Oxford Industries(US:OXM)2023-06-07 23:53Financial Data and Key Metrics Changes - Adjusted EPS for the quarter was $3.78, up from $3.50 in the first quarter of last year, representing an 8% year-over-year growth [15][44] - Consolidated net sales for the first quarter of fiscal 2023 were $420 million, a 19% increase from $353 million in the prior year [68][92] - Adjusted gross margin expanded by 130 basis points to 65.8%, driven by higher gross margins in both Tommy Bahama and Lilly Pulitzer [69] Business Line Data and Key Metrics Changes - Tommy Bahama achieved a 5% sales increase across all distribution channels, with women's business growing faster than men's [93] - Lilly Pulitzer's sales grew 6% from $92 million to $97 million, with direct-to-consumer channels driving growth despite a modest decline in wholesale [106] - The Emerging Brands Group posted a 7% year-over-year sales growth [36] Market Data and Key Metrics Changes - Full-price e-commerce sales increased by 20%, while full-price brick-and-mortar sales rose by 2% [42] - The company experienced a decrease in Lilly Pulitzer e-commerce flash sales, down $7 million compared to the previous year [42] Company Strategy and Development Direction - The company aims to maximize long-term shareholder value by focusing on a portfolio of lifestyle brands that deliver sustained profitable growth [19] - Continued investment in people, marketing, IT, and stores is planned to support future growth [40][110] - The integration of Johnny Was into the company's platform is a priority for establishing a foundation for sustained growth [94] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending has become more cautious, impacting conversion rates despite positive traffic trends [37][39] - The company expects a more modest gross margin expansion for the full year of 2023 compared to the first quarter [46] - A forecast moderation for the year was indicated, with expectations for sales growth in the low to mid-single-digit range [95][109] Other Important Information - The company anticipates year-end inventory balances to be at or below last year's levels, with a focus on reducing excess inventory [45][81] - Capital expenditures for fiscal 2023 are expected to be approximately $9 million, significantly lower than $47 million in fiscal 2022 [49] Q&A Session Summary Question: What are the inventory levels and trends for the year? - Management indicated that inventory levels are expected to be lower year-over-year, with a focus on aligning inventory with sales growth [45][81] Question: How did Johnny Was perform relative to expectations? - Johnny Was performed slightly below expectations in the first quarter, impacted by cautious consumer behavior in its primary market [62][99] Question: What are the trends by brand for the second quarter guidance? - Tommy Bahama is expected to show marginal growth, while Lilly Pulitzer may see a slight decline in full-price sales [61][106]