Oxford Industries(US:OXM)2024-12-12 14:05Financial Performance - Consolidated net sales for the first nine months of Fiscal 2024 were $1,126,095, a decrease of 3.5% compared to $1,167,046 in the same period of Fiscal 2023[70]. - Operating income for the first nine months of Fiscal 2024 was $98,721, down 39.1% from $162,435 in the first nine months of Fiscal 2023[70]. - Net earnings for the first nine months of Fiscal 2024 were $75,078, a decline of 37.8% compared to $120,773 in the first nine months of Fiscal 2023[70]. - Net earnings per diluted share decreased to $4.74 in the first nine months of Fiscal 2024 from $7.57 in the same period of Fiscal 2023[70]. - Comparable sales for the third quarter of Fiscal 2024 decreased by 5.7% to $308,025 from $326,630 in the third quarter of Fiscal 2023[84]. - Consolidated net sales decreased to $308 million in Q3 Fiscal 2024 from $327 million in Q3 Fiscal 2023, a decline of $18.6 million or 5.7%[85]. - Net loss for the third quarter of Fiscal 2024 was $(3,937), compared to net earnings of $10,782 in the third quarter of Fiscal 2023[84]. - Consolidated net sales for the First Nine Months of Fiscal 2024 were $1,126 million, a decrease of $40.951 million or 3.5% compared to $1,167 million in the same period of Fiscal 2023[124]. Operating Income and Loss - Operating loss for the third quarter of Fiscal 2024 was $(6,240), a significant decline from operating income of $14,460 in the third quarter of Fiscal 2023[84]. - Consolidated operating loss was $6.24 million in Q3 Fiscal 2024, a decrease from operating income of $14.46 million in Q3 Fiscal 2023, reflecting a $20.7 million change or a 143.2% decline[108]. - Operating income decreased significantly to $98.721 million, a decline of $63.714 million or 39.2% compared to $162.435 million in the First Nine Months of Fiscal 2023[137]. - Johnny Was experienced an operating loss of $5.4 million in the First Nine Months of Fiscal 2024, a significant decline from an operating income of $7.3 million in the same period of Fiscal 2023[152]. Sales Performance by Brand - Tommy Bahama net sales decreased by $9 million, or 5%, with e-commerce sales down 12%[90]. - Lilly Pulitzer net sales decreased by $6 million, or 8%, with e-commerce sales down 13%[91]. - Johnny Was net sales decreased by $3 million, or 6%, with retail sales down 11%[93]. - Tommy Bahama reported net sales of $161.29 million in Q3 Fiscal 2024, down 5.2% from $170.14 million in Q3 Fiscal 2023, with operating income dropping 96.3% to $445,000[109]. - Lilly Pulitzer's net sales decreased by 8.5% to $69.83 million in Q3 Fiscal 2024, with operating income falling 40.9% to $4 million[110]. - Emerging Brands' net sales were comparable to the previous year, with retail sales increasing by $1 million, or 30%[94]. Expenses and Margins - Gross profit margin for the third quarter of Fiscal 2024 was 63.1%, compared to 62.9% in the third quarter of Fiscal 2023[84]. - Gross profit decreased by $10.9 million, or 5.3%, to $194.5 million, with a gross margin of 63.1% compared to 62.9% in the previous year[98]. - SG&A expenses increased by $9.9 million, or 5.1%, to $205 million, primarily due to increased brick-and-mortar retail locations[105]. - The consolidated gross margin for the First Nine Months of Fiscal 2024 was 63.8%, down from 64.2% in the previous year[137]. Cash Flow and Debt - Cash provided by operating activities was $103,525 for the First Nine Months of Fiscal 2024, down from $169,398 in Fiscal 2023, indicating a decrease of 38.8%[180]. - The company recorded a decrease in long-term debt to $57,816 as of November 2, 2024, from $66,219, attributed to cash flow from operations exceeding capital expenditures[176]. - Interest expense decreased significantly to $1.573 million, down $3.283 million or 67.6% from $4.856 million in the First Nine Months of Fiscal 2023[137]. - Interest expense decreased by 49.9% to $610,000 in Q3 Fiscal 2024, down from $1.22 million in Q3 Fiscal 2023, due to a lower average outstanding debt balance[116]. Future Outlook and Investments - The company anticipates continued challenges in e-commerce and retail sales due to market conditions[85]. - The company plans to achieve a net increase of approximately 30 full-price stores by the end of Fiscal 2024 through investments in new locations and remodels[199]. - The company is investing in technology systems initiatives, including e-commerce and omnichannel capabilities, data management, and cybersecurity[199]. - Anticipated capital expenditures for Fiscal 2024 are approximately $150 million, up from $74 million in Fiscal 2023, including $75 million for a new distribution center in Lyons, Georgia[199]. Tax and Compliance - The effective tax rate for Q3 Fiscal 2024 was 42.5%, significantly higher than 18.6% in Q3 Fiscal 2023, influenced by discrete adjustments related to research and development tax credits[117]. - The effective income tax rate for the First Nine Months of Fiscal 2024 was 22.7%, a decrease from 23.4% in Fiscal 2023, benefiting from net discrete tax benefits[157]. - The company remains compliant with all applicable covenants related to the U.S. Revolving Credit Agreement as of November 2, 2024[196].