Oxford Industries(US:OXM)2025-09-11 12:59Financial Performance - Consolidated net sales for the First Half of Fiscal 2025 were $796,004, a decrease of 2.9% from $818,070 in the First Half of Fiscal 2024[76] - Operating income fell to $61,617 in the First Half of Fiscal 2025, down 41.2% from $104,961 in the First Half of Fiscal 2024[76] - Net earnings decreased to $42,873, a decline of 45.5% compared to $79,015 in the First Half of Fiscal 2024[76] - Net earnings per diluted share dropped to $2.83, down 43.4% from $4.99 in the First Half of Fiscal 2024[76] - In the Second Quarter of Fiscal 2025, net sales were $403,143, a decrease of 4.0% from $419,886 in the Second Quarter of Fiscal 2024[88] - Operating income for the Second Quarter of Fiscal 2025 was $25,411, a significant decline of 51.6% from $52,510 in the Second Quarter of Fiscal 2024[88] - Net earnings in the Second Quarter of Fiscal 2025 were $16,692, down 58.9% from $40,642 in the Second Quarter of Fiscal 2024[88] Sales and Revenue Breakdown - Direct to consumer channels accounted for 81% of consolidated net sales in Fiscal 2024, with the remaining 19% from wholesale distribution channels[69] - Consolidated net sales decreased to $403 million in Q2 Fiscal 2025 from $420 million in Q2 Fiscal 2024, a decline of $16.7 million or 4%[89] - Tommy Bahama net sales fell by $16 million, or 7%, while Lilly Pulitzer and Johnny Was saw decreases of $1 million (2%) and $5 million (10%) respectively[93][94][96] - Emerging Brands experienced a net sales increase of $6 million, or 17%, driven by growth in Southern Tide and TBBC[97] - Tommy Bahama's net sales decreased by $16.1 million, or 6.6%, to $229 million in Q2 Fiscal 2025 compared to $245 million in Q2 Fiscal 2024[111] - Lilly Pulitzer's net sales fell by $1.4 million, or 1.5%, to $90.3 million in Q2 Fiscal 2025 from $91.7 million in Q2 Fiscal 2024[112] - Johnny Was reported a net sales decline of $4.9 million, or 9.7%, to $45.4 million in Q2 Fiscal 2025 compared to $50.3 million in Q2 Fiscal 2024[113] - Emerging Brands experienced a net sales increase of $5.6 million, or 17.0%, reaching $38.5 million in Q2 Fiscal 2025, up from $32.9 million in Q2 Fiscal 2024[114] Cost and Expenses - Gross profit decreased to $247.6 million in Q2 Fiscal 2025 from $265 million in Q2 Fiscal 2024, a decline of $17.4 million or 6.6%[100] - Consolidated gross margin dropped to 61.4% in Q2 Fiscal 2025 from 63.1% in Q2 Fiscal 2024, primarily due to increased cost of goods sold from tariffs[101] - SG&A expenses rose to $225.6 million in Q2 Fiscal 2025, up $8.7 million or 4% from $216.9 million in Q2 Fiscal 2024[107] - Operating income fell to $25.4 million in Q2 Fiscal 2025, a decrease of $27.1 million or 51.6% compared to $52.5 million in Q2 Fiscal 2024[110] - SG&A expenses increased by $18.3 million, or 4.3%, in the First Half of Fiscal 2025, with significant increases in employment costs (+$8 million) and occupancy costs (+$5 million)[144] Tax and Interest - The effective tax rate for Q2 Fiscal 2025 was 30.1%, up from 22.5% in Q2 Fiscal 2024, primarily due to unfavorable net discrete tax expenses[118] - Income tax expense decreased by $9.5 million, or 38.1%, to $15.5 million, with an effective tax rate of 26.5% in the First Half of Fiscal 2025[154] - Interest expense increased by $2.3 million, or 240.0%, to $3.3 million in the First Half of Fiscal 2025 due to a higher average outstanding debt balance[153] - The company experienced a 1639.3% increase in interest expense, netting $1,548 in the Second Quarter of Fiscal 2025 compared to $89 in the same period last year[88] Segment Performance - Operating income for Tommy Bahama decreased by $14.3 million, or 34.8%, to $26.7 million in Q2 Fiscal 2025 from $40.9 million in Q2 Fiscal 2024[111] - Lilly Pulitzer's operating income fell by $3.7 million, or 21.9%, to $13.2 million in Q2 Fiscal 2025 compared to $16.9 million in Q2 Fiscal 2024[112] - Johnny Was reported an operating loss of $4.5 million in Q2 Fiscal 2025, worsening from a loss of $1.7 million in Q2 Fiscal 2024[113] - Johnny Was reported an operating loss of $7.9 million in the First Half of Fiscal 2025, compared to a loss of $1.3 million in the prior year, indicating a significant decline in performance[147] Assets and Liabilities - Total current assets as of August 2, 2025, were $294.0 million, compared to $287.2 million as of August 3, 2024[161] - Property and equipment, net increased to $297.6 million as of August 2, 2025, driven by capital expenditures for a new distribution center and new retail locations[167] - Total non-current assets rose to $1.03 billion as of August 2, 2025, reflecting ongoing investments in property and equipment[167] - Total current liabilities increased to $248,238 thousand as of August 2, 2025, compared to $240,644 thousand on August 3, 2024, driven by increased accounts payable and accrued compensation[171] - Long-term debt rose to $81,375 thousand as of August 2, 2025, attributed to share repurchases, capital expenditures for a new distribution center, dividend payments, and working capital needs[172] - Non-current operating lease liabilities increased to $368,482 thousand as of August 2, 2025, due to new leases and extensions exceeding existing lease payments[173] Cash Flow and Capital Management - Cash provided by operating activities decreased to $79,549 thousand in the First Half of Fiscal 2025 from $121,738 thousand in the First Half of Fiscal 2024[174] - Capital expenditures for the First Half of Fiscal 2025 were $55 million, slightly up from $54 million in the First Half of Fiscal 2024, primarily for a new distribution center and retail openings[194] - Share repurchases totaled $55 million in the First Half of Fiscal 2025, with an average cost of $57.12 per share, compared to no repurchases in the same period of Fiscal 2024[192] - The company has $325 million available under its U.S. Revolving Credit Agreement, maturing in March 2028, to support future cash flow needs[181] - A cash dividend of $0.69 per share was approved for payment on October 31, 2025, reflecting the company's ongoing commitment to return capital to shareholders[190] - As of August 2, 2025, the company had $81 million in borrowings outstanding and $239 million in unused availability under the U.S. Revolving Credit Agreement[183] - The company remains compliant with all covenants related to its U.S. Revolving Credit Agreement as of August 2, 2025[188]