Oxford Industries Inc (OXM) 2007 Q1 法說會逐字稿

Welcome to the today's Oxford Industries Inc. first quarter 2007 conference call. [OPERATOR INSTRUCTIONS] As a reminder, today's conference is being recorded. And now I would like to turn the conference over to Mr. Reese Lanier. Please go ahead, sir.

Thank you. Good afternoon, everyone. Before we get started, I would like to point out that some of the statements made on this call, as part of the prepared remarks, or in response to your questions which are not historical facts may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results might differ materially from those projected in such statements due to a number of risks and uncertainties which are described in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission on August 15, 2006. And in our subsequent filings with the Securities and Exchange Commission. A copy of this report is available online or upon request from Oxford's Investor Relations department. Oxford disclaims any duty to update any forward-looking statements.

And now I'd like to introduce today's call participants. With me today are Hicks Lanier, Chairman and CEO; Michael Setola, President; Tony Margolis, CEO of the Tommy Bahama Group; Tom Chubb, Executive Vice President; and Scott Grassmyer, Controller. Thanks for your attention. And now I'd like to turn the call over to Hicks Lanier. Thank you, Reese. Good afternoon, everyone and thank you for joining us. Before we begin our review of our fiscal 2007 first quarter, I would like to remind you that the financial results for the Womenswear Group have been classified as discontinued operations as a result of our sales of assets of the Womenswear Group at the end of the fourth quarter of fiscal 2006. Our financial review today will cover only continuing operation. I'd like to begin with a summary of the key financial highlights for the first quarter of fiscal 2007.

Consolidated net sales for the first quarter increased 6% to $284 million from 268 million last year. The Menswear Group reported a first quarter sales increase of 1% to 179 million, driven primarily by growth in Oxford apparel and partially offset by planned sales reduction in Ben Sherman. In the Tommy Bahama Group, first quarter sales increased 14% over last year to $104 million. Growth in the primary sportswear brand was aided by product line expansions in Tommy Bahama Relax and Tommy Bahama Golf 18. Consolidated gross margins in the first quarter were 38.1% versus 39.4% in last year's first quarter. Our gross margins were affected by a shift in sales mix in the Menswear Group and margin deterioration in certain of our private label businesses.

Royalties and other operating income for the first quarter declined 11.3% to $2.9 million from 3.3 million in last year's first quarter. The decline was due primarily to a $300,000 gain in last year's first quarter related to the sale of the assets of our Paradise Shoe joint venture. Diluted earnings from continuing operations per common share for the first quarter was $0.63 compared to $0.67 in last year's first quarter. This was consistent with our previously disclosed first quarter guidance of $0.60 to 65% for diluted earnings from continuing operations per common share.

We are pleased to report first quarter financial results that are in line with our expectations. We are up against an extremely strong performance in last year's first quarter when our businesses were generating very strong growth and profitability. We nonetheless feel good about our business just as we continue through fiscal 2007. The sale of the Womenswear group has freed up capital and resources that we can devote to our strategic repositioning of the Company. The Tommy Bahama Group delivered outstanding results for the first quarter and continues to capitalize on its strength as an aspirational lifestyle brand to expand it to new categories and opportunities.

In the Menswear Group we have continued to transition our historical business to a company-owned brand and proprietary brand initiatives and away from commodity private label programs. Plant closures and related consolidating activities negatively impacted our performance in the second half of fiscal 2006, which should result in improved financial performance in fiscal 2007. We believe the adjustments made to merchandising and operations have put the Ben Sherman's U.S. business back on solid footing. And we expect to see a significant improvement in Ben Sherman's profitability this year. Meeting our plan for the first quarter is an important indication that our strategy is producing the desired results. I'd like to ask Michael Setola to give you a more detailed overview of our Menswear Group.

Thank you, Hicks. Good afternoon, everyone. The Menswear Group reported a first quarter sales increase of 1% to 179 million from 177 last year. Sales growth was driven by new initiatives and new programs with existing customers and Oxford apparel. Partially offset by the planned sales decline in Ben Sherman and some recent softness in tailored clothing.

First quarter operating income for the Menswear Group declined 29% to 10.6 million from 15 million in last year's first quarter. The decline in profitability was due to the planned sales decline in Ben Sherman and some gross margin deterioration in certain of our private label divisions. We expect the first quarter to be the only unfavorable year-over-year operating income comparison in the Menswear Group for fiscal 2007. The Ben Sherman business continued performance as expected in the first quarter. Retail markets in the UK and Continental Europe remain very challenging, but we're continuing to maintain our positioning and market share. In the U.S., the fall collection is seeing much improved results at retail with our major accounts, specialty stores, and our company-owned retail stores.

We also are pleased to announce the opening of our third U.S. retail store, which is located in Las Vegas. In addition to generating attractive sales and profitability metrics our stores do a great job of communicating the Ben Sherman lifestyle and are an integral part of lur long-term growth plan for the brand. As we've mentioned in previous calls, the fall collection is tighter and truer to the brand's heritage. We have firmed up distribution, focused on appropriate selling by door and bought to the order book to maximize full price sell throughs and improve profitability for ourselves and our retail partners. We plan the fall season very conservatively to avoid the returns, markdowns, and allowances that we experienced last spring.

Our spring 2007 order file for Ben Sherman is developing as planned and it's consistent with our expectations for the second half. We are increasingly optimistic that the planned sales reductions in the first half have the potential to be made up in the second half, generating overall flat sales and a significant increase in profitability for the fiscal year. Thank you and I'll now turn the call over to Tony Margolis.

I'm pleased to report that the performance that the Tommy Bahama Group ended last fiscal year with has continued into the first quarter of 2007. Net sales for the first quarter increased 14% over last year to $104 million. The growth was balanced between wholesale and retail and broad based across all three of our sportswear collections. Tommy Bahama, Indigo Palms, and Island Soft. We also benefited from the launch last year of our two most recent additions Tommy Bahama Golf 18 and Tommy Bahama Relax.

First quarter operating income for the Tommy Bahama Group increased 17% to 16.8 million from 14.4 million last year. The improvement in profitability was driven by an increase in sales volume and a reduction in intangible asset amortization expense. We continued to be very enthusiastic about the performance of our company-owned retail stores.

Our product lines are strong and resonating well with the customers. We added three stores during the first quarter in Mauna Lani, Hawaii, Thousand Oaks, California, and Atlantic City, New Jersey. This brings our total at quarter end to 62 retail stores, which include 8 compounds and 5 outlet stores. We are on track to add a total of 9 stores in the fiscal 2007. Thank you for your attention, and I now turn the call over to Tom Chubb.

Thank you, Tony. Since we've already reviewed the sales figures both consolidated and by segment, I'll walk you through the key elements of the consolidated income statement, balance sheet, and cash flow statement for the quarter. Consolidated gross margins for the first quarter declined to 38.1% from 39.4% in last year's first quarter. The decline was the result of the shift in sales mix between Ben Sherman and Oxford apparel as well as gross margin deterioration in certain of our private label businesses in the Menswear Group. Gross margins for the Tommy Bahama Group were up slightly over last year. Selling, general, and administrative expenses for the first quarter were $86.4 million or 30.4% of net sales compared to $82.8 million or 30.8% of net sales last year.

Although SG&A declined slightly from last year as a percentage of sales, the dollar increase in operating expenses was due to new stores in Tommy Bahama and Ben Sherman and to infrastructure expenses to support Tommy Bahama Relax and Tommy Bahama Golf 18. Intangible asset amortization expense for the first quarter declined to $1.5 million from $1.9 million in last year's first quarter. The amortization of intangible assets acquired in the Tommy Bahama and Ben Sherman transactions was greater in the periods immediately following the acquisitions than in later periods. For the quarter on an after tax basis, these non-cash charges reduced our reported diluted earnings per common share by approximately $0.06. Royalties and other operating income for the first quarter were $2.9 million compared to $3.3 million last year. The decline was primarily the result of a $300,000 gain in last year's first quarter related to the sale of the assets of our Paradise Shoe joint venture.

Turning to the balance sheet, we continue to be pleased with the performance of our working capital assets. Accounts receivable at the end of the first quarter totaled $156 million compared to $151 million at the end of last year's first quarter. The increase in receivables was commensurate with our first quarter sales increase. Total inventories at quarter end declined by 6.9% to $139 million from $150 million at the end of the first quarter last year. The inventory decline was in the Menswear Group where we've reduced our investment in replenishment programs and brought down our Ben Sherman inventories.

Cash flow used in operations for the first quarter was $19 million compared to cash flow used in operations of $28 million last year due to a smaller increase in network and capital during the quarter. As a result of the Womenswear divestiture and strong cash flow from operations in fiscal 2006, we have reduced our total debt by $94 million since the first quarter of fiscal 2006. Thanks for your attention, and now I'll turn the call over to Reese Lanier to update your guidance.

Thank you, Tom. We are maintaining our full-year guidance. For the full-year, fiscal 2007 we continue to project total revenues of between 1.16 and $1.18 billion and diluted earnings per common share of $3.25 to $3.40. For the second quarter of fiscal 2007, we are initiating guidance for total revenues of between 285 and $295 million and diluted earnings per common share of $0.67 to $0.72. This compares to second quarter of fiscal 2006 revenues of $278 million and diluted earnings from continuing operations per common share of $0.57.

Note that the guidance reflects the adoption of FAS 123R, which is expected to reduce diluted earnings from continuing operations per common share by approximately $0.01 per quarter or $0.04 in fiscal 2007. Now I'd like to turn the call back to Hicks for some closing comments. Our results for the first quarter were consistent with our expectations and demonstrate that our strategies for transforming our portfolio or businesses are meeting our objectives. The Tommy Bahama Group continues to deliver superior profitability and to capitalize on its strength as a lifestyle brand to develop new opportunities for growth. In our Menswear Group, we have taken the necessary steps to get Ben Sherman's U.S. business back on track and expect to achieve improved levels of profitability for the second half and full year of fiscal 2007.

We have continued to transition our historical Menswear businesses by adding new branded initiatives and last underperforming private label programs. This should also result in improved profitability for the Menswear Group for the second half and for the full year of fiscal 2007. With the strong focus group of businesses, a very flexible balance sheet, and continued opportunities for growth within our existing portfolio and potentially per acquisition. We are feeling very good about our future. With that, we'd like to open it up to questions.

[OPERATOR INSTRUCTIONS] We'll take our first question from Jeff Klinefelter with Piper Jaffray.

Yes, thanks a lot. Congratulations, everyone, a good stretch of the year. Couple questions for you. Two on the divisions and then one just overall in terms of guidance. In terms of divisions or brands, Tommy Bahama. Could we get just a little bit more color on womens?

I know that everyone seemed enthusiastic about the line out of the magic show and the potential for that and any other updates that we might have given that we're a couple of months past that show. And also the Relax product. Any sense yet for kind of what percent of the business that's going to become? Is it incremental, all incremental so far within kind of the core retail? Or is it transferring some of the traditional Tommy Bahama product?

As far as the women's piece is concerned, I'm glad you mentioned the reaction you guys had at the magic show, that was very consistent with the feedback we got from most of the retailers that looked at what we were doing. It's clearly brand appropriate, targeted at the customer we have professed to want to talk to in the past and have had some difficulty with.

This line is the second generation of the efforts of our new director of Womenswear. The first product lines that she developed will actually be arriving in our stores about the 15th of October. And so it's still regretfully a couple of weeks away from us having some over the counter reaction to what she has developed. But clearly the sense of where we're headed seems to be very positive and we are looking forward to some more exciting things to talk about on Womenswear specifically on our next call.

As for Relax, there is a piece of that business that is sort of a transition from the old Tommy Bahama, some of the swimwear and -- swimwear related pieces that fall into that group are -- were originally in the Tommy Bahama line. But even those pieces have been significantly more developed. And let's say it's, it's the old product on steroids, if you will. I think it's a significantly stronger presentation in those categories.

In addition to that, there's entire new product categories that were not even -- were not in the Tommy Bahama line over the last decade. I've mentioned to you before that out of response to the growth that was available to us, the line had become dominated by silk and Relax is an opportunity for us to go back to some of the roots of the Company and redevelop product that's more cotton based and more casual in its concept. And the growth rates there have been exceptional.

I will tell you that in our advanced bookings the Relax portion of the line has exceeded our sales goals to a greater extent than the regular sportswear line has and so it's a little hard at this point to predict what percent it will represent long-term. But I will tell you on the men's side of the business, specifically, it's currently representing about 20% of sales, 20 to 25% of sales.

Okay. Very good, thank you very much. And then just, Ben Sherman. Do we have -- I might have missed this, but did you tell us actual sales in Q1 for the brand?

No.

Okay. Is that something that you can share with us to compare to LY or is it just generally down?

Well, we did indicate that we actually planned and executed a reduction there because we bought very conservatively. And we -- as Mike said, we had already cut back the distribution, particularly in the U.S. business.

Okay.

So that was all right on according to plan.

Jeff, just to recall last -- first quarter last year, we had what was a rather robust sell on spring. Some of which we took the pain for later in the year. So we're really pleased with the position we have coming out of first quarter and very confident about the second half based on current paper.

Okay, so the bookings trends fall, and fall two as we heard out in Las Vegas were tracking very well?

Yes, our second half is on track to take up the slack from the first half. And we feel very good about delivering a year this year that restore the entire group back to its position in sales with a significant increase in profitability.

Okay. Great. And then just lastly, and overall in terms of guidance, the guidance looks encouraging here for the second quarter. And keeping the year appears to be then just maintaining conservative stance towards the back half, your fiscal back half, any sort of description of that, Hicks, in terms of what you're seeing out there in the overall environment? Either for the strength in Q2 and also for the back half?

Well, we obviously feel fairly comfortable about Q2. We wouldn't have given this kind of guidance, which is a nice percentage increase. And I think the key to the second half is, particularly as it relates to Ben Sherman. We were sort of reeling in the Ben Sherman U.S. business the second half of last year. We feel much more positive about this going forward.

So in terms of overall, I mean there's the potential in picking up Q2 and then people adjusting the back half and probably, maybe taking a few numbers down there, maintaining a conservative outlook at this point is just near term visibility and better, second half you'll let the others come in as we get closer.

Yes. And by the time we report the second quarter, we'll have a very good handle on the second half and what's going to be in the third quarter versus the fourth quarter.

Okay. Thank you.

Sure, thank you.

We'll go next to Elizabeth Montgomery with Cowen.

Hi, guys.

Hello, Beth.

Congratulations on the quarter. I had a couple questions. I guess, first maybe for you, Michael. Could you give a little bit more color on the weakness that you're describing recently in the tailored clothing line? Was that on a bridge, or was that Lanier clothing, or what was that exactly?

Well, the -- in the historical businesses, the Ely clothing group has experienced the most pressure with regard to gross margins. The overall tailored clothing market, especially in the department store groups has suffered a fair amount of compression this quarter. Just the take out on core basic inventories was slower than planned and the margin pressures to drive that product through at retail have increased. I think the general trend in tailored clothing across the country is just shifting a bit.

We enjoy a fair amount of plus business over the last three or four quarters in what was the suits separates category of tailored clothing, especially in the department stores. But recently really starting towards the tail end of last year, the opening price segment, the Wal-Marts, the Targets have gotten into the opening price point suit separate business in a pretty aggressive manner. I think it's just shifting some market share. Does not participate in that opening price point, commodity driven, tailored clothing segment. So we're just feeling a bit more of the pressure in the overall tailored market. And it is fairly consistent with what we're seeing across customers in that zone.

Okay. And how big is the tailored clothing portion of either the Legacy Menswear or overall? I just don't have a feel for how important it is.

Represents between 20 and 30% of our overall business in the Menswear Group.

And then a follow-up about the comment that the profitability increases. Year-over-year it should pickup for the remaining three quarters for the Menswear Group. Can you just maybe walk me through? I understand that Ben Sherman and revenue declines moderate and some of the margin pressure you experienced last year goes away, but are there other factors? Like when do the cost savings from some of the plant closures kick in, et cetera?

I think I mentioned earlier, we took a lot of that pain in the third and fourth quarter of last year with the plant consolidations and the facilities back end consolidations. So we should start seeing some benefit for that as we enter the third quarter, but most significantly in the fourth quarter of this year.

So that's really back half and Q2 is really driven by Ben Sherman improving?

Q2 is actually driven by a little bit of Ben Sherman improving and a little bit of historical business improvements, as well. We're seeing some good trends in our solitude business at Penney's, web business at Kohl's, some of the proprietary programs with our majors are up nicely and trending well. Our Ben Sherman dress shirt business is doing exceptionally well at Nordstroms.

So we've got a number of programs that are moving in the right direction and also as we've stated over time that we're appropriately kind of relieving ourself of some of the core replenishment businesses in private label where they're really opening price, low margin, high inventory businesses. So the plan is working with the plus programs and it's working with us relieving ourself of some of the negative programs.

Okay. And then that kind of flows into my last question. How big of a percentage of the Legacy business are those kind of replenishment, more commodity programs now? And what is your biggest shipping months in Q2?

We really haven't broken that out. As a portion of an ongoing trend, the overall business plan continues to be to reduce those businesses. And on a business by business basis whether it be tailored clothing, dress shirts, or sportswear, those businesses shift at a pretty rapid rate. The back half of the second quarter is bigger than the first half of the second quarter in those businesses.

And overall, for the Menswear category, is it roughly even if you include the nonreplenishment businesses and stuff?

Which part now?

So the Menswear business as a whole including the Ben Sherman product?

Our second quarter is up.

Okay. Thanks.

We'll go next to David Glick with Buckingham Research Group.

Just a quick question on Tommy Bahama. Obviously a strong revenue growth for Q1. The guidance that you last gave was double digits for the year on the top line. Just wondering if we can expect, because, clearly 13 is fairly well into the double digits.

Can we expect to see similar or better growth for the balance of the year on Tommy Bahama? And then Hicks, if you can kind of give us your latest thoughts on what the acquisition market is looking like, and any changes in terms of the opportunities that are presented? The level of activity you're seeing, any changes there?

On the Tommy Bahama growth pattern, I would tell you that it's consistent with the projections that we gave for the year and I don't think there's any reason for me to say we're changing anything. And similarly since we talked a couple months ago, I wouldn't say there's any meaningful changes in the acquisition market. I mean, the conditions that existed two months ago exist today. So we're right to the private equity plans and so forth.

Okay. Great. Thanks very much.

We'll go next to Eric Tracy with BB&T Capital Markets.

I will add my congratulations, as well. Tony if you could talk a little bit more about Indigo Palms. It seems like in our channel checks that continues to garner some shelf space in the upper tier channel. And just want to get your sense of what the growth and the opportunity and how that particular subsegment is playing out.

Yes. I think the truth is that we have established ourselves very, very clearly as a real player in the gentlemen's jeans business. I feel like the denim bottoms driven part of our business has a solid grip and we continue to develop product in those categories that evolves and moves the brand as our customer would desire. And clearly we're not chasing that, the youthful extreme part of that business, I think that's a high risk, dangerous world and we don't play in that a lot.

We had developed the Chuno's piece of the business, which also seems to be working very well on the bottom side up to this point. Probably the most exciting thing I could talk about looking down the road is that we've actually had to the tops part of that business. I think the wovens in particular in the Indigo Palms line have had very nice reaction for this coming season, the spring season. And I think we've found a niche there that will take us and allow us to grow the business in a significant way.

Probably the biggest opportunity that we haven't uncovered yet, I think is on the knit side and there is clearly a business there to be had, but that's a process we're developing, we're focusing on with our fall line developments and hopefully we'll solve some of that one, as well. But the Indigo Palms piece continues to be a growing part of the business and we don't see that slowing down at all. The women's Indigo Palms piece has also found some traction, is the word I would use. It's still a very, very small division for our company. And that's a much more volatile market. If we continue to see good traction there, it could become a real part of the business. And at that point, we'd talk about it more.

Okay. Sales -- talk about sales for the rest of the year from a profitability standpoint, it doesn't appear to be any reason to think that we should expect anything but what you previously guided, which I believe was flat to slightly up year-over-year? In Tommy Bahama.

No, that's incorrect.

We didn't -- projected something higher than that.

We had indicated that we expected the sales to be double digits and equally divided between retail and wholesale. And we still think that will be the case.

That was on profitability--?

Margins.

Oh, margins.

The only thing that could positively impact margins is the retail side of our company as that continues to grow. I think we mentioned we're adding 9 stores this fiscal year and that has a positive impact on the margins in total.

Sure. Okay. And then on retail, maybe Michael if we can talk just a little bit on Ben Sherman. Kind of how long you plan to test the three stores. Any possibility of sort of accelerating that ramp?

The plan was, as we'd stated earlier to put ourself in a position where we had an urban, a suburb, and then a resort location and with the opening of Vegas, we really do have a pretty good ability how to retrend. I don't believe we'll see anything else open this year. The plan was not to open a fourth store this year, but coming through the Christmas season, we'll be in a real good position to evaluate it fully, both the L.A. and the New York locations. And with a fair amount of tweaking as they continue to improve, have a very good confidence level about where the next step will go.

We think Vegas is off to a very good start and we see some, we see some real positives as that Desert Passage mall turns over into the new hotel platform. We think we have got some real good trend opportunities between the hotel coming in and the Urban Outfitters megastore coming in across the mall from us, just across the door. Nothing more for this year, but we should be in a real good position to strategize it for the next year as soon as we come out of Christmas season.

Great. Thank you all.

We'll go next to Susan Sansbury with Miller Tabak.

Yes. Thanks very much. Two questions. Just as a point of clarification with respect to the back half of guidance. Nothing has changed relative to the original expectation?

Well, we -- first quarter we were slightly above the midpoint of our guidance. So there's really no reason for us to change the annual guidance -- nothing has happened negatively and the second half is far enough away that we don't want to really--.

Stick your neck out.

Our neck out, yes. That's well put, Susan, thanks for helping.

Second thing is, I ask this every quarter. Update on, Sears [Inaudible], please if there is any? Or how you view this business currently?

Susan, our business there continues as it's continued for the last few quarters, which is difficult. We have challenges in the ability to forecast their takeout needs as business shifts. And we've got the continuing pressures on margins as they continue and source more business direct. So it's difficult to get a very clear read on their overall business and it's just as difficult for us to have a real firm handle on the ability to accurately project our business with them as we move forward. It continues to fall in line with our overall strategy with these businesses, maintain good margins, and a -- maintain a positive business opportunity for us, we'll stay engaged, so we continue to work it very hard, Susan.

Difficult means down, the business remains in a downward trend?

Our business with them is planned down for this year, yes.

Okay. And as far as you know, they are not contemplating any major changes with respect to either how they source this business or the business overall?

The most recent public information has been the more aggressive rolling out of the [Inaudible] stores. I don't have anything other to report than that. They, I believe, the full thrust of them went into effect just at the beginning of this past month. So I don't have a read in terms of how they're doing, the initial couple of stores that they had opened up, which I think as you know were inside of Sears, but as sort of stand alone environments. They had mixed results. I believe some were very good, and some were okay. That's about as much visibility as we really have. And I don't believe anything else has been disclosed by them.

Okay. Thanks. All right. That's great. Best of luck for the back half.

Thanks very much.

Thank you.

[OPERATOR INSTRUCTIONS] And we'll go next to Robin Murchison of SunTrust Robinson, Humphrey.

Hi, congratulations and my couple of questions were asked. But I will ask you this. Any change that you're seeing in the consumer say from now versus at the beginning of the quarter? Do you view him as being relatively stable?

We view the Kohl's customer as being pretty aggressive and the Wal-Mart customer being a bit in a shell.

Okay. But absent that I'm assuming stability?

I'm kidding, that Kohl's information I think was pretty dramatic today. And the Wal-Mart sort of stumble on their same store sales guidance was a little embarrassing I'm sure for them. But I think we would have to all be pleased with the reduction in gas prices over the last month or so and I think that has finally helped. I think we're going to benefit -- if in the balance of this month we don't have any hurricanes, which we did have last year that impacted our own stores pretty severely, so I think we have got a certainly a positive there.

Let me, one other -- to the extent that you have reads on your customers say in the -- your Tommy Bahama customers stay in the Florida markets, do you see anything distinguishing his shopping trends versus elsewhere? And what I'm getting at, obviously, is the housing -- some of the accelerated housing markets.

Yes. I can say this, that Tommy Bahama business in our own stores had a nice step forward in September and we expect it to continue into October. That was not necessarily the case in our first quarter, it was not quite as robust as we would have liked. As it relates to Florida verses other regions, we've -- we have a propensity to do better on the west coast of Florida than we do on the east coast, don't we, Tony?

We do.

And it's sort of hard to figure out. But we've been very pleased with that. Our business in Hawaii, it's been outstanding. The desert has been very good. So generally speaking, we've had some vibrancy to our business for the past five or six weeks.

Thank you and congratulations.

[OPERATOR INSTRUCTIONS] We'll take a follow-up from Susan Sansbury with Miller Tabak.

Yes. Reese, are you going to, or have you provided restated numbers for last year from continuing operations?

Yes, it's in note 15 of the 10-K that we published on August 15.

Thanks very much. Thank you.

And that's all the questions we have in the queue at this time. I'll turn it back over to Hicks Lanier for any additional or closing remarks.

Thanks everybody for visiting with us today. I think you can tell we continue to be extremely pleased with the Tommy Bahama business or businesses as it's becoming because that's a group of businesses. But the momentum there is excellent. We have a very high degree of confidence that the Ben Sherman business in the U.S. is turned around and on the right track. So we expect to have an excellent year there.

As it relates to our historical businesses I think we have communicated the challenges there. We have been very aggressive about transitioning away from the parts we don't think are going to make it for the future and bringing new initiatives there to try to utilize those resources. All in all, we feel -- we feel pretty good about our business and thank you for being with us today. Look forward to visiting with you again. I guess it will be early January.

This does conclude today's conference call. You may disconnect at this time. Thank you for participating.