Oxford Industries(US:OXM)2022-03-24 00:37Financial Data and Key Metrics Changes - In fiscal 2021, consolidated net sales reached $1.142 billion, with a 9% increase over fiscal 2019 when excluding Lanier Apparel [26][28] - Adjusted gross margin was 63%, up from 57.6% in fiscal 2019, reflecting a 540 basis point improvement [28] - Operating margin increased by 650 basis points on an adjusted basis to 15% of net sales [28][29] - Adjusted earnings per share (EPS) for fiscal 2021 were $7.99, with projections for fiscal 2022 EPS ranging from $8.75 to $9.15 [35] Business Line Data and Key Metrics Changes - Tommy Bahama, the largest brand, achieved record sales of $724 million, growing 7% compared to 2019 [9] - All five brands, including Lilly Pulitzer and Southern Tide, reported strong growth, with net sales increasing by 9% for the full fiscal year compared to 2019 [8][9] - The full-price e-commerce business grew significantly, up 58% versus fiscal 2019 [27] Market Data and Key Metrics Changes - Retail stores and restaurants showed particular strength in Florida, the Southeast, and Texas compared to fiscal 2019 [27] - The company reported a customer count of over 2 million active brand customers, up from approximately 1.8 million at the end of fiscal 2019 [17][86] Company Strategy and Development Direction - The company plans to focus on four strategic pillars for growth: long-term brand growth, enhancing digital and omnichannel capabilities, driving operational excellence, and managing the portfolio for sustained profitable growth [18][19][20][22] - Emphasis on direct-to-consumer channels, which represent 80% of the business, is expected to enhance execution amid supply chain disruptions [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2022, projecting double-digit top and bottom line growth [18][33] - The company is navigating supply chain challenges effectively, with a focus on agility and early purchasing to mitigate delays [56][57][59] - Management does not anticipate significant impacts from last year's stimulus actions on current business performance [66][68] Other Important Information - The Board of Directors increased the quarterly dividend from $0.42 to $0.55 per share, a 31% increase [39] - Capital expenditures are expected to rise to approximately $50 million in fiscal 2022, with a focus on technology initiatives and new store openings [38][77] Q&A Session Summary Question: Pricing expectations for this year versus last year - Management indicated that price increases are being implemented strategically, with both pricing and unit growth contributing to projected double-digit growth [41][44] Question: Growth expectations by brand and performance of Tommy Bahama - All brands are expected to have a strong year, with women's business in Tommy Bahama showing particularly robust growth [46][49] Question: Current supply chain situation and future expectations - Management acknowledged supply chain challenges but expressed confidence in their ability to manage them effectively [56][60] Question: Impact of stimulus actions on margins - Management does not believe stimulus actions significantly fueled business last year and does not expect much impact this year [66][68] Question: Regional performance and sales growth opportunities - Strong performance continues in traditional markets like Florida and Texas, with signs of improvement in the Northeast and Midwest [76] Question: Customer count growth since 2019 - Active customer count increased from 1.8 million to 2 million across all brands from 2019 to 2021 [86][87]