--Strong Performance at Lilly Pulitzer Continues in Fourth Quarter--
--Results Reflect Actions and Related Charges (Not Included in Prior Guidance) to Improve Performance at Tommy
Bahama--
--Expects Fiscal 2017 Revenue and Earnings Growth--
ATLANTA, March 23, 2017 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fourth
quarter and 2016 fiscal year ended January 28, 2017. In the fourth quarter, consolidated net sales increased to $261.0
million compared to $259.6 million in the fourth quarter of fiscal 2015. Earnings from continuing operations on a GAAP basis were
$0.72 per share in the fourth quarter of fiscal 2016 compared to $1.06 per share in the same period of the prior year.
Adjusted earnings from continuing operations were $0.63 per share in the fourth quarter of fiscal 2016 compared to $1.09 per share
in the fourth quarter of fiscal 2015.
In the fourth quarter of fiscal 2016, the Company took actions to improve the operating performance of Tommy Bahama. The
Company incurred $7.1 million, or $0.27 per share, of charges associated with inventory markdowns, severance and closing three
outlet locations. While not included in prior guidance, these charges are included in both GAAP and adjusted results. Absent
these charges, the Company’s fourth quarter and full year financial performance was in-line with its most recent guidance for
adjusted results provided on December 6, 2016.
For the full 2016 fiscal year, consolidated net sales increased 6% to $1.023 billion. Earnings per share from continuing
operations on a GAAP basis were $3.27 compared to $3.54 in the prior year. Adjusted earnings from continuing operations were $3.30
per share compared to $3.64 per share in fiscal 2015.
Thomas C. Chubb III, Chairman and CEO, commented, “Our portfolio of businesses has attributes that are true competitive
advantages in the new retailing paradigm. Our brands, Tommy Bahama, Lilly Pulitzer and Southern Tide, are focused, clear and
unwavering in how they are positioned in the marketplace. We would rather be the first choice of a few than the second choice
of many. Each of these brands also has a meaningful and profitable e-commerce business, and we play to that strength. We
believe we are competitively positioned with our technical abilities in digital and omni-channel. We also recognized earlier than
many in our sector that a cautious approach to door growth made sense. We believe that the strategic path we have taken has
positioned us well to leverage the power of our brands, and that our brands and our people give us the tools we need to continue to
succeed and deliver long-term value to our shareholders.”
Mr. Chubb continued, “As we go forward in fiscal 2017, we are laser-focused on the initiatives to improve the operating
performance at Tommy Bahama. This includes revamping the outlet and clearance strategy, improving gross margin by making
selective price increases and reducing input costs, and controlling operating expenses. We are confident in our ability to
deliver a better performance for Tommy Bahama and expect to see a modest, but respectable degree of top line growth and a positive
change in the trajectory of Tommy Bahama’s operating margin. In the first quarter of 2017, Tommy Bahama’s results to date are
encouraging, with modestly positive comp store sales gains to date.”
Mr. Chubb concluded, “We are thrilled with Lilly Pulitzer’s results, which include a 14% top-line growth rate for the year, with
gains in every channel of distribution and operating margin expanding to 22%. Lilly Pulitzer is an exceptional brand with a
culture of playing to win that serves us well in this tough environment. Having adapted to the new reality of retailing
earlier than most in our industry, they are well ahead of the curve and continue to deliver fantastic product to their consumer
through a variety of digital and traditional channels. For 2017, we are confident Lilly Pulitzer will sustain its positive
momentum, achieve high single digit top line growth and continue to drive a strong operating margin.’’
Consolidated Operating Results
Fourth quarter fiscal 2016 net sales were $261.0 million compared to $259.6 million in the prior year period. Lilly
Pulitzer’s fourth quarter sales, which included a significantly larger e-commerce flash sale event than in the prior year,
increased 26%. Southern Tide contributed $8.2 million of sales in the quarter, with offsets to these increases in both Tommy Bahama
and Lanier Apparel. For the full 2016 fiscal year, net sales increased to $1.023 billion compared to $969 million in the prior
year.
Gross profit in the fourth quarter increased to $146.7 million compared to $144.7 million in the same period of the prior year.
Gross margin in the fourth quarter of fiscal 2016 was 42 basis points higher at 56.2%, driven primarily by an improved mix of
higher margin businesses and LIFO accounting. Gross profit for the full year was $582.8 million compared to $558.1 million in the
prior year, with a reduction in gross margin of 59 basis points to 57.0%.
In the fourth quarter of fiscal 2016, SG&A as a percentage of net sales was 50.1% or $130.9 million compared to 46.1% or
$119.7 million in the prior year’s fourth quarter. The increase primarily due to SG&A associated with the Southern Tide
business, incremental costs associated with operating additional retail stores and restaurants, as well as store closures and
severance charges at Tommy Bahama. For the full year, SG&A as a percentage of sales was 49.6% or $507.1 million compared
to 49.0% or $475.0 million in the prior year.
For the fourth quarter of fiscal 2016, royalties and other operating income grew to $3.7 million compared to $3.4 million in the
fourth quarter of fiscal 2015. Royalties and other operating income for the full year were $14.2 million compared to $14.4
million in fiscal 2015.
Operating income in the fourth quarter was $19.5 million compared to $28.5 million in the same period of the prior year. On an
adjusted basis, operating income was $16.7 million compared to $29.1 million in the fourth quarter of fiscal 2015. For the
full 2016 fiscal year, operating income was $89.9 million compared to $97.5 million in fiscal 2015. For the full year, on an
adjusted basis, operating income was $89.6 million compared to $99.3 million. GAAP and adjusted operating income for the fourth
quarter and full 2016 fiscal year were negatively impacted by the $7.1 million of Tommy Bahama related charges described above.
Interest expense for the fourth quarter of fiscal 2016 was $0.9 million compared to $0.5 million in the fourth quarter of fiscal
2015. Interest expense for the full year was $3.4 million compared to $2.5 million in fiscal 2015.
For the fourth quarter of fiscal 2016, the Company’s effective tax rate was 35.2% compared to 37.2% in the fourth quarter of
fiscal 2015 and, for the full year, its effective tax rate was 37.0% compared to 38.4% in fiscal 2015. The tax rate in both the
quarter and year reflects the Company’s utilization of operating loss carryforwards and reversal of valuation allowances in certain
foreign jurisdictions.
Balance Sheet and Liquidity
Inventory increased to $142.2 million at January 28, 2017 from $129.1 million at the end of the fourth quarter of fiscal 2015
primarily reflecting the inclusion of inventory for Southern Tide. The Company believes that inventory levels in each of the
operating groups are appropriate for planned sales.
As of January 28, 2017, the Company had $91.5 million of borrowings outstanding under its revolving credit agreement compared to
$44.0 million in the prior year. This increase reflects the impact of the purchase of Southern Tide on April 19, 2016. The Company
ended the quarter with $185.5 million of unused availability under its $325 million revolving credit agreement.
In the full 2016 fiscal year, cash flow from operations increased 13% to $118.6 million compared to $105.4 million in the prior
year. Free cash flow for 2016 was $69.2 million compared to $32.3 million in fiscal 2015.
Outlook for the Full Year and First Quarter of Fiscal 2017
Fiscal 2017 earnings per share are expected to be negatively impacted by a higher effective tax rate. For the full 2017 fiscal
year, a 53-week year which ends on February 3, 2018, the Company currently expects net sales to grow to between $1.08 billion to
$1.10 billion as compared to Fiscal 2016 net sales of $1.023 billion. GAAP earnings per share from continuing operations are
expected to be between $3.41 and $3.61. Adjusted earnings per share from continuing operations are expected to be between $3.50 and
$3.70. This compares to earnings from continuing operations on a GAAP basis of $3.27 per share and, on an adjusted basis, $3.30 per
share in fiscal 2016.
The Company’s effective tax rate for fiscal 2017 is expected to be approximately 39% compared to 37% in the full 2016 fiscal
year, with the increase reflecting the expected unfavorable impact of the accounting standard related to stock compensation adopted
in 2016 and a reduction in the utilization of operating loss carryforwards relative to fiscal 2016. Full year interest expense is
estimated to be approximately $4 million.
For the first quarter of fiscal 2017, ending April 29, 2017, the Company currently expects net sales to grow to between $270
million to $280 million, as compared to $256.2 million in the first quarter of fiscal 2016. GAAP earnings per share from continuing
operations are expected to be between $0.98 and $1.08 and adjusted earnings per share are expected to be between $1.00 and $1.10,
as compared to GAAP results of $1.21 per share and adjusted results of $1.26 per share achieved in the first quarter of fiscal
2016. The first quarter effective tax rate is expected to be approximately 41.5% compared to 35.7% in the first quarter of
fiscal 2016, reflecting the unfavorable impact of items described above.
Capital expenditures in fiscal 2017 are expected to be approximately $55 million, compared to $49 million in fiscal 2016,
primarily reflecting investments in information technology initiatives, new retail stores and restaurants, and investments to
remodel and relocate existing retail stores.
Dividend
The Company also announced that its Board of Directors has approved a cash dividend of $0.27 per share payable on April 28, 2017
to shareholders of record as of the close of business on April 13, 2017. The Company has paid dividends every quarter since it
became publicly owned in 1960.
Conference Call
The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live
web cast of the conference call will be available on the Company’s website at www.oxfordinc.com. A replay of the call will be
available through April 6, 2017 by dialing (412) 317-6671 access code 6022892.
About Oxford
Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly
Pulitzer® and Southern Tide® lifestyle brands. Oxford also produces certain licensed and private label
apparel products. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information,
please visit Oxford's website at www.oxfordinc.com.
Non-GAAP Financial Information
The Company reports its consolidated financial statements in accordance with generally accepted accounting principles
(GAAP). To supplement these consolidated financial results, management believes that a presentation and discussion of certain
financial measures on an adjusted basis, which exclude certain non-operating or discrete gains, charges or other items, may provide
a more meaningful basis on which investors may compare the Company’s ongoing results of operations between periods. These
measures include adjusted earnings, adjusted earnings per share, adjusted gross profit, adjusted gross margin, adjusted SG&A
and adjusted operating income, among others. Management uses these non-GAAP financial measures in making financial, operational and
planning decisions to evaluate the Company’s ongoing performance. Management also uses these adjusted financial measures to discuss
its business with investment and other financial institutions, its board of directors and others. Reconciliations of these
adjusted measures to the most directly comparable financial measures calculated in accordance with GAAP are presented in tables
included at the end of this release. These reconciliations present adjusted operating results information for certain
historical and future periods.
Basis of Presentation
All financial results and outlook information included in this release, unless otherwise noted, are from continuing operations
and all earnings per share amounts are on a diluted basis. The results from the Ben Sherman business, which was sold on July 17,
2015, are reflected as discontinued operations for all periods presented.
Safe Harbor
This press release includes statements that constitute forward-looking statements within the meaning of the federal securities
laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions
identify forward-looking statements, which are not historical in nature. We intend for all forward-looking statements contained
herein or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on
our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Such statements
are subject to a number of risks, uncertainties and assumptions including, without limitation, competitive conditions, which may be
impacted by evolving consumer shopping patterns; the impact of economic conditions on consumer demand and spending for apparel and
related products, particularly in light of general economic uncertainty; changes in international, federal or state, tax, trade and
other laws and regulations, including changes in corporate tax rates, quota restrictions or the imposition of safeguard controls;
demand for our products; timing of shipments requested by our wholesale customers; expected pricing levels; retention of and
disciplined execution by key management; the timing and cost of store openings and of planned capital expenditures; weather; costs
of products as well as the raw materials used in those products; costs of labor; acquisition and disposition activities; expected
outcomes of pending or potential litigation and regulatory actions; access to capital and/or credit markets; our ability to
timely recognize our expected synergies from any acquisitions we pursue; and factors that could affect our consolidated effective
tax rate such as the results of foreign operations or stock based compensation. Forward-looking statements reflect our current
expectations, based on currently available information, and are not guarantees of performance. Although we believe that the
expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such
statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these
risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial,
materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated
or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part
I, Item 1A. contained in our Annual Report on Form 10-K for the period ended January 30, 2016 under the heading "Risk Factors" and
those described from time to time in our future reports filed with the SEC.
| |
| Oxford Industries, Inc. |
| Consolidated Balance Sheets |
| (in thousands, except par
amounts) |
| (unaudited) |
| |
| |
January 28,
2017 |
|
January 30,
2016
|
| ASSETS |
|
|
| Current Assets |
|
|
| Cash and cash equivalents |
$ |
6,332 |
|
|
$ |
6,323 |
|
| Receivables, net |
|
58,279 |
|
|
|
59,065 |
|
| Inventories, net |
|
142,175 |
|
|
|
129,136 |
|
| Prepaid expenses |
|
24,842 |
|
|
|
22,272 |
|
| Total Current Assets |
$ |
231,628 |
|
|
$ |
216,796 |
|
| Property and equipment, net |
|
193,931 |
|
|
|
184,094 |
|
| Intangible assets, net |
|
175,245 |
|
|
|
143,738 |
|
| Goodwill |
|
60,015 |
|
|
|
17,223 |
|
| Other non-current assets, net |
|
24,340 |
|
|
|
20,839 |
|
| Total Assets |
$ |
685,159 |
|
|
$ |
582,690 |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
| Current Liabilities |
|
|
| Accounts payable |
$ |
76,825 |
|
|
$ |
68,306 |
|
| Accrued compensation |
|
19,711 |
|
|
|
30,063 |
|
| Other accrued expenses and liabilities |
|
32,000 |
|
|
|
28,136 |
|
| Liabilities related to discontinued operations |
|
2,860 |
|
|
|
2,394 |
|
| Total Current Liabilities |
$ |
131,396 |
|
|
$ |
128,899 |
|
| Long-term debt |
|
91,509 |
|
|
|
43,975 |
|
| Other non-current liabilities |
|
70,002 |
|
|
|
67,188 |
|
| Deferred taxes |
|
13,578 |
|
|
|
3,657 |
|
| Liabilities related to discontinued operations |
|
2,544 |
|
|
|
4,571 |
|
| Commitments and contingencies |
|
|
| Shareholders' Equity |
|
|
| Common stock, $1.00 par value per share |
|
16,769 |
|
|
|
16,601 |
|
| Additional paid-in capital |
|
131,144 |
|
|
|
125,477 |
|
| Retained earnings |
|
233,493 |
|
|
|
199,151 |
|
| Accumulated other comprehensive loss |
|
(5,276 |
) |
|
|
(6,829 |
) |
| Total Shareholders' Equity |
$ |
376,130 |
|
|
$ |
334,400 |
|
| Total Liabilities and Shareholders' Equity |
$ |
685,159 |
|
|
$ |
582,690 |
|
| |
| Oxford Industries, Inc. |
| Consolidated Statements of
Operations |
| (in thousands, except per share
amounts) |
| (unaudited) |
| |
| |
Fourth
Quarter Fiscal
2016 |
Fourth
Quarter Fiscal
2015 |
Fiscal
2016 |
Fiscal
2015 |
| Net sales |
$ |
261,049 |
|
$ |
259,582 |
|
$ |
1,022,588 |
|
$ |
969,290 |
|
| Cost of goods sold |
|
114,392 |
|
|
114,845 |
|
|
439,814 |
|
|
411,185 |
|
| Gross profit |
$ |
146,657 |
|
$ |
144,737 |
|
$ |
582,774 |
|
$ |
558,105 |
|
| SG&A |
|
130,888 |
|
|
119,694 |
|
|
507,070 |
|
|
475,031 |
|
| Royalties and other operating income |
|
3,747 |
|
|
3,408 |
|
|
14,180 |
|
|
14,440 |
|
| Operating income |
$ |
19,516 |
|
$ |
28,451 |
|
$ |
89,884 |
|
$ |
97,514 |
|
| Interest expense, net |
|
916 |
|
|
497 |
|
|
3,421 |
|
|
2,458 |
|
| Earnings from continuing operations before income
taxes |
$ |
18,600 |
|
$ |
27,954 |
|
$ |
86,463 |
|
$ |
95,056 |
|
| Income taxes |
|
6,556 |
|
|
10,400 |
|
|
31,964 |
|
|
36,519 |
|
| Net earnings from continuing operations |
$ |
12,044 |
|
$ |
17,554 |
|
$ |
54,499 |
|
$ |
58,537 |
|
| Loss from discontinued operations, net of taxes |
|
(2,038 |
) |
|
(83 |
) |
|
(2,038 |
) |
|
(27,975 |
) |
| Net earnings |
$ |
10,006 |
|
$ |
17,471 |
|
$ |
52,461 |
|
$ |
30,562 |
|
| |
|
|
|
|
| Net earnings from continuing operations per share: |
|
|
|
|
| Basic |
$ |
0.73 |
|
$ |
1.07 |
|
$ |
3.30 |
|
$ |
3.56 |
|
| Diluted |
$ |
0.72 |
|
$ |
1.06 |
|
$ |
3.27 |
|
$ |
3.54 |
|
| Loss from discontinued operations, net of taxes, per share: |
|
|
|
|
| Basic |
$ |
(0.12 |
) |
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(1.70 |
) |
| Diluted |
$ |
(0.12 |
) |
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(1.69 |
) |
| Net earnings per share: |
|
|
|
|
| Basic |
$ |
0.61 |
|
$ |
1.06 |
|
$ |
3.18 |
|
$ |
1.86 |
|
| Diluted |
$ |
0.60 |
|
$ |
1.05 |
|
$ |
3.15 |
|
$ |
1.85 |
|
| Weighted average shares outstanding: |
|
|
|
|
| Basic |
|
16,537 |
|
|
16,466 |
|
|
16,522 |
|
|
16,456 |
|
| Diluted |
|
16,689 |
|
|
16,600 |
|
|
16,649 |
|
|
16,559 |
|
| Dividends declared per share |
$ |
0.27 |
|
$ |
0.25 |
|
$ |
1.08 |
|
$ |
1.00 |
|
| |
| Oxford Industries, Inc. |
|
| Consolidated Statements of Cash
Flows |
|
| (in thousands) |
|
| (unaudited) |
|
| |
|
| |
Fiscal 2016 |
Fiscal 2015 |
|
| Cash Flows From Operating Activities: |
|
|
|
| Net earnings |
$ |
52,461 |
|
$ |
30,562 |
|
|
| Adjustments to reconcile net earnings to cash provided by operating
activities: |
|
|
|
| Depreciation |
|
40,069 |
|
|
34,476 |
|
|
| Amortization of intangible assets |
|
2,150 |
|
|
1,951 |
|
|
| Equity compensation expense |
|
6,445 |
|
|
5,241 |
|
|
| Amortization of deferred financing costs |
|
693 |
|
|
385 |
|
|
| Loss on sale of discontinued operations |
|
— |
|
|
20,517 |
|
|
| Gain on sale of property and equipment |
|
— |
|
|
(853 |
) |
|
| Deferred income taxes |
|
7,880 |
|
|
(361 |
) |
|
| Changes in working capital, net of acquisitions and dispositions, if
any: |
|
|
|
| Receivables, net |
|
7,377 |
|
|
11,371 |
|
|
| Inventories, net |
|
4,222 |
|
|
(8,058 |
) |
|
| Prepaid expenses |
|
(1,799 |
) |
|
(2,641 |
) |
|
| Current liabilities |
|
434 |
|
|
(553 |
) |
|
| Other non-current assets, net |
|
(2,086 |
) |
|
1,819 |
|
|
| Other non-current liabilities |
|
719 |
|
|
11,517 |
|
|
| Cash provided by operating activities |
$ |
118,565 |
|
$ |
105,373 |
|
|
| Cash Flows From Investing Activities: |
|
|
|
| Acquisitions, net of cash acquired |
|
(95,046 |
) |
|
— |
|
|
| Purchases of property and equipment |
|
(49,415 |
) |
|
(73,082 |
) |
|
| Proceeds from sale of discontinued operations |
|
(2,030 |
) |
|
59,336 |
|
|
| Other investing activities |
|
— |
|
|
(200 |
) |
|
| Cash used in investing
activities |
$ |
(146,491 |
) |
$ |
(13,946 |
) |
|
| Cash Flows From Financing Activities: |
|
|
|
| Repayment of revolving credit arrangements |
|
(430,995 |
) |
|
(345,485 |
) |
|
| Proceeds from revolving credit arrangements |
|
478,529 |
|
|
281,852 |
|
|
| Deferred financing costs paid |
|
(1,438 |
) |
|
— |
|
|
| Payment of contingent consideration amounts earned |
|
— |
|
|
(12,500 |
) |
|
| Proceeds from issuance of common stock |
|
1,257 |
|
|
1,307 |
|
|
| Repurchase of stock awards for employee tax withholding liabilities |
|
(1,867 |
) |
|
— |
|
|
| Cash dividends declared and paid |
|
(18,119 |
) |
|
(16,640 |
) |
|
| Cash provided by (used in) financing
activities |
$ |
27,367 |
|
$ |
(91,466 |
) |
|
| Net change in cash and cash equivalents |
$ |
(559 |
) |
$ |
(39 |
) |
|
| Effect of foreign currency translation on cash and cash equivalents |
|
568 |
|
|
1,081 |
|
|
| Cash and cash equivalents at the beginning of year |
|
6,323 |
|
|
5,281 |
|
|
| Cash and cash equivalents at the end of
year |
$ |
6,332 |
|
$ |
6,323 |
|
|
| Supplemental disclosure of cash flow information: |
|
|
|
| Cash paid for interest, net |
$ |
2,626 |
|
$ |
2,301 |
|
|
| Cash paid for income taxes |
$ |
29,872 |
|
$ |
35,369 |
|
|
| |
|
|
|
| Oxford Industries,
Inc. |
| Reconciliations of Certain Non-GAAP Financial
Information |
| (in millions, except per share
amounts) |
| (unaudited) |
| |
| AS REPORTED |
Fourth
Quarter
Fiscal
2016 |
Fourth
Quarter
Fiscal
2015 |
%
Change |
Fiscal
2016 |
Fiscal
2015 |
%
Change |
| Tommy Bahama |
|
|
|
|
|
|
| Net sales |
$186.1 |
|
$195.9 |
|
(5.0 |
)% |
$658.9 |
|
$658.5 |
|
0.1 |
% |
| Gross profit |
$105.7 |
|
$115.0 |
|
(8.0 |
)% |
$386.7 |
|
$393.2 |
|
(1.7 |
)% |
| Gross margin |
|
56.8% |
|
|
58.7% |
|
|
|
58.7% |
|
|
59.7% |
|
|
| Operating income |
$17.3 |
|
$31.4 |
|
(44.7 |
)% |
$44.1 |
|
$66.0 |
|
(33.2 |
)% |
| Operating margin |
|
9.3% |
|
|
16.0% |
|
|
|
6.7% |
|
|
10.0% |
|
|
| Lilly Pulitzer |
|
|
|
|
|
|
| Net sales |
$46.5 |
|
$36.9 |
|
26.0 |
% |
$233.3 |
|
$204.6 |
|
14.0 |
% |
| Gross profit |
$27.2 |
|
$22.7 |
|
19.6 |
% |
$148.3 |
|
$132.8 |
|
11.7 |
% |
| Gross margin |
|
58.4% |
|
|
61.5% |
|
|
|
63.6% |
|
|
64.9% |
|
|
| Operating income |
$2.3 |
|
$0.2 |
|
NM |
|
$52.0 |
|
$42.5 |
|
22.3 |
% |
| Operating margin |
|
5.0% |
|
|
0.4% |
|
|
|
22.3% |
|
|
20.8% |
|
|
| Lanier Apparel |
|
|
|
|
|
|
| Net sales |
$19.5 |
|
$26.5 |
|
(26.2 |
)% |
$100.8 |
|
$105.1 |
|
(4.1 |
)% |
| Gross profit |
$6.4 |
|
$7.3 |
|
(13.2 |
)% |
$29.5 |
|
$30.5 |
|
(3.2 |
)% |
| Gross margin |
|
32.6% |
|
|
27.7% |
|
|
|
29.3% |
|
|
29.0% |
|
|
| Operating income |
$0.3 |
|
$1.8 |
|
(80.7 |
)% |
$7.0 |
|
$7.7 |
|
(9.7 |
)% |
| Operating margin |
|
1.8% |
|
|
6.8% |
|
|
|
6.9% |
|
|
7.3% |
|
|
| Southern Tide |
|
|
|
|
|
|
| Net sales |
$8.2 |
|
$ |
— |
|
NM |
|
$27.4 |
|
$ |
— |
|
NM |
|
| Gross profit |
$3.4 |
|
$ |
— |
|
NM |
|
$10.9 |
|
$ |
— |
|
NM |
|
| Gross margin |
|
41.4% |
|
|
NA |
|
|
|
|
39.8% |
|
|
NA |
|
|
|
| Operating income |
$0.1 |
|
$ |
— |
|
NM |
|
$(0.3) |
|
$ |
— |
|
NM |
|
| Operating margin |
|
1.8% |
|
|
NA |
|
|
|
|
(1.0)% |
|
|
NA |
|
|
|
| Corporate and Other |
|
|
|
|
|
|
|
|
| Net sales |
$0.7 |
|
$0.3 |
|
NM |
|
$2.2 |
|
$1.1 |
|
NM |
|
| Gross profit |
$4.0 |
|
$(0.2) |
|
NM |
|
$7.4 |
|
$1.6 |
|
NM |
|
| Operating loss |
$(0.7) |
|
$(4.9) |
|
86.1 |
% |
$(12.9) |
|
$(18.7) |
|
31.1 |
% |
| Consolidated |
|
|
|
|
|
|
| Net sales |
$261.0 |
|
$259.6 |
|
0.6 |
% |
$1,022.6 |
|
$969.3 |
|
5.5 |
% |
| Gross profit |
$146.7 |
|
$144.7 |
|
1.3 |
% |
$582.8 |
|
$558.1 |
|
4.4 |
% |
| Gross margin |
|
56.2% |
|
|
55.8% |
|
|
|
57.0% |
|
|
57.6% |
|
|
| SG&A |
$130.9 |
|
$119.7 |
|
9.4 |
% |
$507.1 |
|
$475.0 |
|
6.7 |
% |
| SG&A as % of net sales |
|
50.1% |
|
|
46.1% |
|
|
|
49.6% |
|
|
49.0% |
|
|
| Operating income |
$19.5 |
|
$28.5 |
|
(31.4 |
)% |
$89.9 |
|
$97.5 |
|
(7.8 |
)% |
| Operating margin |
|
7.5% |
|
|
11.0% |
|
|
|
8.8% |
|
|
10.1% |
|
|
| Earnings from continuing operations before income taxes |
$18.6 |
|
$28.0 |
|
(33.5 |
)% |
$86.5 |
|
$95.1 |
|
(9.0 |
)% |
| Net earnings from continuing operations |
$12.0 |
|
$17.6 |
|
(31.4 |
)% |
$54.5 |
|
$58.5 |
|
(6.9 |
)% |
| Net earnings from continuing operations
per diluted share |
$0.72 |
|
$1.06 |
|
(32.1 |
)% |
$3.27 |
|
$3.54 |
|
(7.6 |
)% |
| Weighted average shares outstanding - diluted |
|
16.7 |
|
|
16.6 |
|
0.5 |
% |
|
16.6 |
|
|
16.6 |
|
0.5 |
% |
| |
|
|
|
|
|
|
| |
Fourth
Quarter
Fiscal
2016 |
Fourth
Quarter
Fiscal
2015 |
%
Change |
Fiscal
2016 |
Fiscal
2015 |
%
Change |
| ADJUSTMENTS |
|
|
|
|
|
|
| LIFO adjustments(1) |
$(3.6) |
|
$0.3 |
|
|
$(5.9) |
|
$0.3 |
|
|
| Inventory step-up charges(2) |
$0.5 |
|
$0.0 |
|
|
$2.7 |
|
$0.0 |
|
|
| Amortization of Canadian intangible assets(3) |
$0.4 |
|
$0.4 |
|
|
$1.5 |
|
$1.5 |
|
|
| Amortization of Southern Tide intangible assets(4) |
$(0.1) |
|
$0.0 |
|
|
$0.3 |
|
$0.0 |
|
|
| Transaction expenses for acquisition(5) |
$0.0 |
|
$0.0 |
|
|
$0.8 |
|
$0.0 |
|
|
| Distribution center integration charges(6) |
$0.0 |
|
$0.0 |
|
|
$0.5 |
|
$0.0 |
|
|
| Impact of income taxes(7) |
$1.2 |
|
$(0.1) |
|
|
$0.7 |
|
$(0.1) |
|
|
| Adjustment to net earnings from continuing
operations(8) |
$(1.6) |
|
$0.5 |
|
|
$0.4 |
|
$1.7 |
|
|
| AS ADJUSTED |
|
|
|
|
|
|
| Tommy Bahama |
|
|
|
|
|
|
| Net sales |
$186.1 |
|
$195.9 |
|
(5.0 |
)% |
$658.9 |
|
$658.5 |
|
0.1 |
% |
| Gross profit |
$105.7 |
|
$115.0 |
|
(8.0 |
)% |
$386.7 |
|
$393.2 |
|
(1.7 |
)% |
| Gross margin |
|
56.8% |
|
|
58.7% |
|
|
|
58.7% |
|
|
59.7% |
|
|
| Operating income |
$17.7 |
|
$31.7 |
|
(44.2 |
)% |
$45.6 |
|
$67.5 |
|
(32.5 |
)% |
| Operating margin |
|
9.5% |
|
|
16.2% |
|
|
|
6.9% |
|
|
10.3% |
|
|
| Lilly Pulitzer |
|
|
|
|
|
|
| Net sales |
$46.5 |
|
$36.9 |
|
26.0 |
% |
$233.3 |
|
$204.6 |
|
14.0 |
% |
| Gross profit |
$27.2 |
|
$22.7 |
|
19.6 |
% |
$148.3 |
|
$132.8 |
|
11.7 |
% |
| Gross margin |
|
58.4% |
|
|
61.5% |
|
|
|
63.6% |
|
|
64.9% |
|
|
| Operating income |
$2.3 |
|
$0.2 |
|
NM |
|
$52.0 |
|
$42.5 |
|
22.3 |
% |
| Operating margin |
|
5.0% |
|
|
0.4% |
|
|
|
22.3% |
|
|
20.8% |
|
|
| Lanier Apparel |
|
|
|
|
|
|
| Net sales |
$19.5 |
|
$26.5 |
|
(26.2 |
)% |
$100.8 |
|
$105.1 |
|
(4.1 |
)% |
| Gross profit |
$6.4 |
|
$7.3 |
|
(13.2 |
)% |
$29.5 |
|
$30.5 |
|
(3.2 |
)% |
| Gross margin |
|
32.6% |
|
|
27.7% |
|
|
|
29.3% |
|
|
29.0% |
|
|
| Operating income |
$0.3 |
|
$1.8 |
|
(80.7 |
)% |
$7.0 |
|
$7.7 |
|
(9.7 |
)% |
| Operating margin |
|
1.8% |
|
|
6.8% |
|
|
|
6.9% |
|
|
7.3% |
|
|
| Southern Tide |
|
|
|
|
|
|
| Net sales |
$8.2 |
|
$ |
— |
|
NM |
|
$27.4 |
|
$ |
— |
|
NM |
|
| Gross profit |
$3.9 |
|
$ |
— |
|
NM |
|
$13.6 |
|
$ |
— |
|
NM |
|
| Gross margin |
|
48.0% |
|
|
NA |
|
|
|
|
49.5% |
|
|
NA |
|
|
|
| Operating income |
$0.6 |
|
$ |
— |
|
NM |
|
$3.1 |
|
$ |
— |
|
NM |
|
| Operating margin |
|
7.1% |
|
|
NA |
|
|
|
11.3% |
|
|
NA |
|
|
| Corporate and Other |
|
|
|
|
|
|
| Net sales |
$0.7 |
|
$0.3 |
|
NM |
|
$2.2 |
|
$1.1 |
|
NM |
|
| Gross profit |
$0.4 |
|
$0.0 |
|
NM |
|
$1.5 |
|
$1.9 |
|
NM |
|
| Operating loss |
$(4.3) |
|
$(4.6) |
|
6.5 |
% |
$(18.0) |
|
$(18.5) |
|
2.4 |
% |
| Consolidated |
|
|
|
|
|
|
| Net sales |
$261.0 |
|
$259.6 |
|
0.5 |
% |
$1,022.6 |
|
$969.3 |
|
5.5 |
% |
| Gross profit |
$143.6 |
|
$145.0 |
|
(1.0 |
)% |
$579.6 |
|
$558.4 |
|
3.8 |
% |
| Gross margin |
|
55.0% |
|
|
55.9% |
|
|
|
56.7% |
|
|
57.6% |
|
|
| SG&A |
$130.6 |
|
$119.3 |
|
9.5 |
% |
$504.1 |
|
$473.5 |
|
6.5 |
% |
| SG&A as % of net sales |
|
50.0% |
|
|
46.0% |
|
|
|
49.3% |
|
|
48.9% |
|
|
| Operating income |
$16.7 |
|
$29.1 |
|
(42.6 |
)% |
$89.6 |
|
$99.3 |
|
(9.7 |
)% |
| Operating margin |
|
6.4% |
|
|
11.2% |
|
|
|
8.8% |
|
|
10.2% |
|
|
| Earnings from continuing operations before income taxes |
$15.8 |
|
$28.6 |
|
(44.8 |
)% |
$86.2 |
|
$96.8 |
|
(11.0 |
)% |
| Net earnings from continuing operations |
$10.5 |
|
$18.1 |
|
(42.2 |
)% |
$54.9 |
|
$60.2 |
|
(8.8 |
)% |
| Net earnings from continuing operations per
diluted share |
$0.63 |
|
$1.09 |
|
(42.2 |
)% |
$3.30 |
|
$3.64 |
|
(9.3 |
)% |
| |
|
|
|
|
|
|
| Free Cash Flow |
|
|
|
Fiscal
2016 |
Fiscal
2015 |
|
| Cash provided by operating activities |
|
|
|
$118.6 |
|
$105.4 |
|
|
| Purchases of property and equipment |
|
|
|
$(49.4) |
|
$(73.1) |
|
|
| Free Cash Flow |
|
|
|
$69.2 |
|
$32.3 |
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Fourth
Quarter
Fiscal 2016 |
Fourth
Quarter
Fiscal 2016 |
Fourth
Quarter
Fiscal 2015 |
Fiscal
2016 |
Fiscal
2015 |
|
| |
Actual |
Guidance(9) |
Actual |
Actual |
Actual |
|
| Net earnings from continuing operations per diluted share: |
|
|
|
|
|
|
| GAAP basis |
$0.72 |
|
$0.77-$0.92 |
|
|
$1.06 |
$3.27 |
|
$3.54 |
|
| LIFO adjustments(10) |
$(0.13) |
|
$0.00 |
|
|
$0.01 |
$(0.22) |
|
$0.01 |
|
| Inventory step-up charges(11) |
$0.02 |
|
$0.03 |
|
|
$0.00 |
$0.10 |
|
$0.00 |
|
| Amortization of Canadian intangible assets(12) |
$0.02 |
|
$0.02 |
|
|
$0.02 |
$0.09 |
|
$0.09 |
|
| Amortization of Southern Tide intangible assets(13) |
$0.00 |
|
$0.01 |
|
|
$0.00 |
$0.01 |
|
$0.00 |
|
| Transaction expenses for acquisition(14) |
$0.00 |
|
$0.00 |
|
|
$0.00 |
$0.03 |
|
$0.00 |
|
| Distribution center integration charges
(15) |
$0.00 |
|
$0.00 |
|
|
$0.00 |
$0.02 |
|
$0.00 |
|
| As adjusted(8) |
$0.63 |
|
$0.83-$0.98 |
|
|
$1.09 |
$3.30 |
|
$3.64 |
|
| |
|
|
|
|
|
|
| |
First
Quarter
Fiscal 2017 |
First
Quarter
Fiscal 2016 |
Fiscal
2017 |
Fiscal
2016 |
|
|
| |
Guidance(16) |
Actual |
Guidance(16) |
Actual |
|
|
| Net earnings from continuing operations per diluted share: |
|
|
|
|
|
|
| GAAP basis |
$0.98 - $1.08 |
|
|
$1.21 |
|
$3.41 - $3.61 |
$3.27 |
|
|
|
| LIFO adjustments(10) |
$0.00 |
|
|
$(0.01) |
|
$0.00 |
$(0.22) |
|
|
|
| Inventory step-up charges(11) |
$0.00 |
|
|
$0.01 |
|
$0.00 |
$0.10 |
|
|
|
| Amortization of Canadian intangible assets(12) |
$0.02 |
|
|
$0.02 |
|
$0.09 |
$0.09 |
|
|
|
| Amortization of Southern Tide intangible assets(13) |
$0.00 |
|
|
$0.00 |
|
$0.00 |
$0.01 |
|
|
|
| Transaction expenses for acquisition(14) |
$0.00 |
|
|
$0.03 |
|
$0.00 |
$0.03 |
|
|
|
| Distribution center integration charges
(15) |
$0.00 |
|
|
$0.00 |
|
$0.00 |
$0.02 |
|
|
|
| As adjusted(8) |
$1.00-
$1.10 |
|
|
$1.26 |
|
$3.50- $3.70 |
$3.30 |
|
|
|
| |
|
|
|
|
|
|
| (1) LIFO adjustments represent the impact on cost of goods
sold resulting from LIFO accounting adjustments. LIFO accounting adjustments are included in Corporate and Other. |
| (2) Inventory step-up charges represent the impact of
purchase accounting adjustments resulting from the step-up of inventory at acquisition related to the Southern Tide
acquisition. These inventory step-up charges are included in cost of goods sold in Southern Tide. |
| (3) Amortization of Canadian intangible assets represents
the amortization related to the intangible assets acquired as part of the Tommy Bahama Canada acquisition. Amortization of
Tommy Bahama Canadian intangible assets are included in SG&A in Tommy Bahama. |
| (4) Amortization of Southern Tide intangible assets
represents the amortization related to the intangible assets acquired as part of the Southern Tide acquisition. Amortization of
Southern Tide intangible assets are included in SG&A in Southern Tide. |
| (5) Transaction expenses for acquisition represent the
transaction costs associated with the Southern Tide acquisition. These transaction expenses for acquisition are included in
SG&A in Corporate and Other. |
| (6) Distribution center integration charges represent the
impact resulting from the one-time charges related to transitioning Southern Tide's distribution center functions. |
| (7) Impact of income taxes represents the estimated tax
impact of the above adjustments based on the applicable estimated effective tax rate on current year earnings in the respective
jurisdiction, before any discrete items. |
| (8) Amounts in columns may not add due to rounding. |
| (9) Guidance as issued on December 6, 2016. |
| (10) LIFO adjustments represent the impact, net of income
taxes, on net earnings from continuing operations per diluted share resulting from LIFO accounting adjustments. No estimate for
future LIFO accounting adjustments are reflected in the guidance for any period presented. |
| (11) Inventory step-up charges represent the impact, net of
income taxes, on net earnings from continuing operations per diluted share resulting from inventory step-up charges related to
the Southern Tide acquisition. |
| (12) Amortization of Canadian intangible assets represents
the impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from the amortization
of intangible assets acquired as part of the Tommy Bahama Canada acquisition. |
| (13) Amortization of Southern Tide intangible assets
represents the impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from the
amortization of intangible assets acquired as part of the Southern Tide acquisition. |
| (14) Transaction expenses for acquisition represent the
impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from the transaction costs
associated with the Southern Tide acquisition. |
| (15) Distribution center integration charges represent the
impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from one-time charges
related to transitioning Southern Tide's distribution center functions during Fiscal 2016. |
| (16) Guidance as issued on March 23, 2017 |
| |
| Comparable Store Sales
Change |
| The Company's disclosures about comparable sales include sales
from its full-price stores and e-commerce sites, excluding sales associated with e-commerce flash clearance sales. Prior period
comparable store sales changes are as previously disclosed. |
| |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Full Year |
|
|
| Tommy Bahama |
|
|
|
|
|
|
|
| Fiscal 2016 |
(13)% |
|
7% |
|
(6)% |
|
(3)% |
|
(3)% |
|
|
| Fiscal 2015 |
8% |
|
3% |
|
(5)% |
|
2% |
|
3% |
|
|
| Lilly Pulitzer |
|
|
|
|
|
|
|
|
|
|
|
| Fiscal 2016 |
1% |
|
(1)% |
|
12% |
|
2% |
|
2% |
|
|
| Fiscal 2015 |
20% |
|
41% |
|
27% |
|
13% |
|
27% |
|
|
| |
|
|
|
|
|
|
| Retail Location
Count |
| |
Beginning of
Year |
End of
Q1 |
End of
Q2 |
End of
Q3 |
End of
Q4 |
|
| Tommy Bahama |
|
|
|
|
|
|
| Fiscal 2016 |
|
|
|
|
|
|
| Full-price retail store |
107 |
109 |
111 |
113 |
111 |
|
| Retail-restaurant |
16 |
16 |
16 |
16 |
17 |
|
| Outlet |
41 |
41 |
41 |
41 |
40 |
|
|
Total |
164 |
166 |
168 |
170 |
168 |
|
| Fiscal 2015 |
|
|
|
|
|
|
| Full-price retail store |
101 |
100 |
104 |
107 |
107 |
|
| Retail-restaurant |
15 |
15 |
15 |
16 |
16 |
|
| Outlet |
41 |
41 |
42 |
41 |
41 |
|
| Total |
157 |
156 |
161 |
164 |
164 |
|
| |
|
|
|
|
|
|
| Lilly Pulitzer |
|
|
|
|
|
|
| Fiscal 2016 |
|
|
|
|
|
|
| Full-price retail store |
34 |
34 |
37 |
39 |
40 |
|
| Fiscal 2015 |
|
|
|
|
|
|
| Full-price retail store |
28 |
30 |
33 |
34 |
34 |
|
| |
Contact: Anne M. Shoemaker Telephone: (404) 653-1455 Fax: (404) 653-1545 E-mail: InvestorRelations@oxfordinc.com
