Finally, on the liquidity front, we finished fiscal 2020 in a strong position with cash increasing to $66 million from $52 million at the end of fiscal 2019, and no borrowings outstanding at the end of either year.
The improvement in our liquidity position was attributable to $84 million of cash flow from operations, which funded capital expenditure investments in data, digital marketing and omni-channel technologies, share repurchases, dividends, and minority investments in smaller branded businesses.
Lilly finished the year with 63% growth in full price e-commerce, which helped drive a 12% operating margin.
Tommy's pre-pandemic direct-to-consumer business was split roughly 75% stores outlets and restaurants, and 25% e-commerce.
More importantly, leveraging its 25 years of expertise in food and beverage, we believe that the concept delivers our wonderful brand in a way that is highly relevant for today's guests.
Amongst our three smaller brands, Southern Tide, The Beaufort Bonnet Company and Duck Head, The Beaufort Bonnet Company was a standout, delivering both top and bottom line growth in fiscal 2020 and operating margin expansion, finishing the year at almost $21 million in sales with two-thirds coming from e-commerce.
Fiscal 2020 sales decreased 33% to $749 million, with a meaningful shift in the composition of our revenue.
In fiscal 2020, e-commerce sales were $324 million, growing 24% and making up 43% of our total sales, compared to 23% in fiscal 2019.
We're particularly hard hit in California and Hawaii, where we have a large presence with 34 stores and seven restaurants.
In fiscal 2020, our adjusted gross margin was 55.1% compared to 57.6% in fiscal 2019.
In total, adjusted SG&A was $93 million lower than in fiscal 2019 and cost-saving measures included a $63 million reduction in employment costs, a $10 million reduction in occupancy costs, and reductions in variable and other expenses.
We expect SG&A to be approximately 5% lower in fiscal 2021 than in fiscal 2019, as reductions in employment and variable expenses are partially offset with increased investments in marketing.
First quarter sales are expected to increase from $160 million in fiscal 2020 to a range of $220 million to $240 million in fiscal 2021.
The full year sales increasing from $749 million in fiscal 2020, to a range of $940 million to $980 million in fiscal 2021.
Our fiscal 2021 effective tax rate for the first quarter is expected to be approximately 15%, and for the full year, is expected to be approximately 20%.
On an adjusted basis, we returned to profitability in the fourth quarter of fiscal 2020, and expect adjusted earnings per share in a range of $0.95 to $1.15 in the first quarter of fiscal 2021, and $2.80 to $3.20 in the full fiscal year.
Inventory decreased 19% to $124 million at the end of the fourth quarter, compared to $152 million in the prior year with double-digit percentage decreases in each operating group.
Our liquidity position is strong, with no debt and $66 million of cash at the end of fiscal 2020.
Capital expenditures in 2020 were $29 million, and we expect capital expenditures to be approximately $35 million in fiscal 2020.
Our Board of Directors increased our quarterly dividend payout from $0.25 per share to $0.37 per share, returning us to our pre-COVID level.

Summary:
First quarter sales are expected to increase from $160 million in fiscal 2020 to a range of $220 million to $240 million in fiscal 2021.
The full year sales increasing from $749 million in fiscal 2020, to a range of $940 million to $980 million in fiscal 2021.