Oxford Industries (OXM) 11 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the Oxford Industries Third Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Smith. Thank you.

You may begin.

Thank you, and good afternoon.

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

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

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

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

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

and afternoon, thank joining you Good us. for

multiple and quarter, cycle most conclusion by brands of Southeastern election preview of that the in the acknowledge quarter, devastated in excited season, the confidence our jumping major to and expectations a with hurricanes want results quarter, finally impact appears faced third then a of We to into our the quarter, where discretionary parts regaining intense willing recent and the the bit of move our fourth of and XXXX. But our going to the third for third I of holiday including be to two give memory, before the more States. the start to are consumer United sneak is plans make be I'm the midst the to you purchases. a in the on summary for plans of headwinds

The that third but our during within share. The recall world us to major anticipated below distraction United relatively forecast, per impacted third with last States the several headline the we Florida on the approximately important soft Southeastern the Southeastern and will a fourth the and range consumer business. set most early accordingly. hurricanes the the only the the last track finish United other our for and guidance significant our election, a States Helene our weeks region, were due primarily factors You earnings is for quarter We call, two in more bottom was quarter's macro within the mature months, sales among the Hurricanes X/X both other. over a culminating and noteworthy election of quarter. each with then Milton of events, of few Also pushed sensitive representing direct-to-consumer during impact of quarter, to alone

portfolio factors business inflation. We were out premium a to of and and years sales. We offers below brands seek provide estimate in full least lost more pricing. the hurricanes, that during section, been environment, These net off-price in our limited million a our pinched is top and quarter, $X premium it believe we range. with by details coming will at outlet clearance by our sales headwind a space. Scott cumulative several share felt these of tailwind of should of $XXX guidance at very we sell We primarily consumers ended will special as thriving and exposure with our price cautious channels. in for has channels long-term have value-oriented full-price been to as a consumer while acting competitive of All impacted the we that already the strength. his others exacerbated that our current the a result of for be but high million point But the and per also as effects of the own loss quarter quarter the that in of adjusted $X.XX line, strategy a

significant our in we employees pitched in across to recover the to country and of for proud help enterprise and incurred hurricanes. I most. in ways expenses Florida, are devastation. need, many cleanup associates goods our the $X.XX for people people serve efforts, from relief our but needed incremental the characteristics the cumulative This a of among and in, and time per the The and also the the a am impact throughout communities in grateful that so We includes such and assistance resulting money, from our share the that so negative in was who resiliency make Oxford not of and only the Carolinas great the generosity that company. and to to the people operate, effort provide donations collect Georgia generosity of

reflects that comp sales trends the continuation sales quarter. throughout results. of negative experienced the half Moving first year, our in we to of the of store decline third the in the continuing The most

quarter and styles also with and than differentiated continue making muted. continues upcoming remained indicating We we and choppiness, that for decisions. Consumers from but conversion, that while our Continuing some we travel holiday corrected to the missteps have of first new driven core some by in brands, when believe while products, interested of react resort half cautious results the that and products strongly prepared discussed be to the fashion is new half consumer in healthy, season. is of have worse trend was third more our looked previously traffic the the year, the well interest purchase this the in there were reduced slightly fresh and quarter year. first to third has While our this are

to stores, also headwinds outlet results, investing with affecting promotional proportion a and quarter, last events time line top quarter with consumer center distribution near Bars, term. to other is the the in expense but we bottom in which higher weak, the among year's and have third short-term off us Marlin hurting quarter. Despite investments, during occurring backed the stores the Our sales responded new at strategic of our on the new long value all of in when term, offering our at line continuing our strengthen during business in are our adding than technology, not for a

new During That brings compared XXXX. the quarter XXX XX quarter, end at third the of the we opened our retail net store fiscal locations. to of count to total XXX

and liquidity have through center strong, Georgia including project, quarterly shareholders Our of return our to directly us to distribution in continue in the shortly, balance will Scott dividend. business, allowing and Lyons, sheet store which pipeline our future investing remained our cash detail

began improve, to quarter. Moving finish third and strong once a on weekend. had November a the on the a November we to quarter, the but past fourth with very Thanksgiving started to similar got to election, business solid we trajectory

and this provides in are we products holiday our delighted we the are the we between business a selling have possible means and to and that believe the compared are This Thanksgiving are we by for time more period. Accordingly, holiday Christmas results year's calendar seeing. possible As shortest longest outstanding period in get plans we compressed period the aware, you're encouraged done that to marketing prior what have year. obviously

Bahama men's thrilled cooler bright Bahama's a collection. spot of the been geographies the Luxe in is new the Palms on offering Voyage Tommy the during was collection, Indigo of performed a and Palm in by tough during is during and November. year. category denim the times even and Tommy works Sweater Indigo Palms men's well year-round, particularly performance geographies third women's cooler extremely We new but have quarter the that Denim side, important all especially

Indigo come. our in We are about to having years to is excited potential Palms has and the currently it us the help impact grow business the

excited Luxe sweaters our during a quarter. holiday season. Sweater fourth equally big about business are new We this the are always driver offering Giftable

has sweater the This at $XXX years, success but last order gross Zip also with are cashmere only we The at Marlin Tobago silk, average new Half Pullover margins several Luxe helping year, Half $XXX. higher. For cotton, Sunbreak tremendous luxe are very also push been and the our having $XXX. at the are the value half-zip well, and they Zip sweaters not selling blend go-to

well separates, our accounts. competitors, very love channels because are our wholesale We on On head-to-head travel-ready are in Voyage, own key the and the with performed and elevated this also see which women's winning. going side, to Palm our in are wholesale has we we floor,

over also this we have those is great excitement, several quarters. seen with to from to disappointing when the new on post-election anything The an customers our products seemingly trajectory products driving that like We success the reaction improving the our whimsical and that in newness consumer begun Ellorie is respond the of in trends takeaway experienced it. The last or change and apparent innovation, deliver sequins reverse Lilly in comp with sales store Sweater sentiment have favorably.

ahead XXXX, expanding our operating margin. Looking fiscal to our and priority stabilizing #X is

As year, recent we are business. by plan the sales trends for in encouraged we our

are We forward wholesale bookings. by encouraged our also

be plenty on to leverage. better focused cautious plans outlining While through exuberant detail we'll improving and of you look there's optimistic, And We getting for to comp our in our fiscal margins we're forward March. the assumptions for be with 'XX about going reason overly expense more be to year. in operating control

holiday plans date and While confident quarter quarter have we in for teams we our to developed are are and business our resort season. remainder product fourth third of the the in disappointed and the in results, our the

We very balance grateful the of holiday outlook team for will wish more of are all hand happy Scott, to quarter the Scott? very the on season. I'll year. a who to and of all them over details our the and now you and our call provide

Tom. Thank you,

results As environment, the financial with the line marketplace Tom across top Most negatively notably, There during quarter macroeconomic distractions quarter. the finished due our challenging that expectations. we affected million guidance below bottom million are our headwinds mentioned, the third Southeastern of States. In to elections, continued and results net the the of consumer million compared the in United several impacted range $XXX $XXX and the decreased hurricanes sales of to sales $XXX $XXX and to consolidated third quarter that 'XX, fiscal of fiscal our million. of XXXX, the quarter below

damaged. Florida, of the single-digit of remain through locations hurricanes, decreased Tom heavily Armands we St. our locations, partially million $X As our were by that offset restaurant from our stores the high closed location brick-and-mortar sales XX%. sales fourth of in outside of impact Southeastern estimate stores St. and in in in evacuation Including locations quarter. that the store temporary approximately sales many three driven down including lost of the addition Circle from were comps, of we of the locations. E-commerce Sarasota Armands X%, closure new full-price closures Most negative several the the mentioned, in majority will by

partially and offset beverage sales better low comps. increase, locations and and driven food single-digit new outlet negative performed by X% Our and X% respectively, locations a by with

to Was. Our major our and decrease We're responses business and XXXX of brands, Lilly third half net offset markdowns wholesale events. position for higher lower inventory through to proportion basis sales. Adjusted $XXX the a struggle, had partially end XX%, challenging of expenses channel, X% promotional this year. see stores. Adjusted promotional to from increased department gross Emerging we our Brands quarter, challenging in and partially first to continue quarter need the last was by through with year, our DTC to wholesale across continued to as a specialty Across the this X% sales major strong promotional of occurring million reduce able Bahama, driven discounts points in season Lilly margin to Tommy three efforts to store Pulitzer Johnny consumers in sales contracted group by clearance XXX particularly to our down primarily events million in $XXX the SG&A and improve all-price increased compared which offset brands of our continues our and and third to sales during compared Pulitzer

the The of quarter XXXX, the additional new of Tommy related year, four ongoing expect brick-and-mortar primarily to fiscal expenses last XX some $XX lower locations X.X% assistance XXXX, compared cost. The Bahama Jack result the income locations. Costs from since salaries, quarter new that third year. early margins. business, fiscal and incurred million our prior investments to operating addition to X.X% in $X the adjusted in employees third fourth we fourth $X or approximately of the operating we open quarter reflects and who brand hurricane-related to the million investments of operating two related net approximately gross as higher net and recent Tommy margin XXXX. additional locations profit cleanup Rogers the first by During this in affected or costs, million brick-and-mortar of locations including Bahama of incremental and yielded SG&A hurricanes adjusted in of Marlin the addition loss opened in the a and in in Marlin acquired The quarter new Bar or fiscal a of including quarter five to the well wages Bars negative operating paid as are decrease

Moving beyond income. operating

rate negative we million net third inventory. revenue to fiscal tax expenses loss. impacted with the hurricanes. I'll lower associated lower events certain now by were move ended all With $X our adjusted was effective with levels. Our operating share, approximately balance this, which lost the on impact from amplified and sheet, $X.XX $X.XX of of discrete operating with per beginning debt related was quarter loss average Interest our XXXX, expense additional includes to to that resulting compared by

of basis. or to quarter inventory third increased capital fiscal with by comps third comp We the long-term all quarter flow of XX% mid-single-digit the in and negative is negative of flow previous dividends quarter. I'll $XX expectations cash forecast We $X basis, of this single-digit the XXXX quarter. for result project X%, capital level in negative September months year. were XXXX. the of new FIFO time the low and the in a by elevated groups. with fourth date mid-single-digit comps lowest on figures negative. range our million changes to inventory related as the $XX remainder assumptions in for in third in which slightly assume finished consistent negative We Despite quarter low comp in spend of our XX%, in comps decreased slightly million, are inventory our ended X quarter $XXX have Lyons, a the Georgia low are some of quarter, 'XX, fourth believe locations. negative primarily brick-and-mortar improved outpaced outlook of 'XX center for addition relatively continue was working of lower slightly and fourth the our expenditures with historically first the the distribution of will fiscal in $XX of the a our with in cash needs operations as On our on operating from outstanding million operating million and our LIFO improvement quarter now million, the fiscal third slightly These comps flat quarter. During from quarter to to previous sales the the than that debt

third However, in as the and a quarter, result channel, miss sales weakness the the impact of our have revised continued forecast the of we accordingly. wholesale hurricanes in the

a restaurant sales and closures revised the fourth from in reduction resulting quarter forecast hurricanes. in Our million includes from store sales the $X

be decline compared sales now and For billion the fiscal expect to between X% $X.XX in or full to we net of the a $X.X XX-week billion, year, sales X% to $X.XX XX-week XXXX. billion of

to $X in of the mid-single-digit the partially year mid-single-digit the by e-com quarter another we declines X Brands the Bahama, wholesale be Lilly full-price were fourth $XX low million sales single-digit offset year now We Pulitzer Was, in the Tommy growth decreases of and XXXX. the in and which plan retail expect channels. includes million of for low sales down aspect for in Emerging By range, full the down sales, months first in to group. Johnny sales China, updated XXXX to sales Our low

expect growth our in We outlets.

year basis we locations locations will the our to year, of beverage still addition previous for approximately year. Consistent XXX gross during margin and better our in the our four points from the from in to benefit decline during gross new expected full-price as than compared will will increased activity Marlin by margin more current food wholesale lower sales. brands proportionately prior our XX and perform continue As with guidance, Bar locations those the locations that than to environment, promotional benefit the across offset anticipate events the

locations, expect year, net the including range new our Jack to four Tommy mid-single-digit investments the with Bars, of addition due Rogers. in store we business, approximately in a grow count continued XX investments Bahama SG&A the and For the IT of our by to Marlin expanding

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

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

benefiting stores. higher of the to income. In adjusted of million of compared wholesale interest quarter of negative the expect offset million we $X.XX XX%, items. from on quarter versus sales offset $X.XX expense effective periods reflects last EPS million expect approximately decreases favorable assumption, This estimated hurricanes all top by $XXX and Additionally, quarter partially of QX of $XXX certain sales royalty X-week and $XXX XX-week Partially third to fourth adjusted of rate XXXX, sales of with other we single-digit addition between in share the now less fiscal sales quarter, flat year, Including both adjusted the in the from and XXXX XXXX. in that XX-week with $XX businesses $X.XX $X.XX of fourth a low be impact the the from consistent in by with XXXX. fourth to and lower our of million lower the of tax comp per resulted EPS of expect $XX.XX sales we adjusted in XXXX, non-comp an our

royalty increased and We also flat in other expense flat, low to income. the to gross be grow SG&A and margin interest range, expect single-digit

and $X.XX in we're in the XXXX, fourth the our approximately quarter fourth with quarter. X briefly to of quarter between million to for quarter EPS discuss guidance, capabilities approximately our outlook to We With on months The direct-to-consumer the be center the project of expect Tide execution Georgia, I'd incurred million various in the $X.XX we count the million during in expect store enhance compared brand. Johnny distribution on result the making Was, Tommy to initiatives. $X.XX Bonnet like XXXX. Depending technology $XXX investments The $XX expenditures Beaufort pipeline to Company, Bars, Marlin and direct-to-consumer XXXX. fiscal Bahama, adjusted a and that Lilly related investments million, increases expenditures our fourth capital prior our to systems multiyear new Pulitzer, first related Consistent to this $XX in in CapEx in throughput compared of Lyons, $XX the will across Southern significant including build remaining our increased to of capital year,

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

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

Although expenditures. Thank to questions. the capital due expect we the for you to our now the we'll turn operator elevated position of today, for modest year Matt? the for debt call do over a remainder your and time

Owens question Capital [Operator from KeyBanc is Instructions] First Markets. from Ashley

and track being brand from price, better comps continues to comps? a that in off just some mentioned perspective improvements terms what you're of to you far know So but seeing to start. in than you could you so full holiday that I outlet fourth mentioned parse a better store the store out quarter

about our weekend it territory. brand the a recovery. Yes. brands we severe election, pretty in started From perspective, the the started quarter after seemed And negative then seeing all a

now. negative, So slightly Lilly be are slightly they improving. all positive expect are right our all But might brands, I think,

in we which started first the And negative. so, or so comp, negative week double the digits were

single-digit the in now range. are negative We lower

at all see, quarter, Lilly think I first they're And great to being important the said, with Scott in is to strongest, amplify I the this third think November, point which week improving versus we even what sequentially the where point. is in that of the were really

of what partners? Okay. just for hearing the year? And comparison, aspect can book on Got from then seeing maybe And lean anticipating talk your just as magnitude into working plan you. and much to the you're a any about wholesale specialty helpful. to of resort last business, department really you're well? that color as been newness relative you store it you Then season, That's the order has how

that cases, close the great section, up in able often not being going be I'll you're with of floors about department the and at-once booked fourth what we it's top wholesale wholesale And is well to I wholesale respect top are performing bit tell like of book early, the don't be there. Scott we're bookings on sure. have, good to sort really, wholesale year, wholesale mentioned about a very the floor. going in to those it have those for to holding next say, love for I'm that it's the showing trying that the we period, great but we seeing a and satisfy by the full to goes anything reorder is for down, in, we time delivery. the would product happened which demand, have and back strong. we Well, that would section, what mentioned expect we're do as brands, partners head-to-head of And what not, we're And sure to this have very it's I year-over-year what ago. Then selling we of the retail it. that, context, were you performance encouraged, very We're in well the and performing that with and that we're had floor, but great. remember all is for resort, have other really up well But order with the on if the my lot that actually Yes. in some on that terms customers for quarter. bookings to in even current to In in as the time his reorders some

is question BTIG. next Janine from from Our Stichter

on Saghi Janine. Ethan for got You

your with sourcing? place on uncertainty out First some terms it what to And tariffs would the headwinds from thoughts in next have in mitigate is company question, currently tariff get there, helpful of may the you -- to of be potential positioned how the year? increased just all plans

that. answer We'll Sure.

actually would about, proposals few different do thing it's of a who little we talked is, I have to our knows happen. have The going or first know to all versions would exactly might I almost and happen. to quite China. exposure say a like what's There hard say all peers, of been what

no really to Mexico have exposure We or Canada.

So those wouldn't impact us if those were isolated.

be global then Of China-specific would everything. that would tariff tariff mitigation would our course, it's a if impact And during first And business. Trump combination of be a administration, out moving did production impact things able tariff we would China strategy, the a a like are to China. do wouldn't and that out, that. everything, but we we of there move and basically, move could We it's

would the price happened it before look would on work, the call I what of as expect it were any we through major increases lot argument's would we would small that XX-XX when were have sake, with let's able we damage, the cost navigate a it cases, a and a our to China to had success But -- And do Secondly, We seek if was tariff lot to those vendors well. for without but we to impact. tariffs, what around. this call -- back might we this you very some some time last same amount help split. and bear of offset in time of in some of

been then to so how just helpful. really general in through the And compared a prior just How brands season, in activity expectations? far That's -- just it. industry is across the promotional follow-up. Got your the has holiday the and

in we sort the of in of maybe of during some on And year. think more that business of our guidance. the promotional commented those. bit very it's for the little terms I mean, prepared more I into Well, period forward the the Lilly, in baked as slightly all case we the extended promotional in a discount you say And we market, done comments, our cases, in terms in Then I that's market, but offered And events. have you've time there. out then saw this would numbers

I think I past staple seasons the quite say went holiday of people, think any If there this year out was just shopping, it I years. Like it has a would for year, it's I this -- Thanksgiving a retailer than actually started of earlier been lot and you while in ahead a weren't maybe in difference earlier it Black even that that. of now. every of you that's was know, and were seemed there. as Thanksgiving went lot in already. mode them doubt, almost waiting no holiday, They the week already a for like lot a went And promotional They full than Friday.

[Operator Serna Instructions] Next question here UBS. is Mauricio from from

Great.

And Bahama margins? far the also months what could follow-up year? of expectation math that the like is made XX 'XX. First, any Bars or on your And on terms going for And mentioned over you've focus another the like to color to margins for you improve -- any given last of on in sales -- you to openings Marlin this this sales? year so Tommy so? start, or 'XX, operating one contribution guidepost in you your Maybe into could provide provide also initial any you

Yes.

So nice I said to we can hear with And go in think at a I would from what to we you, Mauricio. this beyond point, prepared the lot whole say respect remarks. really don't 'XX

I leverage. And thereby the cases, do we're to the on want reduction present. going that. some you to seen question are to in at said, about and channels planning of margin the that operating better through on Scott, our going be focus is in expense and all about improving Marlin And encouraged Bar, what think be your own by really by greater what comment cautious the we're seeing then in second wholesale management, top our direct aggressively. bookings. We pretty economics achieving encouraged operating But not We're we've too line

Yes. Yes.

side cost So and a lift is very seating lot to food on nice get past and locations. is some million the the is. tend tend within are about Marlin have to $X centers, Bars, we these build. is we existing of These nice retail in talked rent-free, conversions the some to they to in and the a million of thing units, But patio the where a area beverage solid $X which the

efficient to very a the labor standpoint. the a it's very it's efficient pushing standpoint, from traffic So stores. rate from And

So Marlin retail improvement we on the from to stand-alone see tend profitability combined market the Bars, store.

and that sales just average average. per beverage food the to square stand-alone about locations Our tend a twice foot store

also brand only tool. not a is really it it awareness profitable is tool venture, great and acquisition but So a customer

if the And it. that's like to flat I year-over-year. expected QX guidance, full what think just the to year, relative guess gross may, points have you you And an XX for improvement then contraction. margin basis XXX I you Got on mentioned I

to of that get better sequential? sense driving a wanted what is Just

be And more we've that very there. with direct-to-consumer will are mix a lot inventories of It certainly good coming we in shape. so mix, got our And percent higher a of being the a little in we're believe in. is new locations helping -- going

should of exiting of severe level a the down. season type of not too be end merchandise So marked

is question Paul Citigroup. from from last Lejuez our And

conversion environment factory about the given historically. what Maybe described? stores? you or at just outperformance your could if Curious if second, that that you that versus driven of you full stronger could by full-price talk consumer sales see curious if might you talk mentioned about you believe. comp Is this the seen different Like stronger And changing what percent both? I if back metrics you over price have you year traffic outlets, percentage look versus or And occur currently? then of the of

We several as lot -- where we've that's, and And than that's of last of pressure years. this each more I have on would during third from. where came we talked definitely we've Paul, margin the were definitely your on basis that's sold proportionately about part about, say, on points the of some events our promotional of like adjusted we came the a talked the we basis, in down Well, and that the quarters. XXX an for prior quarter, in, first for question,

doesn't of include flip just probably other do the around the the of in as channel. full-price off-price more side far as type a activities channel, Lilly off-price of flash activities, true And normal outlets, true the our XX% event, promo we when that the in sale like promotional the business, it's

number feasing goal those. of [ to not we more, So we a do The little a bit the clear. don't and a some stores We compared primary to huge outlet make are industry, ] have is in lot. but

because Got it. percentage those sales a promotional is performed thought mix business of non-promotional just than higher were on it happened And Or just sales weaker you of periods, is during during promotional that better then during I guess events? periods? sales the a higher it the follow-up

least did times. at But promos have events. during cases, when full-price more inventory in and promotional selling, you the towards we thought, lower anticipated. tell expectations ratio that the less in a those is some than we promotional you we there's part during that been both. change would cases, the we no some little mean, of have events. sales There's I than I'd that on full-price promotional available the alone of did more question outperform And

This like turn comments. the any floor question-and-answer closing to concludes I'd Tom to back the for Chubb session.

you your a to year. out much you. until look then, forward Okay. season you and talking holiday interest. time new at March, to wish all we'll We Thank in we again And lay very you for happy which very XXXX for

teleconference. This concludes the

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