Oxford Industries(US:OXM)2025-12-11 15:05Financial Performance - Consolidated net sales for the first nine months of Fiscal 2025 were $1,103,348, a decrease of 2.0% from $1,126,095 in Fiscal 2024[83]. - Operating loss for the first nine months of Fiscal 2025 was $23,481 compared to an operating income of $98,721 in Fiscal 2024[83]. - Net loss for the first nine months of Fiscal 2025 was $20,810, down from net earnings of $75,078 in Fiscal 2024, resulting in a net loss per diluted share of $1.39 compared to earnings of $4.74[83]. - Comparable sales for the third quarter of Fiscal 2025 decreased slightly by 0.2% to $307,344 from $308,025 in the third quarter of Fiscal 2024[95]. - Consolidated net sales for Q3 Fiscal 2025 were $307 million, a decrease of $681,000 or 0.2% compared to $308 million in Q3 Fiscal 2024[96]. - Consolidated net sales for the first nine months of Fiscal 2025 were $1,103 million, a decrease of $22.7 million or 2.0% compared to $1,126 million in Fiscal 2024[134]. - Tommy Bahama net sales decreased by $33 million or 5%, while Lilly Pulitzer net sales increased by $14 million or 6% in the same period[135]. - The overall net sales for the company in Q3 Fiscal 2025 were $307.3 million, slightly down from $308.0 million in Q3 Fiscal 2024[130]. Cost and Expenses - Cost of goods sold increased by 7.5% to $122,073 in the third quarter of Fiscal 2025, impacting gross profit which fell by 4.8% to $185,271[95]. - SG&A expenses rose by 3.8% to $212,554 in the third quarter of Fiscal 2025, contributing to an operating loss of $85,098 compared to a loss of $6,240 in the same period last year[95]. - Gross profit for the first nine months of Fiscal 2025 was $685 million, down $32.7 million or 4.6% from $718 million in Fiscal 2024, with a gross margin of 62.1% compared to 63.8%[143]. - SG&A expenses increased to $661 million, up $26.2 million or 4.1% from $635 million in Fiscal 2024, representing 59.9% of net sales[149]. - Interest expense increased significantly to $4.9 million, up $3.3 million or 212.4% compared to $1.6 million in Fiscal 2024[134]. Impairment and Losses - The company recognized noncash impairment charges of $61 million primarily related to Johnny Was in the third quarter of Fiscal 2025[83]. - Noncash impairment charges totaled $61 million in Q3 Fiscal 2025, including $57 million related to Johnny Was intangible assets[115]. - Johnny Was experienced a substantial operating loss of $61.7 million in Q3 Fiscal 2025, compared to a loss of $4.1 million in Q3 Fiscal 2024, marking a 1412.7% decline[122]. - Net earnings loss was $20.8 million, down $95.9 million or 127.7% from net earnings of $75.1 million in Fiscal 2024[134]. Sales Channels and Growth - Direct to consumer channels accounted for 81% of consolidated net sales in Fiscal 2024, with the remaining 19% from wholesale distribution[76]. - The total number of direct to consumer locations increased to 358 as of November 1, 2025, up from 345 in the previous quarter[90]. - Emerging Brands net sales increased by $5 million, or 17%, driven by a 29% increase in e-commerce sales[104]. - E-commerce sales increased by $5 million, or 5%, with Lilly Pulitzer and Emerging Brands showing significant growth[101]. - Lilly Pulitzer saw a 7% increase in e-commerce sales, contributing to its overall sales growth[139]. - Emerging Brands saw a 12.5% increase in net sales to $108.9 million, but operating income fell to $2, a decrease of 100%[160]. Tax and Interest - The income tax benefit for Q3 Fiscal 2025 was $(23.1) million, a significant increase from $(2.9) million in Q3 Fiscal 2024, reflecting a 691.5% change[127]. - The effective tax rate for Q3 Fiscal 2025 was 26.6%, a decrease from 42.5% in Q3 Fiscal 2024, influenced by various factors including geographic mix of earnings[128]. - The effective tax rate for the first nine months of Fiscal 2025 was 26.7%, up from 22.7% in Fiscal 2024, influenced by various tax factors[164]. Capital and Investments - The company plans to continue investing in direct-to-consumer initiatives and information technology projects, supported by anticipated future cash flows[191]. - Capital expenditures for the First Nine Months of Fiscal 2025 were $93 million, slightly up from $92 million in the same period of Fiscal 2024[206]. - The company is building a new distribution center in Lyons, Georgia, as part of its capital expenditures[207]. - A cash dividend of $0.69 per share was approved, payable on January 30, 2026, to shareholders of record as of January 16, 2026[201]. Debt and Liquidity - Long-term debt increased to $140,436 as of November 1, 2025, compared to $29,304 as of November 2, 2024, indicating a significant rise in leverage[182]. - As of November 1, 2025, outstanding borrowings under the U.S. Revolving Credit Agreement totaled $140 million, with unused availability of $179 million[194]. - The company has maintained compliance with all applicable covenants related to the U.S. Revolving Credit Agreement as of November 1, 2025[199]. - The company is exposed to increased interest rate risks due to higher borrowings compared to February 1, 2025[215].