Oxford Industries(US:OXM) ZACKS·2024-12-13 18:31Core 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 $0.11 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] - Net sales were reported at $308 million, missing the consensus estimate of $318 million and down 5.7% from $326.6 million in the prior year [4] - Gross profit decreased by 5.3% to $194.5 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 $205 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 $69.8 million, and Johnny Was down 6.1% to $46.1 million [9] - Emerging Brands sales also slipped 1% to $30.9 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 $99 million and e-commerce sales down 11% to $101 million [10] - Outlet sales increased by 3% to $17 million, while wholesale sales decreased by 2% to $67 million [11] Financial Snapshot - The company ended the quarter with cash and cash equivalents of $7 million, long-term debt of $58 million, and shareholders' equity of $612.2 million [12] - For the first nine months of fiscal 2024, cash provided by operating activities was $104 million, with capital expenditures of $92 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-$1.52 billion, down from $1.51-$1.54 billion [14] - Adjusted EPS for fiscal 2024 is now expected to be between $6.50 and $6.70, a decrease from the previous range of $7-$7.30 [15] - For the fourth quarter of fiscal 2024, net sales are anticipated to be in the range of $375-$395 million, with adjusted EPS forecasted at $1.18-$1.38 [16]