Air management

OXFORD INDUSTRIES INC MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

The following discussion and analysis should be read in conjunction with our
unaudited condensed consolidated financial statements and the notes thereto
contained in this report and the consolidated financial statements, notes to
consolidated financial statements and Management's Discussion and Analysis of
Financial Condition and Results of Operations contained in our Fiscal 2021
Form
10-K.

                                    OVERVIEW

Business Overview

We are a leading branded apparel company that designs, sources, markets and distributes products bearing the brands of our Tommy Bahamas, Lilly PulitzerSouthern Tide, TBBC and lifestyle brands Duck Head.

Our business strategy is to develop and market compelling lifestyle brands and
products that evoke a strong emotional response from our target consumers. We
consider lifestyle brands to be those brands that have a clearly defined and
targeted point of view inspired by an appealing lifestyle or attitude.
Furthermore, we believe lifestyle brands that create an emotional connection can
command greater loyalty and higher price points and create licensing
opportunities. We believe the attraction of a lifestyle brand depends on
creating compelling product, effectively communicating the respective lifestyle
brand message and distributing products to consumers where and when they want
them. We believe the principal competitive factors in the apparel industry are
the reputation, value, and image of brand names; design of differentiated,
innovative or otherwise compelling product; consumer preference; price; quality;
marketing (including through rapidly shifting digital and social media
vehicles); product fulfillment capabilities; and customer service. Our ability
to compete successfully in the apparel industry is directly related to our
proficiency in foreseeing changes and trends in fashion and consumer preference
and presenting appealing products for consumers. Our design-led, commercially
informed lifestyle brand operations strive to provide exciting, differentiated
products each season.

Tommy Bahama and Lilly Pulitzer, in the aggregate, represented 90% of our
consolidated net sales in Fiscal 2021. During Fiscal 2021, 80% of our
consolidated net sales were through our direct to consumer channels of
distribution, which consist of our brand specific full-price retail stores and
e-commerce websites, Tommy Bahama food and beverage operations and Tommy Bahama
outlets. The remaining 20% of our net sales was generated through our wholesale
distribution channels. Our wholesale operations consist of net sales of products
bearing our lifestyle brands, which complement our direct to consumer operations
and provide access to a larger base of consumers.

For more information about our business and operating groups, see Part I, Item 1. Activity of our FY2021 Form 10-K. Certain risk material factors that could affect our activities are described in Part II, point 1A. Risk factors of this report and part I. Point 1A. Risk factors from our FY2021 Form 10-K.

Industry Overview

We operate in a highly competitive apparel market that continues to evolve
rapidly with the expanding application of technology to fashion retail. No
single apparel firm or small group of apparel firms dominates the apparel
industry, and our direct competitors vary by operating group and distribution
channel. The apparel industry is cyclical and very dependent upon the overall
level and focus of discretionary consumer spending, which changes as consumer
preferences and regional, domestic and international economic conditions change.
Further, negative economic conditions often have a longer and more severe impact
on the apparel industry than on other industries. Also, in recent years prior to
the COVID-19 pandemic, consumers have chosen to spend less of their
discretionary spending on certain product categories, including apparel, while
spending more on services and other product categories.

This competitive and evolving environment requires that brands and retailers
approach their operations, including marketing and advertising, very differently
than historical practices and may result in increased operating costs and
investments to generate growth or even maintain sales levels. While the
competition and evolution presents significant

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risks, especially for traditional retailers who fail or are unable to adapt, we
believe it also presents a tremendous opportunity for brands and retailers to
capitalize on the changing consumer environment.

Many of the changes in the industry noted above were accelerated or exacerbated
by the COVID-19 pandemic. Additionally, in Fiscal 2021 the United States
economy, as well as the apparel retail industry and our own business operations,
began experiencing very strong growth in consumer demand and also began
encountering various challenges including labor shortages, supply chain
disruptions and product and operating cost increases. These items, combined with
more recent macroeconomic factors, have continued to impact the apparel retail
industry and our business in Fiscal 2022. We, as well as others in our industry,
have increased prices to attempt to offset these inflationary pressures.

We believe our lifestyle brands have true competitive advantages, and we
continue to invest in and leverage technology to serve our consumers when and
where they want to be served. We continue to believe that our lifestyle brands,
with their strong emotional connections with consumers, are well suited to
succeed and thrive in the long term while managing the various challenges facing
our industry.

COVID-19 Pandemic

The COVID-19 pandemic has had a significant effect on overall economic
conditions and our operations in recent years. In Fiscal 2021, the economic
environment improved significantly with a significant rebound in retail traffic
starting in March 2021 and other improvements as the year progressed, although
certain stores were closed for portions of the First Quarter of Fiscal 2021.
This improved environment and exceptionally strong consumer demand drove record
earnings for us through Fiscal 2021 and have continued in the First Quarter of
Fiscal 2022. There can be no assurance that these trends will continue for our
business or the broader retail apparel market or that store closures will not
occur in the future as a result of any resurgence of COVID-19 cases and/or
additional government mandates or recommendations. There remains significant
uncertainty as to the duration and severity of the pandemic as well as the
associated impact of changes in consumer discretionary spending habits, supply
chain and other business disruptions, operating cost increases and inflationary
pressures, general economic conditions and restrictions on our ongoing
operations that result from the COVID-19 pandemic. Thus, the ultimate impact of
the pandemic on our business remains uncertain at this time.

Lanier Clothing Outlet

In Fiscal 2021, we exited our Lanier Apparel business, a business which had been
focused on moderately priced tailored clothing and related products. This
decision aligns with our stated business strategy of developing and marketing
compelling lifestyle brands. It also took into consideration the increased
macroeconomic challenges faced by the Lanier Apparel business, many of which
were magnified by the COVID-19 pandemic. The operating results of the Lanier
Apparel business in Fiscal 2021 largely reflect activities associated with the
ongoing wind down of operations following the 2020 announcement that we would be
exiting the business. In Fiscal 2021, Lanier Apparel's net sales were $25
million and represented 2% of our consolidated net sales. We do not expect any
future net sales, operations or charges for Lanier Apparel. Refer to our
consolidated financial statements and Management Discussion and Analysis in our
Fiscal 2021 Form 10-K for additional information about the Lanier Apparel exit.

Main operating results:

The following table sets forth our consolidated operating results (in thousands,
except per share amounts) for the First Quarter of Fiscal 2022 compared to the
First Quarter of Fiscal 2021:

                                                        First Quarter
                                                  Fiscal 2022    Fiscal 2021
Net sales                                        $     352,581  $     265,762
Operating income                                 $      75,978  $      34,893
Net earnings                                     $      57,408  $      28,468
Net earnings per diluted share                   $        3.45  $        

1.70

Weighted average shares outstanding - diluted           16,622         16,792


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Earnings per share were $3.45 in the First Quarter of Fiscal 2022 compared to
$1.70 in the First Quarter of Fiscal 2021. The higher earnings per share were
primarily a result of (1) increased net sales in our Tommy Bahama, Lilly
Pulitzer and Emerging Brands operating groups, (2) improved consolidated gross
margin, and (3) higher royalty income. These favorable items were partially
offset by (1) increased SG&A, (2) a higher effective tax rate and (3) the
absence of operating income in Lanier Apparel in the First Quarter of Fiscal
2022 due to the exit of the business in Fiscal 2021.

                                  STORE COUNT

The table below provides store count information for our brands as of the dates
specified. The store count includes our permanent locations and excludes any
pop-up or temporary store locations which have an initial lease term of 12
months or less.

                                                     April 30,    January 29,    May 1,    January 30,
                                                       2022          2022         2021        2021
Tommy Bahama retail stores                                 102            102       104            105
Tommy Bahama retail-restaurant locations                    21             21        21             20
Tommy Bahama outlets                                        35             35        35             35
Total Tommy Bahama locations                               158            158       160            160
Lilly Pulitzer retail stores                                59             58        59             59
Southern Tide retail stores                                  4              4         4              3
TBBC retail stores                                           1              1         -              -
Total Oxford locations                                     222            221       223            222


                             RESULTS OF OPERATIONS

COMPARISON OF THE FIRST QUARTER OF FISCAL 2022 WITH THE FIRST QUARTER OF FISCAL 2021

The discussion and tables below compare our statements of operations for the
First Quarter of Fiscal 2022 to the First Quarter of Fiscal 2021. Each dollar
and percentage change provided reflects the change between these fiscal periods
unless indicated otherwise. Each dollar and share amount included in the tables
is in thousands except for per share amounts. We have calculated all percentages
based on actual data, and percentage columns in tables may not add due to
rounding. Individual line items of our consolidated statements of operations,
including gross profit, may not be directly comparable to those of our
competitors, as classification of certain expenses may vary by company.

The following table sets forth the specified line items in our unaudited
condensed consolidated statements of operations both in dollars (in thousands)
and as a percentage of net sales as well as the dollar change and the percentage
change as compared to the same period of the prior year:

                                             First Quarter
                                  Fiscal 2022             Fiscal 2021          $ Change     % Change

Net sales                      $ 352,581    100.0 %    $ 265,762   100.0 %     $  86,819        32.7 %
Cost of goods sold               126,204     35.8 %       99,177    37.3 %        27,027        27.3 %
Gross profit                   $ 226,377     64.2 %    $ 166,585    62.7 %     $  59,792        35.9 %
SG&A                             157,412     44.6 %      137,125    51.6 %        20,287        14.8 %
Royalties and other
operating income                   7,013      2.0 %        5,433     2.0 %         1,580        29.1 %
Operating income               $  75,978     21.5 %    $  34,893    13.1 %     $  41,085       117.7 %
Interest expense, net                242      0.1 %          252     0.1 %          (10)       (4.0) %
Earnings before income
taxes                          $  75,736     21.5 %    $  34,641    13.0 %     $  41,095       118.6 %
Income tax expense                18,328      5.2 %        6,173     2.3 %        12,155       196.9 %
Net earnings                   $  57,408     16.3 %    $  28,468    10.7 %     $  28,940       101.7 %


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Net Sales

                                 First Quarter
                           Fiscal 2022    Fiscal 2021      $ Change     % Change
Tommy Bahama              $     228,067  $     156,698    $   71,369        45.5 %
Lilly Pulitzer                   92,045         73,576        18,469        25.1 %
Emerging Brands                  31,763         22,432         9,331        41.6 %
Lanier Apparel                        -         12,019      (12,019)     (100.0) %
Corporate and Other                 706          1,037         (331)      (31.9) %
Consolidated net sales    $     352,581  $     265,762    $   86,819        32.7 %


Consolidated net sales were $353 million in the First Quarter of Fiscal 2022
compared to net sales of $266 million in the First Quarter of Fiscal 2021. The
33% increase in net sales included increases in Tommy Bahama, Lilly Pulitzer,
and Emerging Brands as well as each distribution channel, which were partially
offset by a $12 million decrease in Lanier Apparel, which we exited in Fiscal
2021. In the First Quarter of Fiscal 2021, consumer traffic and our operations
had only partially rebounded from the impacts of the COVID-19 pandemic as we
still had certain store closures and operating restrictions in certain regions,
wholesale customer demand was still soft and most of the consumer traffic
improvement occurred later in Fiscal 2021. Although we did have some price
increases in the First Quarter of Fiscal 2022 in order to mitigate increased
product and other costs, net sales was primarily impacted by increased volume.

The increase in net sales by distribution channel included increases in (1)
full-price retail sales of $41 million, or 51%, driven primarily by increased
consumer traffic, (2) wholesale sales of our non-Lanier Apparel businesses of
$26 million, or 42%, with this increase due to higher order books as wholesale
accounts increased their buys for Spring 2022 compared to Spring 2021 as well as
the timing of some initial spring deliveries, which shipped in February in 2022
rather than January, (3) full-price e-commerce sales of $15 million, or 20%, as
each of our e-commerce businesses continued to grow, (4) e-commerce flash
clearance sales in Lilly Pulitzer of $7 million, with no e-commerce flash
clearance sales in the prior year period, (5) restaurant sales of $6 million, or
23%, and (6) outlet sales of $4 million, or 35%. The following table presents
the proportion of our consolidated net sales by distribution channel for each
period presented. We have calculated all percentages below on actual data, and
percentages may not add to 100 due to rounding.

                    First Quarter
              Fiscal 2022    Fiscal 2021
Retail                 39 %           34 %
E-commerce             27 %           28 %
Restaurant              9 %            9 %
Wholesale              25 %           28 %
Total                 100 %          100 %


Tommy Bahama:
Tommy Bahama net sales increased $71 million, or 46%, in the First Quarter of
Fiscal 2022, with an increase in each channel of distribution. The increase in
net sales in Tommy Bahama included increases in (1) full-price retail sales of
$34 million, or 63%, (2) wholesale sales of $17 million, or 56%, (3) e-commerce
sales of $11 million, or 30%, (4) restaurant sales of $6 million, or 23%, with
strong sales and fewer operating restrictions in our 21 food and beverage

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locations, and (5) outlet sales of $4 million, or 35%. The following table presents the proportion of net sales by distribution channel for Tommy Bahamas for each period presented:

                    First Quarter
              Fiscal 2022    Fiscal 2021
Retail                 45 %           42 %
E-commerce             20 %           23 %
Restaurant             14 %           16 %
Wholesale              21 %           19 %
Total                 100 %          100 %


Lilly Pulitzer:

Lilly Pulitzer net sales increased $18 million, or 25%, in the First Quarter of
Fiscal 2022, with an increase in each channel of distribution. The increase in
net sales in Lilly Pulitzer included increases in (1) e-commerce flash clearance
sales of $7 million as Lilly Pulitzer held a flash clearance event in the First
Quarter of Fiscal 2022 to test the timing of clearance for certain prior season
resort product, but did not have a flash clearance event in the First Quarter of
Fiscal 2021, (2) retail sales of $6 million, or 24%, (3) wholesale sales of $3
million, or 17%, with higher full-price sales and lower off-price sales, and (4)
full-price e-commerce sales of $2 million, or 7%. The following table presents
the proportion of net sales by distribution channel for Lilly Pulitzer for each
period presented:

                    First Quarter
              Fiscal 2022    Fiscal 2021
Retail                 34 %           35 %
E-commerce             44 %           42 %
Wholesale              22 %           23 %
Total                 100 %          100 %


Emerging Brands:

Emerging Brands net sales increased $9 million, or 42%, in the First Quarter of
Fiscal 2022, with an increase in each of the Southern Tide, TBBC and Duck Head
businesses comprising Emerging Brands. The increase in net sales included
increases in (1) Southern Tide of $5 million, or 32%, (2) TBBC of $4 million, or
63%, and (3) Duck Head of $1 million, or 63%. The $9 million increase included
increases of (1) $6 million, or 45%, in wholesale, (2) $2 million, or 28%, in
e-commerce and (3) $1 million, or 119%, in the Southern Tide and TBBC retail
businesses, as those brands continue to open new retail locations. The following
table presents the proportion of net sales by distribution channel for Emerging
Brands for each period presented:

                    First Quarter
              Fiscal 2022    Fiscal 2021
Retail                  5 %            3 %
E-commerce             30 %           34 %
Wholesale              65 %           63 %
Total                 100 %          100 %


Lanier Apparel:

There were no Lanier Apparel net sales in the First Quarter of Fiscal 2022 after
we exited the Lanier Apparel business in Fiscal 2021. We do not expect any
future net sales for Lanier Apparel. Refer to our consolidated financial
statements and Management Discussion and Analysis in our Fiscal 2021 Form 10-K
for additional information about the Lanier Apparel exit.

Companies and others:

Corporate and other net sales primarily include net sales of our Lyon, Georgia distribution center as well as our Oxford America business, which we are exiting in fiscal year 2022.

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Gross Profit

The tables below present gross profit by operating group and in total for the
First Quarter of Fiscal 2022 and the First Quarter of Fiscal 2021, as well as
the dollar change and percentage change between those two periods, and gross
margin by operating group and in total. Our gross profit and gross margin, which
is calculated as gross profit divided by net sales, may not be directly
comparable to those of our competitors, as the statement of operations
classification of certain expenses may vary by company.

                                                First Quarter
                                         Fiscal 2022      Fiscal 2021     $ Change     % Change
Tommy Bahama                            $     147,344    $     101,533    $  45,811        45.1 %
Lilly Pulitzer                                 63,528           51,185       12,343        24.1 %
Emerging Brands                                16,348           12,101        4,247        35.1 %
Lanier Apparel                                      -            4,294      (4,294)     (100.0) %
Corporate and Other                             (843)          (2,528)        1,685          NM %
Consolidated gross profit               $     226,377    $     166,585    $  59,792        35.9 %
Notable items included in amounts
above:
LIFO adjustments in Corporate and
Other                                   $       1,005    $       3,065
Lanier Apparel exit charges in cost
of goods sold                           $           -    $         458



                                   First Quarter
                             Fiscal 2022    Fiscal 2021
Tommy Bahama                        64.6 %         64.8 %
Lilly Pulitzer                      69.0 %         69.6 %
Emerging Brands                     51.5 %         53.9 %
Lanier Apparel                         - %         35.7 %
Corporate and Other                   NM %           NM %
Consolidated gross margin           64.2 %         62.7 %


The increased gross profit of 36% was primarily due to the 33% increase in net
sales as well as improved gross margin. The gross margin improvement was
primarily due to (1) a change in sales mix resulting from the exit of Lanier
Apparel, which had lower gross margins than our lifestyle brand businesses, in
Fiscal 2021, (2) a $2 million lower LIFO accounting charge in the First Quarter
of Fiscal 2022 compared to the First Quarter of Fiscal 2021, (3) improved
initial product margins, as certain sales prices were increased more than the
increased product costs as well as a change in mix towards higher gross margin
products, and (4) the lack of Lanier Apparel exit charges in cost of goods sold
in the First Quarter of Fiscal 2022. These items were partially offset by the
impact of increased freight costs of $3 million, or 90 basis points, including
rate increases impacting inbound products and e-commerce shipping costs as well
as the increased utilization of air freight on inbound products. The First
Quarter of Fiscal 2021 did not include elevated freight costs as we did not
begin to experience significant increased freight costs until the second half of
Fiscal 2021. Both the First Quarter of Fiscal 2022 and the First Quarter of
Fiscal 2021 included a higher proportion of full-price selling, with lower
levels of markdowns, discounts and promotions, than have been typical in prior
years.

Tommy Bahama:

The lower gross margin for Tommy Bahama was primarily due to increased freight
costs and increased food costs in our restaurant business partially offset by
improved initial product margins, due in part to a change in sales mix towards
higher gross margin products.

Lilly Pulitzer:

The lower gross margin for Lilly Pulitzer was primarily due to increased freight
costs partially offset by improved initial product margins. While Lilly Pulitzer
had a change in sales mix with e-commerce flash clearance sales,

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representing a larger proportion of net sales, this impact was generally offset
by off-price wholesale sales representing a smaller proportion of net sales
resulting in no significant change in gross margins due to a change in sales
mix.

Emerging Brands:

The lower gross margin for Emerging Brands was primarily due to increased
freight costs, more inventory markdowns and a change in sales mix with wholesale
sales representing a greater proportion of net sales. These items were partially
offset by improved initial product margins.

Lanyard clothing:

We exited the Lanier Apparel business in Fiscal 2021 and thus there was no gross
profit in the First Quarter of Fiscal 2022. We do not expect any gross profit
related to the Lanier Apparel business in future periods. The First Quarter of
Fiscal 2021 included the gross profit impact of net sales as we were exiting the
business, including the impact in cost of goods sold related to Lanier Apparel
exit charges, as disclosed in the prior year. Refer to our consolidated
financial statements and Management Discussion and Analysis in our Fiscal 2021
Form 10-K for additional information about the Lanier Apparel exit.

Companies and others:

The gross profit in Corporate and Other primarily reflects the impact of LIFO
accounting adjustments and the gross profit of the Lyons, Georgia distribution
center and Oxford America businesses. The primary driver for the improved gross
profit was the $2 million lower LIFO accounting charge due to a $1 million LIFO
accounting charge in the First Quarter of Fiscal 2022 compared to a $3 million
LIFO accounting charge in the First Quarter of Fiscal 2021. The LIFO accounting
impact in Corporate and Other in each period includes the net impact of (1) a
charge in Corporate and Other when inventory that had been marked down in an
operating group in a prior period was ultimately sold, (2) a credit in Corporate
and Other when inventory had been marked down in an operating group in the
current period, but had not been sold as of period end and (3) the change in the
LIFO reserve, if any.

SG&A

                                                 First Quarter
                                          Fiscal 2022      Fiscal 2021      $ Change     % Change
SG&A                                     $     157,412    $     137,125    $   20,287        14.8 %
SG&A (as a % of net sales)                        44.6 %           51.6 %
Notable items included in amounts
above:
Amortization of Southern Tide
intangible assets                        $          72    $          72
Lanier Apparel exit charges in SG&A      $           -    $         815


SG&A was $157 million in the First Quarter of Fiscal 2022 compared to SG&A of
$137 million in First Quarter of Fiscal 2021 reflecting significant SG&A
leverage as sales grew at a rate higher than SG&A increased. The increase in
SG&A in the First Quarter of Fiscal 2022 was primarily due to the impact of the
COVID-19 pandemic on our operations in the First Quarter of Fiscal 2021,
including the continuation of cost reduction initiatives that were initiated in
Fiscal 2020, store closures in certain regions, and depressed consumer and
wholesale customer demand. The higher SG&A included (1) increased employment
costs of $10 million, primarily due to increased head count, pay rate increases
and other employment cost increases, (2) a $5 million increase in variable
expenses related to higher sales, including credit card transaction fees,
supplies, commissions, and other expenses, (3) a $4 million increase in
advertising expense, (4) a $2 million increase in administrative expenses
including professional fees, travel and other items, and (5) a $1 million
increase in occupancy expense, primarily due to higher percentage rent expense.

Royalties and other operating income

                                                First Quarter
                                         Fiscal 2022      Fiscal 2021      $ Change     % Change
Royalties and other operating income    $       7,013    $       5,433    $
   1,580        29.1 %


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Royalties and other operating income primarily consists of income received from
third parties from the licensing of our brands. The increased royalties and
other operating income in the First Quarter of Fiscal 2022 was due to increased
royalty income in both Tommy Bahama and Lilly Pulitzer.

Operating income (loss)

                                               First Quarter
                                        Fiscal 2022      Fiscal 2021     $ Change     % Change
Tommy Bahama                           $      52,606    $      20,660    $  31,946       154.6 %
Lilly Pulitzer                                26,178           19,945        6,233        31.3 %
Emerging Brands                                7,736            4,961        2,775        55.9 %
Lanier Apparel                                     -              855        (855)     (100.0) %
Corporate and Other                         (10,542)         (11,528)          986          NM %
Consolidated Operating Income          $      75,978    $      34,893    $  41,085       117.7 %
Notable items included in amounts
above:
LIFO adjustments in Corporate and
Other                                  $       1,005    $       3,065
Lanier Apparel exit charges in cost
of goods sold                          $           -    $         458
Amortization of Southern Tide
intangible assets                      $          72    $          72
Lanier Apparel exit charges in SG&A    $           -    $         815


Operating income was $76 million in the First Quarter of Fiscal 2022 compared to
$35 million in the First Quarter of Fiscal 2021. The increased operating income
was primarily due to higher net sales, gross margin and royalty income partially
offset by increased SG&A. Each operating group, except for Lanier Apparel,
increased operating income in the First Quarter of Fiscal 2022 compared to the
First Quarter of Fiscal 2021. Changes in operating income (loss) by operating
group are discussed below.

Tommy Bahama:

                                              First Quarter
                                       Fiscal 2022      Fiscal 2021      $ Change     % Change
Net sales                             $     228,067    $     156,698    $   71,369        45.5 %
Gross profit                          $     147,344    $     101,533    $   45,811        45.1 %
Gross margin                                   64.6 %           64.8 %
Operating income                      $      52,606    $      20,660    $   31,946       154.6 %
Operating income as % of net sales             23.1 %           13.2 %


The increased operating income for Tommy Bahama was due to higher sales and
royalty income partially offset by increased SG&A and lower gross margin. The
increased SG&A was primarily due to (1) $9 million of increased employment
costs, (2) $4 million of increased variable expenses related to higher sales,
including credit card transaction fees, supplies, commissions, royalties and
other expenses, (3) a $2 million increase in advertising expense, and (4) a $1
million increase in occupancy expense.

Lilly Pulitzer:

                                              First Quarter
                                       Fiscal 2022      Fiscal 2021      $ Change     % Change
Net sales                             $      92,045    $      73,576    $   18,469        25.1 %
Gross profit                          $      63,528    $      51,185    $   12,343        24.1 %
Gross margin                                   69.0 %           69.6 %
Operating income                      $      26,178    $      19,945    $    6,233        31.3 %
Operating income as % of net sales             28.4 %           27.1 %


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The increased operating income for Lilly Pulitzer was due to higher sales and
royalty income partially offset by increased SG&A and lower gross margin. The
increased SG&A was primarily due to (1) $3 million of increased advertising
expense, (2) $1 million of increased employment costs, (3) $1 million of
variable expenses related to higher net sales including credit card transaction
fees, supplies and other expenses, (4) $1 million of professional and other
fees, primarily related to various ongoing direct to consumer and brand
initiatives, and (5) $1 million of higher depreciation expense.

Emerging Brands:

                                            First Quarter
                                     Fiscal 2022      Fiscal 2021      $ Change     % Change
Net sales                           $      31,763    $      22,432    $    9,331        41.6 %
Gross profit                        $      16,348    $      12,101    $    4,247        35.1 %
Gross margin                                 51.5 %           53.9 %
Operating income                    $       7,736    $       4,961    $    2,775        55.9 %
Operating income as % of net
sales                                        24.4 %           22.1 %
Notable items included in
amounts above:
Amortization of Southern Tide
intangible assets                   $          72    $          72


The increased operating income for Emerging Brands was due to higher net sales
partially offset by increased SG&A and lower gross margin. The increased SG&A
included (1) higher SG&A associated with the Southern Tide and TBBC retail store
operations, including related employment costs and occupancy costs, (2)
increased variable expenses resulting from increased wholesale sales and (3)
higher advertising expense.

Lanier Apparel:

                                              First Quarter
                                      Fiscal 2022        Fiscal 2021      $ Change     % Change
Net sales                           $              -    $      12,019    $ (12,019)     (100.0) %
Gross profit                        $              -    $       4,294    $  (4,294)     (100.0) %
Gross margin                                       - %           35.7 %
Operating income                    $              -    $         855    $    (855)     (100.0) %
Operating income as % of net
sales                                              - %            7.1 %
Notable items included in
amounts above:
Lanier Apparel exit charges in
cost of goods sold                  $              -    $         458
Lanier Apparel exit charges in
SG&A                                $              -    $         815


We exited the Lanier Apparel business in Fiscal 2021 and thus there was no
operating income in the First Quarter of Fiscal 2022. We do not expect any
operating income related to the Lanier Apparel business in future periods. The
First Quarter of Fiscal 2021 included the operating income resulting from the
net sales, cost of goods sold and SG&A as we were exiting the Lanier Apparel
business, including the net impact related to Lanier Apparel exit charges, as
disclosed in the prior year. Refer to our consolidated financial statements and
Management Discussion and Analysis in our Fiscal 2021 Form 10-K for additional
information about the Lanier Apparel exit.

Corporate and Other:

                                            First Quarter
                                     Fiscal 2022      Fiscal 2021      $ Change     % Change
Net sales                           $         706    $       1,037    $    (331)      (31.9) %
Gross profit                        $       (843)    $     (2,528)    $    1,685          NM %
Operating loss                      $    (10,542)    $    (11,528)    $      986          NM %
Notable items included in
amounts above:
LIFO adjustments in Corporate
and Other                           $       1,005    $       3,065


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The improved operating results in Corporate and Other were primarily a result of
the $2 million lower LIFO accounting charge due to a $1 million charge in the
First Quarter of Fiscal 2022 and a $3 million credit in the First Quarter of
Fiscal 2021. The impact of LIFO accounting was partially offset by increased
SG&A and lower net sales. The increased SG&A was primarily due to increased
employment costs and certain general and administration expenses.

Interest expense, net

                                  First Quarter
                          Fiscal 2022       Fiscal 2021      $ Change     % Change
Interest expense, net    $         242     $         252    $     (10)       (4.0) %

The comparable interest expense in the first quarter of Fiscal 2022 and the first quarter of Fiscal 2021 was primarily due to the absence of outstanding debt in either period. Interest expense for both periods consisted primarily of unused line charges and amortization of deferred financing costs associated with the WE Revolving credit agreement.

Provision for income tax (benefit)

                              First Quarter
                       Fiscal 2022      Fiscal 2021     $ Change     % Change
Income tax expense    $      18,328    $       6,173    $  12,155       196.9 %
Effective tax rate             24.2 %           17.8 %

Both the First Quarter of Fiscal 2022 and the First Quarter of Fiscal 2021
benefitted from the favorable impact of certain items that resulted in a lower
tax rate than the more typical annual effective tax rate of approximately 25%.
We expect our annual effective tax rate for Fiscal 2022 to be between 24% and
25%.

The income tax expense in both the First Quarter of Fiscal 2022 and the First
Quarter of Fiscal 2021 included the benefit of the utilization of certain net
operating loss carryforward amounts in certain state and foreign jurisdictions,
the recognition of certain tax credit amounts and the vesting of restricted
stock awards at a price higher than the grant date fair value. These favorable
items were partially offset by certain unfavorable permanent items which are not
deductible for income tax purposes. Additionally, and more significantly, the
income tax expense in the First Quarter of Fiscal 2021 included the benefit of a
$2 million net reduction in uncertain tax positions resulting from the
settlement of those uncertain tax position amounts.

Net earnings

                                                         First Quarter
                                                  Fiscal 2022      Fiscal 2021
Net sales                                        $     352,581    $     265,762
Operating income                                 $      75,978    $      34,893
Net earnings                                     $      57,408    $      28,468
Net earnings per diluted share                   $        3.45    $       

1.70

Weighted average shares outstanding - diluted           16,622           

16,792

Earnings per share were $3.45 in the First Quarter of Fiscal 2022 compared to
$1.70 in the First Quarter of Fiscal 2021. The higher earnings per share were
primarily a result of (1) increased net sales in our Tommy Bahama, Lilly
Pulitzer and Emerging Brands operating groups, (2) improved consolidated gross
margin, and (3) higher royalty income. These favorable items were partially
offset by (1) increased SG&A, (2) a higher effective tax rate and (3) the
absence of operating income in Lanier Apparel in the First Quarter of Fiscal
2022 due to the exit of the business in Fiscal 2021.

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              FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Our primary source of revenue and cash flow is through our design, sourcing,
marketing and distribution of branded apparel products bearing the trademarks of
our Tommy Bahama, Lilly Pulitzer, Southern Tide, TBBC and Duck Head lifestyle
brands. We distribute our products to our customers via direct to consumer and
wholesale channels of distribution.

Our primary uses of cash flow include the purchase of branded apparel products
from third party contract manufacturers outside of the United States, as well as
operating expenses, including employee compensation and benefits, operating
lease commitments and other occupancy-related costs, marketing and advertising
costs, distribution costs, information technology costs, other general and
administrative expenses and the periodic payment of interest, if any.
Additionally, we use our cash to fund capital expenditures and other investing
activities, dividends, share repurchases and repayment of indebtedness, if any.
In the ordinary course of business, we maintain certain levels of inventory,
extend credit to our wholesale customers and pay our operating expenses. Thus,
we require a certain amount of ongoing working capital to operate our business.
Our need for working capital is typically seasonal with the greatest
requirements generally in the fall and spring of each year. Our capital needs
depend on many factors including the results of our operations and cash flows,
future growth rates, the need to finance inventory levels and the success of our
various products.

We have a long history of generating sufficient cash flows from operations to
satisfy our cash requirements for our ongoing capital expenditure needs as well
as payment of dividends and repayment of our debt. Thus, we believe our
anticipated future cash flows from operating activities, as well as our $166
million of cash, cash equivalents and short-term investments as of April 30,
2022, will provide sufficient cash over both the short and long term to satisfy
our ongoing cash requirements and ample opportunity to continue to invest in our
lifestyle brands, direct to consumer initiatives, information technology
projects and other strategic initiatives. Also, if cash inflows are less than
cash outflows, we have access to amounts under our U.S. Revolving Credit
Agreement, subject to its terms, which is described below.

Key Liquidity Measures

                             April 30,      January 29,      May 1,       January 30,
($ in thousands)                2022           2022           2021           2021
Total current assets         $  407,912    $     400,335    $ 308,739    $     258,316
Total current liabilities    $  226,417    $     226,166    $ 225,090    $     196,252
Working capital              $  181,495    $     174,169    $  83,649    $      62,064
Working capital ratio              1.80             1.77         1.37             1.32

Our working capital ratio is calculated by dividing total current assets by
total current liabilities. Current assets as of April 30, 2022, increased from
May 1, 2021 primarily due to increased short-term investments and cash balances,
which increased $74 million in the aggregate, as well as increased inventories
and receivables. Current liabilities as of April 30, 2022 increased from May 1,
2021 primarily due to higher accrued expenses and other liabilities partially
offset by decreased accrued compensation, current portion of operating lease
liabilities and accounts payable. Changes in current assets and current
liabilities are discussed below.

Balance sheet

The following tables set forth certain information included in our consolidated
balance sheets (in thousands). Below each table are explanations for any
significant changes in the balances as of April 30, 2022 as compared to May
1,
2021.

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