OXM - Earnings call transcript Q3 2021 | Oxford Industries, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the Oxford Industries, Inc.

Third Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note, Please Instructions] conference recorded. is [Operator conference your host, will now Shoemaker. to the turn I Anne over

You may begin.

Anne Shoemaker

Thank you and good afternoon.

I on in laws. Before certain the meaning constitute begin, would federal remind within to we securities the participants forward-looking statements statements made Q&A today's the and of call session may like that

financial discussed expressed that not the press our filed forward-looking in are forward-looking in results to could statements operations implied actual condition any and no Forward-looking of our risk SEC, release in undertake and may issued update differ Important contained in by factors are including or statements. earlier documents actual guarantees our factors materially the We to cause results today Form XX-K. from those us differ statements. with duty the or

will we discussing be financial certain measures. call, this During non-GAAP

include you today's participants. Scott now me comparisons You now, measures are results. XXXX turn financial on to CEO; today and to Chubb, which I'd for Thank the Relations in to XXXX, oxfordinc.com. call website will can in your Tom earlier we our fiscal of posted at to our tab Chairman attention. under Grassmyer, a Chubb. With like to find today, like non-GAAP CFO. to and fiscal over Tom of I'd COVID-XX issued our Investor material introduce impact the our And is release GAAP And business reconciliation of the also press Due call

Tom Chubb

thank all Thank you, for joining Anne. Good us. you afternoon and

third core of reviewing I everyone Oxford's I to philosophies. quarter want results, begin remind operating Before

deliver to always Our objective is value. shareholder long-term

With the can purpose sustained powerful for we're is our delighted brand be earnings strength company power with channels, to in as have and pandemic. offerings combined record of profitable to is each with people lifestyle outstanding cornerstones our this are reporting to growth. the delivering brands, quarter directly a own connect our for during ability happy. and our make across value portfolio, portfolio to teams These third our strategy brands sales and work the of that, of fiscal a customers And of these of attributable to drive that Our product fortify great the results XXXX. serve foundational the and to done our

the compared more As compared to to increased last increased our same also year, quarter XXXX as fiscal And our sales pre-COVID XX%. sales importantly, even levels.

XXXX, of per share they earnings $X.XX more $X.XX record year, per per an drove loss our growth brands addition during of a XXXX. a of XX% Apparel, I and by quarter XX% Lanier to on an fiscal during the metrics of adjusted were detail as line to adjusted effectively in direct-to-consumer the XX% to during new excellent the of Restaurant compared quarter adjusted with basis of third but in XXXX. quarter that experienced gross At in an on our sales the gain same basis adjusted e-commerce. Excluding share share growth as the and in fine top XXXX XXXX, time, over same exited the XXX fiscal third well also our to retail in the contributed operations full-price each growing fiscal full third as that XX% increased quarter net these in will of fueled to compared of $X.XX during locations, Bar third existing impressive at compared points fiscal Marlin all we the improvement, third quarter by third XXX% was fiscal increased business, elaborate momentarily, compared earnings quarter sales of of including full-price last as robust to fiscal increase where increases The strong locations. third the fiscal XXXX, fiscal price margin growth XXXX, will period driven sales Scott of XXXX. XX% mention quarter

results, our a the strategy of consumer businesses. quarter of our no from Lanier our an and legacy our execution purpose. While Apparel milestone of excellent quarter was as last the driver The doubt outperformance very Lanier believe benefited the third third our strong was private in the market, primary long-term strategy, exit of important we label during marked

XXX% X Our stores Tommy and and the that consumer Company current Tide, restaurants e-commerce superior accounts. our brands, Duck customer These with Bonnet Pulitzer, experiences, and brands differentiated portfolio messages, lifestyle Beaufort clear consists powerful The wholesale making happy Southern our websites, excellent product, consumer including are Bahama, Lilly focused Head. of brand exceptional and on strategic

Over upbeat the responsible brand X big in to us with are and positive Those content portion our creative is across any our product The consumers brands, brand years the have messages year commitment chain and and we messages delivering with This required have particular business achieved resonating a enhances imagery. our are large we in challenges on of industry-wide our last especially The gives on part flexibility merchants margin time. to that expected provides beautiful our and as of the direct The a product business are at significant during we we are flow for of featuring through our which to the predominant as floor proven mix of to that gain customers. significant our what our margin and highly delivering. quarter. supply the the customers. our gross website managing to to be deliver to power also has direct flexibility in useful excellent ability XX% adaptable this results happiness our of agility be over model us direct-to-consumer, redoubled is point

experience of the our X years. that gives of to to deliver an continued challenges with aspirational Finally, is And customer have elevated us unparalleled the opportunity through people direct-to-consumer incredible provide all brands. model experience the positioning that consistent the the our last

the that retention strong all hallmark of our rates the analyze increasing our and women's enhance Knits to and capabilities and of a digital data, about existing with some easy years our of and to last that year, effectiveness improving insights reach campaigns on including One customer more end as customer measure spend shirts reengaged men's examples been additions, of same Pulitzer's, we accounts, lounge were Tommy woven I strength in campaigns nice potential across and third use of the XX-month and of of rebound to designed value develop athleisure last Great and in people higher all a marketing collection. data time, to and strength the the retaining customer new Luxletic over continue Lilly our see are has and XXXX, brands. the styles existing and by metrics our a customers. are members. strategic continued to those shorts, At that at create report driving casual, saw trailing the most From lifetime customers, of those to quarter of rate relative assimilate to priorities pants of occasion-driven customers couple basis, consumers categories customer this ability we women's am a pre-pandemic including and in pleased product account, fiscal goals of the that perspective, Bahama customer in challenged all sleepwear events. were dresses cozy social

our will strong and to As that report to to am a I has Scott I'm additional we share stretch of Scott? that year. robust, a turn their pride we believe and final for of outlook in holiday head our the been for the customers selling firmly over insights call deliver for -- what year. fantastic into shareholders. incredibly the detail team year, I'll our pleased grateful finish to third delivered and the to-date now have I we quarter balance and the the the our into on

Scott Grassmyer

Tom. you, Thank

mentioned, to outstanding in each had significant which just Tom brands margin, and exceeding levels quarter, earnings results. during operating performances we sales, pre-pandemic third our gross growth. the resulted margin, As in of

On our revenue our remained brands. of products and direct-to-consumer exceeded channels the topline, each for XXXX our at high in demand and

quarter exited foreign in regions operations on except improvements Excluding the to strength has Oahu, Consolidated with were islands. the tours fiscal $XXX effectively dependent which sales been million. increased all with is other Island XXXX. during than of in Texas. where Florida, Hawaii and overall strength the had particular third positive of more Apparel, the Southeast, We Lanier on XX%

sales, XXX improving margin to XX% reductions quarter, XXXX gained to gross we basis of adjusted partially from an of overall in from offset SG&A proportion partially in direct-to-consumer XXXX. SG&A higher sales XX% an leverage XXXX lower improved this shift track of in of costs quarter. of levels our in higher in significantly with On to in of the over modestly of basis, than freight, the higher Adjusted improvement. cost On higher channels to Approximately the decreases sales use in increases gross improvement third air margin headcount points to IMUs. full-price occupancy including Our the Driving distribution, a continued offset basis, basis employment freight and points XX% XXX third marketing basis expanded sales XXXX by of margin some expense. adjusted margin XXXX. costs, points mix was decreased dollars due and our

consolidated from Pulitzer, Lilly all our experienced Southern operating result, XXXX margin and expansion. X% to expanded XXX points basis margin Bahama, XX%. a operating Tommy As Tide in

seasonal during months revolving investments Apparel $XXX meet sheet, of ended throughout enterprise season. order Moving holiday strong. with forecasted is prudent quarter Lanier and ongoing than excluding liquidity our position well-positioned and under enhancements of cash our selling to purchases. inventory the management XXXX, our and is remainder first to the balance sales borrowings compared expected inventory XX% facility. credit systems We believe due the to nine FIFO decreased to short-term We to outstanding no third the our higher the of XXXX, demand million fiscal

ahead, deliver holiday our quarter. season solid are Looking we fourth a results pleased today and confident we are with

direct-to-consumer our of full-price business. strength Our in outlook reflects expectation continued

growth gross XXXX. direct-to-consumer We over expect sales full-price margin and expansion consolidated

in the improvement to full-price year, year. handful we our our of quarter the of in direct expected raised fiscal fourth be is outlook items offset year-over-year While partially a specific by business the for

fourth this the lower be we year. sales Apparel QX exited expect from quarter Lanier We in to than of business $XX as approximately million XXXX's

initial are first ship we have air on the than addition, expect freight our we've historically the approximately shipped lower warmer These but quarter XXXX. wholesale shipments. in certain product. the by impacted as $XX XXXX In to for in be reliance wholesale reduced quarter, our spring million to to shift expected weather of fourth is branded This business

fourth XXXX full-price Lilly for flash to the Pulitzer cell. quarter expect less in to flash lower be sale year-to-date inventory also clearance due available the strong resulting to compared We sales,

fourth fiscal $XXX XXXX, Again, XXXX. $X.XX fiscal fourth net sales to Lanier be between basis expect an of compared and million quarter quarter sales in quarter, we in adjusted the the For $XXX an on generated million quarter XXXX. sales Apparel million compared of of fourth we million of earnings fourth to earnings fourth in $XXX XXXX. share expect on share of to In in the of the to adjusted $X.XX the per of per $X.XX quarter basis $XX

a Our outlook includes the holiday quarter-to-date strong to season. with solid results selling start

the expect $X.XXX $X.XXX we XXXX. of to year, now billion full sales the For to in compared billion in as range sales of $X.XXX billion

full between earnings from For basis compared XXXX of earnings $X.XX is on share XXXX. in share $XX expected per in to million adjusted to an year, XXXX. Lanier This per Adjusted in $X.XX. sales compared be $XX is the million Apparel expected to $X.XX be and to

expected tax effective XX%. XXXX year fiscal is approximately full rate the to Our for be

Beaufort expenditure with investments store excited $XX is initiatives, million quarter. in to in retail stores. business We're We future fiscal Sandestin reflecting for at and Bars our Capital XXXX, later open expected investments to primarily Bonnet in continue our $XX and new be technology growth. information Marlin support million Company company-owned between Boulevard Grand first to this

strong million We operations, cash flow $XXX continue to year-to-date. from including generate

XXXX. of through which allocation investing remain strong have cash shareholders shareholders through we in every businesses, and since We repurchases. public paid long dividends going value position history return and our of and capital dividends, share Our the returning to our return to include in are in acquisitions proud a quarter priorities to capital of

a our quarter, dividend has $X.XX of Directors of Board per This declared share.

turn plan, approved assessing over share Directors our the million. of in call of authorization allocation Shamalee? new We Board appreciate we'll repurchase time questions. capital $XXX your today, for now our Additionally, a and

Operator

question-and-answer first comes Ed And Instructions] with you. Yruma conducting [Operator the time, your of from a Thank proceed with question. be Please we this KeyBanc. Our at question line will session

Ed Yruma

than job hear pulling and you've Hey, you're in-stocks sound the great guys. thus Congratulations good you year situated like any really the And and kind the next to I kind for of leaves know know implications shift how least on for guidance far. sure guess pulling process great about then guys for guys holiday a that at of me, and holiday. we you I inventory should sufficient focus making part opening done this a quarter of more then opening shorter-term longer-term think question, the Southern offering the you question, forward Tide of a the other focus for around momentum of a wholesale guess, I were I stores. but indicated question yet, juggling, inventory not you started XXXX? have longer-term

guys sound Beaufort like you're one going You do store. the to Bonnet

you an rollout overview Thank potential are banners? of kind you. store think in across Just your where of you your

Tom Chubb

not mentioned, we've in that you a to the satisfy account sure that. to being to lot for results supply any and differentiated third nimble in pleased were all that that And time ourselves. There's meet were everybody sales in with out the very But objectives Yes. Thank works. going into that situation, of we've the And experiencing. stretched of and done that's I to think of nimble customers. industry we we're it We with inventory our chain a the you, agile. we're then, the our dealing problem as job, the in be and earlier continuing and Ed. really anticipating making sure terrific the is very, But able as the ordering we're way work agile quarter inventory, doing making

I business that on able not helpful us supply don't for you. issues, on line based to be chain the bottom the deliver that's that, to if So is expect

Southern Bars We've and that And is I the more got seeing lot Scott then And Company. term yes, four Tide Beaufort couple going Southern shape. And well. Tide. the elaborate They for way very potentially Tommy continue are look think, With his a good to we're Southern in focus the locations to Marlin know have brands a renewal new for I be soon. on continue in as on Bonnet and we of at time, more that we'll as I'll But then much for think Tommy pipeline looking to mentioned stores on -- more store, Marlin in think, to very we're, some what Lilly, definitely that, on have got really Tide is focus also hunt in all all Bars. you in and other now. may with in were opportunities, got drop open additional four Lilly, Beaufort to first that Bonnet, in too. just across be we get Lilly, at learning that as be, to long to the there the stores like some the are with of existing Marlin the new long-term we're the stores and stores exit. from Bars. pleased we've let as And carefully, from much minute. the in the And respect to Scott we'll progressing. the the we've time then the on roster as and and Tommy plan dates stores we're section, open out a works stand-alone But I to opportunities or stores. more evaluating Bahama, the we're will

Scott Grassmyer

stores. Yes. to little We -- pipeline while yes, it build takes the a of

Marlin in get pipeline Marlin the future. Bars Bars have XXXX that strong leave confident and Bars the year So with particular, -- we the for and feel Marlin in some we'll but of

we like our we're brick-and-mortar in -- So still we to like brands. -- stores

Ed Yruma

you. Thank

Tom Chubb

Happy holidays Ed. to you, Thank you.

Ed Yruma

well. as guys you To

Tom Chubb

Thank you.

Operator

proceed with Citigroup. Please the our question from line And your question. of Paul comes with Lejuez next

Tracy Kogan

Kogan couple Paul. It's had for in questions. I filling Thanks. Tracy of a

I'm first holiday that The know said sales Just are Thank was the to frame have get? you I cancellations can any is, robust. trends wondering on us, the that partners? been or accelerated to wondering to potentially then relative your you can anything taking order I guys if just you're color And partners sales are XXXX you. XQ? from still side, date arriving could when things have there they compared any seeing Are there. give for you wholesale wholesale what late,

Tom Chubb

being Yes. on today. the Sure, Tracy, and thanks call for

the and the quite our wholesale retail partners for to quarter been understand has the partners the the of the of wholesale fourth early As at performance really They situation. good products third our chain supply are, through part quarter.

And so, no, anticipating not we cancellations. are

had with sales, have them but for Jump us then issues them, cases, are asking quarter, from it would we give A to the from I they -- lot anticipating are and to think own of if more expectations most us say I'll rest of give trend not available. of a if lot on for it's with the let quite more them our we we the safe and quarter fourth can direct-to-consumer in don't to we hungry Scott are goods necessarily strength the And date, cancellations. maybe take in.

Scott Grassmyer

the right similar with freight well concerns to are of direct-to-consumer. third pick anticipated a earlier Yes. up. now We're some a to in lot total quarter year, off stores checking little this the cut pretty dynamics. e-com, and maybe because And of of that timing There

that monitoring closely. So we're

We some So invest for but the pleased did on for a beginning in. And lot are chances, the one product – of of holiday. bring to just there's all the holiday we additional we with airfreight left, point wholesale holiday and business. did

Everything did been have on a of margin in was our offset the without time, that. drag, have little of chain. the but wholesale goods supply delays help better partners even we So, some for on we the in the airfreight would floor did margins bit been a to it but were holiday. have might sure invest right trying to right make not And

Tracy Kogan

for it. [indiscernible]. very much Got Thanks

Tom Chubb

you, Tracy. Thank

Operator

of Riley. from line next question And your question. with the Anderson with comes Susan Please our proceed B.

Susan Anderson

on you pretty that's been wholesale then Hi, look probably as I'm spring, we thinking fall, out on than good your to guess longer strong. just evening. they're term? penetration really that just quick much I follow-up obviously, assuming a depending them? product get are Nice job seeing the higher can on we're DTC I business, on for in And quarter. the how you guess, orders. is How what about

Tom Chubb

Yes.

little really trends wholesale, point, seeing. the think the year. We're are on pleased we're on and wholesale the think with rebuilding spring booking a I seeing is floor So, business for that's nicely. summer At of we're I that next retail And selling we this that the bit quite well. through

much all our for and I I the future think, pretty customers, that is universally of wholesale good a wholesale. think, sign

because where dollars. my And whether then it as point think around doesn't, has number that's the And the we question proportion, XX% what do I As faster. of fast in mentioned. wholesale bit probably dollars a selective we're last just have even actual we've where over as is down probably in businesses? we've about will question opportunity direct-to-consumer very years really the if wholesale, sell them. been growing been going it we a to to the that think hunch versus to is of got who the period direct grows as know, Susan, somewhere if it But the in you that been probably hangs as we growth I sell couple be wholesale there at a direct-to-consumer and that's some that,

Susan Anderson

how you Great. quick us and much you prices the next in And raised back expectations remind on half for year? then pricing. Can the That's helpful. the what just are really

Tom Chubb

this about in X were IMUs Our IMUs up year. point

certainly and year. all more attempt offset we've prices out, operating lot we're very they're are to than the are and IMUs and offset on There there's but how they that. groups year, there's -- at are next to to going factories a got least see we shake to that we on, moving inflationary our and price, planning proactive some Going our on moving sure pressures little pass move we the to that to but help been on to hopefully having of into at up come next us a have offset have inflation is, exactly maybe not it's pressures cost going

Susan Anderson

I then And Great. last could one if one, add.

Just around balances balance the obviously, any cash you're shareholders allocation, thoughts to a capital on return and acquisitions? sheet, potential record cash

Tom Chubb

Yes.

right share and his is appropriate returning both Susan remarks, has not in that's for businesses; cash our has that changed. just approved foremost, Scott repurchase ever changed third, authorization the repurchases. which flow situation M&A opportunities; they've the would the So existing and really invest Accordingly, flow think announced and share second, don't the us cash strong really – million in our to I mentioned think position are that changed our just as we cash that, are include and capital very capital and now. strategy $XXX in our to It's our philosophy What's – and allocation been shareholders, really and before. Board I first dividends stronger than cash

Susan Anderson

Great. holidays. for That’s luck the and rest very year happy Good helpful. of

Tom Chubb

Happy too. holiday, Susan. You

Susan Anderson

Thanks.

Operator

question. from Please Our question comes with next proceed King Steve line CL your with the of Marotta Associates.

Steve Marotta

evening, the Good continued there again on Are constraints, is rearview questions capacity Scott, the or Two that third Tom, mirror? the in congratulations quarter. any on restaurants.

Tom Chubb

possibly them Hawaii, and in other I'm There that. think recite still some, in some, a to they're I I places, can are not there of got some of we've all couple least at No. are but the you, sure and still

Steve Marotta

roughly on is Is possible ballpark? just it chain-wide, XX%, XX% or quantify in XX%, a to it

Tom Chubb

a it our of some It's in limited some couple but hour we where tough are to quantify, have operating to Marlin also restrictions there is centers Bar. states, but

restricted. they're but they're doing could well, So of way I really the could with be but more they our that happy be some the restaurants, we're -- doing in areas business more could performing, think some doing extremely

Steve Marotta

you Also question. basically That's now got... the that

Tom Chubb

I as at not awful in want making not I means of restaurant, we're think on those just happy implications in brand. only guests our what but lot big for really numbers what them a restaurants. really somebody of that's our that's it to what guests them is if doing delivering of experience for terms in I but think the remember to our the that's I that the I on financial it's and at home, brand think, in to you're incredible an that think part restaurants. love wonderful, depth word we and the The an word a And And what the restaurants, the home to in and hospitality could, the really, That's we hospitality, important us. biggest deliver that And about making and our powerful feel Steve, financial the brand. our the and restaurants adds story that for is reinforcement are brands. but and experience the in impact, that of our numbers for texture brand feel

just it's that. the think value of hard overstate it's I to

Steve Marotta

that a you has you've That's now material a under calendar or any very either the the through the helpful. there your Bar, that upside been seasonality Marlin And of belt bit surprised with has more got downside?

Scott Grassmyer

you'd well some holding when there's in you how that and think they I season, get Coconut where are dead, expect it's of think out you still even traffic. some got amazing of the would when places markets, Point, summer they be I about the the warmer like in

better So around Fort I they've of they're traffic -- the some felt are still We've very seasons. dependent. Lauderdale think got the ones in some off cruise still

we've are to still that know doing once not they'll pleased So But with normal. Bar. the those are -- Marlin very returns we do been what

Tom Chubb

just think to of it's would pleasant to not it's that more see what be arguably at there, do. when I a a might reinforce you sit just there, the I of if all people than Scott willingness we And and times said, outside you think there's drop-off would surprise

Steve Marotta

tried want all You unpleasant December of in York. New

Tom Chubb

Thank We you. Look, that. get relevant. everything is

Scott Grassmyer

much. very you Thank

Tom Chubb

Steve. Happy Holiday’s,

Steve Marotta

you. Thank

Operator

back I And now question-and-answer Tom for we our will remarks. to end have the closing call of the Chubb session. reached turn over

Tom Chubb

Thank and our continue and us. we you proud to do the and brands, for third deliver of customers. to to of to look to Happy Okay. is that that March. products the that and for we're a think you our of all the the you we we've going believe for what result in delivered joining you to be able we direct fourth much very service quarter forward We quarter results it differentiate to the all done We're work Holidays wish again talking to all that our really

Operator

time. disconnect at concludes conference, and may And this your you this Thank your today's you lines participation. for

Oxford Industries (OXM) 8 Dec 212021 Q3 Earnings call transcript