Core Insights - Oxford Industries reported a surprising loss in the third quarter, with revenue declining due to inflation and the impact of hurricanes on consumer demand [1][2] - The company has cut its full-year guidance, anticipating lower sales and adjusted profit compared to previous estimates [1][3] Financial Performance - Oxford posted a third-quarter adjusted loss of $0.11 per share, while analysts expected a profit of $0.09 per share [2] - Revenue fell nearly 6% year-over-year to $308.0 million, which was below forecasts [2] - Sales at Tommy Bahama dropped 5.2% to $161.3 million, Lilly Pulitzer sank 8.5% to $69.8 million, and Johnny Was fell 6.1% to $46.1 million [2] Management Commentary - CEO Tom Chubb attributed the results to high inflation and distractions from U.S. elections, leading to tentative consumer spending [3] - Hurricanes Helene and Milton caused an estimated $4 million in lost sales, contributing to a $0.14-per-share profit decline [3] Revised Outlook - The company now expects full-year sales of $1.50 billion to $1.52 billion, down from a previous estimate of $1.51 billion to $1.54 billion [3] - Adjusted profit is anticipated to be between $6.50 and $6.70 per share, compared to the earlier outlook of $7.00 to $7.30 [3]

Financial Data and Key Metrics - Q3 2024 consolidated net sales were $308 million, down from $327 million in Q3 2023, below the guidance range of $310-325 million [30] - Adjusted net loss per share was $0.11, below guidance, with a $0.14 negative impact from hurricanes [11][12] - Adjusted gross margin contracted 100 basis points to 63% due to higher promotional sales [33] - Adjusted SG&A expenses increased 5% to $201 million, driven by new store openings and hurricane-related costs [34][35] - Adjusted operating loss was $3 million (negative 1.1% margin) compared to a $21 million profit (6.6% margin) in Q3 2023 [36] Business Line Performance - Full-price brick-and-mortar sales down 6%, e-commerce down 11%, while food & beverage and outlet sales increased 4% and 3% respectively [32] - Wholesale channel sales down 2%, with specialty stores struggling but department store sales improving [33] - Tommy Bahama's Indigo Palms denim and Luxe sweaters performed well, driving higher gross margins and average order values [21][23] - Lilly Pulitzer's whimsical products like the Ellery sweater and items with bows/sequins saw strong demand [24] Market Performance - Southeastern US, particularly Florida, was heavily impacted by hurricanes, with $4 million in lost sales and significant cleanup costs [9][11][31] - Post-election, consumer sentiment improved, leading to better comp store sales in November and a strong Thanksgiving weekend [18][20] - Outlet stores and food & beverage locations outperformed full-price stores, reflecting consumer preference for value-oriented channels [32][42] Strategy and Industry Competition - Company continues to invest in new stores, Marlin Bars, distribution centers, and technology despite short-term headwinds [17] - Focus on premium, full-price strategy remains a long-term competitive strength, though it poses challenges in the current promotional environment [10][11] - Plans for 2025 include stabilizing and expanding operating margins through better expense control and leverage [25][26] Management Commentary on Environment and Outlook - Management noted a challenging consumer environment due to high inflation, election distractions, and hurricane impacts [7][9][29] - Encouraged by improving sales trends and strong wholesale bookings for 2025 [26][75] - Revised full-year 2024 sales forecast to $1.5-1.52 billion, a 3-4% decline from 2023, with low to mid-single-digit declines in major brands [41][42] - Expects Q4 2024 sales of $375-395 million, with flat gross margins and low single-digit SG&A growth [45][46] Other Important Information - Company opened 12 net new retail locations in Q3, bringing total store count to 342 [17] - Lyons, Georgia distribution center project is a significant capital expenditure, expected to enhance direct-to-consumer capabilities [47] - Jack Rogers brand, acquired in Q4 2023, is expected to generate a $2.5 million operating loss in 2024 [43] Q&A Summary Question: Store comp improvements in Q4 and holiday performance [52] - All brands improved sequentially post-election, with Lilly slightly positive and others in low single-digit negative range [53][54] Question: Wholesale order book for resort season and newness strategy [55] - Resort wholesale selling is strong, with some reorders for at-once delivery, though Q4 wholesale sales are expected to be down [56][57] - Early 2025 bookings are encouraging, with strong performance on wholesale floors [58][59] Question: Tariff uncertainty and sourcing strategy [63] - Company has exposure to China but no exposure to Mexico, with plans to move some production out of China and share tariff costs with vendors if necessary [64][65][66] Question: Promotional activity during holiday season [68] - Promotional activity started earlier this year, with more business done during promotional events, particularly in Lilly [69][70] Question: 2025 operating margin improvement and Marlin Bar economics [74] - Focus for 2025 is on improving operating margins through expense management and leverage [75][76] - Marlin Bars are efficient, with food & beverage locations averaging twice the sales per square foot of standalone stores [78][79] Question: Q4 gross margin improvement drivers [81] - Higher mix of direct-to-consumer sales and better inventory positioning are driving Q4 gross margin improvement [82] Question: Full-price sales percentage and outlet performance [85] - Proportion of sales during promotional events has increased, impacting margins [87] - Outlet stores account for around 20% of business, with strong performance driven by both traffic and conversion [88][89] Question: Promotional sales performance [90] - Higher promotional sales mix is due to both weaker full-price sales and better-than-expected performance during promotional events [91]

ATLANTA, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its third quarter of fiscal 2024 ended November 2, 2024. Consolidated net sales in the third quarter of fiscal 2024 were $308 million compared to $327 million in the third quarter of fiscal 2023. Loss per share on a GAAP basis was $0.25 compared to net earnings per share of $0.68 in the third quarter of fiscal 2023. On an adjusted basis, loss per share was $0.11 compared to net earnings per sh ...

ATLANTA, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE: OXM) today announced that it plans to release its third quarter fiscal 2024 financial results after the market close on Wednesday, December 11, 2024. Following the news release, the company will also hold a conference call starting at 4:30 p.m. ET, hosted by Thomas C. Chubb lll, Chairman, Chief Executive Officer, and President, and K. Scott Grassmyer, Executive Vice President, Chief Financial Officer, and Chief Operating Officer, to d ...

onurdongel I last covered Oxford Industries, Inc. (NYSE:OXM) in February; I put out a Buy rating at the time based on discounted-earnings undervaluation and reasonably strong growth, including notes on a potential target market opportunity in upper-class luxury, a slight shift from management's current focus on middle-class consumers. Now, the company has had its Q2 2024 results, and the stock is down about 10% in pre-market hours as I write this due to a weak Q2 report. The total return since my last analy ...

Key Takeaways Tommy Bahama parent Oxford Industries missed second-quarter profit and sales estimates and slashed its outlook amid a "challenging consumer environment." CEO Tom Chubb said market conditions were weaker than expected. Shares of Oxford Industries tumbled to a more than two-year low. Shares of Oxford Industries (OXM) sank to their lowest level in more than two years after the clothing retailer posted worse-than-expected results and slashed its guidance as it faced what Chief Executive Officer (C ...

U.S. stock futures were higher this morning, with the Dow futures gaining around 0.2% on Thursday. Shares of Oxford Industries, Inc. OXM shares declined 10.3% to $75.02 in pre-market trading after the company reported weaker-than-expected earnings and sales results for the second quarter. Oxford Industries reported quarterly earnings of $2.77 per share which missed the analyst consensus estimate of $3.00 per share. Quarterly sales of $419.886 million missed the analyst consensus estimate of $438.176 million ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2024 were $420 million, below the guidance range of $430 million to $450 million, and comparable to Q2 2023 [12][13] - Adjusted EPS for the quarter was $2.70, lower than expectations due to reduced consumer spending [3][16] - Adjusted gross margin contracted by 100 basis points to 63.3%, primarily due to a higher proportion of sales occurring during promotional events [13][21] - Adjusted operating income was $57 million, reflecting a 13.5% operating margin compared to 17.3% in the prior year [16] Business Line Data and Key Metrics Changes - Sales in outlet stores increased by 4%, while full-price brick-and-mortar sales were up 1% [13] - Wholesale channel sales decreased by 5% compared to Q2 2023, indicating challenges in the specialty store business [13] - Adjusted SG&A expenses increased by 5.7% to $213 million, driven by investments in new locations and the acquisition of Jack Rogers [14][15] Market Data and Key Metrics Changes - Consumer sentiment hit an eight-month low in July, contributing to a pullback in spending [3][4] - The company noted a significant exposure to Florida, which accounts for over a third of its brick-and-mortar business, experiencing a slowdown post-pandemic [5][11] - The company expects negative comps in the low to mid-single-digit range for the remainder of the year, revising its sales forecast accordingly [18][20] Company Strategy and Development Direction - The company aims to protect brand integrity while creating excitement through new collections and promotional events [7][10] - Initiatives include the launch of the Tommy Bahama Indigo Palms collection and collaborations with Johnny Was [8][9] - The company is focused on reducing SG&A expenses while continuing to invest in growth initiatives, including new store openings and distribution center relocations [10][11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the consumer environment, anticipating continued challenges in the second half of the year [7][20] - The company is optimistic about new product launches and believes they will help drive sales despite current market conditions [8][52] - Management acknowledged the impact of macroeconomic factors, including inflation and consumer distraction, on performance [4][47] Other Important Information - The company has reduced its full-year sales forecast to between $1.51 billion and $1.54 billion, reflecting a decline of 2% to 4% compared to 2023 [18][21] - Capital expenditures for fiscal 2024 are expected to be approximately $150 million, with significant investments in the new distribution center in Georgia [25][26] Q&A Session Summary Question: Insights on promotional events and wholesale partner feedback - Management indicated that promotional events will be crucial, especially during the holiday season, and they plan to start earlier this year [28] - Wholesale performance has been challenging, but there is optimism regarding spring bookings [29] Question: Consumer state and performance by brand - The quarter saw a sequential decline in consumer interest, with a value-driven market impacting sales [32][33] - Dresses performed well, while athleisure and swim categories were slower [36] Question: Freight costs and margin impacts - Elevated freight costs are expected to impact margins by 15 to 20 basis points [37] Question: Regional performance and markdown levels - Performance was generally soft across regions, with cooler areas showing relatively better results [56] - Discount levels have reverted closer to pre-pandemic levels due to lower full-price sales [59] Question: Adjustments in pricing strategy - The company plans to invest more in lower price point offerings without significantly changing existing product prices [61]

Oxford Industries (OXM) came out with quarterly earnings of $2.77 per share, missing the Zacks Consensus Estimate of $3.05 per share. This compares to earnings of $3.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -9.18%. A quarter ago, it was expected that this owner of the Tommy Bahama, Lilly Pulitzer and Southern Tide clothing lines would post earnings of $2.70 per share when it actually produced earnings of $2.66, deli ...

Financial Performance - Consolidated net sales for Q2 fiscal 2024 were $420 million, unchanged from Q2 fiscal 2023, with GAAP EPS at $2.57 compared to $3.22 in the prior year[1][6] - Net sales for the second quarter of fiscal 2024 were $419,886,000, slightly down from $420,319,000 in the same quarter of fiscal 2023, a decrease of 0.1%[23] - Operating income fell to $53 million (12.5% of net sales) from $68 million (16.1% of net sales) in the prior year[8] - Net earnings for the second quarter of fiscal 2024 were $40,642,000, down from $51,453,000 in the same quarter of fiscal 2023, a decrease of 21.0%[23] - Operating income decreased to $52,510,000 in the second quarter of fiscal 2024 from $67,674,000 in the same quarter of fiscal 2023, a drop of 22.4%[23] - Net earnings for the first fiscal quarter of 2024 were $79.0 million, a decrease of 28.2% compared to $109.99 million in the first half of fiscal 2023[24] Sales and Revenue - Full-price direct-to-consumer sales increased by 1% to $305 million, while outlet sales rose by 4% to $21 million[6] - Johnny Was net sales were $50.3 million, a decrease of 3.4% from $52.0 million in the previous quarter[26] - Net sales for Tommy Bahama were $245.1 million, a slight decrease of 0.1% compared to $245.4 million in the previous quarter[26] - Consolidated net sales reached $419.9 million, down 0.1% from $420.3 million in the prior quarter[26] Expenses and Margins - Gross margin decreased to 63.1% from 63.9% in Q2 fiscal 2023, primarily due to a higher proportion of sales occurring during promotional events[7] - SG&A expenses increased to $217 million from $205 million, driven by costs related to 30 new store openings[8] - SG&A expenses as a percentage of net sales rose to 51.6% in the second quarter of fiscal 2024, compared to 48.8% in the same quarter of fiscal 2023[25] - Gross profit margin for Tommy Bahama was 61.5% in fiscal 2024, down from 63.3% in fiscal 2023, reflecting a 3.0% decline[25] - Gross profit for the consolidated segment was $265.0 million in the second quarter of fiscal 2024, down 1.4% from $268.7 million in the same quarter of fiscal 2023[25] Guidance and Projections - The company revised its fiscal 2024 sales guidance to a range of $1.51 billion to $1.54 billion, down from $1.57 billion in fiscal 2023[13] - GAAP EPS for fiscal 2024 is now expected to be between $6.28 and $6.58, compared to $3.82 in fiscal 2023[13] - The company expects net earnings per diluted share for Fiscal 2024 to be between $6.28 and $6.58, compared to $3.82 in Fiscal 2023[29] Capital Expenditures and Investments - Capital expenditures for fiscal 2024 are projected to be approximately $150 million, including $75 million for a new distribution center project[15] - Cash used in investing activities increased to $54.1 million in the first fiscal quarter of 2024, compared to $32.6 million in the first half of fiscal 2023[24] Dividends - A quarterly cash dividend of $0.67 per share was declared, payable on November 1, 2024[12] - The company declared dividends of $0.67 per share, up from $0.65 per share in the previous quarter[22] Store Openings and Locations - The company plans to open approximately 30 new full-price stores by the end of fiscal 2024, with 15 expected to open in the second half of the year[15] - The total number of direct-to-consumer locations for Oxford increased from 295 at the end of Q1 Fiscal 2023 to 315 at the end of Q4 Fiscal 2023, representing a growth of approximately 6.8%[31] - The total number of Tommy Bahama full-price retail stores remained stable at 102 by the end of Q1 Fiscal 2024, with a slight increase to 103 by the end of Q2 Fiscal 2024[32] - Johnny Was full-price retail stores increased from 71 at the end of Q3 Fiscal 2023 to 72 by the end of Q4 Fiscal 2023[31] - Southern Tide full-price retail stores grew from 15 at the end of Q3 Fiscal 2023 to 19 by the end of Q4 Fiscal 2023, marking a growth of 26.7%[31] Corporate Developments - The company is focusing on integrating the acquisition of Johnny Was to realize anticipated synergies and minimize disruptions[20] - The company reported a transition of Johnny Was distribution center operations from Los Angeles to Lyons, Georgia, incurring various related costs[1] - Johnny Was experienced impairment charges impacting net earnings per share in Fiscal 2023[1] Assets and Liabilities - Total current assets increased to $287,196,000 from $282,380,000 year-over-year, representing a growth of 2.9%[21] - Total assets rose to $1,172,522,000 from $1,149,858,000, marking an increase of 2.0%[21] - Total liabilities decreased slightly to $550,966,000 from $552,000,000, a reduction of 0.2%[21]