non-current portion of operating lease liabilities | 199,488 | 239,963 |
Other non-current liabilities | 21,413 | 23,691 |
Deferred income taxes | 2,911 | |
Shareholders' Equity | ||
Common stock, $1.00 par value per share | 16,805 | 16,889 |
Additional paid-in capital | 163,156 | 156,508 |
Retained earnings | 331,175 | 235,995 |
Accumulated other comprehensive loss | (3,472) | (3,664) |
Total Shareholders' Equity | 507,664 | 405,728 |
Total Liabilities and Shareholders' Equity | $ 957,642 | $ 865,634 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 29, 2022 | Jan. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 1,142,079 | $ 748,833 | $ 1,122,790 |
Cost of goods sold | 435,861 | 333,626 | 477,823 |
Gross profit | 706,218 | 415,207 | 644,967 |
SG&A | 573,636 | 492,628 | 566,149 |
Impairment of goodwill and intangible assets | 60,452 | ||
Royalties and other operating income | 32,921 | 14,024 | 14,857 |
Operating income (loss) | 165,503 | (123,849) | 93,675 |
Interest expense, net | 944 | 2,028 | 1,245 |
Earnings (loss) before income taxes | 164,559 | (125,877) | 92,430 |
Income tax provision (benefit) | 33,238 | (30,185) | 23,937 |
Net earnings (loss), basic | 131,321 | (95,692) | 68,493 |
Net earnings (loss), diluted | $ 131,321 | $ (95,692) | $ 68,493 |
Net earnings (loss) per share: | |||
Basic (in dollars per share) | $ 7.90 | $ (5.77) | $ 4.09 |
Diluted (in dollars per share) | $ 7.78 | $ (5.77) | $ 4.05 |
Weighted average shares outstanding: | |||
Basic (in shares) | 16,631 | 16,576 | 16,756 |
Diluted (in shares) | 16,869 | 16,576 | 16,914 |
Dividends declared per share (in dollars per share) | $ 1.63 | $ 1 | $ 1.48 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net earnings (loss) | $ 131,321 | $ (95,692) | $ 68,493 |
Other comprehensive income (loss), net of taxes: | |||
Net foreign currency translation adjustment | 192 | 997 | 434 |
Comprehensive income (loss) | $ 131,513 | $ (94,695) | $ 68,927 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning Balance at Feb. 02, 2019 | $ 16,959 | $ 142,976 | $ 323,515 | $ (5,095) | $ 478,355 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings and other comprehensive income (loss) | 68,493 | 434 | 68,927 | ||||
Shares issued under equity plans | 116 | 1,523 | 1,639 | ||||
Compensation expense for equity awards | 7,620 | 7,620 | |||||
Repurchase of shares | (35) | (2,693) | (2,728) | ||||
Cash dividends declared and paid | (25,215) | (25,215) | |||||
Ending Balance at Feb. 01, 2020 | 17,040 | 149,426 | $ (499) | 366,793 | (4,661) | $ (499) | 528,598 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings and other comprehensive income (loss) | (95,692) | 997 | (94,695) | ||||
Shares issued under equity plans | 227 | 1,151 | 1,378 | ||||
Compensation expense for equity awards | 7,755 | 7,755 | |||||
Repurchase of shares | (378) | (1,824) | (17,721) | (19,923) | |||
Cash dividends declared and paid | (16,886) | (16,886) | |||||
Ending Balance at Jan. 30, 2021 | 16,889 | 156,508 | 235,995 | (3,664) | 405,728 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings and other comprehensive income (loss) | 131,321 | 192 | 131,513 | ||||
Shares issued under equity plans | 41 | 1,411 | 1,452 | ||||
Compensation expense for equity awards | 8,186 | 8,186 | |||||
Repurchase of shares | (125) | (2,949) | (8,268) | (11,342) | |||
Cash dividends declared and paid | (27,873) | (27,873) | |||||
Ending Balance at Jan. 29, 2022 | $ 16,805 | $ 163,156 | $ 331,175 | $ (3,472) | $ 507,664 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Cash Flows From Operating Activities: | |||
Net earnings (loss) | $ 131,321 | $ (95,692) | $ 68,493 |
Adjustments to reconcile net earnings (loss) to cash flows from operating activities: | |||
Depreciation | 39,062 | 38,975 | 38,026 |
Amortization of intangible assets | 880 | 1,111 | 1,171 |
Impairment of goodwill and intangible assets | 60,452 | ||
Impairment of property and equipment | 1,656 | 19,828 | 1,090 |
Equity compensation expense | 8,186 | 7,755 | 7,620 |
Gain on sale of investment in unconsolidated entity | (11,586) | ||
Gain on sale of property and equipment | (2,669) | ||
Amortization of deferred financing costs | 344 | 344 | 384 |
Change in fair value of contingent consideration | 1,188 | 593 | 431 |
Deferred income taxes | 4,054 | (18,332) | (1,973) |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | |||
Receivables, net | (2,667) | 28,429 | 10,252 |
Inventories, net | 5,378 | 29,355 | 8,187 |
Income tax receivable | (1,753) | (17,113) | 19 |
Prepaid expenses and other current assets | 1,763 | 5,064 | 606 |
Current liabilities | 27,585 | 17,611 | (14,282) |
Other non-current assets, net | 37,534 | 53,819 | (283,335) |
Other non-current liabilities | (42,270) | (48,349) | 285,237 |
Cash provided by operating activities | 198,006 | 83,850 | 121,926 |
Cash Flows From Investing Activities: | |||
Purchases of property and equipment | (31,894) | (28,924) | (37,421) |
Purchases of short-term investments | (165,000) | ||
Proceeds from sale of investment in unconsolidated entity | 14,586 | ||
Other investing activities | 736 | (5,727) | |
Cash used in investing activities | (181,572) | (34,651) | (37,421) |
Cash Flows From Financing Activities: | |||
Repayment of revolving credit arrangements | (280,963) | (122,241) | |
Proceeds from revolving credit arrangements | 280,963 | 109,248 | |
Deferred financing costs paid | (952) | ||
Repurchase of common stock | (8,359) | (18,053) | |
Proceeds from issuance of common stock | 1,452 | 1,378 | 1,639 |
Repurchase of equity awards for employee tax withholding liabilities | (2,983) | (1,870) | (2,728) |
Cash dividends paid | (27,536) | (16,844) | (25,215) |
Other financing activities | (749) | (459) | (1,049) |
Cash used in financing activities | (38,175) | (35,848) | (41,298) |
Net change in cash and cash equivalents | (21,741) | 13,351 | 43,207 |
Effect of foreign currency translation on cash and cash equivalents | 587 | 202 | 926 |
Cash and cash equivalents at the beginning of year | 66,013 | 52,460 | 8,327 |
Cash and cash equivalents at the end of period | $ 44,859 | $ 66,013 | $ 52,460 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 29, 2022 | |
Business and Summary of Significant Accounting Policies | |
Business and Summary of Significant Accounting Policies | Note 1. Business and Summary of Significant Accounting Policies Description of Business We are a leading branded apparel company that designs, sources, markets and distributes products bearing the trademarks of our Tommy Bahama®, Lilly Pulitzer®, Southern Tide®, The Beaufort Bonnet Company® and Duck Head® lifestyle brands. We distribute our products through our direct to consumer channel, consisting of retail stores and e-commerce sites, and our wholesale distribution channel, which includes better department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers and other retailers. Additionally, we operate Tommy Bahama food and beverage locations, including Marlin Bars and full-service restaurants, generally adjacent to a Tommy Bahama retail store location. In Fiscal 2020, we decided to exit our Lanier Apparel business, a business which had been focused on moderately priced tailored clothing and related products. This decision aligns with our stated business strategy of developing and marketing compelling lifestyle brands. It also took into consideration the increased macroeconomic challenges faced by the Lanier Apparel business, many of which were magnified by the COVID-19 pandemic. The exit of the Lanier Apparel business was completed in Fiscal 2021. Refer to Note 2 for certain financial information about Lanier Apparel and Note 11 for a description of certain information relating to the exit of Lanier Apparel, including charges associated with the exit of the business. COVID-19 Pandemic The COVID-19 pandemic has had a significant effect on overall economic conditions and our operations in Fiscal 2020 and Fiscal 2021. While our mission remains the enhancement of long-term shareholder value, our focus during this crisis has been (1) the health and well-being of our employees, customers and communities, (2) protecting the reputation, value and image of our brands and (3) preserving liquidity. In Fiscal 2020, due to the COVID-19 pandemic, we temporarily closed all our retail and restaurant locations, resulting in a reduction in net sales and a significant net loss after many years of profitable operating results. We began reopening our stores and restaurants in the Second Quarter of Fiscal 2020 in a phased approach in accordance with local government guidelines and with additional safety protocols. After reopening many of our locations we continued to experience reduced traffic, limited operating hours and capacity, seating and other limitations, with such factors impacting individual locations to varying degrees. There can be no assurance that additional closures will not occur in the future as a result of any resurgence of COVID-19 cases and/or additional government mandates or recommendations. In addition, the shift from in-store shopping to online shopping accelerated in Fiscal 2020 resulting in strong growth in our e-commerce businesses. In Fiscal 2021, the economic environment improved significantly with a significant rebound in retail traffic. This improved environment and exceptionally strong consumer demand drove increased net sales and record net earnings. There can be no assurance that these traffic and other trends will continue for our business or the broader retail apparel market. There remains significant uncertainty as to the duration and severity of the pandemic as well as the associated impact of changes in consumer discretionary spending habits, supply chain and other business disruptions, operating cost increases and inflationary pressures, general economic conditions and restrictions on our ongoing operations that result from the COVID-19 pandemic. Thus, the ultimate impact of the pandemic on our business is uncertain at this time. Fiscal Year We operate and report on a 52/53-week fiscal year. Our fiscal year ends on the Saturday closest to January 31 and is designated by the calendar year in which the fiscal year commences. As used in our consolidated financial statements, the terms Fiscal 2019, Fiscal 2020, Fiscal 2021 and Fiscal 2022 reflect the 52 weeks ended February 1, 2020; 52 weeks ended January 30, 2021; 52 weeks ended January 29, 2022; and 52 weeks ending January 28, 2023, respectively. Principles of Consolidation Our consolidated financial statements include the accounts of Oxford Industries, Inc. and any other entities in which we have a controlling financial interest, including our wholly-owned domestic and foreign subsidiaries, or variable interest entities for which we are the primary beneficiary, if any. Generally, we consolidate businesses in which we have a controlling financial interest which may be evidenced through ownership of a majority voting interest or other rights which might indicate that we are the primary beneficiary of the entity. The primary beneficiary has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. All significant intercompany accounts and transactions are eliminated in consolidation. Business Combinations The cost of each acquired business is allocated to the individual tangible and intangible assets acquired and liabilities assumed or incurred as a result of an acquisition based on their estimated fair values. The assessment of the estimated fair values of assets and liabilities acquired requires us to make certain assumptions regarding the use of the acquired assets, anticipated cash flows, probabilities of cash flows, discount rates and other factors, many of which involve a significant amount of uncertainty. Additionally, the definition of fair value of inventories acquired as part of a business combination generally will equal the expected sales price less certain costs associated with selling the inventory, which may exceed the actual cost of the acquired inventories, resulting in an inventory step-up to fair value at acquisition, which would be recognized in our consolidated statements of operations as the acquired inventory is sold. The purchase price allocation of a business combination may be revised during an allocation period as necessary when, and if, information becomes available to revise the fair values of the assets acquired and the liabilities assumed. The allocation period will not exceed one year from the date of the acquisition. Should information become available after the allocation period indicating that an adjustment to the purchase price allocation is appropriate, that adjustment will be included in our consolidated statements of operations. The results of operations of acquired businesses are included in our consolidated statements of operations from the respective dates of the acquisitions. Transaction costs related to business combinations are included in SG&A in our consolidated statements of operations as incurred. Revenue Recognition and Receivables Our revenue consists of direct to consumer sales, including our retail store, e-commerce and restaurant operations, and wholesale sales, as well as royalty income, which is included in royalties and other income in our consolidated statements of operations. Revenue is recognized at an amount that reflects the consideration expected to be received for those goods and services pursuant to a five-step approach: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. The table below quantifies the amount of net sales by distribution channel (in thousands) for each period presented. Fiscal Fiscal Fiscal 2021 2020 2019 Retail $ 443,015 $ 202,071 $ 440,803 E-commerce 369,300 323,900 262,283 Restaurant 96,244 48,428 83,836 Wholesale 231,536 173,209 333,986 Other 1,984 1,225 1,882 Net sales $ 1,142,079 $ 748,833 $ 1,122,790 We recognize revenue when performance obligations under the terms of the contracts with our customers are satisfied, which generally occurs when we deliver our products to our direct to consumer and wholesale customers. Control of the product is generally transferred upon providing the product to consumers in our bricks and mortar retail stores and restaurants, upon physical delivery of the products to consumers in our e-commerce operations and upon shipment from our distribution center to customers in our wholesale operations. Once control is transferred to the customer, we have completed our performance obligations related to the contract and have an unconditional right to consideration for the products sold as outlined in the contract. Our receivables resulting from contracts with customers in our direct to consumer operations are generally collected within a few days, upon settlement of the credit card transaction, while our receivables resulting from contracts with our customers in our wholesale operations are generally due within one quarter, in accordance with established credit terms. All of our performance obligations under the terms of our contracts with customers in our direct to consumer and wholesale operations have an expected original duration of one year or less. We only recognize revenue to the extent that it is probable that we will not have a significant reversal of revenue in a future period. Our revenue, including any freight income, is recognized net of applicable taxes in our consolidated statements of operations. In our direct to consumer operations, consumers have certain rights to return product within a specified period and are eligible for certain point of sale discounts; thus retail store, e-commerce and restaurant revenues are recorded net of estimated returns and discounts, as applicable. The sales return allowance is based on historical direct to consumer return rates and current trends and is recognized on a gross basis as a return liability for the amount of sales estimated to be returned and a return asset for the right to recover the product estimated to be returned by the customer. The value of inventory associated with a right to recover the goods returned in our direct to consumer operations is included in prepaid expenses and other current assets in our consolidated balance sheets. The changes in the return liability are recognized in net sales and the changes in the return asset are recognized in cost of goods sold in our consolidated statements of operations. An estimated sales return liability of $11 million and $7 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of January 29, 2022 and January 30, 2021, respectively. In the ordinary course of our wholesale operations, we offer discounts, allowances and cooperative advertising support to some of our wholesale customers for certain products. Some of these arrangements are written agreements, while others may be implied by customary practices or expectations in the industry. As certain allowances, other deductions and returns are not finalized until the end of a season, program or other event which may not have occurred yet, we estimate such discounts, allowances and returns on an ongoing basis to estimate the consideration from the customer that we expect to ultimately receive. Significant considerations in determining our estimates for discounts, allowances, operational chargebacks and returns for wholesale customers may include historical and current trends, agreements with customers, projected seasonal or program results, an evaluation of current economic conditions, specific program or product expectations and retailer performance. We record the discounts, returns, allowances and operational chargebacks as a reduction to net sales in our consolidated statements of operations and as a reduction to receivables, net in our consolidated balance sheets, with the estimated value of inventory expected to be returned in prepaid expenses and other current assets in our consolidated balance sheets. As of January 29, 2022 and January 30, 2021, reserve balances recorded as a reduction to wholesale receivables related to these items were $3 million and $6 million, respectively. We extend credit to certain wholesale customers based on an evaluation of the customer’s financial capacity and condition, usually without requiring collateral. In circumstances where we become aware of a specific wholesale customer’s inability to meet its financial obligations, a specific provision for credit losses is taken as a reduction to accounts receivable to reduce the net recognized receivable to the amount reasonably expected to be collected. Such amounts are ultimately written off at the time that the amounts are not considered collectible. For other wholesale customer receivable amounts, we recognize estimated provisions for credit losses, using the current expected loss model in Fiscal 2021 and Fiscal 2020 and the incurred loss model in Fiscal 2019 under the previous guidance, based on our historical collection experience, the financial condition of our customers, an evaluation of current economic conditions, anticipated trends and the risk characteristics of the receivables. Provisions for credit loss expense, which is included in SG&A in our consolidated statements of operations, for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were a credit of $1 million, a charge of $4 million and $0 million, respectively, while write-offs of credit losses for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $0 million, $2 million and $0 million. As of January 29, 2022 and January 30, 2021, receivables, net in our consolidated balance sheet included a provision for credit losses related to trade receivables of $1 million and $3 million, respectively. In addition to trade receivables, tenant allowances due from landlord of $1 million and $2 million are included in receivables, net in our consolidated balance sheet, as of January 29, 2022 and January 30, 2021, respectively. Substantially all other amounts recognized in receivables, net represent trade receivables related to contracts with customers, including receivables from wholesale customers, credit card receivables related to our direct to consumer operations, and receivables from licensing partners. As of January 29, 2022 and January 30, 2021, prepaid expenses and other current assets included $4 million and $4 million, respectively, representing the estimated value of inventory for expected direct to consumer and wholesale sales returns in the aggregate. We did not have any significant contract assets related to contracts with customers, other than trade receivables and the value of inventory associated with expected sales returns, as of January 29, 2022 and January 30, 2021. In addition to our estimated expected return amounts, contract liabilities related to contracts with our customers include gift cards and merchandise credits issued by us as well as unredeemed loyalty program award points. Gift cards and merchandise credits issued by us are redeemable on demand by the holder and do not have an expiration date and do not incur administrative fees. Historically, substantially all gift cards and merchandise credits are redeemed within one year of issuance. Gift cards and merchandise credits are recorded as a liability until our performance obligation is satisfied, which occurs when redeemed by the consumer, at which point revenue is recognized. However, we recognize estimated breakage income for certain gift cards and merchandise credits using the redemption recognition method, subject to applicable laws in certain states. Contract liabilities for gift cards purchased by consumers and merchandise credits received by customers but not yet redeemed, less any breakage income recognized to date, is included in accrued expenses and other liabilities in our consolidated balance sheets and totaled $16 million and $13 million as of January 29, 2022 and January 30, 2021, respectively. Gift card breakage income, which is included in net sales in our consolidated statements of operations, was $1 million, $1 million and $2 million in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. In Fiscal 2021, our Southern Tide, TBBC and Duck Head brands each initiated loyalty award programs. These programs allow consumers to earn loyalty points associated with the brand. These programs are primarily spend-based loyalty programs, with varying terms and conditions for each respective brand’s program. The consumer earns points which, depending on the program, allows the consumer to (1) achieve a specified status with the brand, which provides the consumer with benefits, such as early access to events, free shipping or other benefits, for a specified period, and/or (2) earn a monetary reward by accumulating loyalty points that can be redeemed in association with future purchases from the brand. As loyalty points are earned, we defer revenue, based on the estimated fair value of the loyalty points, with a corresponding liability in accrued expenses and other liabilities in our consolidated balance sheets. The loyalty points liability is generally recognized as revenue when the loyalty points are redeemed or expire. Deferred revenue associated with the loyalty programs was less than $1 million as of January 29, 2022. Royalties from the license of our owned brands are recognized over the time that licensees are provided access to utilize our trademarks (i.e. symbolic intellectual property) and benefit from such access through their sales of licensed products. Payments are generally due quarterly, and depending on time of receipt, may be recorded as a liability until recognized as revenue. Royalty income is based upon the contractually guaranteed minimum royalty obligations and adjusted as sales data, or estimates thereof, is received from licensees, when the related royalties based on a percentage of the licensee’s sales exceed the contractually determined minimum royalty amount. Royalty income, which is included in royalties and other operating income in our consolidated statements of operations, were $18 million, $14 million and $15 million during Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. Cost of Goods Sold We include in cost of goods sold (1) the cost paid to the contract manufacturers for the acquired product, (2) sourcing, procurement and other costs incurred prior to or in association with the receipt of finished goods at our distribution facilities, and (3) freight from our distribution facilities to our own retail stores, e-commerce consumers and wholesale customers. The costs prior to receipt at our distribution facilities include inbound freight charges, duties and other import costs, brokers’ fees, consolidators’ fees, insurance, direct labor, manufacturing overhead and any depreciation expense associated with our manufacturing, sourcing and procurement operations. We generally classify amounts billed to customers for freight in net sales and classify freight costs for shipments to customers in cost of goods sold in our consolidated statements of operations. Our gross profit and gross margin may not be directly comparable to those of our competitors, as statement of operations classifications of certain expenses may vary by company. SG&A We include in SG&A costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of inspection, stocking, warehousing, picking and packing, and costs associated with the operations of our e-commerce sites, retail stores, restaurants and concessions, such as labor, lease commitments and other occupancy costs, store and restaurant pre-opening costs (including rent, marketing, store set-up costs and training expenses), depreciation and other amounts. SG&A also includes product design costs, selling costs, royalty expense, provision for credit losses, advertising, promotion and marketing expenses, professional fees, supplies, travel, other general and administrative expenses, our corporate overhead costs and amortization of intangible assets. Distribution network costs, including costs associated with preparing goods to ship to customers and our costs to operate our distribution facilities, are included as a component of SG&A. We consider distribution network costs to be the costs associated with operating our distribution centers, as well as the costs paid to third parties who perform those services for us. In Fiscal 2021, Fiscal 2020 and Fiscal 2019, distribution network costs included in SG&A totaled $28 million, All costs associated with advertising, promotion and marketing of our products are expensed in SG&A during the period when the advertisement is first shown. Costs associated with cooperative advertising programs under which we agree to make general contributions to our wholesale customers’ advertising and promotional funds are generally recorded as a reduction to net sales. Advertising, promotion and marketing expenses, excluding employment costs for our advertising and marketing employees, for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $60 million, $50 million and $56 million, respectively. Prepaid advertising, promotion and marketing expenses included in prepaid expenses and other current assets in our consolidated balance sheets as of January 29, 2022 and January 30, 2021 were $4 million and $2 million, respectively. Royalty expense related to our license of third party brands, which are generally based on the greater of a percentage of our actual net sales for the brand or a contractually determined minimum royalty amount, are recorded based upon any guaranteed minimum levels and adjusted based on our net sales of the licensed products, as appropriate. Royalty expenses recognized as SG&A in Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $6 million, $6 million and $7 million, respectively. As of January 29, 2022, we do not have any royalty agreements with material guaranteed minimum royalty amounts for future periods as future royalty amounts are generally dependent on our future sales of the specified products. Cash and Cash Equivalents We consider cash equivalents to be investments with original maturities of three months or less for purposes of our consolidated statements of cash flows. As of January 29, 2022 and January 30, 2021, our cash and cash equivalents included $37 million and $59 million, respectively, of amounts invested in money market funds. Supplemental Cash Flow Information During Fiscal 2021, Fiscal 2020 and Fiscal 2019, cash paid for income taxes was $34 million, $6 million and $17 million, respectively. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, cash paid for interest, net of interest income was $1 million, $2 million and $1 million, respectively. Non-cash investing activities included capital expenditures incurred but not yet paid at period end, which were included in accounts payable in our consolidated balances sheets, of $3 million, $1 million and $3 million as of Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. Additionally, during Fiscal 2021, Fiscal 2020 and Fiscal 2019, we recorded a non-cash net increase in operating lease assets and corresponding operating lease liability amounts of $18 million, $2 million and $40 million, respectively, related to the net impact of new, modified and terminated operating lease amounts. Short-Term Investments As of January 29, 2022 and January 30, 2021, we had $165 million and $0 million, respectively, of short-term investments on our consolidated balance sheet, generally consisting of highly liquid corporate and U.S. Treasury securities. These investments are expected to be liquidated within one year. We classify these short-term investments as trading securities, and accordingly, the investments are recorded at fair value, based on Level 1 measurements, with the gains or losses recognized in our consolidated statements of operations in royalties and other income. Inventories, net Substantially all of our inventories are finished goods inventories of apparel, accessories and other related products. Inventories are valued at the lower of cost or market. For operating group reporting, inventory is carried at the lower of FIFO cost or market. We evaluate the composition of our inventories for identification of distressed inventory at least quarterly. In performing this evaluation, we consider slow-turning products, an indication of lack of consumer acceptance of particular products, prior-seasons’ fashion products, broken assortments, discontinued products and current levels of replenishment program products as compared to expected sales. We estimate the amount of goods that we will not be able to sell in the normal course of business and write down the value of these goods as necessary based on various assumptions about the amounts we ultimately expect to realize for the inventories. Also, we provide an allowance for shrinkage, as appropriate, for the period between the last physical inventory count and each balance sheet date. For consolidated financial reporting, as of January 29, 2022 and January 30, 2021, $103 million, or 88%, and $116 million, or 94%, respectively, of our inventories were valued at the lower of LIFO cost or market after deducting our LIFO accounting reserve. The remaining $14 million and $8 million of our inventories were valued at the lower of FIFO cost or market as of January 29, 2022 and January 30, 2021, respectively. Generally, for consolidated financial reporting, inventories of our domestic operations are valued at the lower of LIFO cost or market, and our inventories of our international operations are valued at the lower of FIFO cost or market. Our LIFO reserves are based on the estimated Producer Price Index as published by the United States Department of Labor. We write down inventories valued at the lower of LIFO cost or market when LIFO cost exceeds market value. We deem LIFO accounting adjustments to not only include changes in the LIFO reserve, but also changes in markdown reserves which are considered in LIFO accounting. As our LIFO inventory pool does not correspond to our operating group definitions, LIFO inventory accounting adjustments are not allocated to our operating groups. Thus, the impact of accounting for inventories on the LIFO method is reflected in Corporate and Other for operating group reporting purposes included in Note 2. There were no LIFO inventory layer liquidations that had a material impact on our net earnings in Fiscal 2021, Fiscal 2020 or Fiscal 2019. As of January 29, 2022 and January 30, 2021, the LIFO reserve included in our consolidated balance sheets were $69 million and $62 million, respectively. Property and Equipment, net Property and equipment, including leasehold improvements that are reimbursed by landlords as a tenant improvement allowance and assets under capital leases, if any, is carried at cost less accumulated depreciation. Additions are capitalized while repair and maintenance costs are charged to our consolidated statements of operations as incurred. Depreciation is calculated using both straight-line and accelerated methods generally over the estimated useful lives of the assets as follows: Leasehold improvements Lesser of remaining life of the asset or lease term Furniture, fixtures, equipment and technology 2 – 15 years Buildings and improvements 7 – 40 years Property and equipment is reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable, as discussed in Impairment of Long-Lived Assets, other than Goodwill and Intangible Assets with Indefinite Lives below. Substantially all of our depreciation expense is included in SG&A in our consolidated statements of operations. Cost of goods sold includes the depreciation associated with our manufacturing, sourcing and procurement processes. Depreciation expense as disclosed in Note 2 includes any property and equipment impairment charges. Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consist of trademarks, as well as reacquired rights and customer relationships. The fair values and useful lives of these intangible assets are estimated based on our assessment as well as independent third party appraisals in some cases. Additionally, at acquisition we must determine whether the intangible asset has an indefinite or finite life and account for it accordingly. Refer to Note 4 for additional details about intangible assets. Goodwill is recognized as the amount by which the cost to acquire a business exceeds the fair value of identified tangible and intangible assets acquired, net of assumed liabilities. Thus, the amount of goodwill recognized in connection with a business combination depends on the fair values assigned to the individual assets acquired and liabilities assumed in a business combination. Goodwill is allocated to the respective reporting unit at the time of acquisition. As of January 29, 2022, all of our goodwill included in our consolidated balance sheet is deductible for income tax purposes. Refer to Note 4 for additional detailed about goodwill. At acquisition, as well as any subsequent impairment tests, assumptions and estimates about various items with significant uncertainty are required to determine the fair value of intangible assets and goodwill. When determining the fair value, significant assumptions may include our planned use of the asset as well as estimates of net sales, royalty income, operating income, growth rates, royalty rates for the trademarks, a risk-adjusted, market based cost of capital as the discount rates and income tax rates, among other factors. Our fair value assessment may also consider any comparable market transactions. Intangible assets with indefinite lives as well as goodwill are not amortized but instead evaluated for impairment annually or more frequently if events or circumstances indicate that the intangible asset or goodwill might be impaired. This analysis is typically similar to the analysis performed at acquisition and dependent upon a number of uncertain factors, including those used in the initial valuation at acquisition as listed above. We have the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset or goodwill is impaired to determine whether it is necessary to perform the quantitative impairment test. We also have the option to bypass the qualitative assessment entirely for any indefinite-lived intangible asset or goodwill in any period and proceed directly to performing the quantitative impairment test. We test, either quantitatively or qualitatively, intangible assets with an indefinite life and goodwill for impairment as of the first day of the fourth quarter of our fiscal year, or at an interim date if indicators of impairment exist at that interim date. For each impairment test of intangible assets with an indefinite life and goodwill in Fiscal 2021, Fiscal 2020 and Fiscal 2019, we bypassed the qualitative test option and instead performed a quantitative test. If an annual or interim analysis indicates an impairment of an intangible asset with an indefinite useful life or goodwill, the amount of the impairment is recognized in our consolidated financial statements based on the amount that the carrying value exceeds the estimated fair value of the asset for an intangible asset with an indefinite life or the reporting unit for goodwill. As discussed in Note 4, an impairment charge related to our Southern Tide intangible assets with an indefinite life totaling $18 million and goodwill of $43 million was recognized in the First Quarter of Fiscal 2020, with no other impairment charges in other quarters of Fiscal 2020 Intangible assets with finite lives, which primarily consist of certain trademarks, reacquired rights and customer relationships, are amortized over the estimated useful life of the asset using the straight line method or a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise realized. Certain of our intangible assets with finite lives may be amortized over periods of up to 20 years. The determination of an appropriate useful life for amortiza |
Operating Group Information
Operating Group Information | 12 Months Ended |
Jan. 29, 2022 | |
Operating Group Information | |
Operating Group Information | Note 2. Operating Groups 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 has historically been operated primarily through our Tommy Bahama, Lilly Pulitzer, Southern Tide and Lanier Apparel reportable 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. In Fiscal 2021, we exited the Lanier Apparel business. 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 reportable operating groups, including the operations of TBBC, Duck Head and our Lyons, Georgia distribution center. The tables below present certain financial information (in thousands) about our reportable operating groups, as well as Corporate and Other. Fiscal Fiscal Fiscal 2021 2020 2019 Net sales Tommy Bahama $ 724,305 $ 419,817 $ 676,652 Lilly Pulitzer 298,995 231,078 284,700 Southern Tide 54,050 34,664 46,409 Lanier Apparel 24,858 38,796 95,200 Corporate and Other 39,871 24,478 19,829 Consolidated net sales $ 1,142,079 $ 748,833 $ 1,122,790 Depreciation and amortization Tommy Bahama $ 27,830 $ 46,698 $ 27,852 Lilly Pulitzer 11,678 9,965 10,106 Southern Tide 780 676 549 Lanier Apparel 107 1,239 422 Corporate and Other 1,203 1,336 1,358 Consolidated depreciation and amortization $ 41,598 $ 59,914 $ 40,287 Operating income (loss) Tommy Bahama $ 111,733 $ (53,310) $ 53,207 Lilly Pulitzer 63,601 27,702 51,795 Southern Tide 9,968 (64,801) 5,554 Lanier Apparel 4,888 (26,654) 1,953 Corporate and Other (24,687) (6,786) (18,834) Consolidated operating income (loss) 165,503 (123,849) 93,675 Interest expense, net 944 2,028 1,245 Earnings (loss) before income taxes $ 164,559 $ (125,877) $ 92,430 The net sales and operating income (loss) of each operating group were negatively impacted by the COVID-19 pandemic starting in the First Quarter of Fiscal 2020. Also, the operating loss for Southern Tide in Fiscal 2020 included a $60 million impairment charge for goodwill and intangible assets, with no such charges in Fiscal 2021 or Fiscal 2019. Additionally, in Fiscal 2021, we exited our Lanier Apparel business, as discussed in more detail in Note 11. The operating loss for Corporate and Other included a LIFO accounting charge of $16 million, credit of $9 million and charge of $1 million in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. Fiscal 2021 Fiscal 2020 Fiscal 2019 Purchases of Property and Equipment Tommy Bahama $ 12,887 $ 19,666 $ 31,272 Lilly Pulitzer 17,305 7,059 4,273 Southern Tide 456 1,423 289 Lanier Apparel 5 21 571 Corporate and Other 1,241 755 1,016 Purchases of Property and Equipment $ 31,894 $ 28,924 $ 37,421 January 29, January 30, 2022 2021 Total Assets Tommy Bahama (1) $ 531,678 $ 569,854 Lilly Pulitzer (2) 176,757 176,467 Southern Tide (3) 37,185 31,641 Lanier Apparel (4) 207 10,967 Corporate and Other (5) 211,815 76,705 Total Assets $ 957,642 $ 865,634 (1) Decrease in Tommy Bahama total assets includes reductions in operating lease assets and property and equipment partially offset by higher inventories. (2) Comparable Lilly Pulitzer total assets includes increased property and equipment partially offset by reductions in operating lease assets and inventories. (3) Increase in Southern Tide total assets includes increased inventories. (4) Decrease in Lanier Apparel total assets is due to the exit of the Lanier Apparel business during Fiscal 2021. The remaining assets of Lanier Apparel as of January 29, 2022, primarily consist of property and equipment associated with our Merida, Mexico manufacturing facility, which ceased operations in Fiscal 2020. (5) Increase in Corporate and Other total assets primarily consist of increases in short-term investments partially offset by decreases in cash and cash equivalents and inventories. Net book value of our property and equipment and net sales by geographic area are presented in the tables below (in thousands). The other foreign amounts primarily relate to our Tommy Bahama operations in Canada and Australia. January 29, January 30, 2022 2021 Net Book Value of Property and Equipment United States $ 149,352 $ 155,902 Other foreign 3,095 3,830 $ 152,447 $ 159,732 Fiscal 2021 Fiscal 2020 Fiscal 2019 Net Sales United States $ 1,112,384 $ 728,308 $ 1,086,170 Other foreign 29,695 20,525 36,620 $ 1,142,079 $ 748,833 $ 1,122,790 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. Fiscal 2021 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 724,305 47 % 25 % 13 % 15 % — % Lilly Pulitzer 298,995 34 % 50 % — % 16 % — % Southern Tide 54,050 7 % 26 % — % 67 % — % Lanier Apparel 24,858 — % — % — % 100 % — % Corporate and Other 39,871 — % 54 % — % 42 % 4 % Consolidated net sales $ 1,142,079 39 % 32 % 8 % 20 % — % Fiscal 2020 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 419,817 37 % 36 % 11 % 16 % — % Lilly Pulitzer 231,078 20 % 64 % — % 16 % — % Southern Tide 34,664 4 % 32 % — % 64 % — % Lanier Apparel 38,796 — % — % — % 100 % — % Corporate and Other 24,478 — % 63 % — % 33 % 4 % Consolidated net sales $ 748,833 27 % 43 % 6 % 23 % — % Fiscal 2019 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 676,652 48 % 20 % 12 % 20 % — % Lilly Pulitzer 284,700 41 % 38 % — % 21 % — % Southern Tide 46,409 — % 21 % — % 79 % — % Lanier Apparel 95,200 — % — % — % 100 % — % Corporate and Other 19,829 — % 59 % — % 34 % 7 % Consolidated net sales $ 1,122,790 39 % 23 % 8 % 30 % — % |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 29, 2022 | |
Property and Equipment, Net | |
Property and Equipment, Net | Note 3. Property and Equipment, Net Property and equipment, net, is summarized as follows (in thousands): January 29, January 30, 2022 2021 Land $ 3,135 $ 3,166 Buildings and improvements 32,090 39,559 Furniture, fixtures, equipment and technology 242,759 231,493 Leasehold improvements 233,988 237,360 511,972 511,578 Less accumulated depreciation and amortization (359,525) (351,846) Property and equipment, net $ 152,447 $ 159,732 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jan. 29, 2022 | |
Intangible Assets and Goodwill | |
Intangible Assets and Goodwill | Note 4. Intangible Assets and Goodwill As discussed in Note 1, the COVID-19 pandemic has had a significant negative impact on each of our operating groups. Thus, certain goodwill and indefinite-lived intangible asset impairment testing was required in the First Quarter of Fiscal 2020, which resulted in significant impairment charges in Southern Tide as shown in the tables below. Impairment of goodwill and intangible assets are included in impairment of goodwill and intangible assets in our consolidated statements of operations. No interim impairment tests were required for any other interim periods of Fiscal 2021, Fiscal 2020 or Fiscal 2019. No impairment was required based on our annual tests for impairment of goodwill and intangible assets with indefinite lives performed as of the first day of the Fourth Quarter of Fiscal 2021, Fiscal 2020 or Fiscal 2019. Intangible assets by category are summarized below (in thousands): January 29, January 30, 2022 2021 Intangible assets with finite lives $ 51,929 $ 51,929 Accumulated amortization and impairment (44,122) (43,242) Total intangible assets with finite lives, net 7,807 8,687 Intangible assets with indefinite lives: Tommy Bahama Trademarks $ 110,700 $ 110,700 Lilly Pulitzer Trademarks 27,500 27,500 Southern Tide Trademarks 9,300 9,300 Total intangible assets with indefinite lives $ 147,500 $ 147,500 Total intangible assets, net $ 155,307 $ 156,187 Intangible assets, by operating group and in total, for Fiscal 2019, Fiscal 2020 and Fiscal 2021 are as follows (in thousands): Tommy Lilly Southern Lanier Corporate Bahama Pulitzer Tide Apparel and Other Total Balance, February 2, 2019 $ 110,700 $ 29,216 $ 29,401 $ 246 $ 6,613 $ 176,176 Impairment — — — — — — Amortization — (475) (291) (31) (374) (1,171) Balance February 1, 2020 $ 110,700 $ 28,741 $ 29,110 $ 215 $ 6,239 $ 175,005 Impairment — — (17,500) (207) — (17,707) Amortization — (424) (288) (8) (391) (1,111) Balance, January 30, 2021 $ 110,700 $ 28,317 $ 11,322 $ — $ 5,848 $ 156,187 Impairment — — — — — — Amortization — (220) (289) — (371) (880) Balance, January 29, 2022 $ 110,700 $ 28,097 $ 11,033 $ — $ 5,477 $ 155,307 Based on the current estimated useful lives assigned to our intangible assets, amortization expense five years Goodwill, by operating group and in total, for Fiscal 2019, Fiscal 2020 and Fiscal 2021 is as follows (in thousands): Tommy Lilly Southern Corporate Bahama Pulitzer Tide and Other Total Balance, February 2, 2019 $ 754 $ 19,522 $ 42,745 $ 3,600 $ 66,621 Impairment — — — — — Other, including foreign currency (43) — — — (43) Balance February 1, 2020 $ 711 $ 19,522 $ 42,745 $ 3,600 $ 66,578 Impairment — — (42,745) — (42,745) Other, including foreign currency 77 — — — 77 Balance, January 30, 2021 $ 788 $ 19,522 $ — $ 3,600 $ 23,910 Impairment — — — — — Other, including foreign currency (41) — — — (41) Balance, January 29, 2022 $ 747 $ 19,522 $ — $ 3,600 $ 23,869 |
Debt
Debt | 12 Months Ended |
Jan. 29, 2022 | |
Debt | |
Debt | Note 5. Debt As of January 29, 2022 and January 30, 2021, we had no amounts outstanding under our $325 million Fourth Amended and Restated Credit Agreement (as amended, the “U.S. Revolving Credit Agreement”). The U.S. Revolving Credit Agreement generally (1) is limited to a borrowing base consisting of specified percentages of eligible categories of assets, (2) accrues variable-rate interest, unused line fees and letter of credit fees based upon average utilization or unused availability, as applicable, (3) requires periodic interest payments with principal due at maturity (July 2024) and (4) is secured by a first priority security interest in substantially all of the assets of Oxford Industries, Inc. and its domestic subsidiaries, including accounts receivable, books and records, chattel paper, deposit accounts, equipment, certain general intangibles, inventory, investment property (including the equity interests of certain subsidiaries), negotiable collateral, life insurance policies, supporting obligations, commercial tort claims, cash and cash equivalents, eligible trademarks, proceeds and other personal property. To the extent cash flow needs in the future exceed cash flow provided by our operations as well as our cash and short-term investment accounts, we will have access, subject to its terms, to our U.S. Revolving Credit Agreement to provide funding for operating activities, capital expenditures and acquisitions, if any. Our U.S. Revolving Credit Agreement is also used to establish collateral for certain insurance programs and leases and to finance trade letters of credit for certain product purchases, which reduce the amounts available under our line of credit when issued. As of January 29, 2022, $3 million of letters of credit were outstanding under our U.S. Revolving Credit Agreement. After considering these limitations and the amount of eligible assets in our borrowing base, as applicable, as of January 29, 2022, we had $322 million in unused availability under the U.S. Revolving Credit Agreement, subject to certain limitations on borrowings. Covenants, Other Restrictions and Prepayment Penalties The U.S. Revolving Credit Agreement is subject to a number of affirmative covenants regarding the delivery of financial information, compliance with law, maintenance of property, insurance requirements and conduct of business. Also, the U.S. Revolving Credit Agreement is subject to certain negative covenants or other restrictions including, among other things, limitations on our ability to (1) incur debt, (2) guaranty certain obligations, (3) incur liens, (4) pay dividends to shareholders, (5) repurchase shares of our common stock, (6) make investments, (7) sell assets or stock of subsidiaries, (8) acquire assets or businesses, (9) merge or consolidate with other companies or (10) prepay, retire, repurchase or redeem debt. Additionally, the U.S. Revolving Credit Agreement contains a financial covenant that applies only if excess availability under the agreement for three (2) 10% of availability. In such case, our fixed charge coverage ratio as defined in the U.S. Revolving Credit Agreement must not be less than 1.0 to 1.0 for the immediately preceding 12 fiscal months for which financial statements have been delivered. This financial covenant continues to apply until we have maintained excess availability under the U.S. Revolving Credit Agreement of more than the greater of (1) $23.5 million or (2) 10% of availability for 30 consecutive days. We believe that the affirmative covenants, negative covenants, financial covenants and other restrictions under the U.S. Revolving Credit Agreement are customary for those included in similar facilities entered into at the time we amended the U.S. Revolving Credit Agreement. During Fiscal 2021 and as of January 29, 2022, no financial covenant testing was required pursuant to our U.S. Revolving Credit Agreement as the minimum availability threshold was met at all times. As of January 29, 2022, we were compliant with all applicable covenants related to the U.S. Revolving Credit Agreement. |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Jan. 29, 2022 | |
Leases | |
Leases | Note 6. Leases and Other Commitments For Fiscal 2021, operating lease expense, which includes amounts used in determining the operating lease liability and operating lease asset was $58 million and variable lease expense was $35 million, resulting in total lease expense of $93 million. For Fiscal 2020, operating lease expense was As of January 29, 2022, the required lease liability payments, which include base rent amounts but excludes payments for real estate taxes, sales taxes, insurance, other operating expenses and contingent rents incurred under operating lease agreements, for the fiscal years specified below were as follows (in thousands): Operating lease 2022 68,726 2023 61,972 2024 49,354 2025 35,946 2026 27,928 After 2026 45,240 Total lease payments $ 289,166 Less: Difference between discounted and undiscounted lease payments 28,406 Present value of lease liabilities $ 260,760 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 29, 2022 | |
Shareholders' Equity | |
Shareholders' Equity | Note 7. Shareholders’ Equity Common Stock We had 60 million shares of $1.00 par value per share common stock authorized for issuance as of January 29, 2022 and January 30, 2021. We had 17 million shares of common stock issued and outstanding as of January 29, 2022 and January 30, 2021. Dividends During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we paid $28 million, $17 million and $25 million, respectively, of dividends to our shareholders. Although we have paid dividends in each quarter since we became a public company in July 1960, we may discontinue or modify dividend payments at any time if we determine that other uses of our capital, including payment of outstanding debt, funding of acquisitions, funding of capital expenditures or repurchases of outstanding shares, may be in our best interest; if our expectations of future cash flows and future cash needs outweigh the ability to pay a dividend; or if the terms of our credit facility, other debt instruments or applicable law limit our ability to pay dividends. Share Repurchases During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we repurchased $8 million, $18 million and $0 million, respectively in open market transactions. Additionally, during Fiscal 2021, Fiscal 2020 and Fiscal 2019, we purchased $3 million, $2 million and $3 million, respectively, of shares from our employees to cover employee tax liabilities related to the vesting of shares of our stock. On December 7, 2021, our Board of Directors authorized us to spend up to $150 million to repurchase shares of our stock in open market transactions. This authorization superseded and replaced all previous authorizations to repurchase shares of our stock and has no automatic expiration. As of January 29, 2022, Preferred Stock We had 30 million shares of $1.00 par value preferred stock authorized for issuance as of January 29, 2022 and January 30, 2021. No preferred shares were issued or outstanding as of January 29, 2022 or January 30, 2021. |
Equity Compensation
Equity Compensation | 12 Months Ended |
Jan. 29, 2022 | |
Equity Compensation | |
Equity Compensation | Note 8. Equity Compensation Long-Term Stock Incentive Plan and Equity Compensation Expense As of January 29, 2022, less than 1 million shares were available for issuance under our Long-Term Stock Incentive Plan (the "Long-Term Stock Incentive Plan"). The Long-Term Stock Incentive Plan allows us to grant equity-based awards to employees and non-employee directors in the form of stock options, stock appreciation rights, restricted shares and/or restricted share units. No additional shares are available under any predecessor plans. Restricted shares and restricted share units granted to officers and other key employees generally vest three As of January 29, 2022, there was $11 million of unrecognized compensation expense related to the unvested restricted shares and restricted share units included in the tables below, which have been granted to employees but have not yet vested. As of January 29, 2022, the weighted average remaining life of the outstanding awards was two years. Restricted Shares The table below summarizes the restricted share award activity for officers and other key employees (in shares) during Fiscal 2021, Fiscal 2020, and Fiscal 2019: Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Shares fair value Shares fair value Shares fair value Restricted shares outstanding at beginning of fiscal year 308,369 $ 61 251,924 $ 68 257,890 $ 66 Service-based restricted shares granted/issued 42,855 $ 89 131,425 $ 40 42,573 $ 76 Performance-based restricted shares issued related to prior year performance awards — $ — 42,438 $ 76 43,152 $ 79 Restricted shares vested, including restricted shares repurchased from employees for employees’ tax liability (81,283) $ 77 (114,003) $ 56 (87,252) $ 71 Restricted shares forfeited (31,052) 62 (3,415) 62 (4,439) 69 Restricted shares outstanding at end of fiscal year 238,889 $ 61 308,369 $ 61 251,924 $ 68 The following table summarizes information about unvested restricted share awards as of January 29, 2022. The unvested restricted share awards will be settled in shares of our common stock on the vesting date, subject to the employee still being an employee at that time. Number of Average Unvested Fair Value Share on Description Awards Date of Grant Restricted Shares Vesting in April 2022 83,324 $ 77 Restricted Shares Vesting in July 2023 117,310 $ 41 Restricted Shares Vesting in May 2024 38,255 $ 89 Total Restricted Shares Outstanding 238,889 $ 61 Restricted Share Units The table below summarizes the restricted share unit activity for officers and other key employees (in units) during Fiscal 2021, Fiscal 2020, and Fiscal 2019: Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Shares fair value Shares fair value Shares fair value Restricted share units outstanding at beginning of fiscal year 83,345 $ 50 — $ — — $ — TSR-based restricted share units granted/issued 56,750 $ 117 83,345 $ 50 — $ — TSR-based restricted share units forfeited (9,655) $ 68 — — — — Restricted shares outstanding at end of fiscal year 130,440 $ 78 83,345 $ 50 — $ — The restricted share units granted in the table above are at target. The restricted share units are subject to (1) our achievement of specified total shareholder return (“TSR”) ranking by Oxford relative to a comparator group during a period of approximately three The following table summarizes information about unvested restricted share units as of January 29, 2022. The unvested restricted share units will be settled in shares of our common stock on the vesting date, subject to us meeting the specified TSR relative to the comparator group and the employee still being an employee at that time. Number of Unvested Average TSR-Based Fair Value Share/Unit on Description Awards Date of Grant TSR-based Restricted Share Units (at target), with a July 2023 vesting date 76,340 $ 50 TSR-based Restricted Share Units (at target), with a May 2024 vesting date 54,100 $ 117 Total 130,440 $ 78 Director Share Awards In addition to shares granted to employees, we grant restricted shares to our non-employee directors for a portion of each non-employee director’s annual compensation. The non-employee directors must complete certain service requirements; otherwise, the restricted shares are subject to forfeiture. On the date of issuance, the non-employee directors are entitled to the same dividend and voting rights as other holders of our common stock. The non-employee directors are restricted from transferring or selling the restricted shares prior to the end of the vesting period. Employee Stock Purchase Plan There were less than 1 million shares of our common stock authorized for issuance under our Employee Stock Purchase Plan ("ESPP") as of January 29, 2022. The ESPP allows qualified employees to purchase shares of our common stock on a quarterly basis, based on certain limitations, through payroll deductions. The shares purchased pursuant to the ESPP are not subject to any vesting or other restrictions. On the last day of each calendar quarter, the accumulated payroll deductions are applied toward the purchase of our common stock at a price equal to 85% of the closing market price on that date. Equity compensation expense related to the employee stock purchase plan recognized was less than $1 million in each of Fiscal 2021, Fiscal 2020 and Fiscal 2019. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jan. 29, 2022 | |
Defined Contribution Plans | |
Defined Contribution Plans | Note 9. Defined Contribution Plans We have a tax-qualified voluntary defined contribution retirement savings plan covering substantially all United States employees. If an eligible participant elects to contribute, a portion of the contribution may be matched by us. Additionally, we incur certain charges related to our non-qualified deferred compensation plan as discussed in Note 1. Our aggregate expense under these defined contribution and non-qualified deferred compensation plans in Fiscal 2021, Fiscal 2020 and Fiscal 2019 was $4 million, $1 million and $5 million, respectively. The increase in Fiscal 2021 and the decrease in Fiscal 2020 was primarily due to the suspension of the company match for our defined contribution plan during Fiscal 2020 to reduce our expenses during the COVID-19 pandemic. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 29, 2022 | |
Income Taxes | |
Income Taxes | Note 10. Income Taxes The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands): Fiscal Fiscal Fiscal 2021 2020 2019 Earnings (loss) before income taxes: Domestic $ 161,233 $ (129,129) $ 86,528 Foreign 3,326 3,252 5,902 Earnings (loss) before income taxes $ 164,559 $ (125,877) $ 92,430 Income taxes: Current: Federal $ 24,998 $ (11,498) $ 18,565 State 3,780 (1,060) 5,459 Foreign 409 735 1,650 29,187 (11,823) 25,674 Deferred—Domestic 4,155 (17,780) (1,870) Deferred—Foreign (104) (582) 133 Income taxes $ 33,238 $ (30,185) $ 23,937 Reconciliations of the United States federal statutory income tax rates and our effective tax rates are summarized as follows: Fiscal Fiscal Fiscal 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes—net of federal income tax benefit 3.7 % 3.6 % 4.4 % Impact of foreign operations rate differential 0.1 % (0.2) % 0.2 % Impairment of non-deductible Southern Tide goodwill — % (3.7) % — % Change in reserve for uncertain tax positions (1.0) % (2.5) % — % Rate benefit from NOL carryback to pre-U.S. Tax Reform periods due to the CARES Act — % 5.5 % — % Utilization of capital loss benefit for the gain on sale of our interest in an unconsolidated entity (2.9) % — % — % Other, net (0.7) % 0.3 % 0.3 % Effective tax rate for continuing operations 20.2 % 24.0 % 25.9 % Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands): January 29, January 30, 2022 2021 Deferred Tax Assets: Inventories $ 16,947 $ 16,338 Accrued compensation and benefits 9,058 8,759 Receivable allowances and reserves 2,814 2,109 Operating lease liabilities 59,711 73,917 Operating loss and other carry-forwards 3,675 4,617 Other, net 3,529 3,686 Deferred tax assets 95,734 109,426 Deferred Tax Liabilities: Operating lease assets (51,909) (66,341) Depreciation and amortization (12,427) (9,682) Acquired intangible assets (26,792) (25,047) Deferred tax liabilities (91,128) (101,070) Valuation allowance (6,050) (5,668) Net deferred tax asset (liability) $ (1,444) $ 2,688 As of January 29, 2022 and January 30, 2021, our operating loss and other carry-forwards primarily relate to our operations in Canada and Hong Kong as well as certain capital loss carry-forwards. The majority of the operating loss carry-forwards allow for carry-forward of at least 20 years and in some cases, indefinitely, while the capital loss carry-forwards are generally limited to five years. The majority of our valuation allowance of $6 million and $6 million as of January 29, 2022 and January 30, 2021, respectively, relates to our operating loss carry-forwards and the deferred tax assets in those jurisdictions as well as our capital loss carry-forwards. The recent history of operating losses in the respective jurisdictions and the short carry-forward period for the capital losses, which can only offset qualifying capital gain income, are considered significant negative evidence against the future realizability of these tax benefits. The amount of the valuation allowance could change in the future if our operating results or estimates of future taxable operating results changes. Certain amounts of foreign earnings are subject to U.S. federal tax currently pursuant to the GILTI rules regardless of whether those earnings are distributed, and actual distributions of foreign earnings are generally no longer subject to U.S. federal tax. We continue to assert that our investments in our foreign subsidiaries and substantially all of the related earnings are permanently reinvested outside the United States. We believe that any other taxes such as foreign withholding or U.S. state tax payable would be immaterial if we were to repatriate the foreign earnings. Therefore, we have not recorded any deferred tax liabilities related to investments and earnings in our consolidated balance sheets as of January 29, 2022 and January 30, 2021. Accounting for income taxes requires that we offset deferred tax liabilities and assets within each tax jurisdiction and present the net deferred tax amount for each jurisdiction as a net deferred tax amount in our consolidated balance sheets. January 29, January 30, 2022 2021 Assets: Deferred tax assets $ 1,467 $ 2,688 Liabilities: Deferred tax liabilities (2,911) — Net deferred tax asset (liability) $ (1,444) $ 2,688 A reconciliation of the changes in the gross amount of unrecognized tax benefits, which are included in other non-current liabilities, is as follows (in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Balance of unrecognized tax benefits at beginning of year $ 5,261 $ 1,212 $ 975 Increase related to prior period tax positions 10 303 — Decrease related to prior period tax positions — (1) (27) Increase related to current period tax positions 527 3,960 287 Decrease related to settlements with taxing authorities (2,305) — — Decrease related to lapse of statute of limitations (103) (213) (23) Balance of unrecognized tax benefits at end of year $ 3,390 $ 5,261 $ 1,212 Approximately $2 million of our uncertain tax positions as of January 29, 2022, if recognized, would reduce the future effective tax rate in the period settled. The total amount of unrecognized tax benefits relating to our tax positions is subject to change based on future events including, but not limited to, settlements of ongoing audits and assessments and the expiration of applicable statutes of limitation. We expect that the balance of gross unrecognized tax benefits will decrease by approximately |
Lanier Apparel Exit
Lanier Apparel Exit | 12 Months Ended |
Jan. 29, 2022 | |
Lanier Apparel Exit Plan | |
Restructuring | |
Lanier Apparel Exit | Note 11. Lanier Apparel Exit In Fiscal 2020, we decided to exit our Lanier Apparel business, a business which had been focused on moderately priced tailored clothing and related products. This decision aligns with our stated business strategy of developing and marketing compelling lifestyle brands. It also took into consideration the increase macroeconomic challenges faced by the Lanier Apparel business, many of which were magnified by the COVID-19 pandemic. The exit of Lanier Apparel was completed in Fiscal 2021. In connection with the exit of the Lanier Apparel business, we recorded pre-tax charges of $13 million in the Lanier Apparel operating group during Fiscal 2020. These charges consisted of (1) $6 million of estimated inventory markdown charges, the substantial majority of which were reversed in Corporate and Other as part of LIFO accounting as the inventory had not been sold as of January 30, 2021, (2) $3 million of employee charges, including severance and employee retention costs, (3) $3 million of operating lease asset impairment charges for leased office space, (4) $1 million of non-cash fixed asset impairment charges, primarily related to leasehold improvements, and (5) $1 million of charges related to our Merida manufacturing facility, which ceased operations in Fiscal 2020. During Fiscal 2021, we recognized in the Lanier Apparel operating group a benefit of $2 million related to the Lanier Apparel exit primarily consisting of (1) $4 million of reductions in inventory markdowns previously recognized, of which the substantial majority of this amount was reversed in Corporate and Other as part of LIFO accounting and (2) a $3 million gain on the sale of Lanier Apparel’s Toccoa, Georgia distribution center. These items were partially offset by (1) $2 million of severance and employee retention costs, (2) $2 million of termination charges related to certain license agreements and (3) $1 million of additional charges related to the Merida manufacturing facility. For each of Fiscal 2021 and Fiscal 2020, the estimated inventory markdown charges and manufacturing facility charges are included in cost of goods sold in Lanier Apparel, while the charges for operating lease asset impairments, employee charges, and fixed asset impairments are included in SG&A in Lanier Apparel. The gain on sale of the Toccoa, Georgia distribution center in Fiscal 2021 is included in royalties and other income in Lanier Apparel. We do not expect to incur any additional Lanier Apparel exit charges subsequent to January 29, 2022. Substantially all of the cumulative accrued employee charges, termination charges related to contractual commitments and charges related to the Merida manufacturing facility have been paid. As of January 29, 2022, future lease amounts totaling $3 million related to the existing Lanier Apparel office leases that were impaired and vacated are expected to be paid through 2024 over the remaining terms of the respective leases, with no other anticipated significant future cash requirements related to the Lanier Apparel business. |
Tommy Bahama Japan Charges
Tommy Bahama Japan Charges | 12 Months Ended |
Jan. 29, 2022 | |
Tommy Bahama Japan Operations Restructure | |
Restructuring | |
Lanier Apparel Exit | Note 12. Tommy Bahama Japan Exit Charges During Fiscal 2019, we incurred certain charges related to the shutdown of our remaining retail and concession locations of our Tommy Bahama Japan operations, which we exited entirely in the first half of Fiscal 2020. The substantial majority of the charges in Fiscal 2019, which are included in Tommy Bahama, were recognized in SG&A. The charges in Fiscal 2019 totaled $3 million, including a $1 million non-cash foreign currency charge associated with our investment in Japan which was previously included in accumulated other comprehensive loss in our consolidated balance sheet, $1 million of lease termination, premises reinstatement and operating lease asset impairment charges, and charges related to the revision to the estimated Ginza reinstatement charge recognized in Fiscal 2018, as well as other items including severance and inventory markdowns related to the shutdown of Tommy Bahama’s operations in Japan. No charges related to the exit of Tommy Bahama’s operations in Japan were recognized in Fiscal 2020 or Fiscal 2021. As of both January 29, 2022 and January 30, 2021, there were no significant liabilities related to these charges still outstanding. |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 29, 2022 | |
SCHEDULE II Valuation and Qualifying Accounts | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Oxford Industries, Inc. Valuation and Qualifying Accounts Column A Column B Column C Column D Column E Additions Charged Balance at Charged to to Other Deductions Balance at Beginning Costs and Accounts– – End of Description of Period Expenses Describe Describe Period (In thousands) Fiscal 2021 Deducted from asset accounts: Accounts receivable reserves (1) $ 6,418 $ (1,140) — $ (1,866) (3) $ 3,412 Provision for credit losses (2) $ 2,580 $ (1,190) — $ (79) (4) $ 1,311 Fiscal 2020 Deducted from asset accounts: Accounts receivable reserves (1) $ 8,766 $ 5,629 — $ (7,977) (3) $ 6,418 Provision for credit losses (2) $ 555 $ 4,052 — $ (2,027) (4) $ 2,580 Fiscal 2019 Deducted from asset accounts: Accounts receivable reserves (1) $ 6,646 $ 15,802 — $ (13,682) (3) $ 8,766 Provision for credit losses (2) $ 661 $ 88 — $ (194) (4) $ 555 (1) Accounts receivable reserves includes estimated reserves for allowances, returns and discounts related to our wholesale operations as discussed in our significant accounting policy disclosure for "Revenue Recognition and Receivables" in Note 1 of our consolidated financial statements. (2) Provision for credit losses consists of amounts reserved for our estimate of a wholesale customer’s inability to meet its financial obligations as discussed in our significant accounting policy disclosure for "Revenue Recognition and Receivables" in Note 1 of our consolidated financial statements. (3) Principally consists of amounts written off related to customer allowances, returns and discounts. (4) Principally consists of accounts written off as uncollectible. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 29, 2022 | |
Business and Summary of Significant Accounting Policies | |
Fiscal Year | Fiscal Year We operate and report on a 52/53-week fiscal year. Our fiscal year ends on the Saturday closest to January 31 and is designated by the calendar year in which the fiscal year commences. As used in our consolidated financial statements, the terms Fiscal 2019, Fiscal 2020, Fiscal 2021 and Fiscal 2022 reflect the 52 weeks ended February 1, 2020; 52 weeks ended January 30, 2021; 52 weeks ended January 29, 2022; and 52 weeks ending January 28, 2023, respectively. |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Oxford Industries, Inc. and any other entities in which we have a controlling financial interest, including our wholly-owned domestic and foreign subsidiaries, or variable interest entities for which we are the primary beneficiary, if any. Generally, we consolidate businesses in which we have a controlling financial interest which may be evidenced through ownership of a majority voting interest or other rights which might indicate that we are the primary beneficiary of the entity. The primary beneficiary has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. All significant intercompany accounts and transactions are eliminated in consolidation. |
Business Combinations | Business Combinations The cost of each acquired business is allocated to the individual tangible and intangible assets acquired and liabilities assumed or incurred as a result of an acquisition based on their estimated fair values. The assessment of the estimated fair values of assets and liabilities acquired requires us to make certain assumptions regarding the use of the acquired assets, anticipated cash flows, probabilities of cash flows, discount rates and other factors, many of which involve a significant amount of uncertainty. Additionally, the definition of fair value of inventories acquired as part of a business combination generally will equal the expected sales price less certain costs associated with selling the inventory, which may exceed the actual cost of the acquired inventories, resulting in an inventory step-up to fair value at acquisition, which would be recognized in our consolidated statements of operations as the acquired inventory is sold. The purchase price allocation of a business combination may be revised during an allocation period as necessary when, and if, information becomes available to revise the fair values of the assets acquired and the liabilities assumed. The allocation period will not exceed one year from the date of the acquisition. Should information become available after the allocation period indicating that an adjustment to the purchase price allocation is appropriate, that adjustment will be included in our consolidated statements of operations. The results of operations of acquired businesses are included in our consolidated statements of operations from the respective dates of the acquisitions. Transaction costs related to business combinations are included in SG&A in our consolidated statements of operations as incurred. |
Revenue Recognition and Receivables | Revenue Recognition and Receivables Our revenue consists of direct to consumer sales, including our retail store, e-commerce and restaurant operations, and wholesale sales, as well as royalty income, which is included in royalties and other income in our consolidated statements of operations. Revenue is recognized at an amount that reflects the consideration expected to be received for those goods and services pursuant to a five-step approach: (1) identify the contracts with the customer; (2) identify the separate performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenue when, or as, each performance obligation is satisfied. The table below quantifies the amount of net sales by distribution channel (in thousands) for each period presented. Fiscal Fiscal Fiscal 2021 2020 2019 Retail $ 443,015 $ 202,071 $ 440,803 E-commerce 369,300 323,900 262,283 Restaurant 96,244 48,428 83,836 Wholesale 231,536 173,209 333,986 Other 1,984 1,225 1,882 Net sales $ 1,142,079 $ 748,833 $ 1,122,790 We recognize revenue when performance obligations under the terms of the contracts with our customers are satisfied, which generally occurs when we deliver our products to our direct to consumer and wholesale customers. Control of the product is generally transferred upon providing the product to consumers in our bricks and mortar retail stores and restaurants, upon physical delivery of the products to consumers in our e-commerce operations and upon shipment from our distribution center to customers in our wholesale operations. Once control is transferred to the customer, we have completed our performance obligations related to the contract and have an unconditional right to consideration for the products sold as outlined in the contract. Our receivables resulting from contracts with customers in our direct to consumer operations are generally collected within a few days, upon settlement of the credit card transaction, while our receivables resulting from contracts with our customers in our wholesale operations are generally due within one quarter, in accordance with established credit terms. All of our performance obligations under the terms of our contracts with customers in our direct to consumer and wholesale operations have an expected original duration of one year or less. We only recognize revenue to the extent that it is probable that we will not have a significant reversal of revenue in a future period. Our revenue, including any freight income, is recognized net of applicable taxes in our consolidated statements of operations. In our direct to consumer operations, consumers have certain rights to return product within a specified period and are eligible for certain point of sale discounts; thus retail store, e-commerce and restaurant revenues are recorded net of estimated returns and discounts, as applicable. The sales return allowance is based on historical direct to consumer return rates and current trends and is recognized on a gross basis as a return liability for the amount of sales estimated to be returned and a return asset for the right to recover the product estimated to be returned by the customer. The value of inventory associated with a right to recover the goods returned in our direct to consumer operations is included in prepaid expenses and other current assets in our consolidated balance sheets. The changes in the return liability are recognized in net sales and the changes in the return asset are recognized in cost of goods sold in our consolidated statements of operations. An estimated sales return liability of $11 million and $7 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of January 29, 2022 and January 30, 2021, respectively. In the ordinary course of our wholesale operations, we offer discounts, allowances and cooperative advertising support to some of our wholesale customers for certain products. Some of these arrangements are written agreements, while others may be implied by customary practices or expectations in the industry. As certain allowances, other deductions and returns are not finalized until the end of a season, program or other event which may not have occurred yet, we estimate such discounts, allowances and returns on an ongoing basis to estimate the consideration from the customer that we expect to ultimately receive. Significant considerations in determining our estimates for discounts, allowances, operational chargebacks and returns for wholesale customers may include historical and current trends, agreements with customers, projected seasonal or program results, an evaluation of current economic conditions, specific program or product expectations and retailer performance. We record the discounts, returns, allowances and operational chargebacks as a reduction to net sales in our consolidated statements of operations and as a reduction to receivables, net in our consolidated balance sheets, with the estimated value of inventory expected to be returned in prepaid expenses and other current assets in our consolidated balance sheets. As of January 29, 2022 and January 30, 2021, reserve balances recorded as a reduction to wholesale receivables related to these items were $3 million and $6 million, respectively. We extend credit to certain wholesale customers based on an evaluation of the customer’s financial capacity and condition, usually without requiring collateral. In circumstances where we become aware of a specific wholesale customer’s inability to meet its financial obligations, a specific provision for credit losses is taken as a reduction to accounts receivable to reduce the net recognized receivable to the amount reasonably expected to be collected. Such amounts are ultimately written off at the time that the amounts are not considered collectible. For other wholesale customer receivable amounts, we recognize estimated provisions for credit losses, using the current expected loss model in Fiscal 2021 and Fiscal 2020 and the incurred loss model in Fiscal 2019 under the previous guidance, based on our historical collection experience, the financial condition of our customers, an evaluation of current economic conditions, anticipated trends and the risk characteristics of the receivables. Provisions for credit loss expense, which is included in SG&A in our consolidated statements of operations, for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were a credit of $1 million, a charge of $4 million and $0 million, respectively, while write-offs of credit losses for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $0 million, $2 million and $0 million. As of January 29, 2022 and January 30, 2021, receivables, net in our consolidated balance sheet included a provision for credit losses related to trade receivables of $1 million and $3 million, respectively. In addition to trade receivables, tenant allowances due from landlord of $1 million and $2 million are included in receivables, net in our consolidated balance sheet, as of January 29, 2022 and January 30, 2021, respectively. Substantially all other amounts recognized in receivables, net represent trade receivables related to contracts with customers, including receivables from wholesale customers, credit card receivables related to our direct to consumer operations, and receivables from licensing partners. As of January 29, 2022 and January 30, 2021, prepaid expenses and other current assets included $4 million and $4 million, respectively, representing the estimated value of inventory for expected direct to consumer and wholesale sales returns in the aggregate. We did not have any significant contract assets related to contracts with customers, other than trade receivables and the value of inventory associated with expected sales returns, as of January 29, 2022 and January 30, 2021. In addition to our estimated expected return amounts, contract liabilities related to contracts with our customers include gift cards and merchandise credits issued by us as well as unredeemed loyalty program award points. Gift cards and merchandise credits issued by us are redeemable on demand by the holder and do not have an expiration date and do not incur administrative fees. Historically, substantially all gift cards and merchandise credits are redeemed within one year of issuance. Gift cards and merchandise credits are recorded as a liability until our performance obligation is satisfied, which occurs when redeemed by the consumer, at which point revenue is recognized. However, we recognize estimated breakage income for certain gift cards and merchandise credits using the redemption recognition method, subject to applicable laws in certain states. Contract liabilities for gift cards purchased by consumers and merchandise credits received by customers but not yet redeemed, less any breakage income recognized to date, is included in accrued expenses and other liabilities in our consolidated balance sheets and totaled $16 million and $13 million as of January 29, 2022 and January 30, 2021, respectively. Gift card breakage income, which is included in net sales in our consolidated statements of operations, was $1 million, $1 million and $2 million in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. In Fiscal 2021, our Southern Tide, TBBC and Duck Head brands each initiated loyalty award programs. These programs allow consumers to earn loyalty points associated with the brand. These programs are primarily spend-based loyalty programs, with varying terms and conditions for each respective brand’s program. The consumer earns points which, depending on the program, allows the consumer to (1) achieve a specified status with the brand, which provides the consumer with benefits, such as early access to events, free shipping or other benefits, for a specified period, and/or (2) earn a monetary reward by accumulating loyalty points that can be redeemed in association with future purchases from the brand. As loyalty points are earned, we defer revenue, based on the estimated fair value of the loyalty points, with a corresponding liability in accrued expenses and other liabilities in our consolidated balance sheets. The loyalty points liability is generally recognized as revenue when the loyalty points are redeemed or expire. Deferred revenue associated with the loyalty programs was less than $1 million as of January 29, 2022. Royalties from the license of our owned brands are recognized over the time that licensees are provided access to utilize our trademarks (i.e. symbolic intellectual property) and benefit from such access through their sales of licensed products. Payments are generally due quarterly, and depending on time of receipt, may be recorded as a liability until recognized as revenue. Royalty income is based upon the contractually guaranteed minimum royalty obligations and adjusted as sales data, or estimates thereof, is received from licensees, when the related royalties based on a percentage of the licensee’s sales exceed the contractually determined minimum royalty amount. Royalty income, which is included in royalties and other operating income in our consolidated statements of operations, were $18 million, $14 million and $15 million during Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. |
Cost of Goods Sold | Cost of Goods Sold We include in cost of goods sold (1) the cost paid to the contract manufacturers for the acquired product, (2) sourcing, procurement and other costs incurred prior to or in association with the receipt of finished goods at our distribution facilities, and (3) freight from our distribution facilities to our own retail stores, e-commerce consumers and wholesale customers. The costs prior to receipt at our distribution facilities include inbound freight charges, duties and other import costs, brokers’ fees, consolidators’ fees, insurance, direct labor, manufacturing overhead and any depreciation expense associated with our manufacturing, sourcing and procurement operations. We generally classify amounts billed to customers for freight in net sales and classify freight costs for shipments to customers in cost of goods sold in our consolidated statements of operations. Our gross profit and gross margin may not be directly comparable to those of our competitors, as statement of operations classifications of certain expenses may vary by company. |
SG&A | SG&A We include in SG&A costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of inspection, stocking, warehousing, picking and packing, and costs associated with the operations of our e-commerce sites, retail stores, restaurants and concessions, such as labor, lease commitments and other occupancy costs, store and restaurant pre-opening costs (including rent, marketing, store set-up costs and training expenses), depreciation and other amounts. SG&A also includes product design costs, selling costs, royalty expense, provision for credit losses, advertising, promotion and marketing expenses, professional fees, supplies, travel, other general and administrative expenses, our corporate overhead costs and amortization of intangible assets. Distribution network costs, including costs associated with preparing goods to ship to customers and our costs to operate our distribution facilities, are included as a component of SG&A. We consider distribution network costs to be the costs associated with operating our distribution centers, as well as the costs paid to third parties who perform those services for us. In Fiscal 2021, Fiscal 2020 and Fiscal 2019, distribution network costs included in SG&A totaled $28 million, All costs associated with advertising, promotion and marketing of our products are expensed in SG&A during the period when the advertisement is first shown. Costs associated with cooperative advertising programs under which we agree to make general contributions to our wholesale customers’ advertising and promotional funds are generally recorded as a reduction to net sales. Advertising, promotion and marketing expenses, excluding employment costs for our advertising and marketing employees, for Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $60 million, $50 million and $56 million, respectively. Prepaid advertising, promotion and marketing expenses included in prepaid expenses and other current assets in our consolidated balance sheets as of January 29, 2022 and January 30, 2021 were $4 million and $2 million, respectively. Royalty expense related to our license of third party brands, which are generally based on the greater of a percentage of our actual net sales for the brand or a contractually determined minimum royalty amount, are recorded based upon any guaranteed minimum levels and adjusted based on our net sales of the licensed products, as appropriate. Royalty expenses recognized as SG&A in Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $6 million, $6 million and $7 million, respectively. As of January 29, 2022, we do not have any royalty agreements with material guaranteed minimum royalty amounts for future periods as future royalty amounts are generally dependent on our future sales of the specified products. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider cash equivalents to be investments with original maturities of three months or less for purposes of our consolidated statements of cash flows. As of January 29, 2022 and January 30, 2021, our cash and cash equivalents included $37 million and $59 million, respectively, of amounts invested in money market funds. Supplemental Cash Flow Information During Fiscal 2021, Fiscal 2020 and Fiscal 2019, cash paid for income taxes was $34 million, $6 million and $17 million, respectively. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, cash paid for interest, net of interest income was $1 million, $2 million and $1 million, respectively. Non-cash investing activities included capital expenditures incurred but not yet paid at period end, which were included in accounts payable in our consolidated balances sheets, of $3 million, $1 million and $3 million as of Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. Additionally, during Fiscal 2021, Fiscal 2020 and Fiscal 2019, we recorded a non-cash net increase in operating lease assets and corresponding operating lease liability amounts of $18 million, $2 million and $40 million, respectively, related to the net impact of new, modified and terminated operating lease amounts. |
Short -Term Investments and Equity Investments in Unconsolidated Entities | Short-Term Investments As of January 29, 2022 and January 30, 2021, we had $165 million and $0 million, respectively, of short-term investments on our consolidated balance sheet, generally consisting of highly liquid corporate and U.S. Treasury securities. These investments are expected to be liquidated within one year. We classify these short-term investments as trading securities, and accordingly, the investments are recorded at fair value, based on Level 1 measurements, with the gains or losses recognized in our consolidated statements of operations in royalties and other income. Equity Investments in Unconsolidated Entities We account for equity investments in which we exercise significant influence, but do not control via voting rights and were determined to not be the primary beneficiary of, using the equity method of accounting. Generally, we determine that we exercise significant influence over a corporation or a limited liability company when we own 20% or more or 3% or more, respectively, of the voting interests, unless the facts and circumstances of that investment indicate that we do not have the ability to exhibit significant influence. Under the equity method of accounting, original investments are recorded at cost, and are subsequently adjusted for our contributions to, distributions from and share of income or losses of the entity. We account for equity investments in which we do not control or exercise significant influence using the fair value method of accounting unless there is not a readily determinable fair value for the equity investment. If there is no readily determinable fair value for such equity investment, we account for the equity investment using the alternative measurement method of cost adjusted for impairment and any identified observable price changes of the investment. Equity investments accounted for using the equity method of accounting, fair value method of accounting, or alternative measurement method are included in other non-current assets in our consolidated balance sheets, while the income or loss related to such investments are included in royalties and other operating income in our consolidated statements of operations. During Fiscal 2020, we paid $6 million, in the aggregate, for equity investments in entities accounted for using either the equity method of accounting or the alternative measurement method, which are included in other investing activities in our consolidated statements of cash flows. As of January 29, 2022 and January 30, 2021, our consolidated balance sheet included equity investments accounted for using the equity method of accounting, fair value and alternative measurement method totaling, in the aggregate, $3 million and $6 million, respectively. Each of our investments are generally in smaller apparel lifestyle brands in which we have an ownership interest of approximately 10% as of January 29, 2022. During Fiscal 2021, Fiscal 2020 and Fiscal 2019 we recognized amounts related to these investments in royalties and other income of $12 million, $0 million and a $0 million, respectively. During Fiscal 2021, our minority ownership interests in an unconsolidated entity was redeemed upon that entity consummating a change in control transaction, resulting in proceeds to us of $15 million and a gain on sale of $12 million, which is included in royalties and other income in our consolidated statement of operations in Fiscal 2021. |
Inventories, net | Inventories, net Substantially all of our inventories are finished goods inventories of apparel, accessories and other related products. Inventories are valued at the lower of cost or market. For operating group reporting, inventory is carried at the lower of FIFO cost or market. We evaluate the composition of our inventories for identification of distressed inventory at least quarterly. In performing this evaluation, we consider slow-turning products, an indication of lack of consumer acceptance of particular products, prior-seasons’ fashion products, broken assortments, discontinued products and current levels of replenishment program products as compared to expected sales. We estimate the amount of goods that we will not be able to sell in the normal course of business and write down the value of these goods as necessary based on various assumptions about the amounts we ultimately expect to realize for the inventories. Also, we provide an allowance for shrinkage, as appropriate, for the period between the last physical inventory count and each balance sheet date. For consolidated financial reporting, as of January 29, 2022 and January 30, 2021, $103 million, or 88%, and $116 million, or 94%, respectively, of our inventories were valued at the lower of LIFO cost or market after deducting our LIFO accounting reserve. The remaining $14 million and $8 million of our inventories were valued at the lower of FIFO cost or market as of January 29, 2022 and January 30, 2021, respectively. Generally, for consolidated financial reporting, inventories of our domestic operations are valued at the lower of LIFO cost or market, and our inventories of our international operations are valued at the lower of FIFO cost or market. Our LIFO reserves are based on the estimated Producer Price Index as published by the United States Department of Labor. We write down inventories valued at the lower of LIFO cost or market when LIFO cost exceeds market value. We deem LIFO accounting adjustments to not only include changes in the LIFO reserve, but also changes in markdown reserves which are considered in LIFO accounting. As our LIFO inventory pool does not correspond to our operating group definitions, LIFO inventory accounting adjustments are not allocated to our operating groups. Thus, the impact of accounting for inventories on the LIFO method is reflected in Corporate and Other for operating group reporting purposes included in Note 2. There were no LIFO inventory layer liquidations that had a material impact on our net earnings in Fiscal 2021, Fiscal 2020 or Fiscal 2019. As of January 29, 2022 and January 30, 2021, the LIFO reserve included in our consolidated balance sheets were $69 million and $62 million, respectively. |
Property and Equipment, net | Property and Equipment, net Property and equipment, including leasehold improvements that are reimbursed by landlords as a tenant improvement allowance and assets under capital leases, if any, is carried at cost less accumulated depreciation. Additions are capitalized while repair and maintenance costs are charged to our consolidated statements of operations as incurred. Depreciation is calculated using both straight-line and accelerated methods generally over the estimated useful lives of the assets as follows: Leasehold improvements Lesser of remaining life of the asset or lease term Furniture, fixtures, equipment and technology 2 – 15 years Buildings and improvements 7 – 40 years Property and equipment is reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable, as discussed in Impairment of Long-Lived Assets, other than Goodwill and Intangible Assets with Indefinite Lives below. Substantially all of our depreciation expense is included in SG&A in our consolidated statements of operations. Cost of goods sold includes the depreciation associated with our manufacturing, sourcing and procurement processes. Depreciation expense as disclosed in Note 2 includes any property and equipment impairment charges. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consist of trademarks, as well as reacquired rights and customer relationships. The fair values and useful lives of these intangible assets are estimated based on our assessment as well as independent third party appraisals in some cases. Additionally, at acquisition we must determine whether the intangible asset has an indefinite or finite life and account for it accordingly. Refer to Note 4 for additional details about intangible assets. Goodwill is recognized as the amount by which the cost to acquire a business exceeds the fair value of identified tangible and intangible assets acquired, net of assumed liabilities. Thus, the amount of goodwill recognized in connection with a business combination depends on the fair values assigned to the individual assets acquired and liabilities assumed in a business combination. Goodwill is allocated to the respective reporting unit at the time of acquisition. As of January 29, 2022, all of our goodwill included in our consolidated balance sheet is deductible for income tax purposes. Refer to Note 4 for additional detailed about goodwill. At acquisition, as well as any subsequent impairment tests, assumptions and estimates about various items with significant uncertainty are required to determine the fair value of intangible assets and goodwill. When determining the fair value, significant assumptions may include our planned use of the asset as well as estimates of net sales, royalty income, operating income, growth rates, royalty rates for the trademarks, a risk-adjusted, market based cost of capital as the discount rates and income tax rates, among other factors. Our fair value assessment may also consider any comparable market transactions. Intangible assets with indefinite lives as well as goodwill are not amortized but instead evaluated for impairment annually or more frequently if events or circumstances indicate that the intangible asset or goodwill might be impaired. This analysis is typically similar to the analysis performed at acquisition and dependent upon a number of uncertain factors, including those used in the initial valuation at acquisition as listed above. We have the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset or goodwill is impaired to determine whether it is necessary to perform the quantitative impairment test. We also have the option to bypass the qualitative assessment entirely for any indefinite-lived intangible asset or goodwill in any period and proceed directly to performing the quantitative impairment test. We test, either quantitatively or qualitatively, intangible assets with an indefinite life and goodwill for impairment as of the first day of the fourth quarter of our fiscal year, or at an interim date if indicators of impairment exist at that interim date. For each impairment test of intangible assets with an indefinite life and goodwill in Fiscal 2021, Fiscal 2020 and Fiscal 2019, we bypassed the qualitative test option and instead performed a quantitative test. If an annual or interim analysis indicates an impairment of an intangible asset with an indefinite useful life or goodwill, the amount of the impairment is recognized in our consolidated financial statements based on the amount that the carrying value exceeds the estimated fair value of the asset for an intangible asset with an indefinite life or the reporting unit for goodwill. As discussed in Note 4, an impairment charge related to our Southern Tide intangible assets with an indefinite life totaling $18 million and goodwill of $43 million was recognized in the First Quarter of Fiscal 2020, with no other impairment charges in other quarters of Fiscal 2020 Intangible assets with finite lives, which primarily consist of certain trademarks, reacquired rights and customer relationships, are amortized over the estimated useful life of the asset using the straight line method or a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise realized. Certain of our intangible assets with finite lives may be amortized over periods of up to 20 years. The determination of an appropriate useful life for amortization considers our plans for the intangible assets, the remaining contractual period of the reacquired right, and factors that may be outside of our control, including expected customer attrition. Amortization of intangible assets is included in SG&A in our consolidated statements of operations. Intangible assets with finite lives are reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable, as discussed below under Impairment of Long-Lived Assets, other than Goodwill and Intangible Assets with Indefinite Lives. Any costs associated with extending or renewing recognized intangible assets are generally expensed as incurred. |
Prepaid Expenses and Other Non-Current Assets, net | Prepaid Expenses and Other Non-Current Assets, net Amounts included in prepaid expenses and other current assets primarily consist of prepaid operating expenses, including subscriptions, maintenance and other services contracts, advertising, insurance, samples and direct to consumer supplies as well as the estimated value of inventory for anticipated direct to consumer and wholesale sales returns. Other non-current assets primarily consist of assets set aside for potential liabilities related to our deferred compensation plan, assets related to certain investments in officers’ life insurance policies, equity investments in unconsolidated entities, deposits and amounts placed into escrow accounts, deferred financing costs related to our revolving credit agreement and non-current deferred tax assets. Officers’ life insurance policies that are owned by us, which are included in other non-current assets, net, are recorded at their cash surrender value, less any outstanding loans associated with the life insurance policies that are payable to the life insurance company with which the policy is outstanding. As of both January 29, 2022 and January 30, 2021, officers’ life insurance policies, net, recorded in our consolidated balance sheets totaled $4 million. Deferred financing costs for our revolving credit agreement are included in other non-current assets, net in our consolidated financial statements. Deferred financing costs are amortized on a straight-line basis, which approximates the effective interest method over the term of the related debt. Amortization of deferred financing costs is included in interest expense in our consolidated statements of operations. Unamortized deferred financing costs included in other non-current assets, net totaled $1 million as of both January 29, 2022 and January 30, 2021. |
Deferred Compensation | Deferred Compensation We have a non-qualified deferred compensation plan offered to a select group of highly compensated employees and our non-employee directors. The plan provides participants with the opportunity to defer a portion of their cash compensation in a given plan year, of which a percentage may be matched by us in accordance with the terms of the plan. We make contributions to rabbi trusts or other investments to provide a source of funds for satisfying these deferred compensation liabilities. Investments held for our deferred compensation plan consist of insurance contracts and are recorded based on valuations which generally incorporate unobservable factors. Realized and unrealized gains and losses on the deferred compensation plan investments are recorded in SG&A in our consolidated statements of operations and substantially offset the changes in deferred compensation liabilities to participants resulting from changes in market values. These securities approximate the participant-directed investment selections underlying the deferred compensation liabilities. The total value of the assets set aside for potential deferred compensation liabilities, substantially all of which are included in other non-current assets, net, as of January 29, 2022 and January 30, 2021 was $17 million and $16 million, respectively, substantially all of which are held in a rabbi trust. Substantially all the assets set aside for potential deferred compensation liabilities are life insurance policies recorded at their cash surrender value, less any outstanding loans associated with the life insurance policies that are payable to the life insurance company with which the policy is outstanding. The liabilities associated with the non-qualified deferred compensation plan are included in other non-current liabilities in our consolidated balance sheets and totaled $17 million and $16 million at January 29, 2022 and January 30, 2021, respectively. |
Impairment of Long-Lived Assets, other than Goodwill and Intangible Assets with Indefinite Lives | Impairment of Long-Lived Assets, other than Goodwill and Intangible Assets with Indefinite Lives We assess our long-lived assets other than goodwill and intangible assets with indefinite lives for impairment whenever events indicate that the carrying amount of the asset or asset group may not be fully recoverable. This recoverability and impairment assessment is performed for a specific asset or asset group and includes any property and equipment, operating lease assets, intangible assets with finite lives and other non-current assets included in the asset group. Events that would typically result in such an assessment would include a change in the estimated useful life of the assets, including a change in our plans of the anticipated period of operating a leased retail store or restaurant location, the decision to vacate a leased space before lease termination, the abandonment of an asset or other factors. These events may result in a change in the determination of the assets included in an asset group for impairment testing. To analyze recoverability, we consider undiscounted net future cash flows over the remaining life of the asset or asset group. If the amounts are determined to not be recoverable an impairment is recognized resulting in the write-down of the asset or asset group and a corresponding charge to our consolidated statements of operations. Impairment losses are measured based on the difference between the carrying amount and the estimated fair value of the assets. For assets impaired during Fiscal 2021, Fiscal 2020 and Fiscal 2019, there was no significant fair value at the date of impairment testing. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we recognized $2 million, $20 million and $1 million, respectively, of property and equipment impairment charges, which were primarily included in SG&A. During Fiscal 2020, these charges primarily related to a $15 million write-off of previously capitalized costs associated with a Tommy Bahama information technology project that was abandoned in Fiscal 2020, $2 million of charges related to retail store assets due to retail store closures in Tommy Bahama and Lilly Pulitzer, $1 million of charges related to office leasehold improvements resulting from the Lanier Apparel exit and $1 million of charges related to office leasehold improvements associated with the 2020 restructuring of Tommy Bahama’s international sourcing operations. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we recognized $5 million, $4 million and $0 million, respectively, of operating lease asset impairment charges, which were primarily included in SG&A. During Fiscal 2021, these charges primarily related to our Tommy Bahama New York office and showroom lease, which was vacated in Fiscal 2021 and provides the landlord the ongoing right to terminate the lease. During Fiscal 2020, these charges primarily related to $3 million of charges related to certain office leases resulting from the Lanier Apparel exit and $1 million of charges related to an office lease associated with the 2020 restructuring of Tommy Bahama’s international sourcing operations. As discussed in Note 4, we recognized an impairment charge of less than $1 million of an intangible asset with a finite life in Lanier Apparel in Fiscal 2020. No impairment of intangible assets with finite lives was recognized during Fiscal 2021 or Fiscal 2019. |
Accounts Payable, Accrued Compensation and Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Compensation and Accrued Expenses and Other Liabilities Liabilities for accounts payable, accrued compensation and accrued expenses and other liabilities are carried at cost, which reflects the fair value of the consideration expected to be paid in the future for goods and services received, whether or not billed to us as of the balance sheet date. Accruals for medical insurance and workers’ compensation, which are included in accrued expenses and other liabilities in our consolidated balance sheets, include estimated settlements for known claims, as well as accruals for estimates of incurred but not reported claims based on our claims experience and statistical trends. |
Legal and Other Contingencies | Legal and Other Contingencies We are subject to certain litigation, claims and assessments in the ordinary course of business. The claims and assessments may relate, among other things, to disputes about trademarks and other intellectual property, licensing arrangements, real estate and contracts, employee relations matters, importing or exporting regulations, environmental matters, taxation or other topics. For those matters where it is probable that we have incurred a loss and the loss, or range of loss, can be reasonably estimated, we have recorded reserves in accrued expenses and other liabilities or other non-current liabilities in our consolidated financial statements for the estimated loss and related expenses, such as legal fees. In other instances, because of the uncertainties related to both the probable outcome or amount or range of loss, we are unable to make a reasonable estimate of a liability, if any, and therefore have not recorded a reserve. As additional information becomes available or as circumstances change, we adjust our assessment and estimates of such liabilities accordingly. Additionally, for any potential gain contingencies, we do not recognize the gain until the period that all contingencies have been resolved and the amounts are realizable. We believe the outcome of outstanding or pending matters, individually and in the aggregate, will not have a material impact on our consolidated financial statements, based on information currently available. In connection with acquisitions, we may enter into contingent consideration arrangements, which provide for the payment of additional purchase price consideration to the sellers if certain performance criteria are achieved during a specified period. We recognize the fair value of the contingent consideration based on its estimated fair value at the date of acquisition. Such valuation requires assumptions regarding anticipated cash flows, probabilities of cash flows, discount rates and other factors. Each of these assumptions may involve a significant amount of uncertainty. Subsequent to the date of acquisition, we periodically adjust the liability for the contingent consideration to reflect the fair value of the contingent consideration by reassessing our valuation assumptions as of that date. A change in assumptions related to contingent consideration amounts could have a material impact on our consolidated financial statements. Any change in the fair value of the contingent consideration is recognized in SG&A in our consolidated statements of operations. A change in the fair value of contingent consideration of $1 million, $1 million and less than $1 million associated with the Fiscal 2017 acquisition of TBBC was recognized in our consolidated statements of operations in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. As of January 29, 2022 and January 30, 2021, $2 million and $2 million, respectively, of contingent consideration related to the TBBC acquisition was recognized as a liability in our consolidated balance sheet. In the aggregate, $4 million was earned by the sellers pursuant to the four year contingent consideration arrangement, which ended on January 29, 2022. The final payment of $2 million will be paid in Fiscal 2022. One of the sellers of TBBC is an employee and continues to manage the operations of TBBC. |
Other Non-current Liabilities | Other Non-current Liabilities Amounts included in other non-current liabilities primarily consist of deferred compensation amounts and amounts related to uncertain tax positions. |
Leases | Leases In the ordinary course of business, we enter into real estate lease agreements for our direct to consumer locations, which include retail and food and beverage locations, office and warehouse/distribution space, as well as leases for certain equipment. Our real estate leases have varying terms and expirations and may have provisions to extend, renew or terminate the lease agreement at our discretion, among other provisions. Our real estate lease terms are typically for a period of ten years or less and typically require monthly rent payments with specified rent escalations during the lease term. Our real estate leases usually provide for payments of our pro rata share of real estate taxes, insurance and other operating expenses applicable to the property, and certain of our leases require payment of sales taxes on rental payments. Also, our direct to consumer location leases often provide for contingent rent payments based on sales if certain sales thresholds are achieved. For many of our real estate lease agreements, we obtain lease incentives from the landlord for tenant improvement or other allowances. Our lease agreements do not include any material residual value guarantees or material restrictive financial covenants. Substantially all of our leases are classified as long-term operating leases. For our leases, we recognize operating lease liabilities equal to our obligation to make lease payments arising from the leases on a discounted basis and operating lease assets which represent our right to use, or control the use of, a specified asset for a lease term. Operating lease liabilities, which are included in current portion of operating lease liabilities and non-current portion of operating lease liabilities in our consolidated balance sheets, are recognized at the lease commencement date based on the present value of lease payments over the lease term. The significant judgments in calculating the present value of lease obligations include determining the lease term and lease payment amounts, which are dependent upon our assessment of the likelihood of exercising any renewal or termination options that are at our discretion, as well as the discount rate applied to the future lease payments. The operating lease assets, which are included in operating lease assets in our consolidated balance sheets, at commencement represent the amount of the operating lease liability reduced for any lease incentives, including tenant improvement allowances. Typically, we do not include any renewal or termination options at our discretion in the underlying lease term at the time of lease commencement as the probability of exercise is not reasonably certain. Variable rental payments for real estate taxes, sales taxes, insurance, other operating expenses and contingent rent based on a percentage of net sales or adjusted periodically for inflation are not included in lease expense used to calculate the present value of lease obligations recognized in our consolidated balance sheet, but instead are recognized as incurred. Lease expense for operating leases is generally recognized on a straight-line basis over the lease term, even if there are fixed escalation clauses, lease incentives for rent holidays, or other similar items from the date that we take possession of the space. Substantially all of our lease expense is recognized in SG&A in our consolidated statements of operations. We account for the underlying operating lease at the individual lease level. The lease guidance requires us to discount future lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, our estimated incremental borrowing rate. As our leases do not provide an implicit rate, we use an estimated incremental borrowing rate based on information available at the applicable commencement date. Our estimated incremental borrowing rate for a lease is the rate of interest we estimate we would have to pay on a collateralized basis over the lease term to borrow an amount equal to the lease payments. During the First Quarter of Fiscal 2020, the FASB provided for an optional practical expedient that simplifies how a lessee accounts for rent concessions that are a direct consequence of the COVID-19 pandemic. The practical expedient only applies if a lease is modified to allow for a rental concession and (1) the revised consideration is substantially the same as, or less than, the original consideration in the lease agreement, (2) the reduction in lease payments relates to payments due on or before June 30, 2021, and (3) no other substantive changes have been made to the terms of the leases. The practical expedient provides that, if the above conditions are met for the lease agreement, the lessee is not required to assess whether the eligible rent concessions are lease modifications. We have elected to apply the practical expedient for all eligible lease modifications resulting in the rent concession being recorded as an adjustment to variable lease payments and recognized in our consolidated statement of operations in that period. The amounts of concessions recognized immediately in our consolidated statement of operations pursuant to this practical expedient in Fiscal 2021 and Fiscal 2020 was $1 million and $4 million, respectively. For lease modifications that do not meet the criteria for the practical expedient, we account for the amendment and concession as a lease modification requiring lease remeasurement with the concession recognized as a reduction to the operating lease asset and recognized in our consolidated statements of operations over the remaining term of the respective lease agreement. The amount of concessions agreed to in Fiscal 2021 and Fiscal 2020 that were recognized as reductions of the operating lease asset and will be recognized in future periods over the remaining lease term as a reduction to rent expense was $3 million and $4 million, respectively. |
Foreign Currency | Foreign Currency We are exposed to foreign currency exchange risk when we generate net sales or incur expenses in currencies other than the functional currency of the respective operations. The resulting assets and liabilities denominated in amounts other than the respective functional currency are re-measured into the respective functional currency at the rate of exchange in effect on the balance sheet date, and income and expenses are re-measured at the average rates of exchange prevailing during the relevant period. The impact of any such re-measurement is recognized in our consolidated statements of operations in that period. Net losses (gains) included in our consolidated statements of operations related to foreign currency transactions recognized in Fiscal 2021, Fiscal 2020 and Fiscal 2019 were $1 million, $0 million and $1 million, respectively. Additionally, the financial statements of our operations for which the functional currency is a currency other than the U.S. dollar are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date for the balance sheet and at the average rates of exchange prevailing during the relevant period for the statements of operations. The impact of such translation is recognized in accumulated other comprehensive income (loss) in our consolidated balance sheets and included in other comprehensive income (loss) in our consolidated statements of comprehensive income resulting in no impact on net earnings for the relevant period. We view our foreign investments as long term, and we generally do not hedge such foreign investments. As of January 29, 2022, our foreign currency exchange risk exposure primarily results from our businesses operating outside of the United States, which are primarily related to (1) our Tommy Bahama operations in Canada and Australia purchasing goods in U.S. dollars or other currencies and (2) certain other transactions, including intercompany transactions. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we did not enter into and were not a party to any foreign currency exchange contracts. |
Interest Rate Risk | Interest Rate Risk We are exposed to market risk from changes in interest rates on any variable-rate indebtedness under our U.S. Revolving Credit Agreement. If we have significant borrowings, we may attempt to limit the impact of interest rate changes on earnings and cash flow, primarily through a mix of variable-rate and fixed-rate debt, although at times all of our debt may be either variable-rate or fixed-rate debt. At times we may enter into interest rate swap arrangements related to certain of our variable-rate debt in order to fix the interest rate if we determine that our exposure to interest rate changes is higher than optimal. Our assessment also considers our need for flexibility in our borrowing arrangements resulting from the significant seasonality of our business and cash flows, anticipated future cash flows and our expectations about the risk of future interest rate changes, among other factors. During Fiscal 2021, Fiscal 2020 and Fiscal 2019, we did not enter into and were not a party to any interest rate swap agreements. |
Fair Value Measurements | Fair Value Measurements Fair value, in accordance with GAAP, is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Valuation techniques include the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques may be based upon either observable or unobservable inputs. The three levels of inputs used to measure fair value pursuant to the guidance are as follows: (1) Level 1—Quoted prices in active markets for identical assets or liabilities; (2) Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and (3) Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, which include certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Our financial instruments consist primarily of our cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, other current liabilities and debt, if any. Given their short-term nature, the carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses and other current liabilities generally approximate their fair values. The fair values of cash and cash equivalents invested on an overnight basis in money market funds as well as short-term investments are based upon the quoted prices in active markets provided by the holding financial institutions, which are considered Level 1 inputs in the fair value hierarchy. Additionally, we believe the carrying amounts of our variable-rate borrowings, if any, approximate fair value. We have determined that our operating lease assets, property and equipment, intangible assets, goodwill and certain other non-current assets included in our consolidated balance sheets are non-financial assets measured at fair value on a non-recurring basis. We have determined that our approaches for determining fair values of each of these non-current assets are generally based on Level 3 inputs. Additionally, for contingent consideration fair value amounts, we have determined that our approaches for determining fair value during the performance period are generally based on Level 3 inputs during the contingent consideration period. In the First Quarter of Fiscal 2020, in determining the $9 million fair value, and resulting carrying value, of the Southern Tide trade name in our interim impairment test, which utilized the relief from royalty valuation method, we used certain Level 3 inputs. The significant unobservable inputs used in determining the fair value of the Southern Tide trade name as of the First Quarter of Fiscal 2020 included: (a) a double-digit percentage decrease in sales for the remainder of Fiscal 2020 as compared to the comparable prior year sales amounts, reflecting the anticipated impact of the COVID-19 pandemic during the remainder of Fiscal 2020; a double-digit percentage increase for sales in Fiscal 2021, reflecting an anticipated partial recovery from the COVID-19 pandemic; and high single-digit percentage growth rates for sales subsequent to Fiscal 2021, with the growth rate in future periods ultimately decreasing to a low single-digit percentage in the long term, and (b) a required rate of return for the intangible asset of 13%. |
Equity Compensation | Equity Compensation We have certain equity compensation plans as described in Note 8, which provide for the ability to grant restricted shares, restricted share units, options and other equity awards to our employees and non-employee directors. We recognize compensation expense related to equity awards to employees and non-employee directors in SG&A in our consolidated statements of operations based on the fair value of the awards on the grant date. The fair value of restricted shares that are service and performance-based are determined based on the fair value of our common stock on the grant date. The fair value of restricted share units that are market-based (e.g. relative total shareholder return (“TSR”)) are determined based on a Monte Carlo simulation model, which models multiple TSR paths for our common stock as well as the comparator group, as applicable, to evaluate and determine the estimated fair value of the restricted share unit. For awards with specified service requirements, the fair value of the equity awards granted to employees is recognized over the respective service period. For performance-based awards (e.g. awards based on our earnings per share), during the performance period we assess expected performance versus the predetermined performance goals and adjust the cumulative equity compensation expense to reflect the relative expected performance achievement. The fair value of the performance-based awards, if earned, is recognized on a straight-line basis over the aggregate performance period and any additional required service period. For market-based awards (e.g. TSR-based awards) with specified service requirements that are equal to or longer than the market-based specification period, the fair value of the awards granted to employees is recognized over the requisite service period, regardless of whether, and to the extent to which, the market condition is ultimately satisfied. The impact of stock award forfeitures on compensation expense is recognized at the time of forfeiture as no estimate of future stock award forfeitures is considered in our calculation of compensation expense for our service-based, performance-based or market-based awards. |
Comprehensive Income and Accumulated Other Comprehensive Loss | Comprehensive Income and Accumulated Other Comprehensive Loss Comprehensive income consists of net earnings and specified components of other comprehensive income (loss). Other comprehensive income (loss) includes changes in assets and liabilities that are not included in net earnings pursuant to GAAP, such as foreign currency translation adjustments between the functional and reporting currencies and certain unrealized gains (losses), if any. For us, other comprehensive income for each period presented includes the impact of the foreign currency translation impact of our Tommy Bahama operations in Canada, Australia and Japan. These other comprehensive income (loss) amounts are deferred in accumulated other comprehensive loss, which is included in shareholders’ equity in our consolidated balance sheets. As of January 29, 2022, the amounts included in accumulated other comprehensive loss in our consolidated balance sheet primarily reflect the net foreign currency translation adjustment related to our Tommy Bahama operations in Canada and Australia. During Fiscal 2019, we recognized a $1 million charge in our consolidated statement of operations that was previously recognized in accumulated other comprehensive loss in our consolidated balance sheet. This charge related to foreign currency amounts associated with our investment and operations in Japan, which in Fiscal 2019 we decided to exit. No material amounts of accumulated other comprehensive loss were reclassified from accumulated other comprehensive loss into our consolidated statements of operations during Fiscal 2021 or Fiscal 2020. |
Dividends | Dividends Dividends are accrued at the time declared by our Board of Directors and typically paid within the same fiscal quarter. Certain restricted share units, as described in Note 8, earn dividend equivalents which are accrued at the time of declaration by the Board of Directors in accrued expenses and other liabilities, but only paid if the restricted share units are ultimately earned. |
Share Repurchases | Share Repurchases From time to time, we may repurchase shares of our stock under an open market repurchase program or otherwise. We account for share repurchases for open market transactions by charging the excess of repurchase price over the par value entirely to retained earnings based on the trade settlement date. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers We are exposed to concentrations of credit risk as a result of our receivables balances, for which the total exposure is limited to the amount recognized in our consolidated balance sheets. We sell our merchandise to wholesale customers operating in a number of distribution channels in the United States and other countries. We extend credit to certain wholesale customers based on an evaluation of the customer’s credit history and financial condition, usually without requiring collateral. Credit risk is impacted by conditions or occurrences within the economy and the retail industry and is principally dependent on each customer’s financial condition. As of January 29, 2022, one customer represented more than 10% of our receivables, net included in our consolidated balance sheet. No individual customer represented greater than 10% of our consolidated net sales in Fiscal 2021, Fiscal 2020 or Fiscal 2019. However, a decision by the controlling owner of a group of stores or any significant customer to decrease the amount of merchandise purchased from us or to cease carrying our products could have an adverse effect on our results of operations in future periods. As of January 29, 2022, we had $165 million of short-term investments, generally consisting of highly liquid corporate and U.S. Treasury securities, across a large number of companies and jurisdictions. Also, as of January 29, 2022 we had $45 million of cash and cash equivalents, with the substantial majority of these amounts invested in money market funds. Further, we maintain cash deposits with major financial institutions that exceed the insurance coverage limits provided by the Federal Deposit Insurance Corporation. |
Income Taxes | Income Taxes Income taxes included in our consolidated financial statements are determined using the asset and liability method. Under this method, income taxes are recognized based on amounts of income taxes payable or refundable in the current year as well as the impact of any items that are recognized in different periods for consolidated financial statement reporting and tax return reporting purposes. Prepaid income taxes and income taxes payable are recognized in prepaid expenses and other accrued expenses and liabilities, respectively, in our consolidated balance sheets. As certain amounts are recognized in different periods for consolidated financial statement and tax return reporting purposes, financial statement and tax bases of assets and liabilities differ, resulting in the recognition of deferred tax assets and liabilities. The deferred tax assets and liabilities reflect the estimated future tax effects attributable to these differences, as well as the impact of net operating loss, capital loss and federal and state credit carrybacks and carryforwards, each as determined under enacted tax laws at rates expected to apply in the period in which such amounts are expected to be realized or settled. We account for the effect of changes in tax laws or rates in the period of enactment. We recognize deferred tax assets to the extent we believe it is more likely than not that these assets will be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, taxable income in any carryback years, tax-planning strategies, and recent results of operations. Valuation allowances are established when we determine that it is more likely than not that some portion or all of a deferred tax asset will not be realized. Valuation allowances are analyzed periodically and adjusted as events occur or circumstances change that would indicate adjustments to the valuation allowances are appropriate. If we determine that we are more likely than not to realize our deferred tax assets in the future in excess of their net recorded amount, we will reduce the deferred tax asset valuation allowance, which will reduce income tax expense. Also, we use a two-step approach for evaluating uncertain tax positions. Under the two-step method, recognition occurs when we conclude that a tax position, based solely on technical merits, is more likely than not to be sustained upon examination. The second step, measurement, is only addressed if step one has been satisfied. The tax benefit recorded is measured as the largest amount of benefit determined on a cumulative probability basis that is more likely than not to be realized upon ultimate settlement. Those tax positions failing to qualify for initial recognition are recognized in the first subsequent interim period they meet the more likely than not threshold or are resolved through settlement or litigation with the relevant taxing authority, upon expiration of the statute of limitations or otherwise. Alternatively, de-recognition of a tax position that was previously recognized occurs when we subsequently determine that a tax position no longer meets the more likely than not threshold of being sustained. In the case of foreign subsidiaries, there are certain exceptions to the requirement that deferred tax liabilities be recognized for the difference in the financial statement and tax bases of assets. If management considers the investment to be essentially permanent in duration, when the financial statement basis of the investment in a foreign subsidiary, excluding undistributed earnings, exceeds the tax basis in such investment, the deferred tax liability is not recognized. Further, deferred tax liabilities are not required to be recognized for undistributed earnings of foreign subsidiaries when management considers those earnings to be permanently reinvested outside the United States. While distributions of foreign subsidiary earnings are generally not subject to federal tax subsequent to the Tax Cuts and Jobs Act (“U.S. Tax Reform”) as enacted on December 22, 2017, there are other possible tax impacts, including state taxes and foreign withholding tax, that must be considered if the earnings are not considered to be permanently reinvested. Further, a gain realized upon the sale of a foreign subsidiary, if any, is not exempt from federal tax and consideration must therefore be given to the impact of differences in the book and tax basis of foreign subsidiaries not arising from earnings when determining whether a liability must be recorded if the investment is not considered permanently reinvested. U.S. Tax Reform created certain new tax provisions including a tax on global intangible low-taxed income (“GILTI”), disallowance of deductions for certain payments (the base erosion anti-abuse tax, or “BEAT”) and certain deductions enacted for certain foreign-derived intangible income (“FDII”). While the calculations for GILTI, BEAT and FDII are complex calculations, these provisions did not have a material impact on our effective tax rate in Fiscal 2021, Fiscal 2020 and Fiscal 2019. We recognize the impact of GILTI as a period cost. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act) was signed into law, with applicable provisions reflected in our financial statements upon enactment. This law included several taxpayer favorable provisions which impact us, including allowing the carryback of our Fiscal 2020 net operating losses to years prior to U.S. Tax Reform resulting in an increased benefit for those losses, accelerated depreciation of certain leasehold improvement costs, relaxed interest expense limitations and certain non-income tax benefits including deferral of employer FICA payments and an employee retention credit. Substantially all of the income tax receivable in our consolidated balance sheets as of January 29, 2022 and January 30, 2021 relates to the carryback of our Fiscal 2020 net operating losses to prior years. We file income tax returns in the United States and various state, local and foreign jurisdictions. Our federal, state, local and foreign income tax returns filed for years prior to Fiscal 2018, with limited exceptions, are no longer subject to examination by tax authorities. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic net earnings per share amounts are calculated by dividing the net earnings amount by the weighted average shares outstanding during the period. Shares repurchased, if any, are removed from the weighted average number of shares outstanding upon repurchase based on the trade settlement date. Diluted net earnings per share amounts are calculated similarly to the amounts above, except that the weighted average shares outstanding in the diluted net earnings per share calculation also include the potential dilution using the treasury stock method that could occur if dilutive securities, including restricted share awards or other dilutive awards, were converted to shares. The treasury stock method assumes that shares are issued for any restricted share awards, options or other dilutive awards that are "in the money," and that we use the proceeds received to repurchase shares at the average market value of our shares for the respective period. For purposes of the treasury stock method, proceeds consist of cash to be paid and future compensation expense to be recognized. Performance-based and market-based restricted share units are included in the computation of diluted shares only to the extent that the underlying performance or market conditions (1) have been satisfied as of the end of the reporting period or (2) if the measurement criteria has been satisfied and the result would be dilutive, even if the contingency period has not ended as of the end of the reporting period. In periods that we incur a loss, we exclude restricted shares or restricted share unit awards as including the awards would be anti-dilutive. During Fiscal 2020, there were 0.4 million restricted shares and restricted share units outstanding that were excluded from the diluted earnings (loss) per share calculation. No restricted shares or restricted share units were excluded from the diluted earnings per share calculation for Fiscal 2021 or Fiscal 2019. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates, particularly given the uncertainties associated with the ultimate impact of the COVID-19 pandemic. Changes to our estimates and assumptions could have a material impact on our consolidated financial statements. |
Accounting Standards Adopted in Fiscal 2021 and Recently Issued Accounting Standards Applicable to Future Periods | Accounting Standards Adopted in Fiscal 2021 No recently issued guidance adopted in Fiscal 2021 had a material impact on our consolidated financial statements upon adoption or is expected to have a material impact in future periods. Recently Issued Accounting Standards Applicable to Future Years Recent accounting pronouncements pending adoption are either not applicable or not expected to have a material impact on our consolidated financial statements. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Business and Summary of Significant Accounting Policies | |
Schedule of net sales by distribution channel | The table below quantifies the amount of net sales by distribution channel (in thousands) for each period presented. Fiscal Fiscal Fiscal 2021 2020 2019 Retail $ 443,015 $ 202,071 $ 440,803 E-commerce 369,300 323,900 262,283 Restaurant 96,244 48,428 83,836 Wholesale 231,536 173,209 333,986 Other 1,984 1,225 1,882 Net sales $ 1,142,079 $ 748,833 $ 1,122,790 |
Schedule of estimated useful lives of the assets | Leasehold improvements Lesser of remaining life of the asset or lease term Furniture, fixtures, equipment and technology 2 – 15 years Buildings and improvements 7 – 40 years |
Operating Group Information (Ta
Operating Group Information (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Operating Group Information | |
Schedule of financial information by operating group | The tables below present certain financial information (in thousands) about our reportable operating groups, as well as Corporate and Other. Fiscal Fiscal Fiscal 2021 2020 2019 Net sales Tommy Bahama $ 724,305 $ 419,817 $ 676,652 Lilly Pulitzer 298,995 231,078 284,700 Southern Tide 54,050 34,664 46,409 Lanier Apparel 24,858 38,796 95,200 Corporate and Other 39,871 24,478 19,829 Consolidated net sales $ 1,142,079 $ 748,833 $ 1,122,790 Depreciation and amortization Tommy Bahama $ 27,830 $ 46,698 $ 27,852 Lilly Pulitzer 11,678 9,965 10,106 Southern Tide 780 676 549 Lanier Apparel 107 1,239 422 Corporate and Other 1,203 1,336 1,358 Consolidated depreciation and amortization $ 41,598 $ 59,914 $ 40,287 Operating income (loss) Tommy Bahama $ 111,733 $ (53,310) $ 53,207 Lilly Pulitzer 63,601 27,702 51,795 Southern Tide 9,968 (64,801) 5,554 Lanier Apparel 4,888 (26,654) 1,953 Corporate and Other (24,687) (6,786) (18,834) Consolidated operating income (loss) 165,503 (123,849) 93,675 Interest expense, net 944 2,028 1,245 Earnings (loss) before income taxes $ 164,559 $ (125,877) $ 92,430 Fiscal 2021 Fiscal 2020 Fiscal 2019 Purchases of Property and Equipment Tommy Bahama $ 12,887 $ 19,666 $ 31,272 Lilly Pulitzer 17,305 7,059 4,273 Southern Tide 456 1,423 289 Lanier Apparel 5 21 571 Corporate and Other 1,241 755 1,016 Purchases of Property and Equipment $ 31,894 $ 28,924 $ 37,421 January 29, January 30, 2022 2021 Total Assets Tommy Bahama (1) $ 531,678 $ 569,854 Lilly Pulitzer (2) 176,757 176,467 Southern Tide (3) 37,185 31,641 Lanier Apparel (4) 207 10,967 Corporate and Other (5) 211,815 76,705 Total Assets $ 957,642 $ 865,634 (1) Decrease in Tommy Bahama total assets includes reductions in operating lease assets and property and equipment partially offset by higher inventories. (2) Comparable Lilly Pulitzer total assets includes increased property and equipment partially offset by reductions in operating lease assets and inventories. (3) Increase in Southern Tide total assets includes increased inventories. (4) Decrease in Lanier Apparel total assets is due to the exit of the Lanier Apparel business during Fiscal 2021. The remaining assets of Lanier Apparel as of January 29, 2022, primarily consist of property and equipment associated with our Merida, Mexico manufacturing facility, which ceased operations in Fiscal 2020. (5) Increase in Corporate and Other total assets primarily consist of increases in short-term investments partially offset by decreases in cash and cash equivalents and inventories. |
Schedule of net book value of property and equipment by geographic area | Net book value of our property and equipment and net sales by geographic area are presented in the tables below (in thousands). January 29, January 30, 2022 2021 Net Book Value of Property and Equipment United States $ 149,352 $ 155,902 Other foreign 3,095 3,830 $ 152,447 $ 159,732 |
Schedule of net sales by geographic area | Net book value of our property and equipment and net sales by geographic area are presented in the tables below (in thousands). Fiscal 2021 Fiscal 2020 Fiscal 2019 Net Sales United States $ 1,112,384 $ 728,308 $ 1,086,170 Other foreign 29,695 20,525 36,620 $ 1,142,079 $ 748,833 $ 1,122,790 |
Schedule of net sales by operating group | 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. Fiscal 2021 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 724,305 47 % 25 % 13 % 15 % — % Lilly Pulitzer 298,995 34 % 50 % — % 16 % — % Southern Tide 54,050 7 % 26 % — % 67 % — % Lanier Apparel 24,858 — % — % — % 100 % — % Corporate and Other 39,871 — % 54 % — % 42 % 4 % Consolidated net sales $ 1,142,079 39 % 32 % 8 % 20 % — % Fiscal 2020 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 419,817 37 % 36 % 11 % 16 % — % Lilly Pulitzer 231,078 20 % 64 % — % 16 % — % Southern Tide 34,664 4 % 32 % — % 64 % — % Lanier Apparel 38,796 — % — % — % 100 % — % Corporate and Other 24,478 — % 63 % — % 33 % 4 % Consolidated net sales $ 748,833 27 % 43 % 6 % 23 % — % Fiscal 2019 Net Sales Retail E ‑ commerce Restaurant Wholesale Other Tommy Bahama $ 676,652 48 % 20 % 12 % 20 % — % Lilly Pulitzer 284,700 41 % 38 % — % 21 % — % Southern Tide 46,409 — % 21 % — % 79 % — % Lanier Apparel 95,200 — % — % — % 100 % — % Corporate and Other 19,829 — % 59 % — % 34 % 7 % Consolidated net sales $ 1,122,790 39 % 23 % 8 % 30 % — % |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Property and Equipment, Net | |
Schedule of components of property and equipment | Property and equipment, net, is summarized as follows (in thousands): January 29, January 30, 2022 2021 Land $ 3,135 $ 3,166 Buildings and improvements 32,090 39,559 Furniture, fixtures, equipment and technology 242,759 231,493 Leasehold improvements 233,988 237,360 511,972 511,578 Less accumulated depreciation and amortization (359,525) (351,846) Property and equipment, net $ 152,447 $ 159,732 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Intangible Assets and Goodwill | |
Summary of finite-lived intangible assets by category | Intangible assets by category are summarized below (in thousands): January 29, January 30, 2022 2021 Intangible assets with finite lives $ 51,929 $ 51,929 Accumulated amortization and impairment (44,122) (43,242) Total intangible assets with finite lives, net 7,807 8,687 Intangible assets with indefinite lives: Tommy Bahama Trademarks $ 110,700 $ 110,700 Lilly Pulitzer Trademarks 27,500 27,500 Southern Tide Trademarks 9,300 9,300 Total intangible assets with indefinite lives $ 147,500 $ 147,500 Total intangible assets, net $ 155,307 $ 156,187 |
Summary of indefinite-lived intangible assets by category | Intangible assets by category are summarized below (in thousands): January 29, January 30, 2022 2021 Intangible assets with finite lives $ 51,929 $ 51,929 Accumulated amortization and impairment (44,122) (43,242) Total intangible assets with finite lives, net 7,807 8,687 Intangible assets with indefinite lives: Tommy Bahama Trademarks $ 110,700 $ 110,700 Lilly Pulitzer Trademarks 27,500 27,500 Southern Tide Trademarks 9,300 9,300 Total intangible assets with indefinite lives $ 147,500 $ 147,500 Total intangible assets, net $ 155,307 $ 156,187 |
Schedule of intangible assets by operating group and in total | Intangible assets, by operating group and in total, for Fiscal 2019, Fiscal 2020 and Fiscal 2021 are as follows (in thousands): Tommy Lilly Southern Lanier Corporate Bahama Pulitzer Tide Apparel and Other Total Balance, February 2, 2019 $ 110,700 $ 29,216 $ 29,401 $ 246 $ 6,613 $ 176,176 Impairment — — — — — — Amortization — (475) (291) (31) (374) (1,171) Balance February 1, 2020 $ 110,700 $ 28,741 $ 29,110 $ 215 $ 6,239 $ 175,005 Impairment — — (17,500) (207) — (17,707) Amortization — (424) (288) (8) (391) (1,111) Balance, January 30, 2021 $ 110,700 $ 28,317 $ 11,322 $ — $ 5,848 $ 156,187 Impairment — — — — — — Amortization — (220) (289) — (371) (880) Balance, January 29, 2022 $ 110,700 $ 28,097 $ 11,033 $ — $ 5,477 $ 155,307 |
Schedule of goodwill by operating group and in total | Goodwill, by operating group and in total, for Fiscal 2019, Fiscal 2020 and Fiscal 2021 is as follows (in thousands): Tommy Lilly Southern Corporate Bahama Pulitzer Tide and Other Total Balance, February 2, 2019 $ 754 $ 19,522 $ 42,745 $ 3,600 $ 66,621 Impairment — — — — — Other, including foreign currency (43) — — — (43) Balance February 1, 2020 $ 711 $ 19,522 $ 42,745 $ 3,600 $ 66,578 Impairment — — (42,745) — (42,745) Other, including foreign currency 77 — — — 77 Balance, January 30, 2021 $ 788 $ 19,522 $ — $ 3,600 $ 23,910 Impairment — — — — — Other, including foreign currency (41) — — — (41) Balance, January 29, 2022 $ 747 $ 19,522 $ — $ 3,600 $ 23,869 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Leases | |
Schedule of lease liability payments | As of January 29, 2022, the required lease liability payments, which include base rent amounts but excludes payments for real estate taxes, sales taxes, insurance, other operating expenses and contingent rents incurred under operating lease agreements, for the fiscal years specified below were as follows (in thousands): Operating lease 2022 68,726 2023 61,972 2024 49,354 2025 35,946 2026 27,928 After 2026 45,240 Total lease payments $ 289,166 Less: Difference between discounted and undiscounted lease payments 28,406 Present value of lease liabilities $ 260,760 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Restricted shares | |
Equity Compensation | |
Summary of award activity | Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Shares fair value Shares fair value Shares fair value Restricted shares outstanding at beginning of fiscal year 308,369 $ 61 251,924 $ 68 257,890 $ 66 Service-based restricted shares granted/issued 42,855 $ 89 131,425 $ 40 42,573 $ 76 Performance-based restricted shares issued related to prior year performance awards — $ — 42,438 $ 76 43,152 $ 79 Restricted shares vested, including restricted shares repurchased from employees for employees’ tax liability (81,283) $ 77 (114,003) $ 56 (87,252) $ 71 Restricted shares forfeited (31,052) 62 (3,415) 62 (4,439) 69 Restricted shares outstanding at end of fiscal year 238,889 $ 61 308,369 $ 61 251,924 $ 68 |
Summary of information about unvested awards | Number of Average Unvested Fair Value Share on Description Awards Date of Grant Restricted Shares Vesting in April 2022 83,324 $ 77 Restricted Shares Vesting in July 2023 117,310 $ 41 Restricted Shares Vesting in May 2024 38,255 $ 89 Total Restricted Shares Outstanding 238,889 $ 61 |
Restricted share units | |
Equity Compensation | |
Summary of award activity | Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Shares fair value Shares fair value Shares fair value Restricted share units outstanding at beginning of fiscal year 83,345 $ 50 — $ — — $ — TSR-based restricted share units granted/issued 56,750 $ 117 83,345 $ 50 — $ — TSR-based restricted share units forfeited (9,655) $ 68 — — — — Restricted shares outstanding at end of fiscal year 130,440 $ 78 83,345 $ 50 — $ — |
Summary of information about unvested awards | Number of Unvested Average TSR-Based Fair Value Share/Unit on Description Awards Date of Grant TSR-based Restricted Share Units (at target), with a July 2023 vesting date 76,340 $ 50 TSR-based Restricted Share Units (at target), with a May 2024 vesting date 54,100 $ 117 Total 130,440 $ 78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Income Taxes | |
Summary of distribution between domestic and foreign earnings (loss) before income taxes | The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands): Fiscal Fiscal Fiscal 2021 2020 2019 Earnings (loss) before income taxes: Domestic $ 161,233 $ (129,129) $ 86,528 Foreign 3,326 3,252 5,902 Earnings (loss) before income taxes $ 164,559 $ (125,877) $ 92,430 Income taxes: Current: Federal $ 24,998 $ (11,498) $ 18,565 State 3,780 (1,060) 5,459 Foreign 409 735 1,650 29,187 (11,823) 25,674 Deferred—Domestic 4,155 (17,780) (1,870) Deferred—Foreign (104) (582) 133 Income taxes $ 33,238 $ (30,185) $ 23,937 |
Summary of provision (benefit) for income taxes | The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands): Fiscal Fiscal Fiscal 2021 2020 2019 Earnings (loss) before income taxes: Domestic $ 161,233 $ (129,129) $ 86,528 Foreign 3,326 3,252 5,902 Earnings (loss) before income taxes $ 164,559 $ (125,877) $ 92,430 Income taxes: Current: Federal $ 24,998 $ (11,498) $ 18,565 State 3,780 (1,060) 5,459 Foreign 409 735 1,650 29,187 (11,823) 25,674 Deferred—Domestic 4,155 (17,780) (1,870) Deferred—Foreign (104) (582) 133 Income taxes $ 33,238 $ (30,185) $ 23,937 |
Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates | Fiscal Fiscal Fiscal 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes—net of federal income tax benefit 3.7 % 3.6 % 4.4 % Impact of foreign operations rate differential 0.1 % (0.2) % 0.2 % Impairment of non-deductible Southern Tide goodwill — % (3.7) % — % Change in reserve for uncertain tax positions (1.0) % (2.5) % — % Rate benefit from NOL carryback to pre-U.S. Tax Reform periods due to the CARES Act — % 5.5 % — % Utilization of capital loss benefit for the gain on sale of our interest in an unconsolidated entity (2.9) % — % — % Other, net (0.7) % 0.3 % 0.3 % Effective tax rate for continuing operations 20.2 % 24.0 % 25.9 % |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands): January 29, January 30, 2022 2021 Deferred Tax Assets: Inventories $ 16,947 $ 16,338 Accrued compensation and benefits 9,058 8,759 Receivable allowances and reserves 2,814 2,109 Operating lease liabilities 59,711 73,917 Operating loss and other carry-forwards 3,675 4,617 Other, net 3,529 3,686 Deferred tax assets 95,734 109,426 Deferred Tax Liabilities: Operating lease assets (51,909) (66,341) Depreciation and amortization (12,427) (9,682) Acquired intangible assets (26,792) (25,047) Deferred tax liabilities (91,128) (101,070) Valuation allowance (6,050) (5,668) Net deferred tax asset (liability) $ (1,444) $ 2,688 |
Schedule of deferred income taxes included in the line items in the entity's consolidated balance sheets | The amounts of deferred income taxes included in our consolidated balance sheets are as follows (in thousands): January 29, January 30, 2022 2021 Assets: Deferred tax assets $ 1,467 $ 2,688 Liabilities: Deferred tax liabilities (2,911) — Net deferred tax asset (liability) $ (1,444) $ 2,688 |
Schedule of reconciliation of changes in gross amount of unrecognized tax benefits | A reconciliation of the changes in the gross amount of unrecognized tax benefits, which are included in other non-current liabilities, is as follows (in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Balance of unrecognized tax benefits at beginning of year $ 5,261 $ 1,212 $ 975 Increase related to prior period tax positions 10 303 — Decrease related to prior period tax positions — (1) (27) Increase related to current period tax positions 527 3,960 287 Decrease related to settlements with taxing authorities (2,305) — — Decrease related to lapse of statute of limitations (103) (213) (23) Balance of unrecognized tax benefits at end of year $ 3,390 $ 5,261 $ 1,212 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Fiscal Year (Details) | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Fiscal Year | ||||
Length of fiscal period | 364 days | 364 days | 364 days | |
Forecast | ||||
Fiscal Year | ||||
Length of fiscal period | 364 days | |||
Minimum | ||||
Fiscal Year | ||||
Length of fiscal period | 364 days | |||
Maximum | ||||
Fiscal Year | ||||
Length of fiscal period | 371 days |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Revenue | |||
Net sales | $ 1,142,079 | $ 748,833 | $ 1,122,790 |
Retail | |||
Revenue | |||
Net sales | 443,015 | 202,071 | 440,803 |
E-commerce | |||
Revenue | |||
Net sales | 369,300 | 323,900 | 262,283 |
Restaurant | |||
Revenue | |||
Net sales | 96,244 | 48,428 | 83,836 |
Wholesale | |||
Revenue | |||
Net sales | 231,536 | 173,209 | 333,986 |
Other | |||
Revenue | |||
Net sales | $ 1,984 | $ 1,225 | $ 1,882 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Receivables | |||
Sales return liability | $ 11,000 | $ 7,000 | |
Receivable reserve | 3,000 | 6,000 | |
Provision for credit loss | (1,000) | 4,000 | $ 0 |
Write-off of credit losses | 0 | 2,000 | 0 |
Credit loss reserve | 1,000 | 3,000 | |
Tenant allowances receivable | 1,000 | 2,000 | |
Value of inventory for wholesale and direct to consumer sales returns | $ 4,000 | 4,000 | |
Redemption period of gift card and merchandise credit | 1 year | ||
Net sales | $ 1,142,079 | 748,833 | 1,122,790 |
Royalty income | 18,000 | 14,000 | 15,000 |
Customers with gift cards and merchandise credits | |||
Receivables | |||
Contract liabilities | 16,000 | 13,000 | |
Maximum | Customers registered in loyalty award programs | |||
Receivables | |||
Contract liabilities | 1,000 | ||
Gift Card Breakage | |||
Receivables | |||
Net sales | $ 1,000 | $ 1,000 | $ 2,000 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - SG&A (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
SG&A | |||
Distribution network costs | $ 28 | $ 26 | $ 30 |
Advertising, promotions and marketing expenses | 60 | 50 | 56 |
Prepaid advertising, promotions and marketing expenses | 4 | 2 | |
Royalty expenses | $ 6 | $ 6 | $ 7 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents and Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Cash and Cash Equivalents | |||
Cash and cash equivalents | $ 44,859 | $ 66,013 | |
Supplemental Cash Flow Information | |||
Cash paid for income taxes | 34,000 | 6,000 | $ 17,000 |
Cash paid for interest, net of interest income | 1,000 | 2,000 | 1,000 |
Capital expenditures incurred but not yet paid | 3,000 | 1,000 | 3,000 |
Increase in right-of-use asset and corresponding operating lease liability | 18,000 | 2,000 | $ 40,000 |
Money Market Funds | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents | $ 37,000 | $ 59,000 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Short-Term Investments and Inventories, net (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Short-Term Investments | ||
Short-term investments | $ 164,890 | $ 0 |
Inventories, net | ||
Inventories which are valued at the lower of LIFO cost or market after deducting LIFO reserve | $ 103,000 | $ 116,000 |
Inventories which are valued at the lower of LIFO cost or market (as a percent) | 88.00% | 94.00% |
Inventories which are valued at the lower of FIFO cost or market | $ 14,000 | $ 8,000 |
LIFO reserve | $ 69,000 | $ 62,000 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Property and Equipment, net (Details) | 12 Months Ended |
Jan. 29, 2022 | |
Furniture, fixtures, equipment and technology | Minimum | |
Property and Equipment, net | |
Estimated useful lives | 2 years |
Furniture, fixtures, equipment and technology | Maximum | |
Property and Equipment, net | |
Estimated useful lives | 15 years |
Buildings and improvements | Minimum | |
Property and Equipment, net | |
Estimated useful lives | 7 years |
Buildings and improvements | Maximum | |
Property and Equipment, net | |
Estimated useful lives | 40 years |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Intangible Assets and Goodwill, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 02, 2020 | Jan. 30, 2021 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Intangible Assets, net | |||||
Impairment of intangible assets with indefinite lives | $ 18,000 | $ 0 | $ 0 | $ 0 | |
Goodwill, net | |||||
Impairment of goodwill | $ 43,000 | $ 0 | $ 0 | $ 42,745 | $ 0 |
Maximum | |||||
Intangible Assets, net | |||||
Finite lived intangible assets amortization period | 20 years |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Non-Current Assets, net and Deferred Compensation (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Prepaid Expenses and Other Non-Current Assets, net | ||
Officers' life insurance policies | $ 4 | $ 4 |
Unamortized deferred financing costs | 1 | |
Deferred Compensation | ||
Deferred compensation investments included in other non-current assets | 17 | 16 |
Liabilities associated with the non-qualified deferred compensation plan | $ 17 | $ 16 |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Equity investments | |||
Ownership threshold for determining significant influence over a corporation (as a percent) | 20.00% | ||
Ownership threshold for determining significant influence over a limited liability company (as a percent) | 3.00% | ||
Payment for equity investments | $ 6,000 | ||
Equity method investments | $ 3,000 | 6,000 | |
Ownership (as a percent) | 10.00% | ||
Royalties and other operating income | $ 32,921 | 14,024 | $ 14,857 |
Proceeds from sale of investment in unconsolidated entity | 14,586 | ||
Gain on sale of investment in unconsolidated entity | 11,586 | ||
Equity investments, Unconsolidated | |||
Equity investments | |||
Royalties and other operating income | $ 12,000 | $ 0 | $ 0 |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Impairment Assessment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Significant Accounting Policies | |||
Impairment of property and equipment | $ 1,656 | $ 19,828 | $ 1,090 |
Operating lease asset impairment | 5,000 | 4,000 | 0 |
Impairment of goodwill and intangible assets | 60,452 | ||
Impairment of intangible assets with finite lives | 0 | 0 | |
Information technology project | |||
Significant Accounting Policies | |||
Impairment of property and equipment | 15,000 | ||
Retail store assets | |||
Significant Accounting Policies | |||
Impairment of property and equipment | 2,000 | ||
Tommy Bahama | |||
Significant Accounting Policies | |||
Operating lease asset impairment | 1,000 | ||
Tommy Bahama | Leasehold improvements | |||
Significant Accounting Policies | |||
Impairment of property and equipment | 1,000 | ||
Southern Tide | |||
Significant Accounting Policies | |||
Impairment of goodwill and intangible assets | $ 0 | 60,000 | $ 0 |
Lanier Apparel | |||
Significant Accounting Policies | |||
Operating lease asset impairment | 3,000 | ||
Lanier Apparel | Maximum | |||
Significant Accounting Policies | |||
Impairment of intangible assets with finite lives | 1,000 | ||
Lanier Apparel | Leasehold improvements | |||
Significant Accounting Policies | |||
Impairment of property and equipment | $ 1,000 |
Business and Summary of Sign_15
Business and Summary of Significant Accounting Policies - Legal and Other Contingencies and Other Non-current Liabilities (Details) $ in Thousands | 12 Months Ended | 48 Months Ended | |||||
Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019individual | Feb. 03, 2018 | Jan. 29, 2022USD ($) | Jan. 28, 2023USD ($) | |
Business Combinations | |||||||
Change in fair value of contingent consideration | $ 1,188 | $ 593 | $ 431 | ||||
TBBC | |||||||
Business Combinations | |||||||
Change in fair value of contingent consideration | 1,000 | 1,000 | |||||
Contingent consideration | $ 2,000 | $ 2,000 | $ 2,000 | ||||
Aggregate amount of contingent consideration earned by seller | $ 4,000 | ||||||
Period over which contingent consideration is payable | 4 years | ||||||
Number of sellers that is an employee | individual | 1 | ||||||
TBBC | Forecast | |||||||
Business Combinations | |||||||
Contingent consideration earned, payable next fiscal year | $ 2,000 | ||||||
TBBC | Maximum | |||||||
Business Combinations | |||||||
Change in fair value of contingent consideration | $ 1,000 |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Leases and Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating leases | |||
Lease modification concession recognized, COVID-19 rent concession | $ 1 | $ 4 | |
Reduction of operating lease asset, COVID-19 rent concession | 3 | 4 | |
Foreign Currency | |||
Net losses (gains) on foreign currency transactions | $ 1 | $ 0 | $ 1 |
Maximum | Real Estate | |||
Operating leases | |||
Lease term | 10 years |
Business and Summary of Sign_17
Business and Summary of Significant Accounting Policies - Fair Value (Details) - Southern Tide - Trademarks $ in Millions | May 02, 2020USD ($) |
Fair value | |
Fair value, intangible asset | $ 9 |
Measurement Input, Rate of Return | |
Fair value | |
Measurement input | 0.13 |
Business and Summary of Sign_18
Business and Summary of Significant Accounting Policies - Comprehensive Income and Accumulated Other Comprehensive Loss (Details) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Comprehensive Income and Accumulated Other Comprehensive Loss | |
Foreign currency charge previously recognized in AOCL | $ 1 |
Business and Summary of Sign_19
Business and Summary of Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022USD ($)customer | Jan. 30, 2021USD ($) | |
Short-term Investments | ||
Short-term investments | $ 164,890 | $ 0 |
Cash and cash equivalents | ||
Cash and cash equivalents | $ 44,859 | $ 66,013 |
Consolidated accounts receivable | Credit concentration risk | Customer One | ||
Concentration of Credit Risk and Significant Customers | ||
Number of customers | customer | 1 | |
Consolidated accounts receivable | Credit concentration risk | Minimum | Customer One | ||
Concentration of Credit Risk and Significant Customers | ||
Concentration risk, percentage | 10.00% |
Business and Summary of Sign_20
Business and Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Domestic corporate tax rate | |||
Statutory federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Retained earnings | $ 331,175 | $ 235,995 |
Business and Summary of Sign_21
Business and Summary of Significant Accounting Policies - EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Business and Summary of Significant Accounting Policies | |||
Anti-dilutive securities | 0 | 0.4 | 0 |
Operating Group Information - F
Operating Group Information - Financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating groups | |||
Net sales | $ 1,142,079 | $ 748,833 | $ 1,122,790 |
Depreciation and amortization | 41,598 | 59,914 | 40,287 |
Operating income (loss) | 165,503 | (123,849) | 93,675 |
Interest expense, net | 944 | 2,028 | 1,245 |
Earnings (loss) before income taxes | 164,559 | (125,877) | 92,430 |
Impairment of goodwill and intangible assets | 60,452 | ||
Corporate and Other | |||
Operating groups | |||
Net sales | 39,871 | 24,478 | 19,829 |
Depreciation and amortization | 1,203 | 1,336 | 1,358 |
Operating income (loss) | (24,687) | (6,786) | (18,834) |
LIFO accounting charge (credit) | 16,000 | 9,000 | 1,000 |
Tommy Bahama | Operating Segments | |||
Operating groups | |||
Net sales | 724,305 | 419,817 | 676,652 |
Depreciation and amortization | 27,830 | 46,698 | 27,852 |
Operating income (loss) | 111,733 | (53,310) | 53,207 |
Lilly Pulitzer | Operating Segments | |||
Operating groups | |||
Net sales | 298,995 | 231,078 | 284,700 |
Depreciation and amortization | 11,678 | 9,965 | 10,106 |
Operating income (loss) | 63,601 | 27,702 | 51,795 |
Southern Tide | |||
Operating groups | |||
Impairment of goodwill and intangible assets | 0 | 60,000 | 0 |
Southern Tide | Operating Segments | |||
Operating groups | |||
Net sales | 54,050 | 34,664 | 46,409 |
Depreciation and amortization | 780 | 676 | 549 |
Operating income (loss) | 9,968 | (64,801) | 5,554 |
Lanier Apparel | Operating Segments | |||
Operating groups | |||
Net sales | 24,858 | 38,796 | 95,200 |
Depreciation and amortization | 107 | 1,239 | 422 |
Operating income (loss) | $ 4,888 | $ (26,654) | $ 1,953 |
Operating Groups- Purchases of
Operating Groups- Purchases of P&E (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating groups | |||
Purchases of Property and Equipment | $ 31,894 | $ 28,924 | $ 37,421 |
Corporate and Other | |||
Operating groups | |||
Purchases of Property and Equipment | 1,241 | 755 | 1,016 |
Tommy Bahama | Operating Segments | |||
Operating groups | |||
Purchases of Property and Equipment | 12,887 | 19,666 | 31,272 |
Lilly Pulitzer | Operating Segments | |||
Operating groups | |||
Purchases of Property and Equipment | 17,305 | 7,059 | 4,273 |
Southern Tide | Operating Segments | |||
Operating groups | |||
Purchases of Property and Equipment | 456 | 1,423 | 289 |
Lanier Apparel | Operating Segments | |||
Operating groups | |||
Purchases of Property and Equipment | $ 5 | $ 21 | $ 571 |
Operating Groups Information -
Operating Groups Information - Assets (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Operating groups | ||
Assets | $ 957,642 | $ 865,634 |
Corporate and Other | ||
Operating groups | ||
Assets | 211,815 | 76,705 |
Tommy Bahama | Operating Segments | ||
Operating groups | ||
Assets | 531,678 | 569,854 |
Lilly Pulitzer | Operating Segments | ||
Operating groups | ||
Assets | 176,757 | 176,467 |
Southern Tide | Operating Segments | ||
Operating groups | ||
Assets | 37,185 | 31,641 |
Lanier Apparel | Operating Segments | ||
Operating groups | ||
Assets | $ 207 | $ 10,967 |
Operating Groups - Assets and s
Operating Groups - Assets and sales by geographic area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Geographic area | |||
Net book value of property and equipment | $ 152,447 | $ 159,732 | |
Net sales | 1,142,079 | 748,833 | $ 1,122,790 |
United States | |||
Geographic area | |||
Net book value of property and equipment | 149,352 | 155,902 | |
Net sales | 1,112,384 | 728,308 | 1,086,170 |
Other foreign | |||
Geographic area | |||
Net book value of property and equipment | 3,095 | 3,830 | |
Net sales | $ 29,695 | $ 20,525 | $ 36,620 |
Operating Group Information - S
Operating Group Information - Sales by operating group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating groups | |||
Net sales | $ 1,142,079 | $ 748,833 | $ 1,122,790 |
Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales | 724,305 | 419,817 | 676,652 |
Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales | 298,995 | 231,078 | 284,700 |
Operating Segments | Southern Tide | |||
Operating groups | |||
Net sales | 54,050 | 34,664 | 46,409 |
Operating Segments | Lanier Apparel | |||
Operating groups | |||
Net sales | 24,858 | 38,796 | 95,200 |
Corporate and Other | |||
Operating groups | |||
Net sales | 39,871 | 24,478 | 19,829 |
Retail | |||
Operating groups | |||
Net sales | $ 443,015 | $ 202,071 | $ 440,803 |
Net sales (as a percent) | 39.00% | 27.00% | 39.00% |
Retail | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 47.00% | 37.00% | 48.00% |
Retail | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 34.00% | 20.00% | 41.00% |
Retail | Operating Segments | Southern Tide | |||
Operating groups | |||
Net sales (as a percent) | 7.00% | 4.00% | |
E-commerce | |||
Operating groups | |||
Net sales | $ 369,300 | $ 323,900 | $ 262,283 |
Net sales (as a percent) | 32.00% | 43.00% | 23.00% |
E-commerce | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 25.00% | 36.00% | 20.00% |
E-commerce | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 50.00% | 64.00% | 38.00% |
E-commerce | Operating Segments | Southern Tide | |||
Operating groups | |||
Net sales (as a percent) | 26.00% | 32.00% | 21.00% |
E-commerce | Corporate and Other | |||
Operating groups | |||
Net sales (as a percent) | 54.00% | 63.00% | 59.00% |
Restaurant | |||
Operating groups | |||
Net sales | $ 96,244 | $ 48,428 | $ 83,836 |
Net sales (as a percent) | 8.00% | 6.00% | 8.00% |
Restaurant | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 13.00% | 11.00% | 12.00% |
Wholesale | |||
Operating groups | |||
Net sales | $ 231,536 | $ 173,209 | $ 333,986 |
Net sales (as a percent) | 20.00% | 23.00% | 30.00% |
Wholesale | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 15.00% | 16.00% | 20.00% |
Wholesale | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 16.00% | 16.00% | 21.00% |
Wholesale | Operating Segments | Southern Tide | |||
Operating groups | |||
Net sales (as a percent) | 67.00% | 64.00% | 79.00% |
Wholesale | Operating Segments | Lanier Apparel | |||
Operating groups | |||
Net sales (as a percent) | 100.00% | 100.00% | 100.00% |
Wholesale | Corporate and Other | |||
Operating groups | |||
Net sales (as a percent) | 42.00% | 33.00% | 34.00% |
Other | |||
Operating groups | |||
Net sales | $ 1,984 | $ 1,225 | $ 1,882 |
Other | Corporate and Other | |||
Operating groups | |||
Net sales (as a percent) | 4.00% | 4.00% | 7.00% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Property and Equipment, net | ||
Property and equipment, gross | $ 511,972 | $ 511,578 |
Less accumulated depreciation and amortization | (359,525) | (351,846) |
Property and equipment, net | 152,447 | 159,732 |
Land | ||
Property and Equipment, net | ||
Property and equipment, gross | 3,135 | 3,166 |
Buildings and improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | 32,090 | 39,559 |
Furniture, fixtures, equipment and technology | ||
Property and Equipment, net | ||
Property and equipment, gross | 242,759 | 231,493 |
Leasehold improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | $ 233,988 | $ 237,360 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - By category (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Intangible assets with finite lives | ||||
Intangible assets with finite lives | $ 51,929 | $ 51,929 | ||
Accumulated amortization and impairment | (44,122) | (43,242) | ||
Total intangible assets with finite lives, net | 7,807 | 8,687 | ||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | 147,500 | 147,500 | ||
Total intangible assets, net | 155,307 | 156,187 | $ 175,005 | $ 176,176 |
Trademarks | Tommy Bahama | ||||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | 110,700 | 110,700 | ||
Trademarks | Lilly Pulitzer | ||||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | 27,500 | 27,500 | ||
Trademarks | Southern Tide | ||||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | $ 9,300 | $ 9,300 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - By operating group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | $ 156,187 | $ 175,005 | $ 176,176 |
Impairment | (17,707) | ||
Amortization | (880) | (1,111) | (1,171) |
Balance at the end of the period | 155,307 | 156,187 | 175,005 |
Operating Segments | Tommy Bahama | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 110,700 | 110,700 | 110,700 |
Balance at the end of the period | 110,700 | 110,700 | 110,700 |
Operating Segments | Lilly Pulitzer | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 28,317 | 28,741 | 29,216 |
Amortization | (220) | (424) | (475) |
Balance at the end of the period | 28,097 | 28,317 | 28,741 |
Operating Segments | Southern Tide | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 11,322 | 29,110 | 29,401 |
Impairment | (17,500) | ||
Amortization | (289) | (288) | (291) |
Balance at the end of the period | 11,033 | 11,322 | 29,110 |
Operating Segments | Lanier Apparel | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 215 | 246 | |
Impairment | (207) | ||
Amortization | (8) | (31) | |
Balance at the end of the period | 215 | ||
Corporate and Other | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 5,848 | 6,239 | 6,613 |
Amortization | (371) | (391) | (374) |
Balance at the end of the period | $ 5,477 | $ 5,848 | $ 6,239 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Amortization expense (Details) - Maximum $ in Millions | Jan. 29, 2022USD ($) |
Expected amortization expense | |
Fiscal 2022 | $ 1 |
Fiscal 2023 | 1 |
Fiscal 2024 | 1 |
Fiscal 2025 | 1 |
Fiscal 2026 | $ 1 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 02, 2020 | Jan. 30, 2021 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the period | $ 66,578 | $ 23,910 | $ 66,578 | $ 66,621 | |
Impairment | (43,000) | $ 0 | 0 | (42,745) | 0 |
Other, including foreign currency | (41) | 77 | (43) | ||
Balance at the end of the period | 23,910 | 23,869 | 23,910 | 66,578 | |
Operating Segments | Tommy Bahama | |||||
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 711 | 788 | 711 | 754 | |
Other, including foreign currency | (41) | 77 | (43) | ||
Balance at the end of the period | 788 | 747 | 788 | 711 | |
Operating Segments | Lilly Pulitzer | |||||
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 19,522 | 19,522 | 19,522 | 19,522 | |
Balance at the end of the period | 19,522 | 19,522 | 19,522 | 19,522 | |
Operating Segments | Southern Tide | |||||
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 42,745 | 42,745 | 42,745 | ||
Impairment | (42,745) | ||||
Balance at the end of the period | 42,745 | ||||
Corporate and Other | |||||
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the period | $ 3,600 | 3,600 | 3,600 | 3,600 | |
Balance at the end of the period | $ 3,600 | $ 3,600 | $ 3,600 | $ 3,600 |
Debt (Details)
Debt (Details) - US Revolving Credit Agreement - USD ($) $ in Millions | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Debt | ||
Debt outstanding | $ 0 | $ 0 |
Maximum borrowing capacity | 325 | |
Letters of credit outstanding | 3 | |
Unused availability | $ 322 | |
Covenants, Other Restrictions and Prepayment Penalties | ||
Consecutive period during which if threshold is not reached then specified fixed charge coverage ratio must be maintained | 3 days | |
Threshold amount of unused availability for specified fixed charge coverage ratio | $ 23.5 | |
Threshold percentage of total revolving commitments for specified fixed charge coverage ratio | 10.00% | |
Trailing fiscal period used in calculating the fixed charge coverage ratio under financial covenants | 12 months | |
Period during which percentage of total revolving commitments are required to be maintained | 30 days | |
Minimum | ||
Covenants, Other Restrictions and Prepayment Penalties | ||
Fixed charge coverage ratio | 1 |
Leases and Other Commitments -
Leases and Other Commitments - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Leases | |||
Operating lease expense | $ 58 | $ 64 | $ 66 |
Variable lease expense | 35 | 30 | 34 |
Total lease expense | $ 93 | $ 93 | 99 |
Weighted average remaining lease term | 5 years | 6 years | |
Weighted average discount rate (as a percent) | 3.80% | 4.10% | |
Cash paid for lease liabilities | $ 70 | $ 63 | $ 70 |
Leases and Other Commitments _2
Leases and Other Commitments - Lease liability payment schedule (Details) $ in Thousands | Jan. 29, 2022USD ($) |
Required lease liability payments due | |
2022 | $ 68,726 |
2023 | 61,972 |
2024 | 49,354 |
2025 | 35,946 |
2026 | 27,928 |
After 2026 | 45,240 |
Total lease payments | 289,166 |
Less: Difference between discounted and undiscounted lease payments | 28,406 |
Present value of lease liabilities | $ 260,760 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - $ / shares shares in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Common Stock | ||
Common stock authorized for issuance (in shares) | 60 | 60 |
Common stock par value (in dollars per share) | $ 1 | $ 1 |
Common stock issued (in shares) | 17 | 17 |
Common stock outstanding (in shares) | 17 | 17 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Dividends | |||
Dividends paid | $ 27,536 | $ 16,844 | $ 25,215 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | |||
Mar. 28, 2022 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Dec. 07, 2021 | |
Share Repurchases | |||||
Repurchase of shares | $ 8 | $ 18 | $ 0 | ||
Purchase of shares from employees to cover employee tax liabilities of vesting of shares | 3 | $ 2 | $ 3 | ||
Amount authorized for repurchase | $ 150 | ||||
Amount remaining available for repurchase | $ 142 | ||||
Subsequent Event | |||||
Share Repurchases | |||||
Repurchase of shares (in shares) | 343,000 | ||||
Repurchase of shares | $ 29 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) - $ / shares shares in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Preferred Stock | ||
Preferred stock authorized (in shares) | 30 | 30 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Equity Compensation - Long-Term
Equity Compensation - Long-Term Stock Incentive Plan and Equity Compensation Expense (Details) shares in Millions, $ in Millions | 12 Months Ended |
Jan. 29, 2022USD ($)shares | |
Restricted shares and restricted share units | |
Equity Compensation | |
Unrecognized compensation expense related to unvested share-based restricted stock awards and the unvested restricted share units (in dollars) | $ | $ 11 |
Weighted average remaining life of the outstanding awards | 2 years |
Restricted shares and restricted share units | Minimum | |
Equity Compensation | |
Vesting period | 3 years |
Restricted shares and restricted share units | Maximum | |
Equity Compensation | |
Vesting period | 4 years |
Long-Term Stock Incentive Plan | Maximum | |
Equity Compensation | |
Share awards available for issuance | 1 |
Predecessor Plans to Long-Term Stock Incentive Plan | |
Equity Compensation | |
Share awards available for issuance | 0 |
Equity Compensation - Restricte
Equity Compensation - Restricted Share Activity (Details) - $ / shares | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Restricted shares | |||
Number of Shares | |||
Outstanding at beginning of fiscal year (in shares) | 308,369 | 251,924 | 257,890 |
Vested, including restricted shares repurchased from employees for employees' tax liability (in shares) | (81,283) | (114,003) | (87,252) |
Forfeited (in shares) | (31,052) | (3,415) | (4,439) |
Outstanding at end of fiscal year (in shares) | 238,889 | 308,369 | 251,924 |
Weighted-average grant date fair value | |||
Outstanding at beginning of fiscal year (in dollars per share) | $ 61 | $ 68 | $ 66 |
Vested, including restricted shares repurchased from employees for employees' tax liability (in dollars per share) | 77 | 56 | 71 |
Forfeited (in dollars per share) | 62 | 62 | 69 |
Outstanding at end of fiscal year (in dollars per share) | $ 61 | $ 61 | $ 68 |
Service-based restricted share awards | |||
Number of Shares | |||
Granted/issued (in shares) | 42,855 | 131,425 | 42,573 |
Weighted-average grant date fair value | |||
Granted (in dollars per share) | $ 89 | $ 40 | $ 76 |
Performance-based restricted share awards | |||
Number of Shares | |||
Granted/issued (in shares) | 42,438 | 43,152 | |
Weighted-average grant date fair value | |||
Granted (in dollars per share) | $ 76 | $ 79 |
Equity Compensation - Unvested
Equity Compensation - Unvested Restricted Shares (Details) - $ / shares | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Restricted shares | ||||
Equity Compensation | ||||
Number of share awards | 238,889 | 308,369 | 251,924 | 257,890 |
Grant date fair value (in dollars per share) | $ 61 | $ 61 | $ 68 | $ 66 |
Restricted Shares Vesting in April 2022 | ||||
Equity Compensation | ||||
Number of share awards | 83,324 | |||
Grant date fair value (in dollars per share) | $ 77 | |||
Restricted Shares Vesting in July 2023 | ||||
Equity Compensation | ||||
Number of share awards | 117,310 | |||
Grant date fair value (in dollars per share) | $ 41 | |||
Restricted Stock Vesting in May 2024 | ||||
Equity Compensation | ||||
Number of share awards | 38,255 | |||
Grant date fair value (in dollars per share) | $ 89 |
Equity Compensation - Restric_2
Equity Compensation - Restricted Share Unit Activity (Details) - Restricted share units - $ / shares | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Number of Shares | ||
Outstanding at beginning of fiscal year (in shares) | 83,345 | |
Granted/issued (in shares) | 56,750 | 83,345 |
Forfeited (in shares) | (9,655) | |
Outstanding at end of fiscal year (in shares) | 130,440 | 83,345 |
Weighted-average grant date fair value | ||
Outstanding at beginning of fiscal year (in dollars per share) | $ 50 | |
Granted (in dollars per share) | 117 | $ 50 |
Forfeited (in dollars per share) | 68 | |
Outstanding at end of fiscal year (in dollars per share) | $ 78 | $ 50 |
Comparative period | 3 years | |
Vesting period | 3 years | |
Minimum | ||
Weighted-average grant date fair value | ||
Shares earned as a percent of share target | 0.00% | |
Maximum | ||
Weighted-average grant date fair value | ||
Shares earned as a percent of share target | 200.00% |
Equity Compensation - Restric_3
Equity Compensation - Restricted Share Units (Details) - $ / shares | Jan. 29, 2022 | Jan. 30, 2021 |
Restricted share units | ||
Equity Compensation | ||
Number of share awards | 130,440 | 83,345 |
Grant date fair value (in dollars per share) | $ 78 | $ 50 |
TSR-based Restricted Share Units (at target), with a July 2023 vesting date | ||
Equity Compensation | ||
Number of share awards | 76,340 | |
Grant date fair value (in dollars per share) | $ 50 | |
TSR-based Restricted Share Units (at target), with a May 2024 vesting date | ||
Equity Compensation | ||
Number of share awards | 54,100 | |
Grant date fair value (in dollars per share) | $ 117 |
Equity Compensation - Employee
Equity Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Equity Compensation | |||
Purchase price of common stock as a percentage of closing market price | 85.00% | ||
Maximum | |||
Equity Compensation | |||
Common stock authorized for issuance (in shares) | 1 | ||
Stock compensation expense (in dollars) | $ 1 | $ 1 | $ 1 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Contribution Plans | |||
Expense under defined contribution and non-qualified deferred compensation plans | $ 4 | $ 1 | $ 5 |
Income Taxes - Earnings and tax
Income Taxes - Earnings and tax provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Earnings (loss) before income taxes: | |||
Domestic | $ 161,233 | $ (129,129) | $ 86,528 |
Foreign | 3,326 | 3,252 | 5,902 |
Earnings (loss) before income taxes | 164,559 | (125,877) | 92,430 |
Current: | |||
Federal | 24,998 | (11,498) | 18,565 |
State | 3,780 | (1,060) | 5,459 |
Foreign | 409 | 735 | 1,650 |
Total current | 29,187 | (11,823) | 25,674 |
Deferred-Domestic | 4,155 | (17,780) | (1,870) |
Deferred-Foreign | (104) | (582) | 133 |
Income taxes | $ 33,238 | $ (30,185) | $ 23,937 |
Income Taxes - Rate reconciliat
Income Taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliations of the United States federal statutory income tax rates and effective tax rates | |||
Statutory federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
State income taxes-net of federal income tax benefit (as a percent) | 3.70% | 3.60% | 4.40% |
Impact of foreign operations rate differential (as a percent) | 0.10% | (0.20%) | 0.20% |
Impairment of non-deductible Southern Tide goodwill (as a percent) | (3.70%) | ||
Change in reserve for uncertain tax positions (as a percent) | (1.00%) | (2.50%) | |
Rate benefit from NOL carryback to pre-U.S. Tax Reform periods due to the CARES Act (as a percent) | 5.50% | ||
Utilization of capital loss benefit for the gain on sale of our interest in an unconsolidated entity (as a percent) | (2.90%) | ||
Other, net (as a percent) | (0.70%) | 0.30% | 0.30% |
Effective rate for continuing operations (as a percent) | 20.20% | 24.00% | 25.90% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Deferred Tax Assets: | ||
Inventories | $ 16,947 | $ 16,338 |
Accrued compensation and benefits | 9,058 | 8,759 |
Receivable allowances and reserves | 2,814 | 2,109 |
Operating lease liabilities | 59,711 | 73,917 |
Operating loss and other carry-forwards | 3,675 | 4,617 |
Other, net | 3,529 | 3,686 |
Deferred tax assets | 95,734 | 109,426 |
Deferred Tax Liabilities: | ||
Operating lease assets | (51,909) | (66,341) |
Depreciation and amortization | (12,427) | (9,682) |
Acquired intangible assets | (26,792) | (25,047) |
Deferred tax liabilities | (91,128) | (101,070) |
Valuation allowance | (6,050) | (5,668) |
Net deferred tax asset | $ 2,688 | |
Net deferred tax liability | $ (1,444) |
Income Taxes - Carry forwards (
Income Taxes - Carry forwards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Income Taxes | ||
Operating loss carry-forwards expiration period | 20 years | |
Valuation allowance | $ (6,050) | $ (5,668) |
Income Taxes - Balance sheet (D
Income Taxes - Balance sheet (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Assets: | ||
Deferred tax assets | $ 1,467 | $ 2,688 |
Liabilities | ||
Deferred tax liabilities | (2,911) | |
Net deferred tax asset | $ 2,688 | |
Net deferred tax liability | $ (1,444) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of changes in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliation of changes in gross amount of unrecognized tax benefits | |||
Balance of unrecognized tax benefits at beginning of year | $ 5,261 | $ 1,212 | $ 975 |
Increase related to prior period tax positions | 10 | 303 | |
Decrease related to prior period tax positions | (1) | (27) | |
Increase related to current period tax positions | 527 | 3,960 | 287 |
Decrease related to settlements with taxing authorities | (2,305) | ||
Decrease related to lapse of statute of limitations | (103) | (213) | (23) |
Balance of unrecognized tax benefits at end of year | 3,390 | 5,261 | 1,212 |
Expected decrease in gross unrecognized tax benefits during next twelve months | 2,000 | ||
Maximum | |||
Reconciliation of changes in gross amount of unrecognized tax benefits | |||
Interest and penalties recognized associated with unrecognized tax positions | $ 1,000 | $ 1,000 | $ 1,000 |
Lanier Apparel Exit (Details)
Lanier Apparel Exit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Restructuring | |||
Gain on sale of property | $ 2,669 | ||
Future lease amounts | 70,000 | $ 63,000 | $ 70,000 |
Lanier Apparel Exit Plan | |||
Restructuring | |||
Pre-tax exit costs | (2,000) | 13,000 | |
Future lease amounts | 3,000 | ||
Lanier Apparel Exit Plan | Inventory markdowns | |||
Restructuring | |||
Pre-tax exit costs | (4,000) | 6,000 | |
Lanier Apparel Exit Plan | Employee severance and retention | |||
Restructuring | |||
Pre-tax exit costs | 2,000 | 3,000 | |
Lanier Apparel Exit Plan | Termination of license agreements | |||
Restructuring | |||
Pre-tax exit costs | 2,000 | ||
Lanier Apparel Exit Plan | Operating lease asset impairment | |||
Restructuring | |||
Pre-tax exit costs | 3,000 | ||
Lanier Apparel Exit Plan | Fixed asset impairment | |||
Restructuring | |||
Pre-tax exit costs | 1,000 | ||
Lanier Apparel Exit Plan | Facility closing | |||
Restructuring | |||
Pre-tax exit costs | 1,000 | $ 1,000 | |
Gain on sale of property | $ 3,000 |
Tommy Bahama Japan Charges (Det
Tommy Bahama Japan Charges (Details) - Tommy Bahama Japan Operations Restructure - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Restructuring | |||
Business exit costs | $ 0 | $ 0 | $ 3 |
Contract Termination | |||
Restructuring | |||
Business exit costs | 1 | ||
Foreign currency charges | |||
Restructuring | |||
Business exit costs | $ 1 |
SCHEDULE II Valuation and Qua_2
SCHEDULE II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Accounts receivable reserves | |||
Deducted from asset accounts: | |||
Balance at Beginning of Period | $ 6,418 | $ 8,766 | $ 6,646 |
Additions Charged to Costs and Expenses | (1,140) | 5,629 | 15,802 |
Deductions | (1,866) | (7,977) | (13,682) |
Balance at End of Period | 3,412 | 6,418 | 8,766 |
Allowance for doubtful accounts | |||
Deducted from asset accounts: | |||
Balance at Beginning of Period | 2,580 | 555 | 661 |
Additions Charged to Costs and Expenses | (1,190) | 4,052 | 88 |
Deductions | (79) | (2,027) | (194) |
Balance at End of Period | $ 1,311 | $ 2,580 | $ 555 |