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OXM Posts Loss in Q3, Lowers FY24 View on Weak Consumer Landscape
OXMOxford Industries(OXM) ZACKS·2024-12-13 18:31

Core Insights - Oxford Industries, Inc. (OXM) reported third-quarter fiscal 2024 results, with both revenue and earnings missing consensus estimates and declining year over year [1][3][4] Financial Performance - The company experienced a quarterly loss of 0.11pershare,significantlydownfromearningsof0.11 per share, significantly down from earnings of 1.01 in the same quarter last year, and below the Zacks Consensus Estimate of 0.11[3][4]−Netsaleswerereportedat0.11 [3][4] - Net sales were reported at 308 million, missing the consensus estimate of 318millionanddown5.7318 million and down 5.7% from 326.6 million in the prior year [4] - Gross profit decreased by 5.3% to 194.5millionfrom194.5 million from 205.4 million in the year-ago quarter, while gross margin expanded by 20 basis points to 63.1% due to reduced LIFO accounting charges and fewer discounts at Lilly Pulitzer [5] Operating Expenses - Selling, general and administrative (SG&A) expenses rose to 205millionfrom205 million from 195 million in the prior year, with adjusted SG&A expenses increasing 5% to 201 million [6] - The increase in SG&A expenses was attributed to investments in the business, including costs related to new store openings and hurricane-related expenses [7] Sales Performance by Brand - Sales across key brands declined, with Tommy Bahama down 5.2% to 161.3 million, Lilly Pulitzer down 8.5% to 69.8million,andJohnnyWasdown6.169.8 million, and Johnny Was down 6.1% to 46.1 million [9] - Emerging Brands sales also slipped 1% to 30.9million[9]SalesbyDistributionChannel−Full−pricedirect−to−consumersalesfell830.9 million [9] Sales by Distribution Channel - Full-price direct-to-consumer sales fell 8% to 200 million, with full-price retail sales down 6% to 99millionande−commercesalesdown1199 million and e-commerce sales down 11% to 101 million [10] - Outlet sales increased by 3% to 17million,whilewholesalesalesdecreasedby217 million, while wholesale sales decreased by 2% to 67 million [11] Financial Snapshot - The company ended the quarter with cash and cash equivalents of 7million,long−termdebtof7 million, long-term debt of 58 million, and shareholders' equity of 612.2million[12]−Forthefirstninemonthsoffiscal2024,cashprovidedbyoperatingactivitieswas612.2 million [12] - For the first nine months of fiscal 2024, cash provided by operating activities was 104 million, with capital expenditures of 92million[12]FutureOutlook−Duetothefiscalthird−quarterresultsandongoingchallenges,thecompanyreviseditsfiscal2024salesforecasttoarangeof92 million [12] Future Outlook - Due to the fiscal third-quarter results and ongoing challenges, the company revised its fiscal 2024 sales forecast to a range of 1.50-1.52billion,downfrom1.52 billion, down from 1.51-1.54billion[14]−AdjustedEPSforfiscal2024isnowexpectedtobebetween1.54 billion [14] - Adjusted EPS for fiscal 2024 is now expected to be between 6.50 and 6.70,adecreasefromthepreviousrangeof6.70, a decrease from the previous range of 7-7.30[15]−Forthefourthquarteroffiscal2024,netsalesareanticipatedtobeintherangeof7.30 [15] - For the fourth quarter of fiscal 2024, net sales are anticipated to be in the range of 375-395million,withadjustedEPSforecastedat395 million, with adjusted EPS forecasted at 1.18-$1.38 [16]