Oxford Industries(OXM) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated net sales for the First Quarter of Fiscal 2024 were $398 million, a decrease of 5.2% from $420 million in the same period of Fiscal 2023[69] - Operating income fell to $52.5 million in the First Quarter of Fiscal 2024, down 34.7% from $80.3 million in the First Quarter of Fiscal 2023[55] - Net earnings decreased by 34.4% to $38.4 million in the First Quarter of Fiscal 2024, compared to $58.5 million in the First Quarter of Fiscal 2023[55] - Net earnings per diluted share were $2.42, a decline of 33.5% from $3.64 in the First Quarter of Fiscal 2023[55] - Consolidated gross profit decreased by $16.8 million, or 6.1%, in Q1 Fiscal 2024, primarily due to a 5% decrease in net sales[81] - SG&A expenses increased by $9.95 million, or 4.9%, in Q1 Fiscal 2024, representing 53.5% of net sales compared to 48.4% in Q1 Fiscal 2023[87] - Corporate and Other reported a net loss of $9.86 million in Q1 Fiscal 2024, compared to a loss of $6.13 million in Q1 Fiscal 2023[89] - The overall net earnings for the company decreased from $58,538 million in Fiscal 2023 to $38,373 million in Fiscal 2024, reflecting a decline of $20,165 million, or 34.4%[97] Sales Performance by Brand - Tommy Bahama net sales decreased by 5.8% to $225.6 million, while Lilly Pulitzer sales fell by 9.3% to $88.4 million in the First Quarter of Fiscal 2024[69] - Tommy Bahama net sales decreased by $14 million, or 6%, in Q1 Fiscal 2024, with wholesale sales down by $11 million, or 20%[74] - Lilly Pulitzer net sales decreased by $9 million, or 9%, in Q1 Fiscal 2024, primarily due to a $5 million, or 11%, drop in e-commerce sales[75] - Johnny Was net sales increased by $2 million, or 3%, in Q1 Fiscal 2024, driven by a $2 million, or 11%, increase in e-commerce sales[76] - Emerging Brands net sales decreased by $1 million, or 3%, in Q1 Fiscal 2024, with wholesale sales down by $3 million, or 15%[77] - Lilly Pulitzer's net sales decreased by $9,029 million, or 9.3%, from $97,450 million in Fiscal 2023 to $88,421 million in Fiscal 2024[91] - Johnny Was reported a net sales increase of $1,721 million, or 3.5%, from $49,491 million in Fiscal 2023 to $51,212 million in Fiscal 2024[92] - Emerging Brands experienced a net sales decline of $990 million, or 2.9%, from $33,991 million in Fiscal 2023 to $33,001 million in Fiscal 2024[93] Operational Metrics - Direct to consumer channels accounted for 80% of consolidated net sales, with the remaining 20% generated through wholesale distribution channels[47] - The number of direct to consumer locations increased to 322 as of May 4, 2024, up from 295 a year earlier[63] - The company continues to invest in direct to consumer initiatives and distribution capabilities to leverage technology for consumer engagement[54] - E-commerce sales decreased by $6 million, or 5%, with Lilly Pulitzer experiencing a $5 million decline[70] Cost and Margin Analysis - Tommy Bahama's gross margin decreased to 65.7% in Q1 Fiscal 2024 from 66.1% in Q1 Fiscal 2023[81] - Lilly Pulitzer's gross margin decreased to 67.0% in Q1 Fiscal 2024 from 70.1% in Q1 Fiscal 2023[83] - Gross profit for Lilly Pulitzer decreased by $9,017 million, or 13.2%, from $68,296 million in Fiscal 2023 to $59,279 million in Fiscal 2024[91] Economic Environment - The macroeconomic environment remains challenging, with inflation and geopolitical issues impacting consumer spending behavior[53] Tax and Interest Expenses - The effective income tax rate increased from 24.9% in Fiscal 2023 to 25.6% in Fiscal 2024, driven by the remeasurement of deferred tax assets[96] - Interest expense decreased significantly by $1,468 million, or 62.7%, from $2,342 million in Fiscal 2023 to $874 million in Fiscal 2024[95] Assets and Liabilities - Total current assets as of May 4, 2024, were $298,363 million, a decrease from $327,704 million as of April 29, 2023[102] - Working capital increased from $60,824 million in April 2023 to $72,778 million in May 2024, reflecting improved liquidity[102] - Total current liabilities decreased to $225.6 million as of May 4, 2024, from $240.6 million in February 2024, primarily due to decreased taxes payable and accrued compensation[111] - Long-term debt reduced to $18.6 million as of May 4, 2024, down from $29.3 million in February 2024, reflecting ongoing debt repayment initiatives[111] Cash Flow and Capital Expenditures - Cash provided by operating activities was $32.9 million in Q1 Fiscal 2024, compared to $52.6 million in Q1 Fiscal 2023[115] - Capital expenditures for Fiscal 2024 are anticipated to be approximately $170 million, significantly higher than $74 million in Fiscal 2023, including $90 million for a new distribution center[134] Future Plans and Dividends - The company plans to increase full-price stores by approximately 25 by the end of Fiscal 2024[134] - A cash dividend of $0.67 per share was approved, payable on August 2, 2024, to shareholders of record as of July 19, 2024[133] Risk Exposure - The company is exposed to interest rate, foreign currency, commodity, and inflation risks as detailed in the Fiscal 2023 Form 10-K[142] - There have been no material changes in the company's exposure to these risks during the First Quarter of Fiscal 2024[142] - The company has decreased its exposure to interest rates due to reduced borrowings compared to February 3, 2024[142]