Oxford Industries (OXM) 12 Jun 242025 Q1 Earnings call transcript

Greetings. Welcome to Oxford Industries, Inc.

First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to your host, Brian Smith of Oxford Industries, Inc.

begin. may You

good and Thank afternoon. you,

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

in guarantees, cause not results actual operations condition our actual expressed results XX-K. press documents SEC, update our discussed are from no release with statements. factors Important today and duty statements. to may by issued the financial implied the of filed in statements forward-looking in including materially differ factors contained those earlier us and in We to Forward-looking risk the differ forward-looking our any or that Form are could or undertake

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

non-GAAP at a Investor GAAP press is find in our today, of website issued the posted under can our measures oxfordinc.com. reconciliation release of financial earlier which tab to Relations You

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

and Brian. I'm to the joining current our with balance the for Thank Good the of going first on plan thank year. execution fiscal an us. update for our and XXXX you, start of the afternoon, of you quarter expectations for

deliver excellent sales and headwinds brands quarter guidance our of lower macroeconomic focused consumer us first team EPS and for adjusted sentiment. and on strategy within to continued strong despite Our the our ranges executing allowed levels our

apparel, anticipated our discretionary driven is consumer levels the at of than business. cautious sentiment consumer year to resort While from become core items which the the meaningfully and fairly more most this economic positive, remain as fashion on in dropped indicators start our spending such the of has has originally

quarter, is as of or attributable very down decline in were sales million The sales majority we first net wholesale $XX of as $XX lapped decline sales we million the quarter fiscal XXXX. year-over-year of the the XXXX. anticipated compared in fiscal a X% which to first first to a Net quarter robust for

Our remains our partners excellent. retail and our position very remains performance sell-through with key strong

muted attendant were of in spring the numbers. them and our to lackluster inventory response of and up and demand purchases most their first very that sales in in consumer sentiment summer quarter cautious this year, shows However, for

book shortfall over Looking forward, our thanks strong about is the and the partners, wholesale performance to expect make half we in X our order the our remaining quarters quarter with first the continued key up of to forward solid, of year.

in change The Pulitzer first net sales year effect to second be cadence for Lilly last quarter we on for promotional decline outlined Lilly basis, Pulitzer. brand Lilly of is expect higher second the our we our that significantly and in factor March. that sales down sales a events were changes in than year-over-year while The was these in quarter

a more comp XX XX cautious businesses spending of ago. consumer last high, in posted in remains with positive double-digit in brands quarter, resulting double-digit comp. offset in traffic, Interest reflective comps first Recall negative we that a our by growth in year's caution. decline contributing conversion, to she our continue to is a consumer as sales our months was see we The in in negative was third X% a factor direct-to-consumer to that decline year-over-year their than

improved. As quarter rebounded have quarter-to-date encouragingly, first our we of the last compared year and comps the have second forward year, sequentially to positive to to balance look of the

positive direct-to-consumer the for challenges, in comps be us reason growth the for optimistic, in our based sentiment Despite all growth continued on consumer gives to channels balance these top the still all brands, comp are line the full and year. year. and of expect our moderating distribution and dipping this choppy we we assumption While market,

We strategy, ability to long-term provide the continue cash a of Compelling, investing execute also XXXX to and forefront deliver the future our in on expect at to cash of strong on our continue growth fundamentals we'll the will These a is including the investments and strong profitable differentiated from perspective, sustained of flow flow always a basis. our strategy. business. product

honors We of continue year, items new like has unique and Island a to artists our to Bahama. Artist offer. all a with happiness customers Each evoke in with Life collection group celebrate Series Tommy limited our we products beautifully that the in

For about. Tommy from customer what work we our the create is asked XXXX to X selected artists Series, them all Bahama Artist shows that across globe and

delight The into resulting also customers the the with other truly Bahama the them the pieces captivating brand and giving of special that. of them by dresses [indiscernible] artistry and and stories the Tommy new amazing by bring pieces, shirts, artist tried true, and behind pieces

to was the XXth and customers commands opened the great we us hit Lilly additional in the elevated a Pulitzer range door year. our higher to that Another business the the our prices. in the had has a line earlier of grow include very future expanding commercial that elevated is more capsule with opportunity anniversary by example we to collection for massive This product offered success Capsule that

open long-term to in our year. with critical are and and Investing plans Bars is we strategy, growth our future stores also Marlin to continuing

our at stores our new Tommy quarter, a we and The is X Tide including in-store X of Bars, customers Bahama, Was new stores, serve experience. exceptional Company. Marlin which Beaufort and X us allow Bonnet These the each X X and During extend Southern locations reach our more at at opened to new and beautiful Johnny with

From more and up XX in across to These brands. XX more and the the Tommy open to expect well openings year, stores Bars of X line top settles Marlin spread beyond. growth we Bahama for the balance XXXX

on West Eastern In the the addition, we and making rebalancing our capacity progress distribution excellent Seaboard are Coast. between

future the that have the had and Eastern insufficient West needs and on we serve we capacity East current year, into to the Going excess capacity Coast seaboard. Coast all

business which grow a West building very will We on are to hard Georgia, have exited money and serve which and us work at allow new us robust capacity, save base will better our in facility distribution some Coast that Southeastern positioned completion, future a better and of country. we at competitive serve of cost. much and part serve growth will in all Upon distribution current the support highly the to be needs Eastern in we

While growth. we we profitable the and position we navigate to that on a in robust drive consumer remain market, ensuring a focused less long sustained term are

for As all our help they us always, do we amazing incredibly grateful people are succeed. that to to

for attention. Thanks your

over will I call to Now Scott the additional Scott? turn detail. for

Despite our the going distribution XXXX all Thank fiscal uncertain quarter you, first line guidance and environment top of affecting the referenced macro of range. with We as bottom channels closed results is Tom. in by within Tom our direct-to-consumer against on of and quarter our delivering also team comps wholesale and strategies of for first against shareholders. executing XXXX, focused our growth XX% and the

XXXX X% quarter to $XXX consolidated first fiscal net million. the of sales decreased In

strong e-commerce X% and XXXX be $X difficult bricks as or quarter our or decreases million includes we bright most of net and X%. an continues channel, wholesale that sales. business A in million Food mortar first delivered expected channels, growth full-price in The sales spot of with million X% or Beverage especially our in decreases full-price retail. to $X in XX% of $XX

X% outlets benefited sales increased from for in and promotions. looking consumers that deals of our Additionally, had we

sales driven and promotions, points Brands net In during to gross of inventory gross margin for group in contracted lower during Johnny by offset events a Was. XX margin adjusted by and the a in basis connection by 'XX. wholesale change mix with XX.X%, Lilly decrease a sales with proportion proportion Bahama, consumers but total lower promotional Tommy calls our looking first promotional markdowns of sales environment, of the occurring Emerging quarter adjusted sales were in Pulitzer partially higher deals and The across representing

SG&A to $XXX X% compared to $XXX increased Adjusted last year. million expenses million

primarily ongoing Jack of quarter During related the our 'XX, the last of brick-and-mortar the of the from Rogers in year to quarter in new quarter since and XX brand recent higher acquired locations the XXXX. incurred the and opened first addition fiscal fourth expenses first of addition investments of business, we

additional remainder approximate on X locations, that expect the XX also to during year. of XX of locations begun We costs Bars to we have open to including incur the the fiscal brick-and-mortar several Marlin

the modest decrease compared margins. consumer challenging $XX to $XX adjusted operating or the reflects Spa. The a million The adjusted -- XX.X% million yielded margin of a from in gross income the operating a margin, or operating Miramonte adjusted saw this Bahama of Resort or income increase result operating year. in sales & also royalty prior XX.X% and income amidst We Tommy in investments environment SG&A for

Moving income. beyond operating

$X.XX tax We down increase of interest of also earnings of continued modest this, in which share. from we With all debt. offset rate, a per our achieved pay our lower saw effective expense adjusted by is

beginning with sheet, on now to I'll balance our move inventory.

first million we to from FIFO XX% abated. as built inventory the to largely inventory that $XX on reduction year-over-year our During well resulted our potential mitigate previously decrease discipline have able by into inventories disruptions the inventory of fiscal The supply as 'XX, basis. quarter a incremental continued or of decrease chains in were

revolving From at use of reduction the of under cash repay 'XX and a $XX XXXX. quarter versus from $XX liquidity standpoint, quarter fiscal million down flows end outstanding the of We of million robust with $XX our debt. a 'XX, credit borrowings to we fiscal to borrowings continue our our million of $XX the facility, finished first million first

fiscal of funding allowed from $XX of cash of to 'XX also million debt, dividends. million reduce the quarter million us first capital $XX operations $XX Our of outstanding expenditures and flow in

for full comps quarter of the the for the experience for comps positive environment, trend the range the the more some through negative positive comps figures of quarter start on will to time the of of half including consumer year. now I'll anniversary we back year. we the believe spend cautious our quarter first period remainder a as we mid-single-digit of second will positive the result for going and comps quarter in to the first prior the of and negative second comp X% began year that comp year year throughout against After enter the date for continue in XXXX, are We sales in prior midway our as the XXXX. outlook

Assumptions and are than have revised we more March, forecast expectations modest from original sales our accordingly. our

For $X.XX the growth XXXX. compared of billion, between and net sales in $X.XX we billion full $X.XX to X% be to of sales billion expect year, to X% now

includes and modest all stores growth the still decline in sales year in XXXX updated brands full plan full offsetting year new with positive for comps, Our wholesale.

in beverage channels, and outlets. brick-and-mortar, and full-price growth e-commerce, including expect also food direct-to-consumer We all

were the wholesale year to sales 'XX. the in of year during approximately with sales, during the expected We million down lower compared $XX year, expect significantly growth in which prior fiscal achieve as full to the modest remainder wholesale we the first quarter,

improved. have open, years, our inventory trending still order at are department fall While prior books the in levels stores than major higher

gross XXXX be in anticipate prior year. will now relatively margins to We flat the compared

expected, promotional proportionately business, events than Jack our to a activity As by will be flat, store the across due locations, during offset gross to sales our rate expected approximately are benefit sales including primarily lower wholesale The continued increased X offset in from net investments which in are Bahama brands is SG&A, expanding by of to the of Bars, XX increased our higher margins margin Marlin relatively at expected gross the grow addition new higher Rogers. investments XXXX, a IT Tommy in count sales.

expect reset $X fourth business. fiscal the generate of discussed XXXX last we we acquired as to and Jack Additionally, in the the loss million the as XXXX brand approximately in Rogers operating call, refocus an of quarter during

We lower of XXXX and Miramonte from compared interest Resort. million higher income, million also in $X to and Tommy primarily year for of the year other royalty the Bahama anticipate expense $X full the

approximately recur XXXX, in We XX% higher compared also items certain to from are in that rate XXXX. favorable which XX% adjusted expected to that of effective expect not benefited tax

income. EPS Considering in the decrease expect and margin by $X interest levels modestly expect offset other $X.XX EPS a and items, higher XXXX partially expense $XX.XX tax now and all adjusted rate, we between to be adjusted and being operating our last versus businesses with higher adjusted year, these royalties from to lower XXXX decreases of and

In sales XXXX. $XXX in of of to to compared quarter XXXX, we expect sales $XXX million, of $XXX the second second quarter million the million of

an of an tax continue. and increased also trend XX flat lower interest promotional the expense, basis during point royalty of to We expect contraction and million XX% events other expected of income. gross approximately approximate in deleveraging sales $X SG&A effective rate margin with

$X.XX between second We quarter in expect to second and XXXX. result quarter of to this compared $X.XX of EPS in adjusted $X.XX the

in projections capital our to fiscal million brands. be to Lyons, to for distribution year. and Expanding multiyear across our and Remaining The and Due significant Tide and the consumer Johnny direct in of increased I'd with center for the and Tommy the store expected have $XXX $XX adjustments related our pipeline the we're million refined now in capital on capabilities updated moderated count build compared investments XXXX, related Bonnet to a distribution enhance throughput in of been Was, project Bars, the in of Lilly Southern Georgia CapEx our Company, making XXXX, Marlin the increases remainder systems project projects, to of to million expenditures investment approximately to briefly flow will like aligned capital center cash new various to direct-to-consumer technology initiatives. Pulitzer, Beaufort our that other timing $XX in Bahama, execution expenditures outlook discuss XXXX approximately fiscal shortage

in level to Lyons, Georgia in and after beyond project. XXXX moderate the capital this completion expenditure further expect moderate We -- and of capital elevated the XXXX this elevated

also flows are as on very giving to our outlook be position mentioned investments. ample the well. operations cash us strong, to liquidity from fund previously a positive and We have expected Cash room

dividend remainder outstanding of quarterly the repay Our debt. and our

we'll the for turn call Thank now your today, time Shamali? you for and questions.

Ashley our comes [Operator from And the Markets. Owens question with KeyBanc Capital line of Instructions] first

bit you well guidance the by rate in wondering the brand Just And of on second as if quarter? then have brand on as color I a the trends any could quarter embedded follow-up. the little a first of kind exit provide color leaving by

of and the having we're improved, the have positive second so quarter. our for are certainly and comps comps. all We're positive in expecting expecting far second quarter, brands

It So on, certainly the has positives. accelerated we mid-single than kind gone has expect quarter being May. stronger of as June

first X% up a I you against pointed the And quarter, last we year. as call, the positive comments Scott out negative XX% were comp year, had, in a quarter, his second during last in think,

that about comparison, so comp we're easier and can we're an far or against but we So delivering what optimistic do.

on Okay. Great. margins. gross And the quickly then just

for expected called some out XQ, in the some You for but to year. is contraction guiding you're XQ, there flat

to in there? if we just any what's you're expecting think color the see a I some with the driving back us bit help shaping Maybe And that? on it, into back also half. expansion

Yes.

of stores some fourth is I operating. lot it new in a -- think be -- the these will will quarter, be especially of

versus level the first a promotions So promotion should little I think direct higher our business be more the like-for-like bit and then in -- being half.

from the Stichter Our with BTIG. next of question comes Janine line

with a a door elaborate your elaborate maybe little more a you that, hear and then a side on now business. on I happened of growth like just partners? about would wholesale to hearing in the bit bit it's from was for Lilly? expecting to of could could potential year. you're additional with Tommy hoping I sounds love you see the And what both wholesale opportunities, if growth you new where It for door for what relatively But return remainder for on QX, plan the bit

think good I advance. did. it because And of first of -- we year's we and as your visibility business the course, the But a in pretty came through had but book March we Janine. wholesale and that in most not, quarter most you, have did last Thank were wholesale market very of in Okay. you robust we outlined quarter,

consumer retailers of So as we And we just to just be we really demand, saw inventory. against. that were compare they going wanting being then believe, was it a and cautious had over matter, a tough not very softer

forward we decline resulted So the that they million had. in held check and their orders $XX and year-over-year

good as I the expect shape. and all that, retail first and forward solid, about in as The result over been really said, a and that showing has up, our positions up book performance inventory make the their And at pretty are we looks to of order quarter of do of balance All along, good. that half quite think, year. shortfall

expand the doors. terms couple we opportunity in the growth, will have years. we've over Lilly got next to I think think happen an door of In I that's of happening do I think opportunity And and Pulitzer,

of about wholesale bit in think as business more growth opportunity the In grow we're well. Bahama, door I doors we that still And over probably dollars with bright little in has but we've our business a more women's can room it's got been last I that years, think Tommy spot some the Tommy doing the a think already continued run there. way. couple of Bahama, wholesale really growth which I that in to

each positioned way we're a So brand. led we wholesale. be, brands going wholesale direct-to-consumer a there. we're that the we're an to we in will is business, can where wholesale bullish It's important grow healthy our with pretty but much still And think believe and -- we that about very partnering of that we now partners, of think with part we're our be

then And one just Great. more. maybe

consumer a about the cautiousness to deliver to You towards your expect like year. that's the only that in you for Do and especially they're of this is you you like as should pivot right looking terms have bit kind might is talked we merchandise Tommy environment? gravitating feel it of about anything assortment sounds consumer how through kind worse Bahama. newness or gotten newness, really we the there of I to just know cater in what go

for. too, do there in newness that and with still consumer. question, from resonating is really hear I And Great peers of the the our looking consumer think the a that's what frankly, Janine, lot but you marketplace, out is

super in our of a we've well. I the enterprise-wide opportunity really other on sort But speaking an that the covered of have assortments generalizing big we bit. is part think casual and basis

and dinner What an think opportunity well, little really segment covering product, maybe to would -- the where office, lounge middle, which a we're athleisure-type well. to sort be that stuff maybe of of is we could the in wear that really everyday have So bit friends. you that I product the wear the with and we type covered occasion out

assorted little goes right And a that we and good do we're get I in. in newness better had also the think under think on year now. with that I as coming

again of So an the we I as looking on sort it get year. at in we enterprise basis, assortments later think our like

they in the but spring, I I were fine think as they think year better the progresses. get

comes line Serna of Our next Mauricio from question with the UBS.

understand quarter. up outlook to prior one the that sales of was want or rest the you where brand's that sales contemplated also want comp I sales guidance. over-performance just mentioned like think you're the you like case given understand, the that First second the year just the what the updated I And you half. the on would -- I expect on you for that maybe any digits lowered or second think to had seeing mid-single you under that's And make guidance? portfolio? across distinctions I

to It positive come higher for we're year, Yes. with in comp. was X original out And expecting our a guidance. points the slightly

So of QX, we for to low we negative in single the the the year. closer where more for kind we're overcome of now year, before were in that mid-single

about Yes, the And sorry. brands?

Yes.

what from Mauricio, really is a of kind demographic chasing customers. all or standpoint they I say think, I would similar a

year-over-year down. nicely consumer So theme really pretty of between up some as looking during the and brands the they're prepared the up mentioned that remarks, thing seeing I that's first cautious is overall was and It's same the same. the conversion quarter, But geographies. but and differences my the there actually traffic in are is still -- showing more sort and

really the was and what as bit a in both lot I peer e-commerce that performance a is Johnny company during really stand from our a callout out had a we've frankly, set Was nice well. of quarter, make which would think the of across I one first The seen in

experience the some bottom So that similar pretty a it's broadly, be with the same differences. thing. would But line,

then think And sorry, margin lastly, Got -- you to I modestly. very on it. you the just SG&A mentioned guidance, decrease expect operating

last how I want you also so lower understand about with I much the you are pretty because expectation I Or the think just just quarter, an from should think if standpoint, in to guidance, we reducing sales? guided SG&A dollar you back into what think for dollars? that SG&A it's of line

have been moderated around QX it's yes. QX, $XX less X, they'll to But be week. X year-over-year. still higher -- the SG&A Get probably some, in you Yes, probably somewhere and million And higher.

about So that half probably it's roughly.

forecast. from higher So from in than but earlier forecast, slightly a percent our percent definitely moderated of higher -- of still dollars -- sales earlier

like XX-XX quarter that That it. Got specific ], is a for [ X?

of for year, That in week, versus X that, X QX XX-ish Qs million $XX was that a and last less it a but has X because and the I QX, And XXrd year, QX, QX $XX and in half quarter higher. had is XX-week million about is quarter. higher, about XX-week about

question Paul next of Lejuez with the Our Citi. line comes from

inflection XQ. for in filling say hoping reason the guys I in easier thought Paul. know you it -- could Kogan was the referenced you was you Tracy I It's comparison. Is the what for comp

this is So you in product follow-up. wondering it's new I driving if that is a think that you maybe think that's say inflection? Or And it's comparisons if there the then some reason introduction that. June that just promotions or May? have And versus -- easier gotten better

Well, favorable positive. we're having last And improved looked comparison, way Lilly today, we the along we them whole good seen a March sequentially. is bit. result the -- pull as It's it far. second to but will this part will have comparison And reasonably more some at pointed quarter. also in probably out that It events also, Tracy, a pretty comp really running the year, good. the we have the help again shift second It's strong looks enterprise easier of as that quarters' and that in in we the in so quarter-to-date, of

Lilly, is resistance cautious? it you're research do general, generally the if consumer consumer? your being did but similar think there? just you positive Or I was of don't the a you And Tommy? I then inflection know the consumer seeing on, you second just And from have was more at comps my at to -- see price question a any know seen there more same is telling shift in anything you

that than would best collection it Anniversary what points is, more probably they their Capsule, on to that And price or was out sold say did, of and Capsule I X it example it, when quickly. Lilly the The at. which the very, whatever they what normal very Pulitzer like average we pay they're price XXth the is clearly, probably was Well, very happy marked Xx we've think are got that

I as So to but price is for as don't consumer think deal, deals. more really what just much when not there's just being you selective the about resistance, And a looking there's willing buy. she's really

then about of least to to quarter at maybe And back positive had just you the similar Bahama that to to X? whether this and Tommy question seen inflection not X kind a comps,

that really also say I seen a to good all brands Yes. to the it's second think have the start It quarter. fair

the over end turn to for I'll closing reached CEO, question-and-answer we remarks. the session. the And And call have Tom back Chubb now of

you Okay. great have interest in Thank you and to very forward much then. today. until to you hope a again September summer for your talking look We

lines concludes at time. conference, you may this participation. for And today's Thank your and this you disconnect your