GlobeNewswire Inc | Sep 3, 2020 04:05PM EDT

September 03, 2020

--Strength in E-commerce in all Brands--- Excellent Liquidity with Strong Positive Cash Flow---Declares Dividend of $0.25 per share--

ATLANTA, Sept. 03, 2020 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its second quarter of fiscal 2020, ended August 1, 2020. As the effects of the COVID-19 pandemic continued to impact business in the second quarter, the Company remained focused on protecting the health and well-being of its employees and customers, the integrity of its brands, and preserving its liquidity.

Consolidated net sales were $192 million compared to $302 million in the second quarter of fiscal 2019. For the second quarter of fiscal 2020, the Company reported a loss of $0.37 per share on a GAAP basis and an adjusted loss per share of $0.38. This compares with earnings per share of $1.76 on a GAAP basis and $1.84 on an adjusted basis in the second quarter of fiscal 2019.

In the second quarter of fiscal 2020, the Company incurred $9 million of charges on a GAAP basis related to credit losses, inventory markdowns and fixed asset and operating lease impairment. Thomas C. Chubb III, Chairman and CEO, commented, As the effects of the COVID-19 pandemic continue to impact our business, we remain focused on our top priorities protecting our people and customers, supporting our brands, and preserving liquidity, while never losing sight of our goal of delivering long-term value to our shareholders. With this as a backdrop, we are encouraged by our overall second quarter performance, which reflects the strength of our brands and the resilience of our people in these unprecedented times.

During the second quarter we leaned heavily into our advanced digital capabilities to capitalize on the accelerated shift to online spending, continued Mr. Chubb. All of our brands positively contributed to the 52% year-over-year increase in e-commerce sales, with Lilly Pulitzer as the standout, up an extraordinary 142%. The Lilly Pulitzer product collection this summer was very strong, and in many ways offered exactly what the customer was looking for fun, happy, easy to wear apparel. The collection was highlighted by very effective digital marketing, to which we shifted more resources in the quarter. A non-comp flash sale in June also added to the success of Lillys second quarter results. Historically, the Lilly website only offers sale items five days a year. To ensure excellent inventory control, an additional two day flash sale was held in the second quarter which generated $15 million of sales at a solid 40% margin.

Mr. Chubb continued, In contrast, consumer traffic in brick and mortar locations remained very challenging in the quarter, driving meaningful revenue decreases in our stores and restaurants. In addition to operating under restricted hours and limited capacity, important markets which rely heavily on fly-in tourists, such as Hawaii, Las Vegas and New York City, were pressured even further. Not surprisingly, our wholesale channel of distribution was also challenged, and wholesale sales in the quarter were less than half of what they were a year ago.

Given the conditions weve been operating under, I am very pleased with our ability to keep our inventory levels in check and reduce expenses for the quarter by $28 million compared to last year. These actions helped fuel strong cash flow from operations and ensure we ended the second quarter in an excellent liquidity position.

Mr. Chubb concluded, As we move into the back half of the year, we will continue to face the challenges and uncertainties created by the pandemic. In the third quarter, which is typically our smallest quarter each year, we are expecting the year-over-year decline in bricks and mortar traffic to be slightly less pronounced than it was in the second quarter. In addition, our Lilly Pulitzer flash sale, which has been a bright spot in the third quarter, is expected to be significantly smaller as some of the inventory that would have been available for the September event was pulled forward into the non-comp event in June. As a result of the reduced traffic, a smaller flash sale and continued softness at wholesale, we expect revenue to decline year over year at a rate similar to the second quarter. For the fourth quarter, while we dont anticipate a significant rebound in brick and mortar traffic, we believe we will move closer to break-even and expect to return to profitability in fiscal 2021. I am confident that our amazing and talented people, our brands that speak to the happy times consumers long for, and the strength of our balance sheet will ensure our long-term success.

Liquidity and Balance Sheet

Cash flow from operations for the second quarter of fiscal 2020 was $70 million compared to $73 million in the prior year period.

As of August 1,2020, the Company had $97 million of cash and cash equivalents, $257 million of unused availability, and $65 million of borrowings outstanding under its revolving credit agreement. In the prior year, the Company had $31 million of cash and cash equivalents and no borrowings outstanding.

The Company believes it has ample liquidity to satisfy its ongoing cash requirements in fiscal 2020 and for the foreseeable future. These cash requirements generally consist of working capital and other operating activity needs, capital expenditures, which are expected to be approximately $30 million in fiscal 2020, interest payments on debt and dividends.

Inventory decreased 3% to $149 million at the end of the second quarter compared to $153 million in the prior year.

Second Quarter Fiscal 2020 Summary

-- Consolidated net sales decreased 36% in the second quarter compared to the second quarter last year. E-commerce grew 52% in the second quarter with growth in all of the Companys branded businesses. The growth in e-commerce was offset by decreases in the retail, restaurant and wholesale channels of distribution.-- The Company, which temporarily closed its retail stores and restaurants in March, began a gradual reopening of locations in the second quarter. At the time of this release, most stores and restaurants were open, but operating under restricted conditions for the safety of employees and customers.-- Retail and restaurant sales were 69% and 59% lower, respectively, and the wholesale channel decreased 55% year over year. -- Gross margin was 54.6% compared to 59.5%. Gross margin decreased primarily due to an increase in promotional activity, including a non-comp flash sale at Lilly Pulitzer, and inventory markdowns. -- SG&A decreased 19% or $28 million to $116 million as cost savings measures were taken, primarily related to employment costs and occupancy costs partially offset by provisions for credit losses and asset impairments. -- The effective tax rate was a benefit of 30% compared to a charge of 25% in the second quarter of fiscal 2019. -- The Company reported a loss per share of $0.37 and, on an adjusted basis, a loss per share of $0.38.

Dividend

The Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on October 30, 2020 to shareholders of record as of the close of business on October 16, 2020. The Company has paid dividends every quarter since it became publicly owned in 1960.

Fiscal 2020 Outlook

Due to the significant uncertainty created by the COVID-19 pandemic, the Company is not providing a financial outlook for fiscal 2020.

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 webcast of the conference call will be available on the Companys website at www.oxfordinc.com. A replay of the call will be available through September 17, 2020 by dialing (412) 317-6671 access code 13708106.

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, as well as other owned 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.

Basis of Presentation

All per share information is presented on a diluted basis.

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 Companys 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 Companys 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.

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 typically are not historical in nature. We intend for all forward-looking statements contained herein, in our press releases 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 Section27A of the Securities Act of 1933 and Section21E 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, the impact of the current coronavirus (COVID-19) pandemic (which among other things, may affect many of the following risks); demand for our products, which may be impacted by competitive conditions and/or evolving consumer shopping patterns; macroeconomic factors that may impact consumer discretionary spending for apparel and related products; costs of products as well as the raw materials used in those products; expected pricing levels; costs of labor; the timing of shipments requested by our wholesale customers; changes in international, federal or state tax, trade and other laws and regulations, including the potential imposition of additional duties; weather; fluctuations and volatility in global financial markets; retention of and disciplined execution by key management; the timing and cost of store and restaurant openings and remodels as well as other capital expenditures; acquisition and disposition activities, including our ability to timely recognize expected synergies from acquisitions; expected outcomes of pending or potential litigation and regulatory actions; the impact of any restructuring initiatives we may undertake in one or more of our business lines; access to capital and/or credit markets; the impact of the CARES Act and other legislation; changes in accounting standards and related guidance; and factors that could affect our consolidated effective tax rate, including estimated Fiscal 2020 taxable losses eligible for carry back to pre-U.S. Tax Reform periods. Forward-looking statements reflect our expectations at the time such forward-looking statements are made, based on information available at such time, 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 February 1, 2020 under the heading "Risk Factors" and those described from time to time in our future reports filed with the SEC, including our Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2020. You should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact: Anne M. Shoemaker Telephone: (404) 653-1455 E-mail: InvestorRelations@oxfordinc.com



Oxford Industries, Inc.Condensed Consolidated Balance Sheets(in thousands, except par amounts)(unaudited) August1, August3, 2020 2019ASSETS Current Assets Cash and cash equivalents $ 97,089 $ 30,756 Receivables, net 28,920 59,176 Inventories, net 148,578 152,672 Prepaid expenses and other current assets 23,830 22,440 Total Current Assets $ 298,417 $ 265,044 Property and equipment, net 180,284 189,410 Intangible assets, net 156,739 175,591 Goodwill 23,866 66,585 Operating lease assets 254,230 288,928 Other assets, net 39,013 24,636 Total Assets $ 952,549 $ 1,010,194 LIABILITIES AND SHAREHOLDERS? EQUITY Current Liabilities Accounts payable $ 47,904 $ 48,998 Accrued compensation 14,332 19,195 Current portion of operating lease liabilities 65,653 54,044 Accrued expenses and other liabilities 45,812 41,882 Total Current Liabilities $ 173,701 $ 164,119 Long-term debt 65,000 ? Non-current portion of operating lease 255,935 290,133 liabilitiesOther liabilities 18,471 17,077 Deferred income taxes 7,892 19,916 Commitments and contingencies ? ? Shareholders? Equity Common stock, $1.00 par value per share 16,876 17,035 Additional paid-in capital 151,720 145,123 Retained earnings 267,273 362,407 Accumulated other comprehensive loss (4,319 ) (5,616 )Total Shareholders? Equity $ 431,550 $ 518,949 Total Liabilities and Shareholders? Equity $ 952,549 $ 1,010,194

Oxford Industries, Inc.Condensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Second Quarter First Half Fiscal 2020 Fiscal2019 Fiscal2020 Fiscal2019Net sales $ 191,988 $ 302,000 $ 352,331 $ 583,973Cost of goods 87,251 122,175 153,520 238,379soldGross profit $ 104,737 $ 179,825 $ 198,811 $ 345,594SG&A 115,663 143,403 238,664 283,217Impairment ofgoodwill and ? ? 60,452 ?intangible assetsRoyalties andother operating 2,909 3,837 6,799 7,624incomeOperating (loss) $ (8,017 ) $ 40,259 $ (93,506 ) $ 70,001incomeInterest expense, 676 419 1,334 1,090net(Loss) earningsbefore income $ (8,693 ) $ 39,840 $ (94,840 ) $ 68,911taxesIncome tax(benefit) (2,606 ) 10,004 (21,969 ) 17,418provisionNet (loss) $ (6,087 ) $ 29,836 $ (72,871 ) $ 51,493earnings Net (loss)earnings per share:Basic $ (0.37 ) $ 1.78 $ (4.40 ) $ 3.08Diluted $ (0.37 ) $ 1.76 $ (4.40 ) $ 3.05Weighted averageshares outstanding:Basic 16,547 16,760 16,580 16,736Diluted 16,547 16,907 16,580 16,878Dividendsdeclared per $ 0.25 $ 0.37 $ 0.50 $ 0.74share

Oxford Industries, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited) First Half Fiscal2020 Fiscal2019Cash Flows From Operating Activities: Net (loss) earnings $ (72,871 ) $ 51,493 Adjustments to reconcile net earnings (loss) to cash flows from operating activities:Depreciation 23,092 19,402 Amortization of intangible assets 559 584 Impairment of goodwill and intangible assets 60,452 ? Equity compensation expense 3,566 3,791 Amortization of deferred financing costs 172 212 Deferred income taxes (benefit) expense (8,648 ) 1,274 Changes in operating assets and liabilities, net of acquisitions and dispositions:Receivables, net 30,227 10,131 Inventories, net 3,986 7,680 Prepaid expenses and other current assets 1,584 3,825 Current liabilities (3,609 ) (31,983 )Other balance sheet changes (14,186 ) 858 Cash provided by operating activities $ 24,324 $ 67,267 Cash Flows From Investing Activities: Purchases of property and equipment (13,722 ) (15,976 )Other investing activities (3,000 ) ? Cash used in investing activities $ (16,722 ) $ (15,976 )Cash Flows From Financing Activities: Repayment of revolving credit arrangements (170,312 ) (122,241 )Proceeds from revolving credit arrangements 235,312 109,248 Repurchase of common stock (18,053 ) (894 )Proceeds from issuance of common stock 766 885 Repurchase of equity awards for employee tax (1,870 ) (2,453 )withholding liabilitiesCash dividends declared and paid (8,429 ) (12,601 )Other financing activities (459 ) (1,033 )Cash provided by (used in) financing $ 36,955 $ (29,089 )activitiesNet change in cash and cash equivalents $ 44,557 $ 22,202 Effect of foreign currency translation on cash 72 227 and cash equivalentsCash and cash equivalents at the beginning of 52,460 8,327 yearCash and cash equivalents at the end of the $ 97,089 $ 30,756 period

Oxford Industries, Inc.Reconciliations of Certain Non-GAAP Financial Information(in millions, except per share amounts)(unaudited) Second Quarter First Half AS REPORTED Fiscal2020 Fiscal2019 % Change Fiscal2020 Fiscal2019 % ChangeTommy Bahama Net sales $ 95.3 $ 188.9 (49.6 )% $ 182.2 $ 353.6 (48.5 )%Gross profit $ 53.6 $ 114.5 (53.2 )% $ 105.3 $ 218.0 (51.7 )%Gross margin 56.3 % 60.6 % 57.8 % 61.7 % Operating(loss) $ (12.7 ) $ 23.2 NM $ (36.1 ) $ 38.4 NM incomeOperating (13.3 )% 12.3 % (19.8 )% 10.9 % marginLilly PulitzerNet sales $ 73.9 $ 75.6 (2.2 )% $ 123.0 $ 148.2 (17.0 )%Gross profit $ 44.1 $ 51.8 (15.0 )% $ 75.8 $ 97.3 (22.1 )%Gross margin 59.6 % 68.6 % 61.6 % 65.7 % Operating(loss) $ 16.3 $ 20.4 (20.5 )% $ 20.4 $ 35.7 (42.8 )%incomeOperating 22.0 % 27.1 % 16.6 % 24.1 % marginLanier Apparel^(1)Net sales $ 8.5 $ 20.5 (58.7 )% $ 19.2 $ 46.6 (58.9 )%Gross profit $ 1.5 $ 5.8 (73.3 )% $ 4.4 $ 13.0 (66.2 )%Gross margin 18.3 % 28.3 % 22.9 % 27.9 % Operating(loss) $ (6.1 ) $ 0.4 NM $ (8.8 ) $ 1.8 NM incomeOperating (72.6 )% 2.0 % (45.7 )% 3.8 % marginSouthern TideNet sales $ 8.8 $ 12.5 (29.3 )% $ 17.1 $ 26.6 (35.7 )%Gross profit $ 3.0 $ 6.1 (51.6 )% $ 4.5 $ 13.3 (66.0 )%Gross margin 33.8 % 49.3 % 26.4 % 50.0 % Operating(loss) $ (1.0 ) $ 1.8 NM $ (64.3 ) $ 4.4 NM incomeOperating (11.1 )% 14.7 % (376.0 )% 16.4 % marginCorporateand Other^ (1)Net sales $ 5.6 $ 4.6 20.9 % $ 10.8 $ 9.0 19.9 %Gross profit $ 2.6 $ 1.6 66.1 % $ 8.9 $ 4.0 124.7 %Operating $ (4.5 ) $ (5.6 ) 21.0 % $ (4.7 ) $ (10.2 ) 53.8 %lossConsolidated Net sales $ 192.0 $ 302.0 (36.4 )% $ 352.3 $ 584.0 (39.7 )%Gross profit $ 104.7 $ 179.8 (41.8 )% $ 198.8 $ 345.6 (42.5 )%Gross margin 54.6 % 59.5 % 56.4 % 59.2 % SG&A $ 115.7 $ 143.4 (19.3 )% $ 238.7 $ 283.2 (15.7 )%SG&A as % of 60.2 % 47.5 % 67.7 % 48.5 % net salesOperating(loss) $ (8.0 ) $ 40.3 NM $ (93.5 ) $ 70.0 NM incomeOperating (4.2 )% 13.3 % (26.5 )% 12.0 % margin(Loss)earnings $ (8.7 ) $ 39.8 NM $ (94.8 ) $ 68.9 NM beforeincome taxesNet (loss) $ (6.1 ) $ 29.8 NM $ (72.9 ) $ 51.5 NM earningsNet (loss)earnings per $ (0.37 ) $ 1.76 NM $ (4.40 ) $ 3.05 NM dilutedshareWeightedaverageshares 16.5 16.9 (2.1 )% 16.6 16.9 (1.8 )%outstanding- diluted

Second Quarter First Half ADJUSTMENTS Fiscal2020 Fiscal2019 % Change Fiscal2020 Fiscal2019 % ChangeLIFOadjustments^ $ (0.4 ) $ 0.7 $ (3.6 ) $ 0.8 (2)Amortizationof LillyPulitzerSignature $ 0.1 $ 0.1 $ 0.1 $ 0.2 Storeintangibleassets^(3)LanierApparel $ 0.0 $ 0.0 $ 0.2 $ 0.0 impairmentcharge^(4)Amortizationof SouthernTide $ 0.1 $ 0.1 $ 0.1 $ 0.1 intangibleassets^(5)SouthernTide $ 0.0 $ 0.0 $ 60.2 $ 0.0 impairmentcharge^(6)Tommy BahamaJapan $ 0.0 $ 0.6 $ 0.0 $ 0.6 charges^(7)Impact ofincome taxes $ 0.1 $ (0.2 ) $ (9.1 ) $ (0.3 ) ^(8)Adjustmentto net $ (0.2 ) $ 1.2 $ 48.0 $ 1.4 earnings^(9)AS ADJUSTED Tommy Bahama Net sales $ 95.3 $ 188.9 (49.6 )% $ 182.2 $ 353.6 (48.5 )%Gross profit $ 53.6 $ 114.5 (53.2 )% $ 105.3 $ 218.0 (51.7 )%Gross margin 56.3 % 60.6 % 57.8 % 61.7 % Operating(loss) $ (12.7 ) $ 23.8 NM $ (36.1 ) $ 39.0 NM incomeOperating (13.3 )% 12.6 % (19.8 )% 11.0 % marginLilly PulitzerNet sales $ 73.9 75.6 (2.2 )% $ 123.0 $ 148.2 (17.0 )%Gross profit $ 44.1 51.8 (15.0 )% $ 75.8 $ 97.3 (22.1 )%Gross margin 59.6 % 68.6 % 61.6 % 65.7 % Operating(loss) $ 16.3 20.5 (20.4 )% $ 20.5 $ 35.9 (42.7 )%incomeOperating 22.1 % 27.2 % 16.7 % 24.2 % marginLanier Apparel^(1)Net sales $ 8.5 $ 20.5 (58.7 )% $ 19.2 $ 46.6 (58.9 )%Gross profit $ 1.5 $ 5.8 (73.3 )% $ 4.4 $ 13.0 (66.2 )%Gross margin 18.3 % 28.3 % 22.9 % 27.9 % Operating(loss) $ (6.1 ) $ 0.4 NM $ (8.6 ) $ 1.8 NM incomeOperating (72.6 )% 2.0 % (44.7 )% 3.8 % marginSouthern TideNet sales $ 8.8 $ 12.5 (29.3 )% $ 17.1 $ 26.6 (35.7 )%Gross profit $ 3.0 $ 6.1 (51.6 )% $ 4.5 $ 13.3 (66.0 )%Gross margin 33.8 % 49.3 % 26.4 % 50.0 % Operating(loss) $ (0.9 ) $ 1.9 NM $ (4.0 ) $ 4.5 NM incomeOperating (10.3 )% 15.3 % (23.1 )% 16.9 % marginCorporateand Other^ (1)Net sales $ 5.6 $ 4.6 20.9 % $ 10.8 $ 9.0 19.9 %Gross profit $ 2.2 $ 2.3 (3.0 )% $ 5.2 $ 4.8 9.2 %Operating $ (4.8 ) $ (4.9 ) 1.9 % $ (8.4 ) $ (9.4 ) 10.8 %lossConsolidated Net sales $ 192.0 $ 302.0 (36.4 )% $ 352.3 $ 584.0 (39.7 )%Gross profit $ 104.3 $ 180.5 (42.2 )% $ 195.2 $ 346.4 (43.7 )%Gross margin 54.4 % 59.8 % 55.4 % 59.3 % SG&A $ 115.5 $ 142.7 (19.0 )% $ 238.4 $ 282.3 (15.6 )%SG&A as % of 60.2 % 47.2 % 67.7 % 48.3 % net salesOperating(loss) $ (8.3 ) $ 41.7 NM $ (36.4 ) $ 71.7 NM incomeOperating (4.3 )% 13.8 % (10.3 )% 12.3 % margin(Loss)earnings $ (8.9 ) $ 41.3 NM $ (37.8 ) $ 70.7 NM beforeincome taxesNet (loss) $ (6.2 ) $ 31.0 NM $ (24.9 ) $ 52.9 NM earningsNet (loss)earnings per $ (0.38 ) $ 1.84 NM $ (1.50 ) $ 3.13 NM dilutedshare

Second Second First Half Quarter Quarter Fiscal2020 Fiscal2019 Fiscal2020 Fiscal2019 Actual Actual Actual ActualNet (loss)earnings per dilutedshare:GAAP basis $ (0.37) $ 1.76 $ (4.40) $ 3.05LIFOadjustments^ (0.01) 0.03 (0.14) 0.04(10)Amortizationof recentlyacquired 0.01 0.01 0.01 0.01intangibleassets^(11)Impairmentof goodwilland 0.00 0.00 3.02 0.00intangibleassets^(12)Tommy BahamaJapan 0.00 0.03 0.00 0.03charges^(13)As adjusted^ $ (0.38) $ 1.84 $ (1.50) $ 3.13(9) ^(1) As of the First Quarter of Fiscal 2020, the Duck Head^(R) operations areincluded in Corporate and Other, whereas the operations were previouslyincluded in Lanier Apparel. Lanier Apparel and Corporate and Other amounts forprior periods have been restated to conform to the current period presentation.During the full year of Fiscal 2019, Duck Head net sales and operating losswere $2.0 million and $0.5 million, respectively.^(2) LIFO adjustments represents the impact on cost of goods sold resultingfrom LIFO accounting adjustments. These adjustments are included in Corporateand Other.^(3) Amortization of Lilly Pulitzer Signature Store intangible assetsrepresents the amortization related to the intangible assets acquired as partof Lilly Pulitzer's acquisition of certain Lilly Pulitzer Signature Stores.These charges are included in SG&A in Lilly Pulitzer.^(4) Lanier Apparel impairment charge represents the impairment related to atrademark acquired in a prior year. This charge is included in impairment ofgoodwill and intangible assets in Lanier Apparel.^(5) Amortization of Southern Tide intangible assets represents theamortization related to the customer relationship intangible assets acquired aspart of the Southern Tide acquisition. These charges are included in SG&A inSouthern Tide.^(6) Southern Tide impairment charge represents the impairment related togoodwill and intangible assets related to Southern Tide. This charge isincluded in impairment of goodwill and intangible assets in Southern Tide.^(7) Tommy Bahama Japan charges represents the impact of the restructuring andexit of the Tommy Bahama Japan operations. These charges are included in SG&Ain Tommy Bahama.^(8) Impact of income taxes represents the estimated tax impact of the aboveadjustments based on the estimated effective tax rate on current year earningsin the respective jurisdiction.^(9) Amounts in columns may not add due to rounding.^(10) LIFO adjustments represents the impact, net of income taxes, on net(loss) earnings per diluted share resulting from LIFO accounting adjustments.No estimate for LIFO accounting adjustments is reflected in the guidance forany future periods.^(11) Amortization of recently acquired intangible assets represents theimpact, net of income taxes, on net (loss) earnings per diluted share resultingfrom the amortization of intangible assets acquired as part of the LillyPulitzer Signature Store and Southern Tide acquisitions.^(12) Impairment of goodwill and intangible assets represents the impact, netof income taxes, on net (loss) earnings per diluted share resulting from theimpairment charges in Southern Tide and Lanier Apparel. Due to thenon-deductibility of $18 million of Southern Tide goodwill amounts, theeffective tax rate on these impairment charges for goodwill and intangibleassets was 17%.^(13) Tommy Bahama Japan charges represents the impact, net of income taxes, onnet (loss) earnings per diluted share of the restructuring and exit of theTommy Bahama Japan operations.

Location Count Beginning of End of Q1 End of Q2 End of Q3 End of Q4 YearFiscal 2020 Tommy Bahama Full-price retail 111 110 107 ? ?storeRetail-restaurant 16 18 19 ? ?Outlet 35 35 35 ? ?Total Tommy Bahama 162 163 161 ? ?Lilly Pulitzer 61 61 59 ? ?Southern Tide 1 1 2 ? ?Oxford Total 224 225 222 ? ?Fiscal 2019 Tommy Bahama Full-price retail 113 113 113 111 111storeRetail-restaurant 17 17 17 17 16Outlet 37 37 37 37 35Total Tommy Bahama 167 167 167 165 162Lilly Pulitzer 62 63 63 63 61Southern Tide ? ? ? ? 1Oxford Total 229 230 230 228 224