Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2023 | Aug. 28, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 29, 2023 | |
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 | |
Trading Symbol | OXM | |
Security Exchange Name | NYSE | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,620,354 | |
Entity Central Index Key | 0000075288 | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 |
Current Assets | |||
Cash and cash equivalents | $ 7,790 | $ 8,826 | $ 31,269 |
Short-term investments | 154,754 | ||
Receivables, net | 55,583 | 43,986 | 48,691 |
Inventories, net | 161,866 | 220,138 | 135,483 |
Income tax receivable | 19,401 | 19,440 | 19,743 |
Prepaid expenses and other current assets | 37,740 | 38,073 | 31,308 |
Total Current Assets | 282,380 | 330,463 | 421,248 |
Property and equipment, net | 188,004 | 177,584 | 150,887 |
Intangible assets, net | 277,114 | 283,845 | 154,853 |
Goodwill | 123,079 | 120,498 | 23,861 |
Operating lease assets | 241,452 | 240,690 | 179,217 |
Other assets, net | 37,829 | 35,585 | 27,136 |
Total Assets | 1,149,858 | 1,188,665 | 957,202 |
Current Liabilities | |||
Accounts payable | 76,216 | 94,611 | 76,974 |
Accrued compensation | 20,481 | 35,022 | 28,779 |
Current portion of operating lease liabilities | 67,676 | 73,865 | 53,119 |
Accrued expenses and other liabilities | 68,188 | 66,141 | 63,768 |
Total Current Liabilities | 232,561 | 269,639 | 222,640 |
Long-term debt | 48,472 | 119,011 | |
Non-current portion of operating lease liabilities | 219,207 | 220,709 | 180,092 |
Other non-current liabilities | 20,402 | 20,055 | 19,200 |
Deferred income taxes | 4,587 | 2,981 | 1,254 |
Shareholders' Equity | |||
Common stock, $1.00 par value per share | 15,630 | 15,774 | 15,960 |
Additional paid-in capital | 170,789 | 172,175 | 166,139 |
Retained earnings | 440,319 | 370,145 | 355,037 |
Accumulated other comprehensive loss | (2,109) | (1,824) | (3,120) |
Total Shareholders' Equity | 624,629 | 556,270 | 534,016 |
Total Liabilities and Shareholders' Equity | $ 1,149,858 | $ 1,188,665 | $ 957,202 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 420,319 | $ 363,430 | $ 840,416 | $ 716,011 |
Cost of goods sold | 151,590 | 131,281 | 296,558 | 257,485 |
Gross profit | 268,729 | 232,149 | 543,858 | 458,526 |
SG&A | 205,231 | 163,135 | 408,380 | 320,547 |
Royalties and other operating income | 4,176 | 6,357 | 12,497 | 13,370 |
Operating income | 67,674 | 75,371 | 147,975 | 151,349 |
Interest expense, net | 1,297 | 274 | 3,639 | 516 |
Earnings before income taxes | 66,377 | 75,097 | 144,336 | 150,833 |
Income tax expense | 14,924 | 18,485 | 34,345 | 36,813 |
Net earnings, basic | $ 51,453 | $ 56,612 | 109,991 | 114,020 |
Net earnings, diluted | $ 109,991 | $ 114,020 | ||
Net earnings per share: | ||||
Basic (in dollars per share) | $ 3.31 | $ 3.56 | $ 7.06 | $ 7.07 |
Diluted (in dollars per share) | $ 3.22 | $ 3.49 | $ 6.86 | $ 6.94 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,550 | 15,919 | 15,589 | 16,118 |
Diluted (in shares) | 15,979 | 16,238 | 16,025 | 16,430 |
Dividends declared per share (in dollars per share) | $ 0.65 | $ 0.55 | $ 1.30 | $ 1.10 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net earnings | $ 51,453 | $ 56,612 | $ 109,991 | $ 114,020 |
Other comprehensive income (loss), net of taxes: | ||||
Net foreign currency translation adjustment | 319 | (125) | (285) | 352 |
Comprehensive income | $ 51,772 | $ 56,487 | $ 109,706 | $ 114,372 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Net earnings | $ 109,991 | $ 114,020 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation | 23,128 | 20,358 |
Amortization of intangible assets | 7,331 | 454 |
Equity compensation expense | 7,508 | 5,252 |
Gain on sale of assets | (1,756) | |
Amortization and write-off of deferred financing costs | 368 | 172 |
Deferred income taxes | 1,451 | (1,657) |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (11,611) | (15,322) |
Inventories, net | 57,947 | (17,867) |
Income tax receivable | 39 | (15) |
Prepaid expenses and other current assets | 360 | (11,541) |
Current liabilities | (39,471) | (939) |
Other balance sheet changes | (2,785) | (2,286) |
Cash provided by operating activities | 152,500 | 90,629 |
Cash Flows From Investing Activities: | ||
Acquisitions, net of cash acquired | (3,320) | |
Purchases of property and equipment | (31,410) | (19,746) |
Purchases of short-term investments | (70,000) | |
Proceeds from short-term investments | 80,000 | |
Proceeds from the sale of property, plant and equipment | 2,125 | |
Other investing activities | (33) | (50) |
Cash used in investing activities | (32,638) | (9,796) |
Cash Flows From Financing Activities: | ||
Repayment of revolving credit arrangements | (334,225) | |
Proceeds from revolving credit arrangements | 263,686 | |
Deferred financing costs paid | (1,661) | |
Repurchase of common stock | (18,987) | (72,680) |
Proceeds from issuance of common stock | 1,090 | 882 |
Repurchase of equity awards for employee tax withholding liabilities | (9,941) | (3,166) |
Cash dividends paid | (20,843) | (17,829) |
Other financing activities | (2,010) | |
Cash used in financing activities | (120,881) | (94,803) |
Net change in cash and cash equivalents | (1,019) | (13,970) |
Effect of foreign currency translation on cash and cash equivalents | (17) | 380 |
Cash and cash equivalents at the beginning of year | 8,826 | 44,859 |
Cash and cash equivalents at the end of period | $ 7,790 | $ 31,269 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 29, 2023 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation: The preparation of our unaudited condensed 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. The significant accounting policies applied during the interim periods presented are consistent with the significant accounting policies described in our Fiscal 2022 Form 10-K. No recently issued guidance adopted in Fiscal 2023 had a material impact on our consolidated financial statements upon adoption or is expected to have a material impact in future periods. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Fiscal 2022 Form 10-K. Recent accounting pronouncements pending adoption are either not applicable or not expected to have a material impact on our consolidated financial statements. |
Operating Groups
Operating Groups | 6 Months Ended |
Jul. 29, 2023 | |
Operating Groups | |
Operating Groups | 2. Operating Group Information: Corporate and Other is a reconciling category for reporting purposes and includes our corporate offices, substantially all financing activities, the elimination of any sales between operating groups, any other items that are not allocated to the operating groups, including LIFO inventory accounting adjustments, and the operations of our Lyons, Georgia distribution center and our Oxford America business, which we exited in Fiscal 2022. The accounting policies of the reportable operating segments are the same as those described in our Fiscal 2022 Form 10-K. The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other. Second Quarter First Half Fiscal 2023 Fiscal 2022 Fiscal 2023 Fiscal 2022 Net sales Tommy Bahama $ 245,443 $ 243,965 $ 484,878 $ 472,032 Lilly Pulitzer 91,349 88,665 188,799 180,710 Johnny Was (1) 52,023 — 101,514 — Emerging Brands 31,580 29,913 65,571 61,676 Corporate and Other (76) 887 (346) 1,593 Consolidated net sales $ 420,319 $ 363,430 $ 840,416 $ 716,011 Depreciation and amortization Tommy Bahama $ 6,073 $ 6,916 $ 12,057 $ 13,534 Lilly Pulitzer 3,979 3,121 7,371 6,096 Johnny Was (1) 4,717 — 9,909 — Emerging Brands 460 393 885 752 Corporate and Other 58 192 237 430 Consolidated depreciation and amortization $ 15,287 $ 10,622 $ 30,459 $ 20,812 Operating income (loss) Tommy Bahama $ 51,037 $ 58,918 $ 106,558 $ 111,524 Lilly Pulitzer 18,566 21,492 43,082 47,670 Johnny Was (1) 3,847 — 6,331 — Emerging Brands 3,028 3,991 6,941 11,727 Corporate and Other (8,804) (9,030) (14,937) (19,572) Consolidated operating income 67,674 75,371 $ 147,975 $ 151,349 Interest expense, net 1,297 274 3,639 516 Earnings before income taxes $ 66,377 $ 75,097 $ 144,336 $ 150,833 July 29, 2023 January 28, 2023 July 30, 2022 Assets Tommy Bahama (2) $ 548,893 $ 569,833 $ 524,765 Lilly Pulitzer (3) 201,310 211,119 198,681 Johnny Was (1) 330,503 334,603 — Emerging Brands (4) 92,675 91,306 76,368 Corporate and Other (5) (23,523) (18,196) 157,388 Consolidated Total Assets $ 1,149,858 $ 1,188,665 $ 957,202 (1) The Johnny Was business was acquired on September 19, 2022. (2) Increase in Tommy Bahama total assets from July 30, 2022, includes increases in operating lease assets and inventories. (3) Increase in Lilly Pulitzer total assets from July 30, 2022, includes increases in property and equipment partially offset by decreases in operating lease assets. (4) Increase in Emerging Brands total assets from July 30, 2022, includes increases in operating lease assets, inventories, property and equipment and other non-current assets. (5) Decrease in Corporate and Other total assets from July 30, 2022, includes reductions in short-term investments and cash and cash equivalents, which were used to fund a portion of the acquisition purchase price for Johnny Was. The tables below quantify net sales, for each operating group and in total (in thousands), and the percentage of net sales by distribution channel for each operating group and in total, for each period presented. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding. Second Quarter Fiscal 2023 Net Sales Retail E-commerce Food & Beverage Wholesale Other Tommy Bahama $ 245,443 46 % 28 % 12 % 14 % — % Lilly Pulitzer 91,349 36 % 50 % — % 14 % — % Johnny Was 52,023 38 % 43 % — % 19 % — % Emerging Brands 31,580 12 % 48 % — % 40 % — % Corporate and Other (76) — % — % — % — % NM % Total $ 420,319 41 % 36 % 7 % 16 % — % Second Quarter Fiscal 2022 Net Sales Retail E-commerce Food & Beverage Wholesale Other Tommy Bahama $ 243,965 48 % 28 % 11 % 13 % — % Lilly Pulitzer 88,665 40 % 43 % — % 17 % — % Johnny Was (1) — — % — % — — % — % Emerging Brands 29,913 7 % 46 % — % 47 % — % Corporate and Other 887 — % — % — % — % NM % Total $ 363,430 42 % 33 % 8 % 17 % — % First Half 2023 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 484,878 45 % 24 % 13 % 18 % — % Lilly Pulitzer 188,799 35 % 49 % — % 16 % — % Johnny Was 101,514 37 % 40 % — % 23 % — % Emerging Brands 65,571 10 % 42 % — % 48 % — % Corporate and Other (346) — % — % — % — % NM % Consolidated net sales $ 840,416 39 % 33 % 7 % 21 % — % First Half 2022 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 472,032 47 % 24 % 12 % 17 % — % Lilly Pulitzer 180,710 37 % 43 % — % 20 % — % Johnny Was (1) — — % — % — % — % — % Emerging Brands 61,676 6 % 38 % — % 56 % — % Corporate and Other 1,593 — % — % — % — % NM % Consolidated net sales $ 716,011 41 % 30 % 8 % 21 % — % (1) The Johnny Was business was acquired on September 19, 2022. |
Revenue Recognition and Receiva
Revenue Recognition and Receivables | 6 Months Ended |
Jul. 29, 2023 | |
Revenue Recognition and Receivables | |
Revenue Recognition and Receivables | 3. Revenue Recognition and Receivables: The table below quantifies net sales by distribution channel (in thousands) for each period presented. Second Quarter First Half Fiscal 2023 Fiscal 2022 Fiscal 2023 Fiscal 2022 Retail $ 170,137 $ 153,976 $ 327,742 $ 290,056 E-commerce 152,264 118,816 278,028 215,289 Food & Beverage 29,503 27,291 61,535 58,176 Wholesale 68,312 62,799 173,141 151,415 Other 103 548 (30) 1,075 Net sales $ 420,319 $ 363,430 $ 840,416 $ 716,011 An estimated sales return liability of $14 million, $12 million and $14 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively. As of July 29, 2023, January 28, 2023, and July 30, 2022, prepaid expenses and other current assets included $4 million, $4 million and $5 million, respectively, relating to the estimated value of inventory for expected direct to consumer and wholesale sales returns. Substantially all amounts recognized in receivables, net represent trade receivables related to contracts with customers. In the ordinary course of our wholesale operations, we offer discounts, allowances and cooperative advertising support to and accept returns from certain of our wholesale customers for certain products. As of July 29, 2023, January 28, 2023, and July 30, 2022, reserve balances recorded as a reduction to receivables related to these items were $3 million, $4 million and $4 million, respectively. As of July 29, 2023, January 28, 2023, and July 30, 2022, our provision for credit losses related to receivables included in our consolidated balance sheets was $1 million, $1 million and $1 million, respectively. 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 sheet and totaled $18 million, $19 million and $15 million as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively. |
Leases and Other Commitments
Leases and Other Commitments | 6 Months Ended |
Jul. 29, 2023 | |
Leases and Other Commitments | |
Leases and Other Commitments | 4. Leases: As of July 29, 2023, the stated lease liability payments for the fiscal years specified below were as follows (in thousands): Operating lease Remainder of 2023 $ 39,686 2024 72,199 2025 55,324 2026 48,295 2027 34,751 2028 28,479 After 2028 53,276 Total lease payments $ 332,010 Less: Difference between discounted and undiscounted lease payments 45,127 Present value of lease liabilities $ 286,883 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 29, 2023 | |
Income Taxes | |
Income Taxes | 5. Income Taxes: Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”) into law. The IRA implemented a corporate alternative minimum tax, subject to certain thresholds being met, and a 1% excise tax on share repurchases effective beginning January 1, 2023. We do not currently expect that the tax-related provisions of the IRA will have a material effect on our reported results, cash flows or financial position. For the First Half of Fiscal 2023, excise taxes included as part of the price of common stock repurchased during the period did not have a material effect on our reported results. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 29, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | 6. Shareholders’ Equity: We also repurchase shares from our employees to cover employee tax liabilities related to the vesting of shares of our common stock. During the First Half of Fiscal 2023 and the First Half of Fiscal 2022, we repurchased $10 million and $3 million of shares, respectively, from our employees to cover employee tax liabilities related to the vesting of shares of our common stock. The following tables detail the changes (in thousands) in our common stock, additional paid-in capital ("APIC"), retained earnings and accumulated other comprehensive (loss) income ("AOCI"), for each period presented. Fiscal 2022 Common Stock APIC Retained Earnings AOCI Total January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 Comprehensive income — — 57,408 477 57,885 Shares issued under equity plans 5 387 — — 392 Compensation expense for equity awards — 2,725 — — 2,725 Repurchase of shares (526) (3,131) (42,375) — (46,032) Dividends declared — — (9,214) — (9,214) April 30, 2022 $ 16,284 $ 163,137 $ 336,994 $ (2,995) $ 513,420 Comprehensive income — — 56,612 (125) 56,487 Shares issued under equity plans 15 475 — — 490 Compensation expense for equity awards — 2,527 — — 2,527 Repurchase of shares (339) — (29,475) — (29,814) Dividends declared — — (9,094) — (9,094) July 30, 2022 $ 15,960 $ 166,139 $ 355,037 $ (3,120) $ 534,016 Comprehensive income — — 19,666 (450) 19,216 Shares issued under equity plans 1 379 — — 380 Compensation expense for equity awards — 2,545 — — 2,545 Repurchase of shares (146) — (13,977) — (14,123) Dividends declared — — (8,995) — (8,995) October 29, 2022 $ 15,815 $ 169,063 $ 351,731 $ (3,570) $ 533,039 Comprehensive income — — 32,049 1,746 33,795 Shares issued under equity plans 5 332 — — 337 Compensation expense for equity awards — 2,780 — — 2,780 Repurchase of shares (46) — (4,824) — (4,870) Dividends declared — — (8,811) — (8,811) January 28, 2023 $ 15,774 $ 172,175 $ 370,145 $ (1,824) $ 556,270 First Half Fiscal 2023 Common Stock APIC Retained Earnings AOCI Total January 28, 2023 $ 15,774 $ 172,175 $ 370,145 $ (1,824) $ 556,270 Comprehensive income — — 58,538 (604) 57,934 Shares issued under equity plans 6 596 — — 602 Compensation expense for equity awards — 3,259 — — 3,259 Repurchase of shares — — — — — Dividends declared — — (10,640) — (10,640) April 29, 2023 $ 15,780 $ 176,030 $ 418,043 $ (2,428) $ 607,425 Comprehensive income — — 51,453 319 51,772 Shares issued under equity plans 130 358 — — 488 Compensation expense for equity awards — 4,249 — — 4,249 Repurchase of shares (280) (9,848) (18,800) — (28,928) Dividends declared — — (10,377) — (10,377) July 29, 2023 $ 15,630 $ 170,789 $ 440,319 $ (2,109) $ 624,629 Long-Term Stock Incentive Plan and Equity Compensation Expense In recent years, we have granted a combination of service-based restricted share awards and awards based on relative total shareholder return ("TSR") to certain select employees. Service-Based Restricted Share Awards The table below summarizes the service-based restricted share awards, including both restricted shares and restricted share units, activity for the First Half of Fiscal 2023: First Half Fiscal 2023 Weighted- Number of average Shares or grant date Units fair value Awards outstanding at beginning of year 212,945 $ 64 Awards granted 58,055 $ 115 Awards vested, including awards repurchased from employees for employees’ tax liability (111,095) $ 41 Awards forfeited (1,070) $ 62 Awards outstanding on July 29, 2023 158,835 $ 99 TSR-based Restricted Share Units The table below summarizes the TSR-based restricted share unit activity at target for the First Half of Fiscal 2023: First Half Fiscal 2023 Weighted- average Number of grant date Share Units fair value TSR-based awards outstanding at beginning of year 196,040 $ 89 TSR-based awards granted 74,605 $ 153 TSR-based restricted shares earned and vested, including restricted share units repurchased from employees for employees’ tax liability (76,340) $ 50 TSR-based awards forfeited — $ — TSR-based awards outstanding on July 29, 2023 194,305 $ 129 |
Business Combinations
Business Combinations | 6 Months Ended |
Jul. 29, 2023 | |
Business Combinations | |
Business Combinations | 7. Business Combinations: The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands): Provisional Amounts at January 28, 2023 Measurement Period Adjustments Provisional Amounts at July 29, 2023 Cash and cash equivalents $ 7,296 $ — $ 7,296 Receivables 8,777 — 8,777 Inventories 23,434 — 23,434 Prepaid expenses and other assets 6,353 — 6,353 Property and equipment 21,108 — 21,108 Intangible assets 134,640 — 134,640 Goodwill 96,637 1,403 98,040 Operating lease assets 54,859 — 54,859 Accounts payable, accrued expenses and other liabilities (34,777) 920 (33,857) Non-current portion of operating lease liabilities (47,009) — (47,009) Purchase price $ 271,318 $ 2,323 $ 273,641 As of July 29, 2023, we considered these amounts to be provisional because we were still in the process of reviewing information to support the valuations of the assets acquired and liabilities assumed. We made measurement-period adjustments, as shown in the table above, that increased the amount of provisional goodwill by $1 million. We expect that goodwill will be deductible for income tax purposes. Intangible assets allocated in connection with our preliminary purchase price allocation consisted of the following (in thousands): Johnny Was Useful life acquisition Finite lived intangible assets acquired, primarily consisting of customer relationships 8 $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 The following unaudited pro forma information presented below (in thousands, except per share data) shows the results of our operations for the Second Quarter of Fiscal 2022 and First Half of 2022 as if the acquisition of Johnny Was had occurred at the beginning of Fiscal 2021. The information presented below is for illustrative purposes only, is not indicative of results that would have been achieved if the acquisition had occurred as of that date and is not intended to be a projection of future results of operations. The following unaudited pro forma information has been prepared from historical financial statements for Johnny Was and us for the periods presented, including without limitation, purchase accounting adjustments, but excluding any seller specific management/advisory or similar expenses and any synergies or operating cost reductions that may be achieved from the combined operations in the future. Second Quarter Fiscal 2022 First Half Fiscal 2022 Actual Pro Forma Actual Pro Forma Net sales $ 363,430 $ 413,657 $ 716,011 $ 819,831 Earnings before income taxes $ 75,097 $ 80,513 $ 150,833 $ 162,256 Net earnings $ 56,612 $ 60,674 $ 114,020 $ 122,588 Earnings per share: Basic $ 3.56 $ 3.81 $ 7.07 $ 7.61 Diluted $ 3.49 $ 3.74 $ 6.94 $ 7.46 |
Debt
Debt | 6 Months Ended |
Jul. 29, 2023 | |
Debt | |
Debt | 8. Debt: corporate purposes. The Revolving Credit Agreement amended and restated our Fourth Amended and Restated Credit Agreement (the “Prior Credit Agreement”). The Revolving Credit Agreement (1) extended the maturity of the facility from July 2024 to March 2028 and (2) modified certain provisions of the agreement. In other non-current assets, we capitalized debt issuance costs of $2 million in connection with commitments upon entering into the Revolving Credit Agreement. Pursuant to the Revolving Credit Agreement, the interest rate applicable to our borrowings under the Revolving Credit Agreement are based on either the Term Secured Overnight Financing Rate plus an applicable margin of 135 to 185 basis points or prime plus an applicable margin of 25 to 75 basis points. The 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 (weighted average interest rate of 8% as of July 29, 2023), 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 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. We have issued standby letters of credit of $6 million in the aggregate under the Revolving Credit Agreement as of July 29, 2023. Outstanding letters of credit under the Revolving Credit Agreement reduce the amount of borrowings available to us. As of July 29, 2023, we had $48 million of borrowings outstanding and $266 million in unused availability under the Revolving Credit Agreement. Under the Prior Credit Agreement as of January 28, 2023, and July 30, 2022, we had $119 million and $0 million of borrowings outstanding, and $199 million and $322 million of unused availability, respectively. Compliance with Covenants The 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 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 Revolving Credit Agreement contains a financial covenant that applies only if excess availability under the agreement for three 12 30 We believe that the affirmative covenants, negative covenants, financial covenants and other restrictions under the Revolving Credit Agreement are customary for those included in similar facilities entered into at the time we amended the Revolving Credit Agreement. During Fiscal 2023 and as of July 29, 2023, no financial covenant testing was required pursuant to our Revolving Credit Agreement, or the Prior Credit Agreement, as applicable, as the minimum availability threshold was met at all times. As of July 29, 2023, we were compliant with all applicable covenants related to the Revolving Credit Agreement. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 29, 2023 | |
Subsequent Event | |
Subsequent Event | 9. Subsequent Event: |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 29, 2023 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation: The preparation of our unaudited condensed 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. |
Recently Issued Accounting Standards Applicable to Future Periods | The significant accounting policies applied during the interim periods presented are consistent with the significant accounting policies described in our Fiscal 2022 Form 10-K. No recently issued guidance adopted in Fiscal 2023 had a material impact on our consolidated financial statements upon adoption or is expected to have a material impact in future periods. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Fiscal 2022 Form 10-K. Recent accounting pronouncements pending adoption are either not applicable or not expected to have a material impact on our consolidated financial statements. |
Operating Groups (Tables)
Operating Groups (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Operating Groups | |
Schedule of financial information by operating group | The table below presents certain financial information (in thousands) about our operating groups, as well as Corporate and Other. Second Quarter First Half Fiscal 2023 Fiscal 2022 Fiscal 2023 Fiscal 2022 Net sales Tommy Bahama $ 245,443 $ 243,965 $ 484,878 $ 472,032 Lilly Pulitzer 91,349 88,665 188,799 180,710 Johnny Was (1) 52,023 — 101,514 — Emerging Brands 31,580 29,913 65,571 61,676 Corporate and Other (76) 887 (346) 1,593 Consolidated net sales $ 420,319 $ 363,430 $ 840,416 $ 716,011 Depreciation and amortization Tommy Bahama $ 6,073 $ 6,916 $ 12,057 $ 13,534 Lilly Pulitzer 3,979 3,121 7,371 6,096 Johnny Was (1) 4,717 — 9,909 — Emerging Brands 460 393 885 752 Corporate and Other 58 192 237 430 Consolidated depreciation and amortization $ 15,287 $ 10,622 $ 30,459 $ 20,812 Operating income (loss) Tommy Bahama $ 51,037 $ 58,918 $ 106,558 $ 111,524 Lilly Pulitzer 18,566 21,492 43,082 47,670 Johnny Was (1) 3,847 — 6,331 — Emerging Brands 3,028 3,991 6,941 11,727 Corporate and Other (8,804) (9,030) (14,937) (19,572) Consolidated operating income 67,674 75,371 $ 147,975 $ 151,349 Interest expense, net 1,297 274 3,639 516 Earnings before income taxes $ 66,377 $ 75,097 $ 144,336 $ 150,833 July 29, 2023 January 28, 2023 July 30, 2022 Assets Tommy Bahama (2) $ 548,893 $ 569,833 $ 524,765 Lilly Pulitzer (3) 201,310 211,119 198,681 Johnny Was (1) 330,503 334,603 — Emerging Brands (4) 92,675 91,306 76,368 Corporate and Other (5) (23,523) (18,196) 157,388 Consolidated Total Assets $ 1,149,858 $ 1,188,665 $ 957,202 (1) The Johnny Was business was acquired on September 19, 2022. (2) Increase in Tommy Bahama total assets from July 30, 2022, includes increases in operating lease assets and inventories. (3) Increase in Lilly Pulitzer total assets from July 30, 2022, includes increases in property and equipment partially offset by decreases in operating lease assets. (4) Increase in Emerging Brands total assets from July 30, 2022, includes increases in operating lease assets, inventories, property and equipment and other non-current assets. (5) Decrease in Corporate and Other total assets from July 30, 2022, includes reductions in short-term investments and cash and cash equivalents, which were used to fund a portion of the acquisition purchase price for Johnny Was. |
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. Second Quarter Fiscal 2023 Net Sales Retail E-commerce Food & Beverage Wholesale Other Tommy Bahama $ 245,443 46 % 28 % 12 % 14 % — % Lilly Pulitzer 91,349 36 % 50 % — % 14 % — % Johnny Was 52,023 38 % 43 % — % 19 % — % Emerging Brands 31,580 12 % 48 % — % 40 % — % Corporate and Other (76) — % — % — % — % NM % Total $ 420,319 41 % 36 % 7 % 16 % — % Second Quarter Fiscal 2022 Net Sales Retail E-commerce Food & Beverage Wholesale Other Tommy Bahama $ 243,965 48 % 28 % 11 % 13 % — % Lilly Pulitzer 88,665 40 % 43 % — % 17 % — % Johnny Was (1) — — % — % — — % — % Emerging Brands 29,913 7 % 46 % — % 47 % — % Corporate and Other 887 — % — % — % — % NM % Total $ 363,430 42 % 33 % 8 % 17 % — % First Half 2023 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 484,878 45 % 24 % 13 % 18 % — % Lilly Pulitzer 188,799 35 % 49 % — % 16 % — % Johnny Was 101,514 37 % 40 % — % 23 % — % Emerging Brands 65,571 10 % 42 % — % 48 % — % Corporate and Other (346) — % — % — % — % NM % Consolidated net sales $ 840,416 39 % 33 % 7 % 21 % — % First Half 2022 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 472,032 47 % 24 % 12 % 17 % — % Lilly Pulitzer 180,710 37 % 43 % — % 20 % — % Johnny Was (1) — — % — % — % — % — % Emerging Brands 61,676 6 % 38 % — % 56 % — % Corporate and Other 1,593 — % — % — % — % NM % Consolidated net sales $ 716,011 41 % 30 % 8 % 21 % — % (1) The Johnny Was business was acquired on September 19, 2022. |
Revenue Recognition and Recei_2
Revenue Recognition and Receivables (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Revenue Recognition and Receivables | |
Schedule of net sales by distribution channel | The table below quantifies net sales by distribution channel (in thousands) for each period presented. Second Quarter First Half Fiscal 2023 Fiscal 2022 Fiscal 2023 Fiscal 2022 Retail $ 170,137 $ 153,976 $ 327,742 $ 290,056 E-commerce 152,264 118,816 278,028 215,289 Food & Beverage 29,503 27,291 61,535 58,176 Wholesale 68,312 62,799 173,141 151,415 Other 103 548 (30) 1,075 Net sales $ 420,319 $ 363,430 $ 840,416 $ 716,011 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Leases and Other Commitments | |
Schedule of lease liability payments | As of July 29, 2023, the stated lease liability payments for the fiscal years specified below were as follows (in thousands): Operating lease Remainder of 2023 $ 39,686 2024 72,199 2025 55,324 2026 48,295 2027 34,751 2028 28,479 After 2028 53,276 Total lease payments $ 332,010 Less: Difference between discounted and undiscounted lease payments 45,127 Present value of lease liabilities $ 286,883 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Equity Compensation | |
Schedule of stockholders equity | The following tables detail the changes (in thousands) in our common stock, additional paid-in capital ("APIC"), retained earnings and accumulated other comprehensive (loss) income ("AOCI"), for each period presented. Fiscal 2022 Common Stock APIC Retained Earnings AOCI Total January 29, 2022 $ 16,805 $ 163,156 $ 331,175 $ (3,472) $ 507,664 Comprehensive income — — 57,408 477 57,885 Shares issued under equity plans 5 387 — — 392 Compensation expense for equity awards — 2,725 — — 2,725 Repurchase of shares (526) (3,131) (42,375) — (46,032) Dividends declared — — (9,214) — (9,214) April 30, 2022 $ 16,284 $ 163,137 $ 336,994 $ (2,995) $ 513,420 Comprehensive income — — 56,612 (125) 56,487 Shares issued under equity plans 15 475 — — 490 Compensation expense for equity awards — 2,527 — — 2,527 Repurchase of shares (339) — (29,475) — (29,814) Dividends declared — — (9,094) — (9,094) July 30, 2022 $ 15,960 $ 166,139 $ 355,037 $ (3,120) $ 534,016 Comprehensive income — — 19,666 (450) 19,216 Shares issued under equity plans 1 379 — — 380 Compensation expense for equity awards — 2,545 — — 2,545 Repurchase of shares (146) — (13,977) — (14,123) Dividends declared — — (8,995) — (8,995) October 29, 2022 $ 15,815 $ 169,063 $ 351,731 $ (3,570) $ 533,039 Comprehensive income — — 32,049 1,746 33,795 Shares issued under equity plans 5 332 — — 337 Compensation expense for equity awards — 2,780 — — 2,780 Repurchase of shares (46) — (4,824) — (4,870) Dividends declared — — (8,811) — (8,811) January 28, 2023 $ 15,774 $ 172,175 $ 370,145 $ (1,824) $ 556,270 First Half Fiscal 2023 Common Stock APIC Retained Earnings AOCI Total January 28, 2023 $ 15,774 $ 172,175 $ 370,145 $ (1,824) $ 556,270 Comprehensive income — — 58,538 (604) 57,934 Shares issued under equity plans 6 596 — — 602 Compensation expense for equity awards — 3,259 — — 3,259 Repurchase of shares — — — — — Dividends declared — — (10,640) — (10,640) April 29, 2023 $ 15,780 $ 176,030 $ 418,043 $ (2,428) $ 607,425 Comprehensive income — — 51,453 319 51,772 Shares issued under equity plans 130 358 — — 488 Compensation expense for equity awards — 4,249 — — 4,249 Repurchase of shares (280) (9,848) (18,800) — (28,928) Dividends declared — — (10,377) — (10,377) July 29, 2023 $ 15,630 $ 170,789 $ 440,319 $ (2,109) $ 624,629 |
Restricted shares and restricted share units, excluding TSR-based restricted share units | |
Equity Compensation | |
Summary of award activity | First Half Fiscal 2023 Weighted- Number of average Shares or grant date Units fair value Awards outstanding at beginning of year 212,945 $ 64 Awards granted 58,055 $ 115 Awards vested, including awards repurchased from employees for employees’ tax liability (111,095) $ 41 Awards forfeited (1,070) $ 62 Awards outstanding on July 29, 2023 158,835 $ 99 |
TSR-based Restricted Share Units | |
Equity Compensation | |
Summary of award activity | First Half Fiscal 2023 Weighted- average Number of grant date Share Units fair value TSR-based awards outstanding at beginning of year 196,040 $ 89 TSR-based awards granted 74,605 $ 153 TSR-based restricted shares earned and vested, including restricted share units repurchased from employees for employees’ tax liability (76,340) $ 50 TSR-based awards forfeited — $ — TSR-based awards outstanding on July 29, 2023 194,305 $ 129 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Business Combinations | |
Summary of our preliminary allocation of the purchase price | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands): Provisional Amounts at January 28, 2023 Measurement Period Adjustments Provisional Amounts at July 29, 2023 Cash and cash equivalents $ 7,296 $ — $ 7,296 Receivables 8,777 — 8,777 Inventories 23,434 — 23,434 Prepaid expenses and other assets 6,353 — 6,353 Property and equipment 21,108 — 21,108 Intangible assets 134,640 — 134,640 Goodwill 96,637 1,403 98,040 Operating lease assets 54,859 — 54,859 Accounts payable, accrued expenses and other liabilities (34,777) 920 (33,857) Non-current portion of operating lease liabilities (47,009) — (47,009) Purchase price $ 271,318 $ 2,323 $ 273,641 |
Summary of Intangible assets allocated in connection with our preliminary purchase price allocation | Intangible assets allocated in connection with our preliminary purchase price allocation consisted of the following (in thousands): Johnny Was Useful life acquisition Finite lived intangible assets acquired, primarily consisting of customer relationships 8 $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 |
Schedule of pro forma statements of operations | The following unaudited pro forma information presented below (in thousands, except per share data) shows the results of our operations for the Second Quarter of Fiscal 2022 and First Half of 2022 as if the acquisition of Johnny Was had occurred at the beginning of Fiscal 2021. Second Quarter Fiscal 2022 First Half Fiscal 2022 Actual Pro Forma Actual Pro Forma Net sales $ 363,430 $ 413,657 $ 716,011 $ 819,831 Earnings before income taxes $ 75,097 $ 80,513 $ 150,833 $ 162,256 Net earnings $ 56,612 $ 60,674 $ 114,020 $ 122,588 Earnings per share: Basic $ 3.56 $ 3.81 $ 7.07 $ 7.61 Diluted $ 3.49 $ 3.74 $ 6.94 $ 7.46 |
Operating Groups - Financial in
Operating Groups - Financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Operating groups | ||||
Net sales | $ 420,319 | $ 363,430 | $ 840,416 | $ 716,011 |
Depreciation and amortization | 15,287 | 10,622 | 30,459 | 20,812 |
Operating income | 67,674 | 75,371 | 147,975 | 151,349 |
Interest expense, net | 1,297 | 274 | 3,639 | 516 |
Earnings before income taxes | 66,377 | 75,097 | 144,336 | 150,833 |
Corporate and Other | ||||
Operating groups | ||||
Net sales | (76) | 887 | (346) | 1,593 |
Depreciation and amortization | 58 | 192 | 237 | 430 |
Operating income | (8,804) | (9,030) | (14,937) | (19,572) |
Tommy Bahama | Operating Segments | ||||
Operating groups | ||||
Net sales | 245,443 | 243,965 | 484,878 | 472,032 |
Depreciation and amortization | 6,073 | 6,916 | 12,057 | 13,534 |
Operating income | 51,037 | 58,918 | 106,558 | 111,524 |
Lilly Pulitzer | Operating Segments | ||||
Operating groups | ||||
Net sales | 91,349 | 88,665 | 188,799 | 180,710 |
Depreciation and amortization | 3,979 | 3,121 | 7,371 | 6,096 |
Operating income | 18,566 | 21,492 | 43,082 | 47,670 |
Johnny Was | Operating Segments | ||||
Operating groups | ||||
Net sales | 52,023 | 101,514 | ||
Depreciation and amortization | 4,717 | 9,909 | ||
Operating income | 3,847 | 6,331 | ||
Emerging Brands | Operating Segments | ||||
Operating groups | ||||
Net sales | 31,580 | 29,913 | 65,571 | 61,676 |
Depreciation and amortization | 460 | 393 | 885 | 752 |
Operating income | $ 3,028 | $ 3,991 | $ 6,941 | $ 11,727 |
Operating Groups - Assets (Deta
Operating Groups - Assets (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 |
Operating groups | |||
Assets | $ 1,149,858 | $ 1,188,665 | $ 957,202 |
Corporate and Other | |||
Operating groups | |||
Assets | (23,523) | (18,196) | 157,388 |
Tommy Bahama | Operating Segments | |||
Operating groups | |||
Assets | 548,893 | 569,833 | 524,765 |
Lilly Pulitzer | Operating Segments | |||
Operating groups | |||
Assets | 201,310 | 211,119 | 198,681 |
Johnny Was | Operating Segments | |||
Operating groups | |||
Assets | 330,503 | 334,603 | |
Emerging Brands | Operating Segments | |||
Operating groups | |||
Assets | $ 92,675 | $ 91,306 | $ 76,368 |
Operating Groups - Sales by ope
Operating Groups - Sales by operating group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Operating groups | ||||
Net sales | $ 420,319 | $ 363,430 | $ 840,416 | $ 716,011 |
Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales | 245,443 | 243,965 | 484,878 | 472,032 |
Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales | 91,349 | 88,665 | 188,799 | 180,710 |
Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales | 52,023 | 101,514 | ||
Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales | 31,580 | 29,913 | 65,571 | 61,676 |
Corporate and Other | ||||
Operating groups | ||||
Net sales | (76) | 887 | (346) | 1,593 |
Retail | ||||
Operating groups | ||||
Net sales | $ 170,137 | $ 153,976 | $ 327,742 | $ 290,056 |
Net sales (as a percent) | 41% | 42% | 39% | 41% |
Retail | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 46% | 48% | 45% | 47% |
Retail | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 36% | 40% | 35% | 37% |
Retail | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 38% | 37% | ||
Retail | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 12% | 7% | 10% | 6% |
E-commerce | ||||
Operating groups | ||||
Net sales | $ 152,264 | $ 118,816 | $ 278,028 | $ 215,289 |
Net sales (as a percent) | 36% | 33% | 33% | 30% |
E-commerce | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 28% | 28% | 24% | 24% |
E-commerce | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 50% | 43% | 49% | 43% |
E-commerce | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 43% | 40% | ||
E-commerce | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 48% | 46% | 42% | 38% |
Food & Beverage | ||||
Operating groups | ||||
Net sales | $ 29,503 | $ 27,291 | $ 61,535 | $ 58,176 |
Net sales (as a percent) | 7% | 8% | 7% | 8% |
Food & Beverage | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 12% | 11% | 13% | 12% |
Wholesale | ||||
Operating groups | ||||
Net sales | $ 68,312 | $ 62,799 | $ 173,141 | $ 151,415 |
Net sales (as a percent) | 16% | 17% | 21% | 21% |
Wholesale | Operating Segments | Tommy Bahama | ||||
Operating groups | ||||
Net sales (as a percent) | 14% | 13% | 18% | 17% |
Wholesale | Operating Segments | Lilly Pulitzer | ||||
Operating groups | ||||
Net sales (as a percent) | 14% | 17% | 16% | 20% |
Wholesale | Operating Segments | Johnny Was | ||||
Operating groups | ||||
Net sales (as a percent) | 19% | 23% | ||
Wholesale | Operating Segments | Emerging Brands | ||||
Operating groups | ||||
Net sales (as a percent) | 40% | 47% | 48% | 56% |
Other | ||||
Operating groups | ||||
Net sales | $ 103 | $ 548 | $ (30) | $ 1,075 |
Revenue Recognition and Recei_3
Revenue Recognition and Receivables - Net sales by distribution channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Revenue | ||||
Net sales | $ 420,319 | $ 363,430 | $ 840,416 | $ 716,011 |
Retail | ||||
Revenue | ||||
Net sales | 170,137 | 153,976 | 327,742 | 290,056 |
E-commerce | ||||
Revenue | ||||
Net sales | 152,264 | 118,816 | 278,028 | 215,289 |
Food & Beverage | ||||
Revenue | ||||
Net sales | 29,503 | 27,291 | 61,535 | 58,176 |
Wholesale | ||||
Revenue | ||||
Net sales | 68,312 | 62,799 | 173,141 | 151,415 |
Other | ||||
Revenue | ||||
Net sales | $ 103 | $ 548 | $ (30) | $ 1,075 |
Revenue Recognition and Recei_4
Revenue Recognition and Receivables - Credit losses and receivables (Details) - USD ($) $ in Millions | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 |
Revenue Recognition and Receivables | |||
Sales return liability | $ 14 | $ 12 | $ 14 |
Value of inventory for direct to consumer and wholesale sales returns | 4 | 4 | 5 |
Receivable reserve | 3 | 4 | 4 |
Credit loss reserve | 1 | 1 | 1 |
Contract liabilities | $ 18 | $ 19 | $ 15 |
Leases and Other Commitments -
Leases and Other Commitments - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Leases and Other Commitments | ||||
Operating lease expense | $ 18 | $ 35 | ||
Variable lease expense | 11 | 21 | ||
Total lease expense | $ 29 | $ 22 | 56 | $ 47 |
Cash paid for lease liabilities | $ 41 | $ 35 |
Leases and Other Commitments _2
Leases and Other Commitments - Lease liability payment schedule (Details) $ in Thousands | Jul. 29, 2023 USD ($) |
Required lease liability payments due | |
Remainder of 2023 | $ 39,686 |
2024 | 72,199 |
2025 | 55,324 |
2026 | 48,295 |
2027 | 34,751 |
2028 | 28,479 |
After 2028 | 53,276 |
Total lease payments | 332,010 |
Less: Difference between discounted and undiscounted lease payments | 45,127 |
Present value of lease liabilities | $ 286,883 |
Operating Lease, Liability, Statement of Financial Position | Current portion of operating lease liabilities, Non-current portion of operating lease liabilities |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | 22.50% | 24.60% | 23.80% | 24.40% |
Typical annual effective tax rate (as a percent) | 25% | 25% |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 01, 2023 | Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Share Repurchases | |||||
Repurchase of shares (in shares) | 186 | 339 | 186 | 830 | |
Repurchase of shares (in dollars) | $ 19 | $ 30 | $ 19 | $ 73 | |
Purchase of shares from employees to cover employee tax liabilities of vesting of shares (in dollars) | $ 10 | $ 3 | |||
Subsequent Event | |||||
Share Repurchases | |||||
Repurchase of shares (in shares) | 10 | ||||
Repurchase of shares (in dollars) | $ 1 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 29, 2023 | Apr. 29, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Shareholders' Equity | ||||||||
Beginning Balance | $ 607,425 | $ 556,270 | $ 533,039 | $ 534,016 | $ 513,420 | $ 507,664 | $ 556,270 | $ 507,664 |
Comprehensive income | 51,772 | 57,934 | 33,795 | 19,216 | 56,487 | 57,885 | 109,706 | 114,372 |
Shares issued under equity plans | 488 | 602 | 337 | 380 | 490 | 392 | ||
Compensation expense for equity awards | 4,249 | 3,259 | 2,780 | 2,545 | 2,527 | 2,725 | ||
Repurchase of shares | (28,928) | (4,870) | (14,123) | (29,814) | (46,032) | |||
Dividends declared | (10,377) | (10,640) | (8,811) | (8,995) | (9,094) | (9,214) | ||
Ending Balance | 624,629 | 607,425 | 556,270 | 533,039 | 534,016 | 513,420 | 624,629 | 534,016 |
Common Stock | ||||||||
Shareholders' Equity | ||||||||
Beginning Balance | 15,780 | 15,774 | 15,815 | 15,960 | 16,284 | 16,805 | 15,774 | 16,805 |
Shares issued under equity plans | 130 | 6 | 5 | 1 | 15 | 5 | ||
Repurchase of shares | (280) | (46) | (146) | (339) | (526) | |||
Ending Balance | 15,630 | 15,780 | 15,774 | 15,815 | 15,960 | 16,284 | 15,630 | 15,960 |
Additional Paid-In Capital | ||||||||
Shareholders' Equity | ||||||||
Beginning Balance | 176,030 | 172,175 | 169,063 | 166,139 | 163,137 | 163,156 | 172,175 | 163,156 |
Shares issued under equity plans | 358 | 596 | 332 | 379 | 475 | 387 | ||
Compensation expense for equity awards | 4,249 | 3,259 | 2,780 | 2,545 | 2,527 | 2,725 | ||
Repurchase of shares | (9,848) | (3,131) | ||||||
Ending Balance | 170,789 | 176,030 | 172,175 | 169,063 | 166,139 | 163,137 | 170,789 | 166,139 |
Retained Earnings | ||||||||
Shareholders' Equity | ||||||||
Beginning Balance | 418,043 | 370,145 | 351,731 | 355,037 | 336,994 | 331,175 | 370,145 | 331,175 |
Comprehensive income | 51,453 | 58,538 | 32,049 | 19,666 | 56,612 | 57,408 | ||
Repurchase of shares | (18,800) | (4,824) | (13,977) | (29,475) | (42,375) | |||
Dividends declared | (10,377) | (10,640) | (8,811) | (8,995) | (9,094) | (9,214) | ||
Ending Balance | 440,319 | 418,043 | 370,145 | 351,731 | 355,037 | 336,994 | 440,319 | 355,037 |
Accumulated Other Comprehensive (Loss) Income | ||||||||
Shareholders' Equity | ||||||||
Beginning Balance | (2,428) | (1,824) | (3,570) | (3,120) | (2,995) | (3,472) | (1,824) | (3,472) |
Comprehensive income | 319 | (604) | 1,746 | (450) | (125) | 477 | ||
Ending Balance | $ (2,109) | $ (2,428) | $ (1,824) | $ (3,570) | $ (3,120) | $ (2,995) | $ (2,109) | $ (3,120) |
Shareholders' Equity - Service-
Shareholders' Equity - Service-Based Restricted Share Awards (Details) - Restricted shares and restricted share units, excluding TSR-based restricted share units | 6 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Number of Shares | |
Awards outstanding at beginning of year (in shares) | shares | 212,945 |
Awards granted (in shares) | shares | 58,055 |
Awards vested, including awards repurchased from employees for employees' tax liability (in shares) | shares | (111,095) |
Awards forfeited (in shares) | shares | (1,070) |
Awards outstanding at end of period (in shares) | shares | 158,835 |
Weighted-average grant date fair value | |
Awards outstanding at beginning of year (in dollars per share) | $ / shares | $ 64 |
Awards granted/issued (in dollars per share) | $ / shares | 115 |
Awards vested, including awards repurchased from employees for employees' tax liability (in dollars per share) | $ / shares | 41 |
Awards forfeited (in dollars per share) | $ / shares | 62 |
Awards outstanding at end of period (in dollars per share) | $ / shares | $ 99 |
Shareholders' Equity - TSR-base
Shareholders' Equity - TSR-based Restricted Share Units (Details) - TSR-based Restricted Share Units | 6 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Number of Shares | |
Awards outstanding at beginning of year (in shares) | shares | 196,040 |
Awards granted (in shares) | shares | 74,605 |
Awards vested, including awards repurchased from employees for employees' tax liability (in shares) | shares | (76,340) |
Awards outstanding at end of period (in shares) | shares | 194,305 |
Weighted-average grant date fair value | |
Awards outstanding at beginning of year (in dollars per share) | $ / shares | $ 89 |
Awards granted/issued (in dollars per share) | $ / shares | 153 |
Awards vested, including awards repurchased from employees for employees' tax liability (in dollars per share) | $ / shares | 50 |
Awards outstanding at end of period (in dollars per share) | $ / shares | $ 129 |
Business Combinations - Prelimi
Business Combinations - Preliminary allocation of purchase price (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 | |
Business Combinations | |||
Goodwill | $ 123,079 | $ 120,498 | $ 23,861 |
Johnny Was (JW Holdings, LLC) | |||
Business Combinations | |||
Cash and cash equivalents | 7,296 | 7,296 | |
Receivables | 8,777 | 8,777 | |
Inventories | 23,434 | 23,434 | |
Prepaid expenses and other assets | 6,353 | 6,353 | |
Property and equipment | 21,108 | 21,108 | |
Intangible assets | 134,640 | 134,640 | |
Goodwill | 98,040 | 96,637 | |
Operating lease assets | 54,859 | 54,859 | |
Accounts payable, accrued expenses and other liabilities | (33,857) | (34,777) | |
Non-current portion of operating lease liabilities | (47,009) | (47,009) | |
Purchase price | 273,641 | $ 271,318 | |
Measurement Period Adjustments | |||
Goodwill | 1,403 | ||
Accounts payable, accrued expenses and other liabilities | 920 | ||
Purchase price | $ 2,323 |
Business Combinations - Intangi
Business Combinations - Intangible asset (Details) - Johnny Was (JW Holdings, LLC) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 | Sep. 19, 2022 |
Business Combinations | |||
Intangible assets | $ 134,640 | $ 134,640 | |
Trade names and trademarks | |||
Business Combinations | |||
Intangible assets | 77,900 | ||
Customer relationships | |||
Business Combinations | |||
Intangible assets | $ 56,740 | ||
Customer relationships | Minimum | |||
Business Combinations | |||
Useful life, Finite lived intangible assets | 8 years | ||
Customer relationships | Maximum | |||
Business Combinations | |||
Useful life, Finite lived intangible assets | 13 years |
Business Combinations - Proform
Business Combinations - Proforma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Actual | ||||
Net sales | $ 420,319 | $ 363,430 | $ 840,416 | $ 716,011 |
Earnings before income taxes | 66,377 | 75,097 | 144,336 | 150,833 |
Net Income (Loss) | $ 51,453 | $ 56,612 | $ 109,991 | $ 114,020 |
Net earnings per share: | ||||
Basic (in dollars per share) | $ 3.31 | $ 3.56 | $ 7.06 | $ 7.07 |
Diluted (in dollars per share) | $ 3.22 | $ 3.49 | $ 6.86 | $ 6.94 |
Pro Forma | ||||
Net sales | $ 413,657 | $ 819,831 | ||
Earnings before income taxes | 80,513 | 162,256 | ||
Net earnings | $ 60,674 | $ 122,588 | ||
Earnings per share: | ||||
Basic (in dollars per share) | $ 3.81 | $ 7.61 | ||
Diluted (in dollars per share) | $ 3.74 | $ 7.46 |
Debt (Details)
Debt (Details) - Revolving Credit Agreement - USD ($) $ in Millions | Mar. 06, 2023 | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 30, 2022 |
Debt | ||||
Maximum borrowing capacity | $ 325 | |||
Capitalized debt issuance costs | $ 2 | |||
Weighted average interest rate (as a percent) | 8% | |||
Letters of credit outstanding | $ 6 | |||
Borrowings outstanding | 48 | $ 119 | $ 0 | |
Unused availability | $ 266 | $ 199 | $ 322 | |
Compliance with Covenants | ||||
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% | |||
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 | ||||
Compliance with Covenants | ||||
Fixed charge coverage ratio | 1 | |||
Minimum | Secured Overnight Financing Rate (SOFR) | ||||
Debt | ||||
Applicable margin (as a percent) | 1.35% | |||
Minimum | Prime Rate | ||||
Debt | ||||
Applicable margin (as a percent) | 0.25% | |||
Maximum | Secured Overnight Financing Rate (SOFR) | ||||
Debt | ||||
Applicable margin (as a percent) | 1.85% | |||
Maximum | Prime Rate | ||||
Debt | ||||
Applicable margin (as a percent) | 0.75% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 51,453 | $ 56,612 | $ 109,991 | $ 114,020 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |