Oxford Industries(OXM)2025-03-31 15:47Financial Performance - Consolidated net sales for Fiscal 2024 were $1,516,601, a decrease of 3.5% from $1,571,475 in Fiscal 2023[46] - Tommy Bahama accounted for 57% of total net sales, generating $869,604 in Fiscal 2024, down from $898,807 in Fiscal 2023[47] - Lilly Pulitzer's net sales were $323,917 in Fiscal 2024, a decline of 5.7% from $343,499 in Fiscal 2023[46] - Johnny Was reported an operating loss of $8,763 in Fiscal 2024, following a $111 million impairment charge in Fiscal 2023[46] Sales Channels - Direct to consumer operations represented 84% of Tommy Bahama's net sales in Fiscal 2024, with e-commerce contributing $222 million, or 26% of Tommy Bahama's net sales[48][49] - Lilly Pulitzer's direct to consumer operations accounted for 83% of net sales in Fiscal 2024, with e-commerce generating $157 million, or 48% of total net sales[65] - Johnny Was's direct to consumer operations represented 81% of net sales in Fiscal 2024, with the website generating $84 million, or 43% of total net sales[76] Retail Performance - Tommy Bahama's full-price retail stores generated sales per gross square foot of approximately $770 in Fiscal 2024, down from $815 in Fiscal 2023[51] - Full-price retail store sales per gross square foot for Lilly Pulitzer increased to approximately $748 in Fiscal 2024 from $737 in Fiscal 2023[69] - Johnny Was full-price retail store sales per gross square foot decreased to approximately $614 in Fiscal 2024 from $664 in Fiscal 2023[77] Store Expansion - Tommy Bahama plans to open four Marlin Bar locations in Fiscal 2025, including conversions of existing full-price retail stores[58] - Lilly Pulitzer opened a net total of four new stores in Fiscal 2024, bringing the total to 64 stores, with plans to open at least four new stores in Fiscal 2025[72] - Southern Tide opened 11 new stores during Fiscal 2024, increasing the total to 30 stores, with plans for at least five additional openings in Fiscal 2025[90] Wholesale Operations - Wholesale sales for Tommy Bahama accounted for 16% of net sales in Fiscal 2024, with 12% of sales coming from the top 10 wholesale customers[62] - Johnny Was's wholesale operations accounted for 19% of net sales in Fiscal 2024, with 40% of wholesale sales to department stores[84] - Lilly Pulitzer's net sales to its 10 largest wholesale customers represented 10% of total net sales in Fiscal 2024, with the largest customer accounting for less than 5%[73] Marketing and Advertising - In Fiscal 2024, the company incurred $111 million in advertising expenses, representing 7% of net sales[95] - Marketing initiatives have increased online and in-store traffic, with promotional events putting downward pressure on direct-to-consumer gross margins[97] - The company continues to enhance its digital marketing strategies to engage consumers and drive traffic to its e-commerce platforms[96] Supply Chain and Sourcing - The company paid total duties of $60 million on imported products in Fiscal 2024, with an average duty rate of approximately 19%[110] - During Fiscal 2024, 39% of apparel and related products were sourced from China, and 24% from Vietnam[105] - The company sources products from approximately 260 suppliers, with no individual supplier providing more than 10% of total purchases in Fiscal 2024[104] Financial Management and Risks - As of February 1, 2025, the company had $31 million of borrowings outstanding under its U.S. Revolving Credit Agreement, with a weighted average interest rate of 6%[378] - A 100 basis point increase in interest rates would increase interest expense by less than $1 million based on the current variable-rate debt[378] - The company has 97% of its consolidated net sales in the United States, indicating limited exposure to foreign currency exchange rate changes[380] - The company does not anticipate that foreign currency changes will materially impact consolidated net sales, operating income, or net earnings in the near term[380] - Inflation risks are managed through negotiating product prices in advance, selective price increases, and cost containment initiatives[381] - The company expects to increase debt levels during Fiscal 2025 to fund planned capital expenditures, share repurchases, dividends, and working capital needs[378] - The company is exposed to market risks from changes in interest rates, commodity prices, and foreign currency exchange rates[375]