Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Mar. 29, 2024 | Jul. 28, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 03, 2024 | ||
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 | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,132,153,021 | ||
Entity Common Stock, Shares Outstanding | 15,629,222 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 42 | ||
Entity Central Index Key | 0000075288 | ||
Current Fiscal Year End Date | --02-03 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 7,604 | $ 8,826 |
Receivables, net | 63,362 | 43,986 |
Inventories, net | 159,565 | 220,138 |
Income tax receivable | 19,549 | 19,440 |
Prepaid expenses and other current assets | 43,035 | 38,073 |
Total Current Assets | 293,115 | 330,463 |
Property and equipment, net | 195,137 | 177,584 |
Intangible assets, net | 262,101 | 283,845 |
Goodwill | 27,190 | 120,498 |
Operating lease assets | 263,934 | 240,690 |
Other assets, net | 32,188 | 32,209 |
Deferred income taxes | 24,179 | 3,376 |
Total Assets | 1,097,844 | 1,188,665 |
Current Liabilities | ||
Accounts payable | 85,545 | 94,611 |
Accrued compensation | 23,660 | 35,022 |
Current portion of operating lease liabilities | 64,576 | 73,865 |
Accrued expenses and other liabilities | 66,863 | 66,141 |
Total Current Liabilities | 240,644 | 269,639 |
Long-term debt | 29,304 | 119,011 |
Non-current portion of operating lease liabilities | 243,703 | 220,709 |
Other non-current liabilities | 23,279 | 20,055 |
Deferred income taxes | 2,981 | |
Shareholders' Equity | ||
Common stock, $1.00 par value per share | 15,629 | 15,774 |
Additional paid-in capital | 178,567 | 172,175 |
Retained earnings | 369,453 | 370,145 |
Accumulated other comprehensive loss | (2,735) | (1,824) |
Total Shareholders' Equity | 560,914 | 556,270 |
Total Liabilities and Shareholders' Equity | $ 1,097,844 | $ 1,188,665 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 03, 2024 | Jan. 28, 2023 |
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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 1,571,475 | $ 1,411,528 | $ 1,142,079 |
Cost of goods sold | 575,890 | 522,673 | 435,861 |
Gross profit | 995,585 | 888,855 | 706,218 |
SG&A | 820,705 | 692,004 | 573,636 |
Impairment of goodwill, intangible assets and equity method investments | 113,611 | ||
Royalties and other operating income | 19,713 | 21,923 | 32,921 |
Operating income | 80,982 | 218,774 | 165,503 |
Interest expense, net | 6,036 | 3,049 | 944 |
Earnings before income taxes | 74,946 | 215,725 | 164,559 |
Income tax expense | 14,243 | 49,990 | 33,238 |
Net earnings | $ 60,703 | $ 165,735 | $ 131,321 |
Net earnings per share: | |||
Basic (in dollars per share) | $ 3.89 | $ 10.42 | $ 7.90 |
Diluted (in dollars per share) | $ 3.82 | $ 10.19 | $ 7.78 |
Weighted average shares outstanding: | |||
Basic (in shares) | 15,590 | 15,902 | 16,631 |
Diluted (in shares) | 15,906 | 16,259 | 16,869 |
Dividends declared per share (in dollars per share) | $ 2.60 | $ 2.20 | $ 1.63 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net earnings | $ 60,703 | $ 165,735 | $ 131,321 |
Other comprehensive income (loss), net of taxes: | |||
Net foreign currency translation adjustment | (911) | 1,648 | 192 |
Comprehensive income | $ 59,792 | $ 167,383 | $ 131,513 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
Beginning 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 |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings and other comprehensive income (loss) | 165,735 | 1,648 | 167,383 | ||
Shares issued under equity plans | 26 | 1,573 | 1,599 | ||
Compensation expense for equity awards | 10,577 | 10,577 | |||
Repurchase of shares | (1,057) | (3,131) | (90,651) | (94,839) | |
Cash dividends declared and paid | (36,114) | (36,114) | |||
Ending Balance at Jan. 28, 2023 | 15,774 | 172,175 | 370,145 | (1,824) | 556,270 |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings and other comprehensive income (loss) | 60,703 | (911) | 59,792 | ||
Shares issued under equity plans | 144 | 1,767 | 1,911 | ||
Compensation expense for equity awards | 14,473 | 14,473 | |||
Repurchase of shares | (289) | (9,848) | (19,856) | (29,993) | |
Cash dividends declared and paid | (41,539) | (41,539) | |||
Ending Balance at Feb. 03, 2024 | $ 15,629 | $ 178,567 | $ 369,453 | $ (2,735) | $ 560,914 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Cash Flows From Operating Activities: | |||
Net earnings | $ 60,703 | $ 165,735 | $ 131,321 |
Adjustments to reconcile net earnings to cash flows from operating activities: | |||
Depreciation | 49,323 | 41,503 | 39,062 |
Amortization of intangible assets | 14,743 | 6,102 | 880 |
Impairment of goodwill, intangible assets and equity method investments | 113,611 | ||
Impairment of property and equipment | 584 | 1,430 | 1,656 |
Equity compensation expense | 14,473 | 10,577 | 8,186 |
Gain on sale of investment in unconsolidated entity | (11,586) | ||
Gain on sale of property and equipment | (1,756) | (600) | (2,669) |
Amortization and write-off of deferred financing costs | 569 | 344 | 344 |
Change in fair value of contingent consideration | 1,188 | ||
Deferred income taxes | (23,890) | (1,867) | 4,054 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | |||
Receivables, net | (14,994) | (1,966) | (15) |
Inventories, net | 62,507 | (78,966) | 5,378 |
Income tax receivable | (109) | 288 | (1,753) |
Prepaid expenses and other current assets | (4,931) | (12,793) | (889) |
Current liabilities | (28,069) | 8,635 | 27,585 |
Other non-current assets, net | (25,220) | 14,233 | 37,534 |
Other non-current liabilities | 26,740 | (27,045) | (42,270) |
Cash provided by operating activities | 244,284 | 125,610 | 198,006 |
Cash Flows From Investing Activities: | |||
Acquisitions, net of cash acquired | (11,975) | (263,648) | |
Purchases of property and equipment | (74,098) | (46,668) | (31,894) |
Purchases of short-term investments | (70,000) | (165,000) | |
Proceeds from short-term investments | 234,852 | ||
Proceeds from the sale of property, plant and equipment | 2,125 | 14,586 | |
Other investing activities | (33) | (6,283) | 736 |
Cash used in investing activities | (83,981) | (151,747) | (181,572) |
Cash Flows From Financing Activities: | |||
Repayment of revolving credit arrangements | (477,350) | (145,894) | |
Proceeds from revolving credit arrangements | 387,643 | 264,905 | |
Deferred financing costs paid | (1,661) | ||
Repurchase of common stock | (20,045) | (91,674) | (8,359) |
Proceeds from issuance of common stock | 1,911 | 1,599 | 1,452 |
Repurchase of equity awards for employee tax withholding liabilities | (9,941) | (3,166) | (2,983) |
Cash dividends paid | (41,729) | (35,287) | (27,536) |
Other financing activities | (2,010) | (749) | |
Cash used in financing activities | (161,172) | (11,527) | (38,175) |
Net change in cash and cash equivalents | (869) | (37,664) | (21,741) |
Effect of foreign currency translation on cash and cash equivalents | (353) | 1,631 | 587 |
Cash and cash equivalents at the beginning of year | 8,826 | 44,859 | 66,013 |
Cash and cash equivalents at the end of period | $ 7,604 | $ 8,826 | $ 44,859 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
Basis of Presentation | |
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®, Johnny Was®, Southern Tide®, The Beaufort Bonnet Company®, Duck Head® and Jack Rogers® lifestyle brands. We distribute our products through our direct to consumer channels, consisting of our brand specific full-price retail stores, e-commerce websites and outlet stores, and our wholesale distribution channel, which includes sales to various specialty stores, Signature Stores, better department stores, multi-branded e-commerce websites 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 full-price retail store. On September 19, 2022, we acquired the Johnny Was lifestyle apparel brand and its related assets and operations, which is discussed in further detail in Note 4. Also, in Fiscal 2021, we exited our Lanier Apparel business, as discussed in Note 12. Additionally, refer to Note 2 for certain financial information about the Johnny Was and Lanier Apparel operating groups. Recent Macroeconomic Conditions The COVID-19 pandemic had a significant effect on overall economic conditions and our operations in recent years and accelerated or exacerbated many of the challenges in the industry. Exceptionally strong consumer demand, along with the strength of our brands, resulted in record earnings for us during both Fiscal 2021 and Fiscal 2022. The strong earnings in recent periods are despite certain challenges in the retail apparel market, including labor shortages, supply chain disruptions and product and operating cost increases in Fiscal 2021 and Fiscal 2022. We, as well as others in our industry, have increased prices to attempt to offset inflationary pressures. Further, negative economic conditions often have a longer and more severe impact on the apparel industry than on other industries due, in part, to apparel purchases often being more of a discretionary purchase. The current macroenvironment, with heightened concerns about inflation, a global economic recession, geopolitical issues, the stability of the U.S. banking system, the availability and cost of credit and elevated interest rates for prolonged periods, is creating a complex and challenging retail environment, which impacted our businesses during Fiscal 2023 and continues to affect our operations. As a result of the macroeconomic environment, we saw reduced conversion rates in our direct to consumer operations and a year-over-year decline in net earnings and operating income. There remains significant uncertainty in the macroeconomic environment, and the impact of these and other factors could have a major effect on our businesses. 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 2021, Fiscal 2022, Fiscal 2023 and Fiscal 2024 reflect the 52 weeks ended January 29, 2022; 52 weeks ended January 28, 2023; 53 weeks ended February 3, 2024; and 52 weeks ending February 1, 2025, 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 From time-to-time, we make strategic acquisitions that may have a material effect on our consolidated results of operations and financial position. The measurement principle for the assets acquired and the liabilities assumed in a business combination is at estimated fair value as of the acquisition date, with certain exceptions. At acquisition, we use estimates that can be complex and require significant judgments to record the fair value of purchased intangible assets, which primarily consist of trademarks, as well as customer relationships and reacquired rights. 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. 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 pursuant to the acquisition method of accounting. Additionally, at acquisition we must determine whether the intangible asset has an indefinite or finite life and account for it accordingly. 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 February 3, 2024, substantially all goodwill included in our consolidated balance sheet is deductible for income tax purposes. 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 of intangible assets, including trademarks, customer relationships and other items, 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 for the discount rates, income tax rates, anticipated cash flows and probabilities of cash flows, among other factors. Our fair value assessment may also consider any comparable market transactions. The use of different assumptions related to these uncertain factors at acquisition could result in a material change to the amounts of intangible assets and goodwill initially recorded at acquisition, which could result in a material impact on our consolidated financial statements. 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. Our estimates of the purchase price allocation of a business combination may be revised during a measurement period as necessary when, and if, information becomes available to revise the fair values of the assets acquired and the liabilities assumed. Actual fair values ultimately assigned to the acquired assets and liabilities when final information is available may materially differ from our preliminary estimates during the measurement period. The allocation period may 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. Refer to Note 4 for information related to the Fiscal 2022 acquisition of Johnny Was and the Fiscal 2023 acquisitions, including disclosures about the allocation of the preliminary purchase price to the estimated fair values of the acquired assets and liabilities. Revenue Recognition and Receivables Our revenue consists of direct to consumer sales, including our retail store, e-commerce and food and beverage 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 2023 2022 2021 Retail $ 605,486 $ 552,696 $ 443,015 E-commerce 538,224 465,446 369,300 Food & Beverage 115,766 109,225 96,244 Wholesale 311,910 281,938 231,536 Other 89 2,223 1,984 Net sales $ 1,571,475 $ 1,411,528 $ 1,142,079 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 food and beverage locations, 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 food and beverage 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 $13 million and $12 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of February 3, 2024 and January 28, 2023, 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 February 3, 2024 and January 28, 2023, reserve balances recorded as a reduction to wholesale receivables related to these items were $3 million and $4 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 our wholesale customer receivable amounts not specifically provided for, we recognize estimated provisions for credit losses, using the current expected loss model 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 2023, Fiscal 2022 and Fiscal 2021 were a credit of less than $1 million, a credit of less than $1 million and a credit of $1 million, respectively, while write-offs of credit losses for Fiscal 2023, Fiscal 2022 and Fiscal 2021 were less than $1 million, less than $1 million and less than $1 million, respectively. As of both February 3, 2024 and January 28, 2023, receivables, net in our consolidated balance sheet included a provision for credit losses related to trade receivables of $1 million. In addition to trade receivables, tenant allowances due from landlord of $6 million and $2 million are included in receivables, net in our consolidated balance sheet, as of February 3, 2024 and January 28, 2023, 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 both February 3, 2024 and January 28, 2023, prepaid expenses and other current assets included $4 million 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 February 3, 2024 and January 28, 2023. 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, 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 $20 million and $19 million as of February 3, 2024 and January 28, 2023, respectively. Gift card breakage income, which is included in net sales in our consolidated statements of operations, was $1 million in each of Fiscal 2023, Fiscal 2022 and Fiscal 2021. In Fiscal 2021, each of our brands in our Emerging Brands operating group initiated brand specific loyalty award programs. These programs allow consumers to earn loyalty points associated with the brand. Lilly Pulitzer initiated also initiated a program in Fiscal 2023. 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 totaled $3 million and $1 million as of February 3, 2024 and January 28, 2023, respectively. 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, received from licensees reflects that 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 $19 million, $22 million and $18 million during Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Cost of Goods Sold We include in cost of goods sold (1) the cost paid to the suppliers 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, and depreciation expense associated with our sourcing 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, food and beverage locations and concessions, such as labor, lease commitments and other occupancy costs, direct to consumer location 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 2023, Fiscal 2022 and Fiscal 2021, distribution network costs included in SG&A totaled $40 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 2023, Fiscal 2022 and Fiscal 2021 were $105 million, $82 million and $60 million, respectively. Prepaid advertising, promotion and marketing expenses included in prepaid expenses and other current assets in our consolidated balance sheets as of February 3, 2024 and January 28, 2023 were $5 million and $6 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 licensed product 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 2023, Fiscal 2022 and Fiscal 2021 were $6 million, $4 million and $6 million, respectively. As of February 3, 2024, 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 licensed 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 February 3, 2024 and January 28, 2023, we did not have any cash and cash equivalents in money market fund investments. Supplemental Cash Flow Information During Fiscal 2023, Fiscal 2022 and Fiscal 2021, cash paid for income taxes was $39 million, $56 million and $34 million, respectively. During Fiscal 2023, Fiscal 2022 and Fiscal 2021, cash paid for interest, net of interest income was $6 million, $3 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 $2 million, $3 million and $3 million as of Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Additionally, during Fiscal 2023, Fiscal 2022 and Fiscal 2021, we recorded a non-cash net increase in operating lease assets and corresponding operating lease liability amounts of $83 million, $47 million and $18 million, respectively, related to the net impact of new, modified and terminated operating lease amounts, excluding any operating lease amounts recognized in the opening balance sheet of an acquired business. 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 February 3, 2024 and January 28, 2023, $146 million, or 92%, and $204 million, or 93%, respectively, of our inventories were valued at the lower of LIFO cost or market after deducting our LIFO accounting reserve. The remaining $13 million and $16 million of our inventories were valued at the lower of FIFO cost or market as of February 3, 2024 and January 28, 2023, 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 includes changes in markdown reserves. 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 was a $2 million LIFO inventory layer liquidation in Fiscal 2023. There were no material LIFO inventory layer liquidations in Fiscal 2022 or Fiscal 2021. As of February 3, 2024 and January 28, 2023, the LIFO reserve included in our consolidated balance sheet was $83 million and $76 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 sourcing operations. Goodwill and Intangible Assets We test goodwill for impairment at the reporting unit level annually on the first day of the fourth quarter and more often if an event occurs or circumstances change that indicate the fair value of a reporting unit is below its carrying amount. We have the option to first assess qualitative factors to determine whether it is more likely than not that 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 reporting unit in any period and proceed directly to performing the quantitative impairment test. For each impairment test of goodwill in Fiscal 2023, Fiscal 2022 and Fiscal 2021, we bypassed the qualitative test option and instead performed a quantitative test. When applying the quantitative assessment, we determine the fair value of our reporting units based on an income approach, or in some cases a combination of an income approach and market approach. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates and future economic and market conditions. If an annual or interim analysis indicates an impairment of 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 reporting unit. As of October 29, 2023, our reporting units consisted of the following: Tommy Bahama Duck Head Oxford of Lyons Lilly Pulitzer Southern Tide Intangible assets with indefinite lives, which primarily consist of trademarks, are not amortized but instead evaluated for impairment annually or more frequently if events or circumstances indicate that the intangible asset might be impaired. This analysis is dependent upon a number of uncertain factors described below and is typically performed in conjunction with the goodwill impairment analysis discussed above and is similar to the analysis performed at acquisition. The fair value of our trademarks is principally determined by the “relief from royalty” approach that assumes the trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method includes assumptions regarding revenue growth rates, royalty rates, risk-adjusted discount rates and future economic and market conditions. If an annual or interim analysis indicates an impairment of an intangible asset with an indefinite useful life, 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 intangibl |
Operating Groups
Operating Groups | 12 Months Ended |
Feb. 03, 2024 | |
Operating Groups | |
Operating Groups | 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. With our acquisition of Johnny Was on September 19, 2022, our business is organized as our Tommy Bahama, Lilly Pulitzer, Johnny Was and Emerging Brands operating groups. Results for periods prior to Fiscal 2022 also include the Lanier Apparel operating group, which we exited in Fiscal 2021. Tommy Bahama, Lilly Pulitzer and Johnny Was each design, source, market and distribute apparel and related products bearing their respective trademarks and may license their trademarks for other product categories. The Emerging Brands operating group, which was organized in Fiscal 2022, consists of the operations of our smaller, earlier stage Southern Tide, TBBC, Duck Head and Jack Rogers, which is a footwear brand acquired during Fiscal 2023. Prior to Fiscal 2022, Southern Tide was reported as a separate operating group, while both TBBC and Duck Head were included in Corporate and Other. All prior year amounts have been restated to conform to the current year presentation. Each of the brands included in Emerging Brands designs, sources, markets and distributes apparel and related products bearing its respective trademarks and is supported by Oxford’s emerging brands team that provides certain support functions to the smaller brands, including marketing and advertising execution, analysis and other functions. The shared resources provide for operating efficiencies and enhanced knowledge sharing across the brands. Corporate and Other is a reconciling category for reporting purposes and includes our corporate offices, substantially all financing activities, the elimination of inter-segment sales, any other items that are not allocated to the operating groups, including LIFO inventory accounting adjustments as our LIFO pool does not correspond to our operating group definitions, and the operations of our Lyons, Georgia distribution center and our Oxford America business, which we exited in Fiscal 2022. The tables below present certain financial information (in thousands) about our reportable operating groups, as well as Corporate and Other. Fiscal Fiscal Fiscal 2023 2022 2021 Net sales Tommy Bahama $ 898,807 $ 880,233 $ 724,305 Lilly Pulitzer 343,499 339,266 298,995 Johnny Was (1) 202,859 72,591 — Emerging Brands 126,825 116,484 90,053 Lanier Apparel (2) — — 24,858 Corporate and Other (515) 2,954 3,868 Consolidated net sales $ 1,571,475 $ 1,411,528 $ 1,142,079 Depreciation and amortization Tommy Bahama $ 26,133 $ 26,807 $ 27,830 Lilly Pulitzer 16,603 12,784 11,678 Johnny Was (1) 18,794 7,199 — Emerging Brands 2,003 1,582 1,298 Lanier Apparel (2) — — 107 Corporate and Other 533 663 685 Consolidated depreciation and amortization $ 64,066 $ 49,035 $ 41,598 Operating income (loss) Tommy Bahama $ 160,543 $ 172,761 $ 111,733 Lilly Pulitzer 56,110 67,098 63,601 Johnny Was (1) (104,776) (1,544) — Emerging Brands (3) 6,714 15,602 16,649 Lanier Apparel (2) — — 4,888 Corporate and Other (4) (37,609) (35,143) (31,368) Consolidated operating income 80,982 218,774 165,503 Interest expense, net 6,036 3,049 944 Earnings before income taxes $ 74,946 $ 215,725 $ 164,559 (1) In Fiscal 2023, the operating loss for Johnny Was resulted from a $111 million impairment charge for goodwill and intangible assets with no such charges in Fiscal 2022. Financial information for Fiscal 2022 consists of 19 weeks from the September 19, 2022, acquisition date through January 28, 2023, only. (2) In Fiscal 2021, we exited our Lanier Apparel business, which is discussed in more detail in Note 12. (3) The operating income for Emerging Brands in Fiscal 2023 included a $2 million impairment charge related to an unconsolidated entity. (4) The operating loss for Corporate and Other included a LIFO accounting charge of $10 million, $3 million and $16 million in Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. The operating loss for Corporate and Other in Fiscal 2022 also included $3 million of transaction expenses and integration costs associated with the Johnny Was acquisition. Fiscal 2021 also included a gain on sale of an unconsolidated entity of $12 million, respectively. Fiscal 2023 Fiscal 2022 Fiscal 2021 Purchases of Property and Equipment Tommy Bahama $ 39,060 $ 17,019 $ 12,887 Lilly Pulitzer 24,100 23,990 17,305 Johnny Was (1) 6,105 1,655 — Emerging Brands 3,768 3,176 1,405 Lanier Apparel (2) — — 5 Corporate and Other 1,065 828 292 Purchases of Property and Equipment $ 74,098 $ 46,668 $ 31,894 February 3, January 28, 2024 2023 Total Assets Tommy Bahama (3) $ 556,431 $ 569,833 Lilly Pulitzer (4) 194,871 211,119 Johnny Was (1) 251,429 334,603 Emerging Brands (5) 98,816 91,306 Corporate and Other (6) (3,703) (18,196) Total Assets $ 1,097,844 $ 1,188,665 (1) The financial information for Johnny Was for Fiscal 2022 consists of 19 weeks from the September 19, 2022, acquisition date through January 28, 2023, only. The decrease in Johnny Was total assets during Fiscal 2023 relates primarily to the $111 million impairment charge for goodwill and intangible assets. (2) Lanier Apparel was exited during Fiscal 2021. (3) Increase in Tommy Bahama total assets includes increases in receivables, operating lease assets and property plant and equipment partially offset by reductions in inventories. (4) Decrease in Lilly Pulitzer total assets includes reductions in inventories partially offset by increases in receivables. (5) Increase in Emerging Brands total assets includes increases in operating lease assets and property plant and equipment from the opening of new retail store locations. Goodwill and intangible assets also increased related to the current year acquisition of Jack Rogers and six former Southern Tide Signature Stores. These increase were partially offset by reductions in inventories. (6) Decrease in Corporate and Other total assets includes reductions in inventories, primarily due to the impact of LIFO accounting. 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. February 3, January 28, 2024 2023 Net Book Value of Property and Equipment United States $ 192,329 $ 174,044 Other foreign 2,808 3,540 $ 195,137 $ 177,584 Fiscal 2023 Fiscal 2022 Fiscal 2021 Net Sales United States $ 1,532,100 $ 1,372,278 $ 1,112,384 Other foreign 39,375 39,250 29,695 $ 1,571,475 $ 1,411,528 $ 1,142,079 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, except that the amounts included for Johnny Was in Fiscal 2022 represent the post-acquisition period only. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding. Fiscal 2023 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 898,807 45 % 25 % 13 % 17 % — % Lilly Pulitzer 343,499 33 % 51 % — % 16 % — % Johnny Was 202,859 38 % 41 % — % 21 % — % Emerging Brands 126,825 11 % 43 % — % 46 % — % Corporate and Other (515) — % — % — % — % NM % Consolidated net sales $ 1,571,475 39 % 34 % 7 % 20 % — % Fiscal 2022 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 880,233 46 % 24 % 13 % 17 % — % Lilly Pulitzer 339,266 33 % 51 % — % 16 % — % Johnny Was (1) 72,591 36 % 42 % — % 22 % — % Emerging Brands 116,484 6 % 42 % — % 52 % — % Corporate and Other 2,954 — % — % — % — % NM % Consolidated net sales $ 1,411,528 39 % 33 % 8 % 20 % — % Fiscal 2021 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 724,305 47 % 25 % 13 % 15 % — % Lilly Pulitzer 298,995 34 % 50 % — % 16 % — % Johnny Was — — % — % — % — % — % Emerging Brands 90,053 5 % 39 % — % 56 % — % Lanier Apparel 24,858 — % — % — % 100 % — % Corporate and Other 3,868 — % — % — % 61 % 39 % Consolidated net sales $ 1,142,079 39 % 32 % 8 % 20 % — % |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Feb. 03, 2024 | |
Property and Equipment, Net | |
Property and Equipment, Net | Note 3. Property and Equipment, Net Property and equipment, net, is summarized as follows (in thousands): February 3, January 28, 2024 2023 Land $ 2,887 $ 3,090 Buildings and improvements 32,651 32,495 Furniture, fixtures, equipment and technology 315,810 278,589 Leasehold improvements 270,861 255,955 622,209 570,129 Less accumulated depreciation and amortization (427,072) (392,545) Property and equipment, net $ 195,137 $ 177,584 |
Business Combinations
Business Combinations | 12 Months Ended |
Feb. 03, 2024 | |
Business Combinations | |
Business Combinations | Note 4. Business Combinations During Fiscal 2023, we completed business combinations that were insignificant, individually and in the aggregate, to the consolidated financial statements for an aggregate purchase price of $11 million. The business combinations included the acquisition of certain assets from Jack Rogers LLC and Jack Rogers Holding Company LLC and their subsidiaries (collectively “Jack Rogers”) and the acquisition of six former Southern Tide signature stores. The assets acquired and liabilities assumed were recorded based on the provisional estimated fair values, including intangible assets of $5 million, inventory of $3 million and goodwill of $3 million. See "Note 5—Intangible Assets and Goodwill" for the allocation of goodwill to the respective segments. The operating results of each acquisition have been included in the consolidated financial statements since the respective acquisition dates. Johnny Was On September 19, 2022, we acquired 100% of the ownership interests in JW Holdings, LLC and its subsidiaries (collectively “Johnny Was”). Johnny Was owns the Johnny Was California lifestyle brand and its related operations including the design, sourcing, marketing and distribution of collections of affordable luxury, artisan-inspired bohemian apparel, accessories and home goods. This acquisition was accounted for under the acquisition method of accounting for business combinations. The preliminary purchase price for the acquisition of Johnny Was totaled $270 million in cash. After giving effect to the initial working capital adjustment, The final estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows (in thousands): Provisional Amounts at January 28, 2023 Measurement Period Adjustments Final Amounts at February 3, 2024 Cash and cash equivalents $ 7,296 $ — $ 7,296 Receivables 8,777 — 8,777 Inventories 23,434 (28) 23,406 Prepaid expenses and other assets 6,353 — 6,353 Property and equipment 21,108 (947) 20,161 Intangible assets 134,640 — 134,640 Goodwill 96,637 2,599 99,236 Operating lease assets 54,859 — 54,859 Accounts payable, accrued expenses and other liabilities (34,777) 699 (34,078) Non-current portion of operating lease liabilities (47,009) — (47,009) Purchase price $ 271,318 $ 2,323 $ 273,641 Goodwill represents the amount by which the cost to acquire Johnny Was exceeds the fair value of individual acquired assets less liabilities of the business at acquisition. We made measurement-period adjustments, as shown in the table above, that increased the amount of provisional goodwill by $3 million. Substantially all the goodwill is deductible for income tax purposes. We acquired tradenames and trademarks as well as customer relationships as part of the acquisition. We used the relief from royalty method to estimate the fair value of trademarks and tradenames and the multi-period excess earnings method under the income approach to estimate the fair value of customer relationships. 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 - 13 years $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 The consolidated pro forma information presented below (in thousands, except per share data) gives effect to the September 19, 2022 acquisition of Johnny Was as if the acquisition had occurred as of 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 the beginning of Fiscal 2021 and is not intended to be a projection of future results of operations. The consolidated 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. Fiscal 2022 Fiscal 2021 Net sales $ 1,546,371 $ 1,327,875 Earnings before income taxes $ 237,919 $ 169,832 Net earnings $ 182,380 $ 135,276 Earnings per share: Basic $ 11.47 $ 8.02 Diluted $ 11.22 $ 8.13 The Fiscal 2022 pro forma information above includes amortization of acquired intangible assets, but excludes the transaction expenses and integration costs associated with the transaction and the $4 million of incremental cost of goods sold associated with the step-up of inventory at acquisition that was recognized by us in our Fiscal 2022 consolidated statement of operations. The Fiscal 2021 pro forma information above includes amortization of acquired intangible assets, transaction expenses and integration costs associated with the transaction and the $4 million of incremental cost of goods sold associated with the step-up of inventory at acquisition. Additionally, the pro forma adjustments for each period prior to the September 2022 acquisition reflect an estimate of incremental interest expense associated with additional borrowings and income tax expense that would have been incurred subsequent to the acquisition. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Feb. 03, 2024 | |
Intangible Assets and Goodwill | |
Intangible Assets and Goodwill | Note 5. Intangible Assets and Goodwill Intangible assets by category are summarized below (in thousands): February 3, January 28, 2024 2023 Intangible assets with finite lives $ 113,413 $ 108,513 Accumulated amortization and impairment (64,812) (50,068) Total intangible assets with finite lives, net 48,601 58,445 Intangible assets with indefinite lives: Tommy Bahama Trademark $ 110,700 $ 110,700 Lilly Pulitzer Trademark 27,500 27,500 Johnny Was Trademark 66,000 77,900 Southern Tide Trademark 9,300 9,300 Total intangible assets with indefinite lives $ 213,500 $ 225,400 Total intangible assets, net $ 262,101 $ 283,845 Intangible assets, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 are as follows (in thousands): Tommy Lilly Johnny Emerging Lanier Corporate Bahama Pulitzer Was Brands Apparel and Other Total Balance, January 30, 2021 $ 110,700 $ 28,317 $ — $ 17,170 $ — $ — $ 156,187 Acquisition — — — — — — — Impairment — — — — — — — Amortization — (220) — (660) — — (880) Balance, January 29, 2022 $ 110,700 $ 28,097 $ — $ 16,510 $ — $ — $ 155,307 Acquisition — — 134,640 — — — 134,640 Impairment — — — — — — — Amortization — (238) (5,194) (670) — — (6,102) Balance, January 28, 2023 $ 110,700 $ 27,859 $ 129,446 $ 15,840 $ — $ — $ 283,845 Acquisition — — — 4,899 — — 4,899 Impairment — — (11,900) — — — (11,900) Amortization — (227) (13,852) (664) — — (14,743) Balance, February 3, 2024 $ 110,700 $ 27,632 $ 103,694 $ 20,075 $ — $ — $ 262,101 Based on the current estimated useful lives assigned to our intangible assets, amortization expense for each of the next five years is expected to be Goodwill, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 is as follows (in thousands): Tommy Lilly Johnny Emerging Corporate Bahama Pulitzer Was Brands and Other Total Balance, January 30, 2021 $ 788 $ 19,522 $ — $ 3,600 $ — $ 23,910 Other, including foreign currency (41) — — — — (41) Balance January 29, 2022 $ 747 $ 19,522 $ — $ 3,600 $ — $ 23,869 Acquisition — — 96,637 — — 96,637 Other, including foreign currency (8) — — — — (8) Balance, January 28, 2023 $ 739 $ 19,522 $ 96,637 $ 3,600 $ — $ 120,498 Acquisition — — — 3,371 — 3,371 Measurement-period adjustments — — 2,599 — — 2,599 Impairment — — (99,236) — — (99,236) Other, including foreign currency (42) — — — — (42) Balance, February 3, 2024 $ 697 $ 19,522 $ — $ 6,971 $ — $ 27,190 Goodwill and Other Intangible Assets Impairment Testing We assess the recoverability of goodwill and other indefinite-lived intangible assets annually, at the beginning of the fourth quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Intangible assets with finite lives are amortized over their estimated useful life and are tested for impairment, along with other long-lived assets, when events and circumstances indicate that the assets might be impaired. Please see Note 1, “Summary of Significant Accounting Policies,” for discussion of the Company’s goodwill and intangible assets impairment testing process. Based on our annual quantitative assessment as of October 29, 2023, and in conjunction with our fourth quarter annual forecasting process for 2024 which impacts key assumptions used in our impairment assessments, it was determined that the Johnny Was reporting unit and intangible assets with an indefinite life were impaired. The impairment charges for Johnny Was reflect the current challenging macroeconomic environment that has resulted in a more cautious consumer and an increase in interest rates. The more cautious consumer has both negatively impacted Johnny Was’ wholesale customers and direct to consumer operations resulting in Johnny Was not performing as originally projected in Fiscal 2023 and the moderation of forecasted revenue and operating income in future years. Interest rates also increased significantly after the acquisition of Johnny Was in September 2022 leading to an increase in discount rates used in our impairment analyses. We recorded $111 million of noncash impairment charges during the fourth quarter of Fiscal 2023, including a goodwill impairment of $99 million and an intangible asset impairment of $12 million, which were included in Impairment of goodwill, intangible assets and equity method investments in our Consolidated Statements of Operations. |
Debt
Debt | 12 Months Ended |
Feb. 03, 2024 | |
Debt | |
Debt | Note 6. Debt On March 6, 2023, we entered into a Second Amendment to the Fourth Amended and Restated Credit Agreement (the “U.S. Revolving Credit Agreement”). The U.S. Revolving Credit Agreement provides for a revolving credit facility of up to $325 million, which may be used to fund working capital, to fund future acquisitions and for general corporate purposes. The U.S. Revolving Credit Agreement amended and restated our Fourth Amended and Restated Credit Agreement (the “Prior Credit Agreement”). The U.S. 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 U.S. Revolving Credit Agreement. Pursuant to the U.S. Revolving Credit Agreement, the interest rate applicable to our borrowings under the U.S. Revolving Credit Agreement is 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 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 (weighted average interest rate of 7% as of February 3, 2024), 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 $5 million in the aggregate under the U.S. Revolving Credit Agreement as of February 3, 2024. Outstanding letters of credit under the U.S. Revolving Credit Agreement reduce the amount of borrowings available to us. As of February 3, 2024, we had $29 million of borrowings outstanding and $288 million in unused availability under the U.S. Revolving Credit Agreement. Under the Prior Credit Agreement as of January 28, 2023 we had $119 million of borrowings outstanding and $199 million of unused availability. Compliance with Covenants 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 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 2023 and as of February 3, 2024, no financial covenant testing was required pursuant to our U.S. Revolving Credit Agreement, or the Prior Credit Agreement, as applicable, as the minimum availability threshold was met at all times. As of February 3, 2024, 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 |
Feb. 03, 2024 | |
Leases and Other Commitments | |
Leases and Other Commitments | Note 7. Leases and Other Commitments For Fiscal 2023, operating lease expense, which includes amounts used in determining the operating lease liability and operating lease asset was $71 million and variable lease expense was $48 million, resulting in total lease expense of $119 million. For Fiscal 2022, operating lease expense, which includes amounts used in determining the operating lease liability and operating lease asset was $61 million and variable lease expense was $43 million, resulting in total lease expense of $104 million. For Fiscal 2021, operating lease expense was $58 million and variable lease expense was $35 million, resulting in total lease expense of $93 million. As of both February 3, 2024 and January 28, 2023, the weighted-average remaining operating lease term was six years. The weighted-average discount rate for operating leases was 5.7% and 4.7% as of February 3, 2024 and January 28, 2023, respectively. Cash paid for lease amounts included in the measurement of operating lease liabilities in Fiscal 2023, Fiscal 2022 and Fiscal 2021 was $89 million, $75 million and $70 million, respectively. As of February 3, 2024, 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 2024 78,886 2025 64,045 2026 58,746 2027 45,053 2028 39,334 After 2028 82,348 Total lease payments $ 368,412 Less: Difference between discounted and undiscounted lease payments 60,133 Present value of lease liabilities $ 308,279 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 03, 2024 | |
Shareholders' Equity | |
Shareholders' Equity | Note 8. Shareholders’ Equity Common Stock We had 60 million shares of $1.00 par value per share common stock authorized for issuance as of February 3, 2024 and January 28, 2023. As of February 3, 2024 and January 28, 2023, we had 16 million shares and 16 million shares, respectively, of common stock issued and outstanding. Dividends During Fiscal 2023, Fiscal 2022 and Fiscal 2021, we paid $42 million, $35 million and $28 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 2023, Fiscal 2022 and Fiscal 2021, we repurchased $20 million, $92 million and $8 million, respectively in open market transactions. Additionally, during Fiscal 2023, Fiscal 2022 and Fiscal 2021, we purchased $10 million, $3 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. Pursuant to the Board of Directors’ December 7, 2021, authorization, we repurchased 196,000 shares of our common stock for $20 million, an average price of $102 per share, in open market transactions during Fiscal 2023. As of February 3, 2024, $30 million of the authorization remained available for future repurchases of our common stock. Preferred Stock We had 30 million shares of $1.00 par value preferred stock authorized for issuance as of February 3, 2024 and January 28, 2023. No preferred shares were issued or outstanding as of February 3, 2024 or January 28, 2023. |
Equity Compensation
Equity Compensation | 12 Months Ended |
Feb. 03, 2024 | |
Equity Compensation | |
Equity Compensation | Note 9. Equity Compensation Long-Term Stock Incentive Plan and Equity Compensation Expense As of February 3, 2024, shares available for issuance under our Long-Term Stock Incentive Plan (the “Long- Term Stock Incentive Plan”) were less than 1 million shares, which includes the additional shares approved for grant under the Long-Term Stock Incentive Plan by shareholders in June 2022. The Long-Term Stock Incentive Plan allows us to grant equity-based awards to employees and non-employee directors in the form of, among other things, stock options, stock appreciation rights, restricted shares and/or restricted share units. No additional shares are available under any predecessor plans. The specific provisions of restricted share awards are evidenced by agreements with the employee as determined by the compensation committee of our Board of Directors. Restricted shares and restricted share units granted to officers and other key employees in recent years generally vest three years from the date of grant if (1) the performance or market threshold, if any, was met and (2) the employee is still employed by us on the vesting date. The employee generally is restricted from transferring or selling any restricted shares or restricted share units and forfeits the awards upon the termination of employment prior to the end of the vesting period. The restricted share unit awards granted during Fiscal 2022 and Fiscal 2023 include certain clauses related to accelerated vesting upon the occurrence of qualifying retirement, death or disability of the employee prior to the vesting date, while the restricted share awards granted in prior years did not include such clauses. In recent years, we have granted a combination of service-based restricted share awards and awards based on total shareholder return (“TSR”) to certain of our employees. As of February 3, 2024, there was $20 million of unrecognized compensation expense related to the unvested service-based and TSR-based restricted share awards included in the tables below, which have been granted to employees but have not yet vested. As of February 3, 2024, the weighted average remaining life of the outstanding service-based and TSR-based awards was one year and two years, respectively. Service-Based and Performance-Based Restricted Share Awards During Fiscal 2023 and Fiscal 2022, we granted service-based restricted share and restricted share unit awards, while in Fiscal 2021 and years prior we granted service-based restricted shares. At the time that service-based restricted share unit awards are granted, the employee is generally, subject to the terms of the respective agreement, entitled to dividend equivalents, payable at the time of payment of any dividends paid on our common stock as long as the awards are outstanding, but do not have any voting rights. Whereas, at the time that service-based restricted share awards were issued, the shareholder is generally, subject to the terms of the respective agreement, entitled to the same dividend and voting rights as other holders of our common stock as long as the restricted shares are outstanding. Service-based Restricted Share Units The table below summarizes the service-based restricted share awards, including both restricted shares and restricted share units, and performance-based award activity for officers and other key employees during Fiscal 2023, Fiscal 2022, and Fiscal 2021 (which do not include the TSR-based Restricted Share Unit activity described below): Fiscal 2023 Fiscal 2022 Fiscal 2021 Weighted- Weighted- Weighted- Number of average Number of average Number of average Shares or grant date Shares grant date Shares grant date Units fair value or Units fair value or Units fair value Awards outstanding at beginning of year 212,945 $ 64 238,889 $ 61 308,369 $ 61 Awards granted 60,505 $ 115 67,965 $ 89 42,855 $ 89 Awards vested, including awards repurchased from employees for employees’ tax liability (111,095) $ 41 (83,324) $ 77 (81,283) $ 77 Awards forfeited (3,561) $ 83 (10,585) $ 62 (31,052) $ 62 Awards outstanding on February 3, 2024 158,794 $ 99 212,945 $ 64 238,889 $ 61 The following table summarizes information about unvested service-based restricted share awards, including both restricted shares and restricted share units, as of February 3, 2024. Number of Average Unvested Fair Value Share on Description Awards Date of Grant Service-based restricted shares with May 2024 vesting date 34,455 $ 89 Service-based restricted share units with May 2025 vesting date 64,134 $ 89 Service-based restricted share units with May 2026 vesting date 60,205 $ 115 Total service-based awards outstanding at end of year 158,794 $ 99 Additionally, during the First Quarter of Fiscal 2024, we granted 0.1 million of service-based restricted share units, subject to the recipient remaining an employee through the May 2027 vesting date. TSR-based Restricted Share Units The table below summarizes the TSR-based restricted share unit activity for officers and other key employees (in units) during Fiscal 2023, Fiscal 2022, and Fiscal 2021: Fiscal 2023 Fiscal 2022 Fiscal 2021 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Share Units fair value Share Units fair value Share Units fair value TSR-based awards outstanding at beginning of year 196,040 $ 89 130,440 $ 78 83,345 $ 50 TSR-based awards granted 74,605 $ 153 66,525 $ 111 56,750 $ 117 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 (2,142) $ 115 (925) $ 115 (9,655) $ 68 TSR-based awards outstanding on February 3, 2024 192,163 $ 129 196,040 $ 89 130,440 $ 78 The restricted share units granted in the table above are at target. The TSR-based restricted share units are subject to (1) our achievement of a specified TSR-based ranking by us relative to a comparator group during a period of approximately three years from the date of grant and (2) generally the recipient remaining an employee through the vesting date which is approximately three years from the date of grant. The number of shares ultimately earned, which will be settled in shares of our common stock on the vesting date, will be between 0% and 200% of the restricted share units at target. These TSR-based restricted share units are entitled to dividend equivalents for dividends declared on our common stock prior to the vesting date, which are payable after vesting of the restricted shares, solely for the number of shares ultimately earned. These TSR-based restricted share units do not have any voting rights prior to the vesting date. The following table summarizes information about unvested TSR-based restricted share units as of February 3, 2024. Unvested Fair Value TSR-Based on Description Share/Unit Date of Grant TSR-based restricted share units (at target) with May 2024 vesting date 52,200 $ 117 TSR-based restricted share units (at target) with May 2025 vesting date 65,358 $ 111 TSR-based restricted share units (at target) with May 2026 vesting date 74,605 $ 153 Total TSR-based restricted share units outstanding at end of year 192,163 $ 129 Additionally, during the First Quarter of Fiscal 2024, we granted 0.1 million of TSR-based restricted share units at target, subject to (1) our achievement of a specified TSR-based ranking by Oxford relative to a comparator group during a period of approximately three years from the date of grant and (2) the recipient remaining an employee through the May 2027 vesting date. The number of shares ultimately earned will be between 0% and 200% of the restricted share units at target. Director Share Awards In addition to shares granted to employees, we grant restricted share awards 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 February 3, 2024. 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 2023, Fiscal 2022 and Fiscal 2021. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Feb. 03, 2024 | |
Defined Contribution Plans | |
Defined Contribution Plans | Note 10. 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 2023, Fiscal 2022 and Fiscal 2021 was $7 million, $5 million and $4 million, respectively. The increase in Fiscal 2023 was primarily due to an increase in the company match percentage for our defined contribution plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Taxes | |
Income Taxes | Note 11. 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 2023 2022 2021 Earnings (loss) before income taxes: Domestic $ 62,772 $ 206,944 $ 161,233 Foreign 12,174 8,781 3,326 Earnings (loss) before income taxes $ 74,946 $ 215,725 $ 164,559 Income taxes: Current: Federal $ 28,183 $ 41,776 $ 24,998 State 7,530 8,835 3,780 Foreign 2,419 1,191 409 38,132 51,802 29,187 Deferred—Domestic (24,083) 71 4,155 Deferred—Foreign 194 (1,883) (104) Income taxes $ 14,243 $ 49,990 $ 33,238 Reconciliations of the United States federal statutory income tax rates and our effective tax rates are summarized as follows: Fiscal Fiscal Fiscal 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes—net of federal income tax benefit 1.6 % 3.6 % 3.7 % Change in reserve for uncertain tax positions & method change 1.5 % 0.2 % (1.0) % Impact of foreign operations rate differential 0.3 % 0.1 % 0.1 % U.S. federal tax credits (3.0) % (0.7) % (0.6) % Impact of prior year true-ups (1.9) % (0.3) % (0.7) % Excess Tax Benefit, Restricted Stock Vesting (1.6) % (0.1) % (0.3) % Impact of valuation allowances related to operating losses (0.9) % (1.6) % (0.8) % Impact of valuation allowances related to capital losses — % — % 1.2 % Impact of capital losses — % — % (2.9) % Other, net 2.0 % 1.0 % 0.5 % Effective tax rate for continuing operations 19.0 % 23.2 % 20.2 % Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands): February 3, January 28, 2024 2023 Deferred Tax Assets: Inventories $ 21,254 $ 20,561 Accrued compensation and benefits 10,982 9,637 Receivable allowances and reserves 2,433 2,580 Operating lease liabilities 77,150 71,871 Operating loss and other carry-forwards 709 757 Other, net 5,902 4,901 Deferred tax assets 118,430 110,307 Deferred Tax Liabilities: Operating lease assets (74,004) (66,145) Depreciation and amortization (16,907) (15,289) Acquired intangible assets (1,051) (26,030) Deferred tax liabilities (91,962) (107,464) Valuation allowance (2,289) (2,448) Net deferred tax asset (liability) $ 24,179 $ 395 The majority of our valuation allowance of $2 million as of February 3, 2024 and January 28, 2023 relates to our capital loss carry-forwards. 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 substantially all of 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 these foreign investments and earnings in our consolidated balance sheets as of February 3, 2024 and January 28, 2023. 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. The amounts of deferred income taxes included in our consolidated balance sheets are as follows (in thousands): February 3, January 28, 2024 2023 Assets: Deferred tax assets $ 24,179 $ 3,376 Liabilities: Deferred tax liabilities — (2,981) Net deferred tax asset (liability) $ 24,179 $ 395 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 2023 Fiscal 2022 Fiscal 2021 Balance of unrecognized tax benefits at beginning of year $ 3,664 $ 3,390 $ 5,261 Increase related to prior period tax positions 233 110 10 Decrease related to prior period tax positions (2,027) — — Increase related to current period tax positions 1,940 646 527 Decrease related to settlements with taxing authorities — — (2,305) Decrease related to lapse of statute of limitations (100) (482) (103) Balance of unrecognized tax benefits at end of year $ 3,710 $ 3,664 $ 3,390 Approximately $2 million of our uncertain tax positions as of February 3, 2024, 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. The ultimate occurrence, outcomes, and timing of such events could differ from our current expectations. Interest and penalties associated with unrecognized tax positions are recorded within income tax expense in our consolidated statements of operations. During each of Fiscal 2023, Fiscal 2022 and Fiscal 2021, we recognized less than $1 million of interest and penalties associated with unrecognized tax positions in our consolidated statements of operations. 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 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. Pillar Two Directive In December 2022, the EU Member States formally adopted the Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development Pillar Two Framework. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. We are continuing to evaluate the potential effect on future periods of the Pillar Two Framework, pending legislative adoption by additional individual countries. |
Lanier Apparel Exit
Lanier Apparel Exit | 12 Months Ended |
Feb. 03, 2024 | |
Lanier Apparel Exit | |
Lanier Apparel Exit | Note 12. Lanier Apparel Exit In Fiscal 2021, we exited our Lanier Apparel business, which had been focused on moderately priced tailored clothing and related products. The Lanier Apparel exit 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. 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 Fiscal 2021 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. The $2 million gain on sale of the Merida manufacturing facility in Mexico that was sold in the First Quarter of Fiscal 2023 is also included in royalties and other income. We do not expect to incur any additional Lanier Apparel exit charges. 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. During Fiscal 2023, lease amounts totaling $2 million related to the Lanier Apparel office leases that were previously impaired and vacated were paid, with no other anticipated significant future cash requirements related to the Lanier Apparel business. |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 03, 2024 | |
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 2023 Deducted from asset accounts: Accounts receivable reserves (1) $ 4,032 $ 1,201 $ $ (2,592) (4) $ 2,641 Provision for credit losses (2) $ 1,230 $ (382) $ $ (348) (5) $ 500 Fiscal 2022 Deducted from asset accounts: Accounts receivable reserves (1) $ 3,412 $ 2,868 $ 541 (3) $ (2,789) (4) $ 4,032 Provision for credit losses (2) $ 1,311 $ (262) $ 200 (3) $ (19) (5) $ 1,230 Fiscal 2021 Deducted from asset accounts: Accounts receivable reserves (1) $ 6,418 $ (1,140) $ — $ (1,866) (4) $ 3,412 Provision for credit losses (2) $ 2,580 $ (1,190) $ — $ (79) (5) $ 1,311 (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) Addition due to the acquisition of Johnny Was in September 2022. (4) Principally consists of amounts written off related to customer allowances, returns and discounts. (5) 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 |
Feb. 03, 2024 | |
Basis of Presentation | |
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 2021, Fiscal 2022, Fiscal 2023 and Fiscal 2024 reflect the 52 weeks ended January 29, 2022; 52 weeks ended January 28, 2023; 53 weeks ended February 3, 2024; and 52 weeks ending February 1, 2025, 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 From time-to-time, we make strategic acquisitions that may have a material effect on our consolidated results of operations and financial position. The measurement principle for the assets acquired and the liabilities assumed in a business combination is at estimated fair value as of the acquisition date, with certain exceptions. At acquisition, we use estimates that can be complex and require significant judgments to record the fair value of purchased intangible assets, which primarily consist of trademarks, as well as customer relationships and reacquired rights. 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. 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 pursuant to the acquisition method of accounting. Additionally, at acquisition we must determine whether the intangible asset has an indefinite or finite life and account for it accordingly. 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 February 3, 2024, substantially all goodwill included in our consolidated balance sheet is deductible for income tax purposes. 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 of intangible assets, including trademarks, customer relationships and other items, 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 for the discount rates, income tax rates, anticipated cash flows and probabilities of cash flows, among other factors. Our fair value assessment may also consider any comparable market transactions. The use of different assumptions related to these uncertain factors at acquisition could result in a material change to the amounts of intangible assets and goodwill initially recorded at acquisition, which could result in a material impact on our consolidated financial statements. 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. Our estimates of the purchase price allocation of a business combination may be revised during a measurement period as necessary when, and if, information becomes available to revise the fair values of the assets acquired and the liabilities assumed. Actual fair values ultimately assigned to the acquired assets and liabilities when final information is available may materially differ from our preliminary estimates during the measurement period. The allocation period may 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. Refer to Note 4 for information related to the Fiscal 2022 acquisition of Johnny Was and the Fiscal 2023 acquisitions, including disclosures about the allocation of the preliminary purchase price to the estimated fair values of the acquired assets and liabilities. |
Revenue Recognition and Receivables | Revenue Recognition and Receivables Our revenue consists of direct to consumer sales, including our retail store, e-commerce and food and beverage 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 2023 2022 2021 Retail $ 605,486 $ 552,696 $ 443,015 E-commerce 538,224 465,446 369,300 Food & Beverage 115,766 109,225 96,244 Wholesale 311,910 281,938 231,536 Other 89 2,223 1,984 Net sales $ 1,571,475 $ 1,411,528 $ 1,142,079 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 food and beverage locations, 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 food and beverage 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 $13 million and $12 million for expected direct to consumer returns is classified in accrued expenses and other liabilities in our consolidated balance sheet as of February 3, 2024 and January 28, 2023, 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 February 3, 2024 and January 28, 2023, reserve balances recorded as a reduction to wholesale receivables related to these items were $3 million and $4 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 our wholesale customer receivable amounts not specifically provided for, we recognize estimated provisions for credit losses, using the current expected loss model 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 2023, Fiscal 2022 and Fiscal 2021 were a credit of less than $1 million, a credit of less than $1 million and a credit of $1 million, respectively, while write-offs of credit losses for Fiscal 2023, Fiscal 2022 and Fiscal 2021 were less than $1 million, less than $1 million and less than $1 million, respectively. As of both February 3, 2024 and January 28, 2023, receivables, net in our consolidated balance sheet included a provision for credit losses related to trade receivables of $1 million. In addition to trade receivables, tenant allowances due from landlord of $6 million and $2 million are included in receivables, net in our consolidated balance sheet, as of February 3, 2024 and January 28, 2023, 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 both February 3, 2024 and January 28, 2023, prepaid expenses and other current assets included $4 million 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 February 3, 2024 and January 28, 2023. 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, 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 $20 million and $19 million as of February 3, 2024 and January 28, 2023, respectively. Gift card breakage income, which is included in net sales in our consolidated statements of operations, was $1 million in each of Fiscal 2023, Fiscal 2022 and Fiscal 2021. In Fiscal 2021, each of our brands in our Emerging Brands operating group initiated brand specific loyalty award programs. These programs allow consumers to earn loyalty points associated with the brand. Lilly Pulitzer initiated also initiated a program in Fiscal 2023. 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 totaled $3 million and $1 million as of February 3, 2024 and January 28, 2023, respectively. 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, received from licensees reflects that 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 $19 million, $22 million and $18 million during Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. |
Cost of Goods Sold | Cost of Goods Sold We include in cost of goods sold (1) the cost paid to the suppliers 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, and depreciation expense associated with our sourcing 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, food and beverage locations and concessions, such as labor, lease commitments and other occupancy costs, direct to consumer location 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 2023, Fiscal 2022 and Fiscal 2021, distribution network costs included in SG&A totaled $40 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 2023, Fiscal 2022 and Fiscal 2021 were $105 million, $82 million and $60 million, respectively. Prepaid advertising, promotion and marketing expenses included in prepaid expenses and other current assets in our consolidated balance sheets as of February 3, 2024 and January 28, 2023 were $5 million and $6 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 licensed product 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 2023, Fiscal 2022 and Fiscal 2021 were $6 million, $4 million and $6 million, respectively. As of February 3, 2024, 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 licensed 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 February 3, 2024 and January 28, 2023, we did not have any cash and cash equivalents in money market fund investments. Supplemental Cash Flow Information During Fiscal 2023, Fiscal 2022 and Fiscal 2021, cash paid for income taxes was $39 million, $56 million and $34 million, respectively. During Fiscal 2023, Fiscal 2022 and Fiscal 2021, cash paid for interest, net of interest income was $6 million, $3 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 $2 million, $3 million and $3 million as of Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Additionally, during Fiscal 2023, Fiscal 2022 and Fiscal 2021, we recorded a non-cash net increase in operating lease assets and corresponding operating lease liability amounts of $83 million, $47 million and $18 million, respectively, related to the net impact of new, modified and terminated operating lease amounts, excluding any operating lease amounts recognized in the opening balance sheet of an acquired business. |
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 February 3, 2024 and January 28, 2023, $146 million, or 92%, and $204 million, or 93%, respectively, of our inventories were valued at the lower of LIFO cost or market after deducting our LIFO accounting reserve. The remaining $13 million and $16 million of our inventories were valued at the lower of FIFO cost or market as of February 3, 2024 and January 28, 2023, 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 includes changes in markdown reserves. 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 was a $2 million LIFO inventory layer liquidation in Fiscal 2023. There were no material LIFO inventory layer liquidations in Fiscal 2022 or Fiscal 2021. As of February 3, 2024 and January 28, 2023, the LIFO reserve included in our consolidated balance sheet was $83 million and $76 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 sourcing operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets We test goodwill for impairment at the reporting unit level annually on the first day of the fourth quarter and more often if an event occurs or circumstances change that indicate the fair value of a reporting unit is below its carrying amount. We have the option to first assess qualitative factors to determine whether it is more likely than not that 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 reporting unit in any period and proceed directly to performing the quantitative impairment test. For each impairment test of goodwill in Fiscal 2023, Fiscal 2022 and Fiscal 2021, we bypassed the qualitative test option and instead performed a quantitative test. When applying the quantitative assessment, we determine the fair value of our reporting units based on an income approach, or in some cases a combination of an income approach and market approach. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates and future economic and market conditions. If an annual or interim analysis indicates an impairment of 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 reporting unit. As of October 29, 2023, our reporting units consisted of the following: Tommy Bahama Duck Head Oxford of Lyons Lilly Pulitzer Southern Tide Intangible assets with indefinite lives, which primarily consist of trademarks, are not amortized but instead evaluated for impairment annually or more frequently if events or circumstances indicate that the intangible asset might be impaired. This analysis is dependent upon a number of uncertain factors described below and is typically performed in conjunction with the goodwill impairment analysis discussed above and is similar to the analysis performed at acquisition. The fair value of our trademarks is principally determined by the “relief from royalty” approach that assumes the trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method includes assumptions regarding revenue growth rates, royalty rates, risk-adjusted discount rates and future economic and market conditions. If an annual or interim analysis indicates an impairment of an intangible asset with an indefinite useful life, 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. Based on the quantitative assessment of our Johnny Was related intangible assets with an indefinite life, we recognized noncash impairment charges of $12 million in the Fourth Quarter of Fiscal 2023 which was recorded within impairment of goodwill, intangible assets and equity method investments in our Consolidated Statements of Operations. See “Note 5—Intangible Assets and Goodwill” for further discussion. For all other intangible assets The estimated fair values used in the impairment assessments of goodwill and intangible assets with an indefinite life were considered nonrecurring Level 3 measurements of the valuation hierarchy. Intangible assets with finite lives primarily consist of customer relationships, certain trademarks and reacquired rights. These assets are amortized over the estimated useful life of the asset using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise realized or the straight line method. 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, equity investments in unconsolidated entities, assets related to certain investments in officers’ life insurance policies, deposits and amounts placed into escrow accounts, deferred financing costs 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 February 3, 2024 and January 28, 2023, 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. In March of 2023, we capitalized debt issuance costs of $2 million in connection with commitments upon entering into the U.S. Revolving Credit Agreement. Unamortized deferred financing costs included in other non-current assets, net totaled $2 million as of February 3, 2024 and $1 million as of January 28, 2023. |
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 as of February 3, 2024 and January 28, 2023 was $17 million and $16 million, respectively. Substantially all of these amounts are held in a rabbi trust and included in other non-current assets, net in our consolidated balance sheet. 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 $18 million and $15 million at February 3, 2024 and January 28, 2023, respectively. |
Equity Investments in Unconsolidated Entities | Equity Investments in Unconsolidated Entities We account for equity investments in which we do not directly or indirectly hold a controlling interest 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 is included in royalties and other operating income in our consolidated statements of operations. Income or loss related to investments in smaller lifestyle brands are included within Emerging Brands, while income or loss related to investments in entities that are not lifestyle brands are included within Corporate and Other, including the income or loss from the Tommy Bahama Miramonte Resort & Spa. We made no equity investments during Fiscal 2023. During Fiscal 2022, we paid $8 million for an investment in the Tommy Bahama Miramonte Resort & Spa accounted for using the equity method of accounting. The investment made in Fiscal 2022 is included in other investing activities in our consolidated statements of cash flows. As of February 3, 2024 and January 28, 2023, 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, $7 million and $11 million, respectively. The primary drivers of the decrease were (1) a $2 million noncash impairment of an equity method investment in a smaller lifestyle apparel brand in Fiscal 2023 and (2) a $2 million loss recognized related to the Tommy Bahama Miramonte Resort & Spa. The impairment in the equity method investment resulted from the investee’s forecast of future losses and was recorded within impairment of goodwill, intangible assets and equity method investments in our Consolidated Statements of Operations. The equity investments in unconsolidated entities included in our consolidated balance sheet represents substantially all our exposure or loss related to these investments, as there are no meaningful obligations to fund additional amounts or losses related to these investments. Our primary equity method investment is our minority ownership interest in a property in Indian Wells, California that operates as the Tommy Bahama Miramonte Resort & Spa that opened during Fiscal 2023. During Fiscal 2023, Fiscal 2022 and Fiscal 2021 we recognized amounts related to equity method investments in royalties and other income of a loss of $2 million, loss of $1 million and income of $12 million, respectively. The income in Fiscal 2021 was related to our minority ownership interests in an unconsolidated entity that 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. |
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 direct to consumer location, the decision to vacate a leased space before lease expiration, the abandonment of an asset or other factors. These events may also 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 any assets impaired during Fiscal 2023, Fiscal 2022 and Fiscal 2021, there was no significant fair value at the date of impairment testing. During Fiscal 2023, Fiscal 2022 and Fiscal 2021, we recognized $1 million, $1 million and $2 million, respectively, of property and equipment impairment charges, which were primarily included in SG&A. During Fiscal 2023 and Fiscal 2022, we did not recognize any operating lease asset impairment charges. During Fiscal 2021, we recognized $5 million 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. No impairment of intangible assets with finite lives was recognized during Fiscal 2023, Fiscal 2022, or Fiscal 2021. |
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 approximates 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, employee relations matters, real estate, licensing arrangements, importing or exporting regulations, product safety requirements, 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 associated with the 2017 acquisition of TBBC was recognized in our consolidated statements of operations in Fiscal 2021. As of February 3, 2024, and January 28, 2023, no 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, with the final payment of $2 million 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 both 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 generally is not reasonably certain. Variable rental payments for real estate taxes, sales tax, 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. |
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 2023, Fiscal 2022 and Fiscal 2021 were less than $1 million, $2 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 February 3, 2024, 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 2023, Fiscal 2022 and Fiscal 2021, we did not enter into and were not a party to any foreign currency exchange contracts. |
Interest Rate Risk | Interest Rate Risk As all of our indebtedness is variable-rate debt, we are exposed to market risk from changes in interest rates. If we determine that our exposure to interest rate changes is higher than we believe is appropriate, we may attempt to limit the impact of interest rate changes on earnings and cash flow through a mix of variable-rate and fixed-rate debt or by entering into interest rate swap arrangements. Our assessment of appropriate levels of exposure to changes in interest rates 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 2023, Fiscal 2022 and Fiscal 2021, we did not enter into and were not a party to any interest rate swap agreements. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy that categorizes the inputs to valuation techniques into three broad levels. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our assumptions and include situations where there is little or no market activity for the asset or liability. As of February 3, 2024, our financial instruments consist primarily of our cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, other current liabilities and debt. 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 any 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 as discussed in “Goodwill and Intangibles” above. |
Equity Compensation | Equity Compensation We have certain equity compensation plans as described in Note 9, 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 share awards 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 awards 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 award. For awards with specified service requirements, the fair value of the awards granted to employees is recognized over the requisite 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 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 primarily consists of the impact of the foreign currency translation of our international operations. 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 February 3, 2024, the amounts included in accumulated other comprehensive loss in our consolidated balance sheet primarily consist of the net foreign currency translation adjustment related to our Tommy Bahama operations in Canada and Australia. No material amounts of accumulated other comprehensive loss were reclassified from accumulated other comprehensive loss into our consolidated statements of operations during Fiscal 2023, Fiscal 2022 or Fiscal 2021. |
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 9, earn dividend equivalents which are accrued at the time of dividend declaration by the Board of Directors in accrued expenses and other liabilities, but only paid if the restricted share units are ultimately earned. Dividends accrued related to these restricted share units, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, were $1 million and $1 million, as of February 3, 2024 and January 28, 2023, respectively. |
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 February 3, 2024, one customer represented 14% and another No individual customer represented greater than 10% of our consolidated net sales in Fiscal 2023, Fiscal 2022 or Fiscal 2021. 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. |
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 carry-backs and carry-forwards, 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 carry-back 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 we consider the investment to be essentially permanent in duration and 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 we consider those earnings to be permanently reinvested outside the United States. While distributions of foreign subsidiary earnings are generally not subject to federal tax, 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. Additionally, United States tax regulations currently include certain 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 2023, Fiscal 2022 and Fiscal 2021. 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 impacted us, including allowing the carry-back of our Fiscal 2020 net operating losses to years prior to the enactment of the United States Tax Cuts and Jobs Act in 2017 (“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 February 3, 2024 and January 28, 2023 relates to the carry-back 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 2020, with limited exceptions, are no longer subject to examination by tax authorities. We are currently under federal audit. The audit may conclude in the next 12 months and the unrecognized tax benefits recognized in relation to the audits may differ from actual settlement amounts. It is not possible to estimate the effect, if any, of the amount of such change during the next 12 months to previously recognized uncertain tax positions in connection with the audits; however, we do not anticipate that total unrecognized tax benefits will significantly change in the next 12 months. |
Earnings (Loss) Per Share | Earnings 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 future compensation expense to be recognized and any cash to be paid. 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. No restricted shares or restricted share units were excluded from the diluted earnings per share calculation for Fiscal 2023 or Fiscal 2022. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
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. Changes to our estimates and assumptions could have a material impact on our consolidated financial statements. |
Accounting Standards Adopted in Fiscal 2023 and Recently Issued Accounting Standards Applicable to Future Periods | Accounting Standards Adopted in Fiscal 2023 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. Recently Issued Accounting Standards Applicable to Future Years In November 2023, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Basis of Presentation | |
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 2023 2022 2021 Retail $ 605,486 $ 552,696 $ 443,015 E-commerce 538,224 465,446 369,300 Food & Beverage 115,766 109,225 96,244 Wholesale 311,910 281,938 231,536 Other 89 2,223 1,984 Net sales $ 1,571,475 $ 1,411,528 $ 1,142,079 |
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 Groups (Tables)
Operating Groups (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Operating Groups | |
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 2023 2022 2021 Net sales Tommy Bahama $ 898,807 $ 880,233 $ 724,305 Lilly Pulitzer 343,499 339,266 298,995 Johnny Was (1) 202,859 72,591 — Emerging Brands 126,825 116,484 90,053 Lanier Apparel (2) — — 24,858 Corporate and Other (515) 2,954 3,868 Consolidated net sales $ 1,571,475 $ 1,411,528 $ 1,142,079 Depreciation and amortization Tommy Bahama $ 26,133 $ 26,807 $ 27,830 Lilly Pulitzer 16,603 12,784 11,678 Johnny Was (1) 18,794 7,199 — Emerging Brands 2,003 1,582 1,298 Lanier Apparel (2) — — 107 Corporate and Other 533 663 685 Consolidated depreciation and amortization $ 64,066 $ 49,035 $ 41,598 Operating income (loss) Tommy Bahama $ 160,543 $ 172,761 $ 111,733 Lilly Pulitzer 56,110 67,098 63,601 Johnny Was (1) (104,776) (1,544) — Emerging Brands (3) 6,714 15,602 16,649 Lanier Apparel (2) — — 4,888 Corporate and Other (4) (37,609) (35,143) (31,368) Consolidated operating income 80,982 218,774 165,503 Interest expense, net 6,036 3,049 944 Earnings before income taxes $ 74,946 $ 215,725 $ 164,559 (1) In Fiscal 2023, the operating loss for Johnny Was resulted from a $111 million impairment charge for goodwill and intangible assets with no such charges in Fiscal 2022. Financial information for Fiscal 2022 consists of 19 weeks from the September 19, 2022, acquisition date through January 28, 2023, only. (2) In Fiscal 2021, we exited our Lanier Apparel business, which is discussed in more detail in Note 12. (3) The operating income for Emerging Brands in Fiscal 2023 included a $2 million impairment charge related to an unconsolidated entity. (4) The operating loss for Corporate and Other included a LIFO accounting charge of $10 million, $3 million and $16 million in Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. The operating loss for Corporate and Other in Fiscal 2022 also included $3 million of transaction expenses and integration costs associated with the Johnny Was acquisition. Fiscal 2021 also included a gain on sale of an unconsolidated entity of $12 million, respectively. Fiscal 2023 Fiscal 2022 Fiscal 2021 Purchases of Property and Equipment Tommy Bahama $ 39,060 $ 17,019 $ 12,887 Lilly Pulitzer 24,100 23,990 17,305 Johnny Was (1) 6,105 1,655 — Emerging Brands 3,768 3,176 1,405 Lanier Apparel (2) — — 5 Corporate and Other 1,065 828 292 Purchases of Property and Equipment $ 74,098 $ 46,668 $ 31,894 February 3, January 28, 2024 2023 Total Assets Tommy Bahama (3) $ 556,431 $ 569,833 Lilly Pulitzer (4) 194,871 211,119 Johnny Was (1) 251,429 334,603 Emerging Brands (5) 98,816 91,306 Corporate and Other (6) (3,703) (18,196) Total Assets $ 1,097,844 $ 1,188,665 (1) The financial information for Johnny Was for Fiscal 2022 consists of 19 weeks from the September 19, 2022, acquisition date through January 28, 2023, only. The decrease in Johnny Was total assets during Fiscal 2023 relates primarily to the $111 million impairment charge for goodwill and intangible assets. (2) Lanier Apparel was exited during Fiscal 2021. (3) Increase in Tommy Bahama total assets includes increases in receivables, operating lease assets and property plant and equipment partially offset by reductions in inventories. (4) Decrease in Lilly Pulitzer total assets includes reductions in inventories partially offset by increases in receivables. (5) Increase in Emerging Brands total assets includes increases in operating lease assets and property plant and equipment from the opening of new retail store locations. Goodwill and intangible assets also increased related to the current year acquisition of Jack Rogers and six former Southern Tide Signature Stores. These increase were partially offset by reductions in inventories. (6) Decrease in Corporate and Other total assets includes reductions in inventories, primarily due to the impact of LIFO accounting. |
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). February 3, January 28, 2024 2023 Net Book Value of Property and Equipment United States $ 192,329 $ 174,044 Other foreign 2,808 3,540 $ 195,137 $ 177,584 |
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 2023 Fiscal 2022 Fiscal 2021 Net Sales United States $ 1,532,100 $ 1,372,278 $ 1,112,384 Other foreign 39,375 39,250 29,695 $ 1,571,475 $ 1,411,528 $ 1,142,079 |
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, except that the amounts included for Johnny Was in Fiscal 2022 represent the post-acquisition period only. We have calculated all percentages below based on actual data, and percentages may not add to 100 due to rounding. Fiscal 2023 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 898,807 45 % 25 % 13 % 17 % — % Lilly Pulitzer 343,499 33 % 51 % — % 16 % — % Johnny Was 202,859 38 % 41 % — % 21 % — % Emerging Brands 126,825 11 % 43 % — % 46 % — % Corporate and Other (515) — % — % — % — % NM % Consolidated net sales $ 1,571,475 39 % 34 % 7 % 20 % — % Fiscal 2022 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 880,233 46 % 24 % 13 % 17 % — % Lilly Pulitzer 339,266 33 % 51 % — % 16 % — % Johnny Was (1) 72,591 36 % 42 % — % 22 % — % Emerging Brands 116,484 6 % 42 % — % 52 % — % Corporate and Other 2,954 — % — % — % — % NM % Consolidated net sales $ 1,411,528 39 % 33 % 8 % 20 % — % Fiscal 2021 Net Sales Retail E ‑ commerce Food & Beverage Wholesale Other Tommy Bahama $ 724,305 47 % 25 % 13 % 15 % — % Lilly Pulitzer 298,995 34 % 50 % — % 16 % — % Johnny Was — — % — % — % — % — % Emerging Brands 90,053 5 % 39 % — % 56 % — % Lanier Apparel 24,858 — % — % — % 100 % — % Corporate and Other 3,868 — % — % — % 61 % 39 % Consolidated net sales $ 1,142,079 39 % 32 % 8 % 20 % — % |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property and Equipment, Net | |
Schedule of components of property and equipment | Property and equipment, net, is summarized as follows (in thousands): February 3, January 28, 2024 2023 Land $ 2,887 $ 3,090 Buildings and improvements 32,651 32,495 Furniture, fixtures, equipment and technology 315,810 278,589 Leasehold improvements 270,861 255,955 622,209 570,129 Less accumulated depreciation and amortization (427,072) (392,545) Property and equipment, net $ 195,137 $ 177,584 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Business Combinations | |
Summary of our preliminary allocation of the purchase price | The final estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows (in thousands): Provisional Amounts at January 28, 2023 Measurement Period Adjustments Final Amounts at February 3, 2024 Cash and cash equivalents $ 7,296 $ — $ 7,296 Receivables 8,777 — 8,777 Inventories 23,434 (28) 23,406 Prepaid expenses and other assets 6,353 — 6,353 Property and equipment 21,108 (947) 20,161 Intangible assets 134,640 — 134,640 Goodwill 96,637 2,599 99,236 Operating lease assets 54,859 — 54,859 Accounts payable, accrued expenses and other liabilities (34,777) 699 (34,078) 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 - 13 years $ 56,740 Trade names and trademarks Indefinite 77,900 $ 134,640 |
Schedule of pro forma statements of operations | The consolidated pro forma information presented below (in thousands, except per share data) gives effect to the September 19, 2022 acquisition of Johnny Was as if the acquisition had occurred as of the beginning of Fiscal 2021. Fiscal 2022 Fiscal 2021 Net sales $ 1,546,371 $ 1,327,875 Earnings before income taxes $ 237,919 $ 169,832 Net earnings $ 182,380 $ 135,276 Earnings per share: Basic $ 11.47 $ 8.02 Diluted $ 11.22 $ 8.13 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Intangible Assets and Goodwill | |
Summary of finite-lived intangible assets by category | Intangible assets by category are summarized below (in thousands): February 3, January 28, 2024 2023 Intangible assets with finite lives $ 113,413 $ 108,513 Accumulated amortization and impairment (64,812) (50,068) Total intangible assets with finite lives, net 48,601 58,445 Intangible assets with indefinite lives: Tommy Bahama Trademark $ 110,700 $ 110,700 Lilly Pulitzer Trademark 27,500 27,500 Johnny Was Trademark 66,000 77,900 Southern Tide Trademark 9,300 9,300 Total intangible assets with indefinite lives $ 213,500 $ 225,400 Total intangible assets, net $ 262,101 $ 283,845 |
Summary of indefinite-lived intangible assets by category | Intangible assets by category are summarized below (in thousands): February 3, January 28, 2024 2023 Intangible assets with finite lives $ 113,413 $ 108,513 Accumulated amortization and impairment (64,812) (50,068) Total intangible assets with finite lives, net 48,601 58,445 Intangible assets with indefinite lives: Tommy Bahama Trademark $ 110,700 $ 110,700 Lilly Pulitzer Trademark 27,500 27,500 Johnny Was Trademark 66,000 77,900 Southern Tide Trademark 9,300 9,300 Total intangible assets with indefinite lives $ 213,500 $ 225,400 Total intangible assets, net $ 262,101 $ 283,845 |
Schedule of intangible assets by operating group and in total | Intangible assets, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 are as follows (in thousands): Tommy Lilly Johnny Emerging Lanier Corporate Bahama Pulitzer Was Brands Apparel and Other Total Balance, January 30, 2021 $ 110,700 $ 28,317 $ — $ 17,170 $ — $ — $ 156,187 Acquisition — — — — — — — Impairment — — — — — — — Amortization — (220) — (660) — — (880) Balance, January 29, 2022 $ 110,700 $ 28,097 $ — $ 16,510 $ — $ — $ 155,307 Acquisition — — 134,640 — — — 134,640 Impairment — — — — — — — Amortization — (238) (5,194) (670) — — (6,102) Balance, January 28, 2023 $ 110,700 $ 27,859 $ 129,446 $ 15,840 $ — $ — $ 283,845 Acquisition — — — 4,899 — — 4,899 Impairment — — (11,900) — — — (11,900) Amortization — (227) (13,852) (664) — — (14,743) Balance, February 3, 2024 $ 110,700 $ 27,632 $ 103,694 $ 20,075 $ — $ — $ 262,101 |
Schedule of goodwill by operating group and in total | Goodwill, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 is as follows (in thousands): Tommy Lilly Johnny Emerging Corporate Bahama Pulitzer Was Brands and Other Total Balance, January 30, 2021 $ 788 $ 19,522 $ — $ 3,600 $ — $ 23,910 Other, including foreign currency (41) — — — — (41) Balance January 29, 2022 $ 747 $ 19,522 $ — $ 3,600 $ — $ 23,869 Acquisition — — 96,637 — — 96,637 Other, including foreign currency (8) — — — — (8) Balance, January 28, 2023 $ 739 $ 19,522 $ 96,637 $ 3,600 $ — $ 120,498 Acquisition — — — 3,371 — 3,371 Measurement-period adjustments — — 2,599 — — 2,599 Impairment — — (99,236) — — (99,236) Other, including foreign currency (42) — — — — (42) Balance, February 3, 2024 $ 697 $ 19,522 $ — $ 6,971 $ — $ 27,190 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Leases and Other Commitments | |
Schedule of lease liability payments | As of February 3, 2024, 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 2024 78,886 2025 64,045 2026 58,746 2027 45,053 2028 39,334 After 2028 82,348 Total lease payments $ 368,412 Less: Difference between discounted and undiscounted lease payments 60,133 Present value of lease liabilities $ 308,279 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Restricted shares and restricted share units, excluding TSR-based restricted share units | |
Equity Compensation | |
Summary of award activity | Fiscal 2023 Fiscal 2022 Fiscal 2021 Weighted- Weighted- Weighted- Number of average Number of average Number of average Shares or grant date Shares grant date Shares grant date Units fair value or Units fair value or Units fair value Awards outstanding at beginning of year 212,945 $ 64 238,889 $ 61 308,369 $ 61 Awards granted 60,505 $ 115 67,965 $ 89 42,855 $ 89 Awards vested, including awards repurchased from employees for employees’ tax liability (111,095) $ 41 (83,324) $ 77 (81,283) $ 77 Awards forfeited (3,561) $ 83 (10,585) $ 62 (31,052) $ 62 Awards outstanding on February 3, 2024 158,794 $ 99 212,945 $ 64 238,889 $ 61 |
Service-based restricted shares and restricted share unit awards | |
Equity Compensation | |
Summary of information about unvested awards | Number of Average Unvested Fair Value Share on Description Awards Date of Grant Service-based restricted shares with May 2024 vesting date 34,455 $ 89 Service-based restricted share units with May 2025 vesting date 64,134 $ 89 Service-based restricted share units with May 2026 vesting date 60,205 $ 115 Total service-based awards outstanding at end of year 158,794 $ 99 |
TSR-based Restricted Share Units | |
Equity Compensation | |
Summary of award activity | Fiscal 2023 Fiscal 2022 Fiscal 2021 Weighted- Weighted- Weighted- average average average Number of grant date Number of grant date Number of grant date Share Units fair value Share Units fair value Share Units fair value TSR-based awards outstanding at beginning of year 196,040 $ 89 130,440 $ 78 83,345 $ 50 TSR-based awards granted 74,605 $ 153 66,525 $ 111 56,750 $ 117 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 (2,142) $ 115 (925) $ 115 (9,655) $ 68 TSR-based awards outstanding on February 3, 2024 192,163 $ 129 196,040 $ 89 130,440 $ 78 |
Summary of information about unvested awards | Unvested Fair Value TSR-Based on Description Share/Unit Date of Grant TSR-based restricted share units (at target) with May 2024 vesting date 52,200 $ 117 TSR-based restricted share units (at target) with May 2025 vesting date 65,358 $ 111 TSR-based restricted share units (at target) with May 2026 vesting date 74,605 $ 153 Total TSR-based restricted share units outstanding at end of year 192,163 $ 129 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 2023 2022 2021 Earnings (loss) before income taxes: Domestic $ 62,772 $ 206,944 $ 161,233 Foreign 12,174 8,781 3,326 Earnings (loss) before income taxes $ 74,946 $ 215,725 $ 164,559 Income taxes: Current: Federal $ 28,183 $ 41,776 $ 24,998 State 7,530 8,835 3,780 Foreign 2,419 1,191 409 38,132 51,802 29,187 Deferred—Domestic (24,083) 71 4,155 Deferred—Foreign 194 (1,883) (104) Income taxes $ 14,243 $ 49,990 $ 33,238 |
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 2023 2022 2021 Earnings (loss) before income taxes: Domestic $ 62,772 $ 206,944 $ 161,233 Foreign 12,174 8,781 3,326 Earnings (loss) before income taxes $ 74,946 $ 215,725 $ 164,559 Income taxes: Current: Federal $ 28,183 $ 41,776 $ 24,998 State 7,530 8,835 3,780 Foreign 2,419 1,191 409 38,132 51,802 29,187 Deferred—Domestic (24,083) 71 4,155 Deferred—Foreign 194 (1,883) (104) Income taxes $ 14,243 $ 49,990 $ 33,238 |
Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates | Fiscal Fiscal Fiscal 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes—net of federal income tax benefit 1.6 % 3.6 % 3.7 % Change in reserve for uncertain tax positions & method change 1.5 % 0.2 % (1.0) % Impact of foreign operations rate differential 0.3 % 0.1 % 0.1 % U.S. federal tax credits (3.0) % (0.7) % (0.6) % Impact of prior year true-ups (1.9) % (0.3) % (0.7) % Excess Tax Benefit, Restricted Stock Vesting (1.6) % (0.1) % (0.3) % Impact of valuation allowances related to operating losses (0.9) % (1.6) % (0.8) % Impact of valuation allowances related to capital losses — % — % 1.2 % Impact of capital losses — % — % (2.9) % Other, net 2.0 % 1.0 % 0.5 % Effective tax rate for continuing operations 19.0 % 23.2 % 20.2 % |
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): February 3, January 28, 2024 2023 Deferred Tax Assets: Inventories $ 21,254 $ 20,561 Accrued compensation and benefits 10,982 9,637 Receivable allowances and reserves 2,433 2,580 Operating lease liabilities 77,150 71,871 Operating loss and other carry-forwards 709 757 Other, net 5,902 4,901 Deferred tax assets 118,430 110,307 Deferred Tax Liabilities: Operating lease assets (74,004) (66,145) Depreciation and amortization (16,907) (15,289) Acquired intangible assets (1,051) (26,030) Deferred tax liabilities (91,962) (107,464) Valuation allowance (2,289) (2,448) Net deferred tax asset (liability) $ 24,179 $ 395 |
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): February 3, January 28, 2024 2023 Assets: Deferred tax assets $ 24,179 $ 3,376 Liabilities: Deferred tax liabilities — (2,981) Net deferred tax asset (liability) $ 24,179 $ 395 |
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 2023 Fiscal 2022 Fiscal 2021 Balance of unrecognized tax benefits at beginning of year $ 3,664 $ 3,390 $ 5,261 Increase related to prior period tax positions 233 110 10 Decrease related to prior period tax positions (2,027) — — Increase related to current period tax positions 1,940 646 527 Decrease related to settlements with taxing authorities — — (2,305) Decrease related to lapse of statute of limitations (100) (482) (103) Balance of unrecognized tax benefits at end of year $ 3,710 $ 3,664 $ 3,390 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Fiscal Year (Details) | 12 Months Ended | |||
Feb. 01, 2025 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Fiscal Year | ||||
Length of fiscal period | 371 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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Revenue | |||
Net sales | $ 1,571,475 | $ 1,411,528 | $ 1,142,079 |
Retail | |||
Revenue | |||
Net sales | 605,486 | 552,696 | 443,015 |
E-commerce | |||
Revenue | |||
Net sales | 538,224 | 465,446 | 369,300 |
Food & Beverage | |||
Revenue | |||
Net sales | 115,766 | 109,225 | 96,244 |
Wholesale | |||
Revenue | |||
Net sales | 311,910 | 281,938 | 231,536 |
Other | |||
Revenue | |||
Net sales | $ 89 | $ 2,223 | $ 1,984 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Receivables | |||
Sales return liability | $ 13,000 | $ 12,000 | |
Receivable reserve | 3,000 | 4,000 | |
Provision for credit loss | $ (1,000) | ||
Credit loss reserve | 1,000 | 1,000 | |
Tenant allowances receivable | 6,000 | 2,000 | |
Value of inventory for direct to consumer and wholesale sales returns | $ 4,000 | 4,000 | |
Redemption period of gift card and merchandise credit | 1 year | ||
Net sales | $ 1,571,475 | 1,411,528 | 1,142,079 |
Royalty income | 19,000 | 22,000 | 18,000 |
Customers with gift cards and merchandise credits | |||
Receivables | |||
Contract liabilities | 20,000 | 19,000 | |
Customers registered in loyalty award programs | |||
Receivables | |||
Contract liabilities | 3,000 | 1,000 | |
Maximum | |||
Receivables | |||
Provision for credit loss | (1,000) | (1,000) | |
Write-off of credit losses | 1,000 | 1,000 | 1,000 |
Gift Card Breakage | |||
Receivables | |||
Net sales | $ 1,000 | $ 1,000 | $ 1,000 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - SG&A (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
SG&A | |||
Distribution network costs | $ 40 | $ 36 | $ 28 |
Advertising, promotions and marketing expenses | 105 | 82 | 60 |
Prepaid advertising, promotions and marketing expenses | 5 | 6 | |
Royalty expenses | $ 6 | $ 4 | $ 6 |
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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Cash and Cash Equivalents | |||
Cash and cash equivalents | $ 7,604 | $ 8,826 | |
Supplemental Cash Flow Information | |||
Cash paid for income taxes | 39,000 | 56,000 | $ 34,000 |
Cash paid for interest, net of interest income | 6,000 | 3,000 | 1,000 |
Capital expenditures incurred but not yet paid | 2,000 | 3,000 | 3,000 |
Net increase in operating lease assets and corresponding operating lease liability amounts | 83,000 | 47,000 | $ 18,000 |
Money Market Funds | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents | $ 0 | $ 0 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Short-Term Investments and Inventories, net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Inventories, net | ||
Inventories valued at the lower of LIFO cost or market after deducting LIFO reserve | $ 146 | $ 204 |
Inventories valued at the lower of LIFO cost or market (as a percent) | 92% | 93% |
Inventories valued at the lower of FIFO cost or market | $ 13 | $ 16 |
Amount of LIFO inventory layer liquidation | 2 | |
LIFO reserve | $ 83 | $ 76 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Property and Equipment, net (Details) | Feb. 03, 2024 |
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 - Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Goodwill and Intangible Assets | |||||
Goodwill | $ 27,190 | $ 27,190 | $ 120,498 | $ 23,869 | $ 23,910 |
Impairment of goodwill | $ 99,236 | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income | Impairment of goodwill, intangible assets and equity method investments | ||||
Maximum | |||||
Goodwill and Intangible Assets | |||||
Finite lived intangible assets amortization period | 20 years | 20 years | |||
Tommy Bahama | |||||
Goodwill and Intangible Assets | |||||
Goodwill | $ 0 | $ 0 | |||
Lilly Pulitzer | |||||
Goodwill and Intangible Assets | |||||
Impairment of goodwill | 0 | ||||
Johnny Was | |||||
Goodwill and Intangible Assets | |||||
Impairment of goodwill | 99,000 | ||||
Impairment of intangible assets with indefinite lives | 12,000 | ||||
Southern Tide | |||||
Goodwill and Intangible Assets | |||||
Impairment of goodwill | 0 | ||||
TBBC | |||||
Goodwill and Intangible Assets | |||||
Impairment of goodwill | 0 | ||||
Duck Head | |||||
Goodwill and Intangible Assets | |||||
Goodwill | 0 | 0 | |||
Oxford of Lyons | |||||
Goodwill and Intangible Assets | |||||
Goodwill | $ 0 | $ 0 |
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 | 1 Months Ended | ||
Mar. 31, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | |
Prepaid Expenses and Other Non-Current Assets, net | |||
Officers' life insurance policies | $ 4 | $ 4 | |
Debt issuance costs | $ 2 | ||
Unamortized deferred financing costs | 2 | 1 | |
Deferred Compensation | |||
Deferred compensation investments | 17 | 16 | |
Liabilities associated with the non-qualified deferred compensation plan | $ 18 | $ 15 |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Equity investments | |||
Payment for equity investments | $ 8,000 | ||
Equity method investments | $ 7,000 | 11,000 | |
Gain (loss) on investments | (2,000) | $ (1,000) | $ 12,000 |
Proceeds from sale of investment in unconsolidated entity | 15,000 | ||
Gain on sale of investment in unconsolidated entity | $ 11,586 | ||
Smaller apparel lifestyle brands | |||
Equity investments | |||
Impairment of equity method investment | 2,000 | ||
Miramonte Resort & Spa, Indian Wells, California | |||
Equity investments | |||
Gain (loss) on investments | $ (2,000) |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Impairment of Long-Lived Assets excluding Assets with Indefinite Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Basis of Presentation | |||
Impairment of property and equipment | $ 584 | $ 1,430 | $ 1,656 |
Operating lease asset impairment | 0 | 0 | 5,000 |
Impairment of intangible assets with finite lives | $ 0 | $ 0 | $ 0 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income | Impairment of goodwill, intangible assets and equity method investments | Impairment of goodwill, intangible assets and equity method investments | Impairment of goodwill, intangible assets and equity method investments |
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 | |||
Feb. 03, 2024 USD ($) individual | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Feb. 03, 2018 | Jan. 29, 2022 USD ($) | |
Business Combinations | |||||
Change in fair value of contingent consideration | $ 1,188 | ||||
TBBC | |||||
Business Combinations | |||||
Change in fair value of contingent consideration | $ 1,000 | ||||
Contingent consideration | $ 0 | $ 0 | |||
Aggregate amount of contingent consideration earned by seller | $ 4,000 | ||||
Period over which contingent consideration is payable | 4 years | ||||
Contingent consideration paid | $ 2,000 | ||||
Number of sellers that is an employee | individual | 1 |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Leases and Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Foreign Currency | |||
Net losses (gains) on foreign currency transactions | $ 2 | $ 1 | |
Maximum | |||
Foreign Currency | |||
Net losses (gains) on foreign currency transactions | $ 1 | ||
Maximum | Real Estate | |||
Operating leases | |||
Lease term | 10 years |
Business and Summary of Sign_17
Business and Summary of Significant Accounting Policies - Dividends (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Dividends | ||
Dividends accrued related to restricted share units | $ 1 | $ 1 |
Business and Summary of Sign_18
Business and Summary of Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - Consolidated accounts receivable - Credit concentration risk | 12 Months Ended |
Feb. 03, 2024 customer | |
Customer One | |
Concentration of Credit Risk and Significant Customers | |
Number of customers | 1 |
Concentration risk, percentage | 14% |
Customer Two | |
Concentration of Credit Risk and Significant Customers | |
Number of customers | 1 |
Concentration risk, percentage | 12% |
Business and Summary of Sign_19
Business and Summary of Significant Accounting Policies - EPS (Details) - shares shares in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Basis of Presentation | ||
Anti-dilutive securities | 0 | 0 |
Operating Groups - Financial in
Operating Groups - Financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating groups | ||||
Net sales | $ 1,571,475 | $ 1,411,528 | $ 1,142,079 | |
Depreciation and amortization | 64,066 | 49,035 | 41,598 | |
Operating income | 80,982 | 218,774 | 165,503 | |
Interest expense, net | 6,036 | 3,049 | 944 | |
Earnings before income taxes | 74,946 | 215,725 | 164,559 | |
Impairment of goodwill, intangible assets and equity method investments | 113,611 | |||
Gain on sale of investment in unconsolidated entity | 11,586 | |||
Corporate and Other | ||||
Operating groups | ||||
Net sales | (515) | 2,954 | 3,868 | |
Depreciation and amortization | 533 | 663 | 685 | |
Operating income | (37,609) | (35,143) | (31,368) | |
LIFO accounting charge (credit) | 10,000 | 3,000 | 16,000 | |
Transaction expenses and integration costs | 3,000 | |||
Gain on sale of investment in unconsolidated entity | 12,000 | |||
Tommy Bahama | Operating Segments | ||||
Operating groups | ||||
Net sales | 898,807 | 880,233 | 724,305 | |
Depreciation and amortization | 26,133 | 26,807 | 27,830 | |
Operating income | 160,543 | 172,761 | 111,733 | |
Lilly Pulitzer | Operating Segments | ||||
Operating groups | ||||
Net sales | 343,499 | 339,266 | 298,995 | |
Depreciation and amortization | 16,603 | 12,784 | 11,678 | |
Operating income | 56,110 | $ 67,098 | 63,601 | |
Johnny Was | ||||
Operating groups | ||||
Period for which financial information is included | 133 days | |||
Johnny Was | Operating Segments | ||||
Operating groups | ||||
Net sales | 202,859 | $ 72,591 | ||
Depreciation and amortization | 18,794 | 7,199 | ||
Operating income | (104,776) | (1,544) | ||
Impairment of goodwill and intangible assets | $ 111,000 | 111,000 | $ 0 | |
Period for which financial information is included | 133 days | |||
Impairment of goodwill, intangible assets and equity method investments | $ 111,000 | |||
Emerging Brands | Operating Segments | ||||
Operating groups | ||||
Net sales | 126,825 | 116,484 | 90,053 | |
Depreciation and amortization | 2,003 | 1,582 | 1,298 | |
Operating income | 6,714 | $ 15,602 | 16,649 | |
Impairment of goodwill, intangible assets and equity method investments | $ 2,000 | |||
Lanier Apparel | Operating Segments | ||||
Operating groups | ||||
Net sales | 24,858 | |||
Depreciation and amortization | 107 | |||
Operating income | $ 4,888 |
Operating Groups- Purchases of
Operating Groups- Purchases of P&E (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating groups | ||||
Purchases of Property and Equipment | $ 74,098 | $ 46,668 | $ 31,894 | |
Corporate and Other | ||||
Operating groups | ||||
Purchases of Property and Equipment | 1,065 | 828 | 292 | |
Tommy Bahama | Operating Segments | ||||
Operating groups | ||||
Purchases of Property and Equipment | 39,060 | 17,019 | 12,887 | |
Lilly Pulitzer | Operating Segments | ||||
Operating groups | ||||
Purchases of Property and Equipment | 24,100 | $ 23,990 | 17,305 | |
Johnny Was | ||||
Operating groups | ||||
Period for which financial information is included | 133 days | |||
Johnny Was | Operating Segments | ||||
Operating groups | ||||
Purchases of Property and Equipment | 6,105 | $ 1,655 | ||
Period for which financial information is included | 133 days | |||
Impairment of goodwill and intangible assets | $ 111,000 | 111,000 | $ 0 | |
Emerging Brands | Operating Segments | ||||
Operating groups | ||||
Purchases of Property and Equipment | $ 3,768 | $ 3,176 | 1,405 | |
Lanier Apparel | Operating Segments | ||||
Operating groups | ||||
Purchases of Property and Equipment | $ 5 |
Operating Groups - Assets (Deta
Operating Groups - Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Feb. 03, 2024 USD ($) | Feb. 03, 2024 USD ($) store | Jan. 28, 2023 USD ($) | |
Operating groups | |||
Assets | $ 1,097,844 | $ 1,097,844 | $ 1,188,665 |
Corporate and Other | |||
Operating groups | |||
Assets | (3,703) | (3,703) | (18,196) |
Tommy Bahama | Operating Segments | |||
Operating groups | |||
Assets | 556,431 | 556,431 | 569,833 |
Lilly Pulitzer | Operating Segments | |||
Operating groups | |||
Assets | 194,871 | 194,871 | $ 211,119 |
Johnny Was | |||
Operating groups | |||
Period for which financial information is included | 133 days | ||
Johnny Was | Operating Segments | |||
Operating groups | |||
Assets | 251,429 | 251,429 | $ 334,603 |
Period for which financial information is included | 133 days | ||
Impairment of goodwill and intangible assets | 111,000 | $ 111,000 | $ 0 |
Emerging Brands | Southern Tide | |||
Operating groups | |||
Number of stores acquired | store | 6 | ||
Emerging Brands | Operating Segments | |||
Operating groups | |||
Assets | $ 98,816 | $ 98,816 | $ 91,306 |
Operating Groups - Assets and s
Operating Groups - Assets and sales by geographic area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Geographic area | |||
Net book value of property and equipment | $ 195,137 | $ 177,584 | |
Net sales | 1,571,475 | 1,411,528 | $ 1,142,079 |
United States | |||
Geographic area | |||
Net book value of property and equipment | 192,329 | 174,044 | |
Net sales | 1,532,100 | 1,372,278 | 1,112,384 |
Other foreign | |||
Geographic area | |||
Net book value of property and equipment | 2,808 | 3,540 | |
Net sales | $ 39,375 | $ 39,250 | $ 29,695 |
Operating Groups - Sales by ope
Operating Groups - Sales by operating group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating groups | |||
Net sales | $ 1,571,475 | $ 1,411,528 | $ 1,142,079 |
Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales | 898,807 | 880,233 | 724,305 |
Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales | 343,499 | 339,266 | 298,995 |
Operating Segments | Johnny Was | |||
Operating groups | |||
Net sales | 202,859 | 72,591 | |
Operating Segments | Emerging Brands | |||
Operating groups | |||
Net sales | 126,825 | 116,484 | 90,053 |
Operating Segments | Lanier Apparel | |||
Operating groups | |||
Net sales | 24,858 | ||
Corporate and Other | |||
Operating groups | |||
Net sales | (515) | 2,954 | 3,868 |
Retail | |||
Operating groups | |||
Net sales | $ 605,486 | $ 552,696 | $ 443,015 |
Net sales (as a percent) | 39% | 39% | 39% |
Retail | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 45% | 46% | 47% |
Retail | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 33% | 33% | 34% |
Retail | Operating Segments | Johnny Was | |||
Operating groups | |||
Net sales (as a percent) | 38% | 36% | |
Retail | Operating Segments | Emerging Brands | |||
Operating groups | |||
Net sales (as a percent) | 11% | 6% | 5% |
E-commerce | |||
Operating groups | |||
Net sales | $ 538,224 | $ 465,446 | $ 369,300 |
Net sales (as a percent) | 34% | 33% | 32% |
E-commerce | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 25% | 24% | 25% |
E-commerce | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 51% | 51% | 50% |
E-commerce | Operating Segments | Johnny Was | |||
Operating groups | |||
Net sales (as a percent) | 41% | 42% | |
E-commerce | Operating Segments | Emerging Brands | |||
Operating groups | |||
Net sales (as a percent) | 43% | 42% | 39% |
Food & Beverage | |||
Operating groups | |||
Net sales | $ 115,766 | $ 109,225 | $ 96,244 |
Net sales (as a percent) | 7% | 8% | 8% |
Food & Beverage | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 13% | 13% | 13% |
Wholesale | |||
Operating groups | |||
Net sales | $ 311,910 | $ 281,938 | $ 231,536 |
Net sales (as a percent) | 20% | 20% | 20% |
Wholesale | Operating Segments | Tommy Bahama | |||
Operating groups | |||
Net sales (as a percent) | 17% | 17% | 15% |
Wholesale | Operating Segments | Lilly Pulitzer | |||
Operating groups | |||
Net sales (as a percent) | 16% | 16% | 16% |
Wholesale | Operating Segments | Johnny Was | |||
Operating groups | |||
Net sales (as a percent) | 21% | 22% | |
Wholesale | Operating Segments | Emerging Brands | |||
Operating groups | |||
Net sales (as a percent) | 46% | 52% | 56% |
Wholesale | Operating Segments | Lanier Apparel | |||
Operating groups | |||
Net sales (as a percent) | 100% | ||
Wholesale | Corporate and Other | |||
Operating groups | |||
Net sales (as a percent) | 61% | ||
Other | |||
Operating groups | |||
Net sales | $ 89 | $ 2,223 | $ 1,984 |
Other | Corporate and Other | |||
Operating groups | |||
Net sales (as a percent) | 39% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Property and Equipment, net | ||
Property and equipment, gross | $ 622,209 | $ 570,129 |
Less accumulated depreciation and amortization | (427,072) | (392,545) |
Property and equipment, net | 195,137 | 177,584 |
Land | ||
Property and Equipment, net | ||
Property and equipment, gross | 2,887 | 3,090 |
Buildings and improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | 32,651 | 32,495 |
Furniture, fixtures, equipment and technology | ||
Property and Equipment, net | ||
Property and equipment, gross | 315,810 | 278,589 |
Leasehold improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | $ 270,861 | $ 255,955 |
Business Combinations - Individ
Business Combinations - Individually Insignificant (Details) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 USD ($) store | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Business Combinations | ||||
Goodwill | $ 27,190 | $ 120,498 | $ 23,869 | $ 23,910 |
Individually insignificant acquisitions | ||||
Business Combinations | ||||
Purchase price paid | 11,000 | |||
Intangible assets | 5,000 | |||
Inventories | 3,000 | |||
Goodwill | $ 3,000 | |||
Southern Tide | ||||
Business Combinations | ||||
Number of stores acquired | store | 6 |
Business Combinations - Johnny
Business Combinations - Johnny Was (Details) - Johnny Was (JW Holdings, LLC) - USD ($) $ in Thousands | Sep. 19, 2022 | Feb. 03, 2024 | Jan. 28, 2023 |
Business Combinations | |||
Voting interest (as a percent) | 100% | ||
Purchase price paid | $ 270,000 | ||
Purchase price | 271,000 | $ 273,641 | $ 271,318 |
Acquisitions, cash acquired | 7,000 | ||
Contingent consideration | $ 0 |
Business Combinations - Prelimi
Business Combinations - Preliminary allocation of purchase price (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 03, 2024 | Jan. 28, 2023 | Sep. 19, 2022 | Jan. 29, 2022 | Jan. 30, 2021 | |
Business Combinations | |||||
Goodwill | $ 27,190 | $ 120,498 | $ 23,869 | $ 23,910 | |
Measurement Period Adjustments | |||||
Goodwill | 2,599 | ||||
Johnny Was (JW Holdings, LLC) | |||||
Business Combinations | |||||
Cash and cash equivalents | 7,296 | 7,296 | |||
Receivables | 8,777 | 8,777 | |||
Inventories | 23,406 | 23,434 | |||
Prepaid expenses and other assets | 6,353 | 6,353 | |||
Property and equipment | 20,161 | 21,108 | |||
Intangible assets | 134,640 | 134,640 | $ 134,640 | ||
Goodwill | 99,236 | 96,637 | |||
Operating lease assets | 54,859 | 54,859 | |||
Accounts payable, accrued expenses and other liabilities | (34,078) | (34,777) | |||
Non-current portion of operating lease liabilities | (47,009) | (47,009) | |||
Purchase price | 273,641 | $ 271,318 | $ 271,000 | ||
Measurement Period Adjustments | |||||
Inventories | (28) | ||||
Property and equipment | (947) | ||||
Goodwill | 2,599 | ||||
Accounts payable, accrued expenses and other liabilities | 699 | ||||
Purchase price | $ 2,323 |
Business Combinations - Intangi
Business Combinations - Intangible asset (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 | Sep. 19, 2022 |
Maximum | |||
Business Combinations | |||
Useful life, Finite lived intangible assets | 20 years | ||
Johnny Was (JW Holdings, LLC) | |||
Business Combinations | |||
Finite lived intangible assets acquired, primarily consisting of customer relationships | $ 56,740 | ||
Trade names and trademarks | 77,900 | ||
Intangible assets | $ 134,640 | $ 134,640 | $ 134,640 |
Johnny Was (JW Holdings, LLC) | Minimum | |||
Business Combinations | |||
Useful life, Finite lived intangible assets | 8 years | ||
Johnny Was (JW Holdings, LLC) | Maximum | |||
Business Combinations | |||
Useful life, Finite lived intangible assets | 13 years |
Business Combinations - Proform
Business Combinations - Proforma (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Pro Forma | ||
Net sales | $ 1,546,371 | $ 1,327,875 |
Earnings before income taxes | 237,919 | 169,832 |
Net earnings | $ 182,380 | $ 135,276 |
Earnings per share: | ||
Basic (in dollars per share) | $ 11.47 | $ 8.02 |
Diluted (in dollars per share) | $ 11.22 | $ 8.13 |
Johnny Was (JW Holdings, LLC) | ||
Earnings per share: | ||
Step-up of acquired inventory from cost to fair value | $ 4,000 | $ 4,000 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - By category (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 |
Intangible assets with finite lives | ||||
Intangible assets with finite lives | $ 113,413 | $ 108,513 | ||
Accumulated amortization and impairment | (64,812) | (50,068) | ||
Total intangible assets with finite lives, net | 48,601 | 58,445 | ||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | 213,500 | 225,400 | ||
Total intangible assets, net | 262,101 | 283,845 | $ 155,307 | $ 156,187 |
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 | Johnny Was | ||||
Intangible assets with indefinite lives: | ||||
Total intangible assets with indefinite lives | 66,000 | 77,900 | ||
Trademarks | Emerging Brands | 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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | $ 283,845 | $ 155,307 | $ 156,187 |
Acquisition | 4,899 | 134,640 | |
Impairment | (11,900) | ||
Amortization | (14,743) | (6,102) | (880) |
Balance at the end of the period | $ 262,101 | $ 283,845 | $ 155,307 |
Impairment, Intangible Asset, (Excluding Goodwill), Statement of Income or Comprehensive Income | Impairment of goodwill, intangible assets and equity method investments | Impairment of goodwill, intangible assets and equity method investments | Impairment of goodwill, intangible assets and equity method investments |
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 | 27,859 | 28,097 | 28,317 |
Amortization | (227) | (238) | (220) |
Balance at the end of the period | 27,632 | 27,859 | 28,097 |
Operating Segments | Johnny Was | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 129,446 | ||
Acquisition | 134,640 | ||
Impairment | (11,900) | ||
Amortization | (13,852) | (5,194) | |
Balance at the end of the period | 103,694 | 129,446 | |
Operating Segments | Emerging Brands | |||
Changes in carrying amount of intangible assets | |||
Balance at the beginning of the period | 15,840 | 16,510 | 17,170 |
Acquisition | 4,899 | ||
Amortization | (664) | (670) | (660) |
Balance at the end of the period | $ 20,075 | $ 15,840 | $ 16,510 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Amortization expense (Details) $ in Millions | Feb. 03, 2024 USD ($) |
Expected amortization expense | |
Fiscal 2024 | $ 12 |
Fiscal 2025 | 9 |
Fiscal 2026 | 6 |
Fiscal 2027 | 5 |
Fiscal 2028 | $ 4 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 120,498 | $ 23,869 | $ 23,910 | |
Acquisition | 3,371 | 96,637 | ||
Measurement-period adjustments | 2,599 | |||
Impairment | (99,236) | |||
Other, including foreign currency | (42) | (8) | (41) | |
Balance at the end of the period | $ 27,190 | 27,190 | 120,498 | 23,869 |
Tommy Bahama | Operating Segments | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 739 | 747 | 788 | |
Other, including foreign currency | (42) | (8) | (41) | |
Balance at the end of the period | 697 | 697 | 739 | 747 |
Lilly Pulitzer | Operating Segments | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 19,522 | 19,522 | 19,522 | |
Balance at the end of the period | 19,522 | 19,522 | 19,522 | 19,522 |
Johnny Was | Operating Segments | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 96,637 | |||
Acquisition | 96,637 | |||
Measurement-period adjustments | 2,599 | |||
Impairment | 99,000 | (99,236) | ||
Balance at the end of the period | 96,637 | |||
Emerging Brands | Operating Segments | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 3,600 | 3,600 | 3,600 | |
Acquisition | 3,371 | |||
Balance at the end of the period | $ 6,971 | $ 6,971 | $ 3,600 | $ 3,600 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill - Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | |
Goodwill and Intangible Assets | |||
Impairment of goodwill | $ 99,236 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income | Impairment of goodwill, intangible assets and equity method investments | ||
Johnny Was | Operating Segments | |||
Goodwill and Intangible Assets | |||
Impairment of goodwill and intangible assets | $ 111,000 | 111,000 | $ 0 |
Impairment of goodwill | (99,000) | $ 99,236 | |
Impairment of intangible assets with indefinite lives | $ 12,000 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 06, 2023 | Feb. 03, 2024 | Jan. 28, 2023 |
Debt | |||
Maximum borrowing capacity | $ 325 | ||
Capitalized debt issuance costs | $ 2 | ||
Weighted average interest rate (as a percent) | 7% | ||
Letters of credit outstanding | $ 5 | ||
Borrowings outstanding | 29 | $ 119 | |
Unused availability | $ 288 | $ 199 | |
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% | ||
Fixed charge coverage ratio | 1 | ||
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 | Prime Rate | |||
Debt | |||
Applicable margin (as a percent) | 25% | ||
Maximum | Prime Rate | |||
Debt | |||
Applicable margin (as a percent) | 75% |
Leases and Other Commitments -
Leases and Other Commitments - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases | |||
Operating lease expense | $ 71 | $ 61 | $ 58 |
Variable lease expense | 48 | 43 | 35 |
Total lease expense | $ 119 | $ 104 | 93 |
Weighted average remaining lease term | 6 years | 6 years | |
Weighted average discount rate (as a percent) | 5.70% | 4.70% | |
Cash paid for lease liabilities | $ 89 | $ 75 | $ 70 |
Leases and Other Commitments _2
Leases and Other Commitments - Lease liability payment schedule (Details) $ in Thousands | Feb. 03, 2024 USD ($) |
Required lease liability payments due | |
2024 | $ 78,886 |
2025 | 64,045 |
2026 | 58,746 |
2027 | 45,053 |
2028 | 39,334 |
After 2028 | 82,348 |
Total lease payments | 368,412 |
Less: Difference between discounted and undiscounted lease payments | 60,133 |
Present value of lease liabilities | $ 308,279 |
Operating Lease, Liability, Statement of Financial Position | Current portion of operating lease liabilities, Non-current portion of operating lease liabilities |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - $ / shares shares in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
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) | 16 | 16 |
Common stock outstanding (in shares) | 16 | 16 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Dividends | |||
Dividends paid | $ 41,729 | $ 35,287 | $ 27,536 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Dec. 07, 2021 | |
Shareholders' Equity | ||||
Repurchase of shares (in dollars) | $ 20 | $ 92 | $ 8 | |
Purchase of shares from employees to cover employee tax liabilities of vesting of shares (in dollars) | $ 10 | $ 3 | $ 3 | |
Amount authorized for repurchase (in dollars) | $ 150 | |||
Repurchase of shares (in shares) | 196 | |||
Average price (in dollars per share) | $ 102 | |||
Amount remaining available for repurchase (in dollars) | $ 30 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) - $ / shares shares in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
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 |
Feb. 03, 2024 USD ($) shares | |
Restricted shares and restricted share units | |
Equity Compensation | |
Vesting period | 3 years |
Unrecognized compensation expense related to unvested share-based restricted stock awards and the unvested restricted share units (in dollars) | $ | $ 20 |
Service-based restricted shares and restricted share unit awards | |
Equity Compensation | |
Weighted average remaining life of the outstanding awards | 1 year |
TSR-based Restricted Share Units | |
Equity Compensation | |
Vesting period | 3 years |
Weighted average remaining life of the outstanding awards | 2 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 - Service-B
Equity Compensation - Service-Based and Performance-Based Restricted Share Award Activity (Details) - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Restricted shares and restricted share units, excluding TSR-based restricted share units | |||
Number of Shares | |||
Awards outstanding at beginning of year (in shares) | 212,945 | 238,889 | 308,369 |
Awards granted (in shares) | 60,505 | 67,965 | 42,855 |
Awards vested, including awards repurchased from employees for employees' tax liability (in shares) | (111,095) | (83,324) | (81,283) |
Awards forfeited (in shares) | (3,561) | (10,585) | (31,052) |
Awards outstanding at end of period (in shares) | 158,794 | 212,945 | 238,889 |
Weighted-average grant date fair value | |||
Awards outstanding at beginning of year (in dollars per share) | $ 64 | $ 61 | $ 61 |
Awards granted/issued (in dollars per share) | 115 | 89 | 89 |
Awards vested, including awards repurchased from employees for employees' tax liability (in dollars per share) | 41 | 77 | 77 |
Awards forfeited (in dollars per share) | 83 | 62 | 62 |
Awards outstanding at end of period (in dollars per share) | $ 99 | $ 64 | $ 61 |
Service-based restricted shares and restricted share unit awards | |||
Number of Shares | |||
Awards outstanding at beginning of year (in shares) | |||
Awards outstanding at end of period (in shares) | 158,794 | ||
Weighted-average grant date fair value | |||
Awards outstanding at beginning of year (in dollars per share) | |||
Awards outstanding at end of period (in dollars per share) | $ 99 |
Equity Compensation - Unvested
Equity Compensation - Unvested Service-based Restricted Share Awards (Details) - $ / shares | 2 Months Ended | |
Mar. 31, 2024 | Feb. 03, 2024 | |
Service-based restricted shares and restricted share unit awards | ||
Equity Compensation | ||
Number of Unvested Share Awards | 158,794 | |
Average Fair Value on Date of Grant (in dollars per share) | $ 99 | |
Service-based restricted shares with May 2024 vesting date | ||
Equity Compensation | ||
Number of Unvested Share Awards | 34,455 | |
Average Fair Value on Date of Grant (in dollars per share) | $ 89 | |
Service-based restricted share units with May 2025 vesting date | ||
Equity Compensation | ||
Number of Unvested Share Awards | 64,134 | |
Average Fair Value on Date of Grant (in dollars per share) | $ 89 | |
Service-based restricted share units with May 2026 vesting date | ||
Equity Compensation | ||
Number of Unvested Share Awards | 60,205 | |
Average Fair Value on Date of Grant (in dollars per share) | $ 115 | |
Service-based restricted share units with May 2027 vesting date | Subsequent Event | ||
Equity Compensation | ||
Awards granted (in shares) | 100,000 |
Equity Compensation - TSR-based
Equity Compensation - TSR-based Restricted Share Unit Activity (Details) - TSR-based Restricted Share Units - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Number of Shares | |||
Awards outstanding at beginning of year (in shares) | 196,040 | 130,440 | 83,345 |
Awards granted (in shares) | 74,605 | 66,525 | 56,750 |
Awards vested, including awards repurchased from employees for employees' tax liability (in shares) | (76,340) | ||
Awards forfeited (in shares) | (2,142) | (925) | (9,655) |
Awards outstanding at end of period (in shares) | 192,163 | 196,040 | 130,440 |
Weighted-average grant date fair value | |||
Awards outstanding at beginning of year (in dollars per share) | $ 89 | $ 78 | $ 50 |
Awards granted/issued (in dollars per share) | 153 | 111 | 117 |
Awards vested, including awards repurchased from employees for employees' tax liability (in dollars per share) | 50 | ||
Awards forfeited (in dollars per share) | 115 | 115 | 68 |
Awards outstanding at end of period (in dollars per share) | $ 129 | $ 89 | $ 78 |
Comparative period | 3 years | ||
Vesting period | 3 years | ||
Minimum | |||
Weighted-average grant date fair value | |||
Shares earned as a percent of share target | 0% | ||
Maximum | |||
Weighted-average grant date fair value | |||
Shares earned as a percent of share target | 200% |
Equity Compensation - Unveste_2
Equity Compensation - Unvested TSR-based Restricted Share Units (Details) - $ / shares | 2 Months Ended | 12 Months Ended | |||
Mar. 24, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
TSR-based Restricted Share Units | |||||
Equity Compensation | |||||
Number of Unvested Share Awards | 192,163 | 196,040 | 130,440 | 83,345 | |
Average Fair Value on Date of Grant (in dollars per share) | $ 129 | $ 89 | $ 78 | $ 50 | |
Awards granted (in shares) | 74,605 | 66,525 | 56,750 | ||
Vesting period | 3 years | ||||
TSR-based Restricted Share Units | Minimum | |||||
Equity Compensation | |||||
Shares earned as a percent of share target | 0% | ||||
TSR-based Restricted Share Units | Maximum | |||||
Equity Compensation | |||||
Shares earned as a percent of share target | 200% | ||||
TSR-based restricted share units (at target) with May 2024 vesting date | |||||
Equity Compensation | |||||
Number of Unvested Share Awards | 52,200 | ||||
Average Fair Value on Date of Grant (in dollars per share) | $ 117 | ||||
TSR-based restricted share units (at target) with May 2025 vesting date | |||||
Equity Compensation | |||||
Number of Unvested Share Awards | 65,358 | ||||
Average Fair Value on Date of Grant (in dollars per share) | $ 111 | ||||
TSR-based restricted share units (at target) with May 2026 vesting date | |||||
Equity Compensation | |||||
Number of Unvested Share Awards | 74,605 | ||||
Average Fair Value on Date of Grant (in dollars per share) | $ 153 | ||||
Awards granted (in shares) | 100,000 | ||||
Vesting period | 3 years | ||||
TSR-based restricted share units (at target) with May 2026 vesting date | Minimum | |||||
Equity Compensation | |||||
Shares earned as a percent of share target | 0% | ||||
TSR-based restricted share units (at target) with May 2026 vesting date | Maximum | |||||
Equity Compensation | |||||
Shares earned as a percent of share target | 200% |
Equity Compensation - Employee
Equity Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Equity Compensation | |||
Purchase price of common stock as a percentage of closing market price | 85% | ||
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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Defined Contribution Plans | |||
Expense under defined contribution and non-qualified deferred compensation plans | $ 7 | $ 5 | $ 4 |
Income Taxes - Earnings and tax
Income Taxes - Earnings and tax provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Earnings (loss) before income taxes: | |||
Domestic | $ 62,772 | $ 206,944 | $ 161,233 |
Foreign | 12,174 | 8,781 | 3,326 |
Earnings before income taxes | 74,946 | 215,725 | 164,559 |
Current: | |||
Federal | 28,183 | 41,776 | 24,998 |
State | 7,530 | 8,835 | 3,780 |
Foreign | 2,419 | 1,191 | 409 |
Total current | 38,132 | 51,802 | 29,187 |
Deferred-Domestic | (24,083) | 71 | 4,155 |
Deferred-Foreign | 194 | (1,883) | (104) |
Income taxes | $ 14,243 | $ 49,990 | $ 33,238 |
Income Taxes - Rate reconciliat
Income Taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Reconciliations of the United States federal statutory income tax rates and effective tax rates | |||
Statutory federal income tax rate (as a percent) | 21% | 21% | 21% |
State income taxes-net of federal income tax benefit (as a percent) | 1.60% | 3.60% | 3.70% |
Change in reserve for uncertain tax positions & method change (as a percent) | 1.50% | 0.20% | (1.00%) |
Impact of foreign operations rate differential (as a percent) | 0.30% | 0.10% | 0.10% |
U.S. federal tax credits (as a percent) | (3.00%) | (0.70%) | (0.60%) |
Impact of prior year true-ups (as a percent) | (1.90%) | (0.30%) | (0.70%) |
Excess Tax Benefit, Restricted Stock Vesting (as a percent) | (1.60%) | (0.10%) | (0.30%) |
Impact of valuation allowances related to operating losses (as a percent) | (0.90%) | (1.60%) | (0.80%) |
Impact of valuation allowances related to capital losses (as a percent) | 1.20% | ||
Impact of capital losses (as a percent) | (2.90%) | ||
Other, net (as a percent) | 2% | 1% | 0.50% |
Effective rate for continuing operations (as a percent) | 19% | 23.20% | 20.20% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Deferred Tax Assets: | ||
Inventories | $ 21,254 | $ 20,561 |
Accrued compensation and benefits | 10,982 | 9,637 |
Receivable allowances and reserves | 2,433 | 2,580 |
Operating lease liabilities | 77,150 | 71,871 |
Operating loss and other carry-forwards | 709 | 757 |
Other, net | 5,902 | 4,901 |
Deferred tax assets | 118,430 | 110,307 |
Deferred Tax Liabilities: | ||
Operating lease assets | (74,004) | (66,145) |
Depreciation and amortization | (16,907) | (15,289) |
Acquired intangible assets | (1,051) | (26,030) |
Deferred tax liabilities | (91,962) | (107,464) |
Valuation allowance | (2,289) | (2,448) |
Net deferred tax asset | $ 24,179 | $ 395 |
Income Taxes - Carry forwards (
Income Taxes - Carry forwards (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Income Taxes | ||
Valuation allowance | $ (2,289) | $ (2,448) |
Income Taxes - Balance sheet (D
Income Taxes - Balance sheet (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Assets: | ||
Deferred tax assets | $ 24,179 | $ 3,376 |
Liabilities | ||
Deferred tax liabilities | (2,981) | |
Net deferred tax asset | $ 24,179 | $ 395 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of changes in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Reconciliation of changes in gross amount of unrecognized tax benefits | |||
Balance of unrecognized tax benefits at beginning of year | $ 3,664 | $ 3,390 | $ 5,261 |
Increase related to prior period tax positions | 233 | 110 | 10 |
Decrease related to prior period tax positions | (2,027) | ||
Increase related to current period tax positions | 1,940 | 646 | 527 |
Decrease related to settlements with taxing authorities | (2,305) | ||
Decrease related to lapse of statute of limitations | (100) | (482) | (103) |
Balance of unrecognized tax benefits at end of year | 3,710 | 3,664 | 3,390 |
Amount of uncertain tax positions, if recognized, would reduce the future effective tax rate | 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 Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Restructuring | ||||
Future lease amounts | $ 89 | $ 75 | $ 70 | |
Lanier Apparel Exit Plan | ||||
Restructuring | ||||
Pre-tax exit costs | (2) | |||
Gain on sale of property | $ 2 | |||
Future lease amounts | $ 2 | |||
Lanier Apparel Exit Plan | Inventory markdowns | ||||
Restructuring | ||||
Pre-tax exit costs | (4) | |||
Lanier Apparel Exit Plan | Employee severance and retention | ||||
Restructuring | ||||
Pre-tax exit costs | 2 | |||
Lanier Apparel Exit Plan | Termination of license agreements | ||||
Restructuring | ||||
Pre-tax exit costs | 2 | |||
Lanier Apparel Exit Plan | Facility closing | ||||
Restructuring | ||||
Pre-tax exit costs | 1 | |||
Gain on sale of property | $ 3 |
SCHEDULE II Valuation and Qua_2
SCHEDULE II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Accounts receivable reserves | |||
Deducted from asset accounts: | |||
Balance at Beginning of Period | $ 4,032 | $ 3,412 | $ 6,418 |
Additions Charged to Costs and Expenses | 1,201 | 2,868 | (1,140) |
Charged to Other Accounts | 541 | ||
Deductions | (2,592) | (2,789) | (1,866) |
Balance at End of Period | 2,641 | 4,032 | 3,412 |
Allowance for doubtful accounts | |||
Deducted from asset accounts: | |||
Balance at Beginning of Period | 1,230 | 1,311 | 2,580 |
Additions Charged to Costs and Expenses | (382) | (262) | (1,190) |
Charged to Other Accounts | 200 | ||
Deductions | (348) | (19) | (79) |
Balance at End of Period | $ 500 | $ 1,230 | $ 1,311 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 60,703 | $ 165,735 | $ 131,321 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 03, 2024 | |
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 |