Oxford Industries (OXM) 26 Mar 202019 Q4 Earnings call transcript

Greetings and welcome to the Oxford Industries Fourth Quarter 2019 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to your host, Anne Shoemaker, Treasurer for Oxford Industries. Thank you.

You may begin.

afternoon. good and you Thank

of Before we certain the remind that the like session I made on would meaning within statements statements in constitute to Security today's laws. may participants forward-looking begin, Federal call Q&A and

and are forward-looking differ the materially results statements expressed Forward-looking actual implied those or may guarantees not in statements. from

filed our Form or statements. by contained and to differ condition factors could actual cause financial SEC, today the that with in any undertake earlier results discussed us our duty press in including Important in factors forward-looking issued to update documents of XX-K. our operations risk no release are the We our

During this financial be non-GAAP certain measures. call we will discussing

issued a You posted reconciliation Relations of on the per is of tab a can Investor press are under discussed amounts basis. measures all website this note find that release call Please today, on at earlier share oxfordinc.com. our GAAP which to financial non-GAAP in our diluted

comparable from with outlet about include associated e-commerce clearance flash disclosures sales and sales stores sales. our and sites, excludes stores sales Our e-commerce and full-price

to now I'd turn call With CFO. and over you And Tom Grassmyer, me attention and like Tom to Chubb, now call Chairman today's today CEO your for Chubb. Thank I'd Scott introduce like and are participants. to the

Thank afternoon. us this you joining for

exciting details our on of two XXXX Just of spend to for results you weeks ago, I our fiscal time the share wanted good amount XXXX. would a have and with plans

With the no outbreak that longer seems recent associated as relevant. COVID-XX events with the

serve as well working who been with people have virus by thoughts to impacted affected the is are our COVID-XX everyone foremost, communities. the and protect and First as who

our to communities will is priority and well-being health our we and the in times, unprecedented customers our and and work. be live continue employees, the which these During of

on how are of provides spend the a responding time current on current environment. results fiscal just to going spend it environment, we a our extent then the our for rest I'm our framework moment XXXX the To and to

results Our consolidated fiscal consistent financial fairly XXXX were XXXX. for fiscal with

performance made shows in our right However, were more looking place. big strides that the detail at in

our a Our direct businesses on of positive which strong consolidated and with the XX% in quarters by basis. year are brand comps all sales were of

e-commerce the and growth our XX% XX% business and of with represents charge XX% Importantly, led sales. year-over-year now comp

time, as some At strategic model the sales face retailers continue is of and these challenges to department business We same becoming to love in reflects with with stores revenue. to cases sales wholesale XX% their our strategy only declined XXXX to continued representing our partner in more but many challenging consolidated would retailers, that. of those our

of the earnings negative with and share, liquidity, an adjusted strong increased rate, borrowings increase tariffs us and the importantly $XXX flat with fiscal the very well under tax as included of which million XXXX we the topic Our fiscal as year which were as cash leads effective asset-based of impact million our ended day. no per our to $XX including credit of $X.XX facility

weather the and In our crises weathered outbreak marketplace. that our highly on to impact are in many XX-year we our business confident has ability COVID-XX retail Oxford having is and history, the

are and brands three our our our with liquidity. priorities; We approaching top our people, businesses

employees, our priority. been the and work and to have which will health well-being communities our we and continue in First, live make of and we guests

Australian been All closed earlier temporarily and of March closed stores this week. our American have stores our since North XXth and restaurants

are keep distribution working and centers program implemented to remotely. all are All brand of our of our prudent Most comprehensive our of corporate distribution of our measures and in safe. people centers in associates we've our operational a offices

future. that take the team place have of it we in is this preserve any our crisis, the critical need out to actions As ability for we we come

will we is protect lifeblood our them. and zealously compelling brands of Second, the strength our

Duck a tremendous of Beaufort Bahama, smaller led Company Tommy portfolio like brands our and as as the have Bonnet collection Pulitzer, Southern Tide We Head. Lilly well by

harm take term. short exciting of their We over actions could the not the and brands top websites programs. to to will engages our Each digital try line our prop brands up long marketing customers that run our with memorable in

Our well will self-isolation. our us this serve customers period connected stay as technological during capabilities we with of

third Our is liquidity. priority

good of inventory we levels XXXX entered March. the start middle fiscal We had Importantly, with shape. through the in strong a very

have sales as virus to However, our COVID-XX concerns impact about began substantially business, deteriorated.

purchases. steps working our risk the of to cancel increases reduce inventory suppliers mitigate with forward the We taking by are or our to delay

seasonal digital strength to We in our taking this of also channel. remarket remerchandise for and advantage offerings are our

Finally, term preserving front. near extremely our this are we positioned liquidity will the and be well paramount on over

with As drawn I level undrawn further earlier, maintain and facility. the million have million To credit $XX cash entered $XXX from concession over our $XXX down XXXX an and high bolster of we cash we in mentioned liquidity, million our facility.

spending the pulling categories. are On side, most expense levers across we

$XXX of which in fiscal approximately employment costs million is largest One were the XXXX.

employee for we restaurant our As store and At will and for all are be of will priorities our protecting warranted. persist, Oxford include furloughs and least employees at period plans ensuring as the a layoffs benefits preserving possible times, using and the future. Where time. needed remains health our well-positioned closures of

pay these of begin March received XXth furlough retail Today on of restaurant have benefits. Tommy its to and will a March employees Bahama full and XXst. announced Through team most

During furlough the continue April, month to cost will of employees. and for cover Tommy benefits the Bahama

can difficult looking employees we our our to These forward are when and are decisions time guests. very the and welcome back we

costs over on mitigating We are occupancy last partnering with efforts, also including year. as focusing were $XXX million landlords our which appropriate our

phases. over was addressed year is in last being million $XX which expense, Marketing

while traffic our to us spend digital on customers reliance continuing our to marketing and messaging quickly and Our needed as our opportunities for modify websites. engaged e-commerce stay with affords our generate

in catalogs the packaging in being supplies commissions, transaction are such other fees, in were shoots. million licensed brands, XXXX. reductions credit photo approximately as areas taken costs as $XX other Meanwhile on variable Also such and sales card fiscal royalties

openings our quarterly with well dividend unprecedented store certain per new reevaluated these Board this projects measures, as We a as reduced navigate are Directors uncertain our many, and $X.XX position deferred times. and us including believe from expenditures being $X.XX share. environment of successfully IT well to others, share to through among these remodels, in capital All being

and want weeks we us teams our Importantly, hard of to our being talented, quality and I a people it's disrupted only and few have ago. that whose the working are acknowledge will lives which imagined of troubled times. navigate of resilient many in men ways these Ultimately, help character the women couldn't

of continue our liquidity, our people, long-term and our are our our confident value. delivering shareholder on history focusing we in brands ability By to

now questions. Melissa, for ready we're

question proceed [Operator of first with from line question. with comes Lejuez Instructions] the Paul Our Citi. your Please

Kogan It's Tracy filling I for had two questions. Paul. in

on - The your inventory. first is, your

looked And retail those your get was then your levels and going good some how year. discussions like of be this inventory there level, rid we what you secondly CapEx what your as wondering shape. think Your and was in this wondering I with might are Thanks. if then just was can of of any maintenance for of is how spoke discretionary of? as year things to you partners in level just call you by brand remainder out where levels they difference are the inventory planning

might I'll to to group about you and with you able we inventory Thank partners a Tracy expenditures. talk the tackle and by and Scott much, the little low how be wholesale capital very let bit Okay. go question then

Those majority wholesale are who and those in closed not the them, still bricks at On point, if the their are I business. of obviously but who say I would front overwhelming stores. mortar customers, doing this not probably and our of are open, think, not there much are, majority, are many

plans. And will so obviously to react have those our own people with inventory

going requests delays quantity we're in of for delivery, issues. you I lots of to work those purchased, through those extended getting things. would terms, And product reductions the for think obviously of And all requests as expect, in we're

a great lot together that partners back we end. of want this with have out on situation to come navigate the successfully and We

our we're when that our inventory cancel I happening. would those we've wholesale also made or that, think into inventory we've reduce ongoing, to But mentioned that expect the our efforts direct you modify of all of things on forward It's our are that. we're And on to but I but not otherwise lots consumer and progress headway our covering forward tremendous plans. already. only purchases businesses own made Obviously, or businesses factoring with

teams fully on are Our that. engaged

a got and of team leaders all across am sharing together, our business, We've wholesale from working and business pleased. very information. I other ideas units,

now Scott good on on our difficult CapEx. a those a of we us and managing as - time well in job the can customers group we'll the relationships think you with little our preserving very on also one on a bit through created. navigate good as do as fill inventory inventory neither wholesale by that I levels

Yes.

Thank you.

little Apparel Lanier in inventory. and both is were Lilly kind inventory just Pulitzer Tommy number. million then down was a maintenance wise bit and $XX on roughly the Bahama CapEx, of And up

be of spending that reduce the still - CapEx if some can deferred our category, is there be. even opportunity a substantial in so maintenance if Now but to it's in need

your from Needham question next proceed of question. comes Our the with & line Company. Please Patel with Rick

manage since in an store using online to anything inventories? level have now. the consumers extent you And if Have terms in curious a buying are in holding stores on sales channels of seen I'm restrictions today pattern your just acceleration in closed travel to digital you right mid-March? what

with bit. in I respect been e-commerce, we've seen a So say would it's to what down overall

are you know. events, social travel. correlated and with products activity discretionary highly brands our and Our social as highly are They're

a e-commerce. phases of of the in early overall So in we've a downturn seen bit this,

and are and creatively brands has good for the year working. that some very some with had it we're are rapidly some customers business appropriate said, plans been and with out times the and places doing e-commerce bit this things up the resonate our happen week uneven that messages at and working are the time creative kind we and the teams sure. to come we're very regard for things great very are for this to seen marketing that and seeing of of we've strong That on a window Obviously, little response so in very

Great. business vulnerable lot How I'm much virus And a before just of your curious mid-March? wholesale to much concerns then how in what's channel. was in canceled. the complete versus also escalated the your wholesale on business a is being of question this channel first-quarter

a to that didn't that floor so how exactly don't because we I would have know I been selling the know much. you. we for say, and to I we Rick, and tend people have tell anticipate first It loaded I it fair can don't obviously get I frankly, - that don't question front spring of fairly spring to don't it's on during be, trying think But inventory the quarter. I are lot know -

other a then takes is week retailers on the still to some shipping sometimes And thing that And while the put were it brakes. wholesale. for last little we

Now down but that normally up dwindle shipping it still would were immediately. was That it we the imagine continue week down, have expected before dry down from you over what it. that and but was I to didn't would will

the last steam moving openings Marlin for on And the year. put or you brakes question on Bars ahead they this those? full have Are store

to as At - thing advance. Scott need going a two We check we the even put three a us weeks of the before before approving that to moment I in back guess steam things do it projects. memo picked on with Typically brakes approved brakes or kind the was out all in really anything. up CapEx said, all on year back ago, everything. of of we're this if groups you the sort you sent

be get And clarity on little hold. where so sort everything start headed and on things a that, what to obviously we'll are revenue the the we beyond actually list. will that of we things is generators. to which right is of do be going would maintenance this more is But would thing projects we want release as But now, prioritize top then at to be critical it

probably and in are good and some things retail So some restaurant in things things. e-com

at Boulevard Rick, and in two Bars Olas have And, so one opened the Florida. Dania we South we Pointe, did February, both in Yes. get Marlin Las

open did So early get in those two February.

comes question KeyBanc proceed with next Our the with line Capital Markets. of your from Yruma Ed Please question.

think quite to engage going you're be square it about heavily going inventory, this inventory obviously to trying that doesn't fair probably to move one? of I receipts, going we managing first, to or should I to are exiting assume how and Is that you're disposition pretty weak. special of a that of just occasion Two, know I'm there you're kind away also some kind committing pack on, you're but comments in promotional bit that items not of the the activity. guess is

furlough. that helpful. then of could three, that maybe Thank same So contextualize of Lilly you at you, be Bahama I Pulitzer mentioned business at big how would is know the the Lilly doing stage, Pulitzer? the Are if kind you And Tommy this you.

Okay.

to try those we've tackle and on the this three out doing room now time obviously even that's questions. of team, got bits and know inventory, - where delivering great thinking sitting it, I'll we product it'd dust. our don't store the is the And we'd be right could but a So it's what one collecting of in we're come and of period if there's we just if I the back deliver could, of be

to and remerchandising, the requiring canceled bit of particularly due year, to in was December a can This in hold hit that drop and market we in on So thinking and going inventory, the thing. is inventory requiring then of some December little of how in it are on deliveries hold bit cancel is December later that kind to what teams we're the that to come that April to having going instead our little actually realized delivery. it's that in a about

product too early but allowing of ideas piling get without activities. rid to type get similar time there to properly or of But flow extreme not December much on then that and to doesn't inventory many without that are in rid us really having product advantage - promotional that And of to get look up too anyway. to shifting different because the we're take are like spring

really and are The those second in part fall very dresses would dresses be day dresses important late kinds other too. all into are business obviously question social I Lilly of that Pulitzer But type aggregate although or significant lot. about occasion holiday part about think there dresses, special of of we that dresses, a of is those are a get typically the of casual XX% sort dresses, the where

we time think that for be little us. might compensate bit we've our a quite to a as and merchandising react got powerful change And strategies ample that fact the that to assortment to scenario not category for

to actions preserve long said, make. to is big situation very us employment is that to lives. we going last good we What as goal then we're of job with And that thing a to disrupting navigate happen, biologically for respect as make not and possible do are as through the the difficult very, people's These forward. any the jobs this to might sure we look, us of many like for as can trying possible do all Company decisions and picture career sort created have so as that

to of - this in basis. we're we a on. really part week-by-week And so, can't And sort how I goes large actions have dependent - ultimately long it part taking that the will in on take on on

with your Our Please proceed B. from with FBR. Instructions] of [Operator question. Anderson question next Susan the comes Riley line

- were wanted on say no kind them, the through both are performance until of comping mid-March. Lilly your up due off started you they COVID-XX? there Tommy's fall I And there? Did so and to supply China partners I front, to on guess, of in follow and issue winter fully now is the running on positive chain to then up

to our it a as happens. that come it year. obviously bit. two, changed to I were absolutely we is has year, two-and-a-half excited Tommy we that to And ago. starts was But that were for the plans were quickly can what Lilly really that think strong our up seeing, the part the we're - about crisis, back thing the very through looking that very get of how was about has unfolded. ourselves going excited we it this good as But we with this in it's really early strong all that, that world were amazing and really we - about whenever yes, And I just we until but answer want remind customers and guess is the incredibly back know very we is normal It's of was resonating

And then question? the second

chain. Supply

question, Supply was that that was chain. kinds at - with or because respect China five about weeks were of under all point. six worried Good probably great too, we to the ago what restrictions coronavirus.

this We anywhere were China in was we result problems back at of is Our late X% full factories on the a were about up being not worked feeling capacity. at side. of end. of and thought so or with kind the supply we near might weeks the that down sort and business chain ago as that point that as to point the product through end we to of supply good the three were where fundamentally two it very

at So we point, or sort get we all. that we felt conquered it's not can we of at least like course, an need everything can at need. of problem and we get issue this believe we We everything

changed. Great. amazing how things Yes, have that's

Yes.

flows. to I the guess trying follow-up, one inventory just understand

I when to I and about or preserve they it rid point? giving want if of your are now, some don't inventory at the some versus keeping wholesale they to guess get of guess, looking orders your to versus I delivering thinking guess So it cancel at mark-down money them trying partners want you Thanks. brand, if

and successful our preserving this doing doing interests well. as and we them to liquidity you and crisis those we things make be them different it's got lots do offer navigate while are complicated generalize. we've brands and - our can the our cancel, to terms, you delay, to of everything balance while But do Well, help discussions hard integrity you we to them of are - there there sure and their interests that are help and is can can - can can

that it - stuff than we out the will think wanted. will going be is we I some reality So slower of

it. think things in these to we're getting liquidity going see in start storm will then as rocky be all our as factoring It's We of reasonable and There confident no But probably to terms we things we successfully in around But good some a normalize. position that ability maintaining in a on can our and extension assume. it. is is be our I are sort do we're the think to to very year. navigate focus we

safe navigating That's and Great. stay luck good and environment this healthy. helpful. Well, difficult

you. Thank

You too, Susan.

gentlemen, that turn and Ladies you. final Mr. I Thank our to for any comments. Chubb floor will back session. the concludes question-and-answer

all you your interest. healthy forward for again June. stay to much Thank we look in very Please you and safe talking and to

Thank you. This today’s teleconference. concludes

may disconnect You your your at time. lines Thank participation. this for you