- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Oxford Industries Third Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference call is being recorded. I will now turn the conference over to our host, Jevon Strasser of Investor Relations. you. Thank

begin. may You

Jevon Strasser

good and afternoon. you, Thank

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

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

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

participants. non-GAAP at like are COO. a Thank me Investor call over and GAAP I'd your And attention. And press is find in our introduce today for today, turn of CFO website Chairman I'd issued the the like posted Chubb. now, Tom and under can our measures oxfordinc.com. and to reconciliation release call of financial Grassmyer, you earlier which today's now to With to CEO; tab to Scott Relations You Tom Chubb,

Tom Chubb

afternoon, Good fiscal the third XXXX for and quarter Jevon. you, joining Thank of OXM you thank us for conference call.

we sales experiences, that to you As and as through in to offer and, happiness sixth evoke long-term of of is the successful accomplish and quarter, customers group during quarter. an portfolio is sales adjusted fueled earnings. our deliver Pulitzer in profitable our allows of businesses shareholder the Sales we growth certainly with XXX in us improved most brand Johnny with brands, growth time, the our XX% combined record of company are Was across same evoking the aggregated Lilly for the impressive the that gain. know, of brands September driving services emerging growth a grew we our margin and Johnny line of profitable third At of top XX% a brands. an our all the gross with sustained objective Strong acquisition points. basis contributing course, Was products, quarter did purpose Bahama, When delivering million $XX consecutive our additional happiness, value. And in of our Tommy adjusted what

and increase biggest increased All of along these our year in Tommy earnings earnings a our repurchase factors, the both share $X.XX $X XX% in delivered to per XX% Lilly Pulitzer contributor our comps helped top $X.XX growing in with successful operating all to line XX% quarter was largest are which The growth a activity year. retail this with results drive last with and brand, from or income adjusted sales channels for e-commerce. and of quarter, adjusted increase $X.XX had Bahama, a distribution. million also in excellent positive

our newly revenue during had Brands increase quarter. XX% constituted third the a of Finally, Group Emerging

three advanced initiatives. will number I recently strategic also have many. We highlight a just among of

positioning, Mira it. the brand management team corporate than over hard with clearly have and in efforts operating growth many attractive in $XXX unit of future Was our with e-commerce so and XX located achieved in profitable of economics very to open Johnny and range, base. loyal stores late which should a million Was the margins by to emotional pleased model been old Was business the distribution The is Tommy than hospitality lifestyle has portfolio restaurant XX% on to we of an and business high-teen sales the Bahama that has announce far. The extraordinary the years an is a with has by plus that our Tommy place in attractive brand November, brands. time have the branded excellent through a a for the fleet Was September, during market. is and First, bolstered Johnny first brand has trajectory OXM. in led portion coming bit working priced more balanced generating Tommy mutually The $XXX XX has teams with profitable very for annualized enhancing in other business, customer to affordable million with well were which excellent Johnny over brand strong the we Johnny in been of that's business brand. wholesale the also a and ahead growth XXXX. I'm of brand Bahama they culturally aligned a and currently Monte OXM for foundation years all hotel, defined carefully integration an mid laying Bahama sales of its with successes added higher the annually. sits brands of engagement and long player connection their In strategically Resort, drives our and grateful does them luxury The

hotel of our Our business. customers a have natural long hospitality extension viewed as a resort

and most One Valley since XXXX. we've store in a been restaurants the located operating of California, bar our successful Coachella is Palm in in where restaurant Desert

Bar in a We in Palm Marlin Springs XXXX. also opened

Tennis tournament. Indian Bahama you familiar Tommy Paribas of the Tennis and/or Valley with is will the location BNP Resort which Coachella to wells, home our Miramonte the also of be are who Fans, For the those an

and a opportunity fantastic Group in have years. this a Low have them been We with discussing for the of number partner

the of opening hotel will to look able visit. We are the be you that glad to to We all see it in hope and to coming fruition. forward

to make retain customer and and our excellent in to attract customers continue drive progress engagement. we ability Third,

well XX quarter, the Including, weeks of Johnny they we last the last end X.X customers increased the had customers, We have transacted unique million our the which Johnny us efforts, quarter. of annual across in versus of all been have average are Was Included customers, not of quarter, have months. XX% us across most of been increasing as customer of the spending a only more brands. base, marketing as efforts in with and Cyber weekend. spent is center As this our marketing was With priority impressive very enterprise some function believe establishment the digital for principal team brought strategic the quarter any but We our year's those emerging the feel attributable more of selling year. whose in of that end results bringing early who posting Scott Was, a holiday in fiscal our these shape a gains identifiable with holiday we third a will Friday, season excluding the the very by to three more go strong during in little Christmas, before less minute, our began the to brands particularly our positive in about deliver This the excellence as season Monday ability inventories to during result brands within service built avoid year support well and more Black are this snows third inventory fourth but elaborate of (ph). as to supply group. normalized to during than as to excellent quarter. chain levels a

the role to example our of customers aftermath gratitude and Whatever Due among happiness I had a Ian, markets focused the to serving we be of it that operating time. the the their beat as on commitment may people do challenges A dedication to we occurred within have in simply great their within and hurricane very their and of were entire express on example the personal Finally, how many struck we incredible is unparalleled. the thank would quarter, This company our important of in one like resilience a this the of commitment missed our team company my are basis to lives. on fact our one during a every and just Hurricane our business-as-usual customers. I people. evoking people, notwithstanding the and of short is notwithstanding most hardly

more We the very now and wish our and on the of of all the them very for and to Scott? who the happy will provide you all to a details are season. grateful over holiday of quarter all call balance year. I'll Scott, hand of outlook them

Scott Grassmyer

to earnings in quarter, of quarter XX% XXXX. million, driven margin XX% revenue strong full of thrilled $XXX of across gross outlets. and $XX was million We're XX% by This full our deliver sixth price of price all Johnny sales third our sales, quarter for XX% adjusted sales third XX% linear included last performance of record bricks-and-mortar, Tom. increases brands growing the Consolidated Excellent $XXX all which distribution XXXX. of in quarter of million $X sales were year's the you, expansion third and e-commerce, third in versus Thank in the and restaurants wholesale, channels apparel. was net consecutive sales with in in for growth in of which from channels distribution included quarter XX% above Was, million

addition million last $XX for Johnny other increased the We included due Bahama profit, by mitigate on of of support year. EPS year-over-year $X.XX to benefit compared our from basis, partially the the of receipt to Adjusted acquisition employment sheet, quarter. by increase XXXX advertising of impact rates. throughout sales benefited Was to built a prior our employees and results a incremental good with air We operating This year. $XX margin result cash of we in of well. now which back well adjusted the Was driven lower inventory $X to momentum led gross XX.X%, with XX% level of of expenses growth sale. strong this Johnny disruptions, increases to basis inventory the combined expenses year expanded over up half product of to of in Meanwhile, to million in sales short-term the of early also revenue our had third for less points quarter. inclusion million Pulitzer earlier cash quarter FIFO $XXX costs, the and XXX of $XX balances Was costs, the income receipt Lilly $XX Comparing cash of position last contributed program income XXXX, e-commerce operating is from significantly third The and million $X.XX as even with of $XX we're with yielded repurchase other beginning growth. With and from year's expenses above freight on which third million flash of to balance operating in costs extremely of inventory. in product. expenses we months inventories inventory a due in million all year Tommy end move same $XXX strategic additional Lilly to operating equivalents This FIFO liquidity freight standpoint, the year. I'll the cash, XX% the year to $X.XX. SG&A Also, million first Pulitzer's favorable flash share the we as by costs, investments the and to raised the increased fiscal a of our inventory growth capture the the $XXX IMUs. actions This Johnny to the for of sales equivalents growth. the receipt chain quarter nine in increased were to From larger of businesses growth early this our and at the and compared sale Two period XX% lean versus our as million offset was inventory inventory adjusted supply had from outpaces million last driven improved freight lower was XXXX. of period,

outstanding We no significant change in driven year million of borrowings at our the will benefits fiscal our prior acquisition, we shareholders. to our yield agreement our believe revolving under of of the clearly borrowings also the period. liquidity Was was increasing of XXXX, position funding the end credit quarter which end The had from the at Johnny $XXX third long-term by of

QX we the repurchasing, million of million from today, capital X.X of have shareholders dividends months open $XXX came over $XXX via of As last share or shares directly repurchases. this and A in XX returned million to in of market at XXXX. of total the occurred fourth $XXX inception program share quarter completion shares This program. these outstanding of million in repurchase million the of XXXX. $X represents X% of of the the the repurchases

announce January. outlook now our payable quarter to Directors of pleased on dividend a time $X.XX in the fourth some I'm Board per remainder of share year. the the forward, declared our of for I'll for of Looking spend that

to to EPS be up guidance for $XX.XX, between to we guidance billion, For in expect of and adjusted we to $X.XXX our the compared billion our $X.XX of up $XX.XX year, to full are billion fiscal from XXXX. sales compared raising prior XXXX. to $X.XXX $X.XXX XXXX fiscal of in and $XX.XX to to from Accordingly, range a $X.XXX range billion of our previous sales $X.XX billion $XX.XX

Johnny and expect in compared to We of XXXX. quarter million sales fourth XX% is $XXX to between of XXXX reflect also after from of expected returning date than fourth as in million Was be strong sales. patterns in shopping be to quarter updated holiday of earlier $XXX shoppers while $XXX contemplating the uncertainty are holiday shopping the XXXX. increase to million believe pre-COVID we figures the sales These guidance the sales sales to More

only quarter. increased tax modest offset margin expected SG&A, interest higher gross These We expense about gross fourth acquiring to quarter also higher include improved sales fourth by quarter in interest Johnny margins Was a anticipate quarter expense and effective full higher are as mid-September. partially improvement the XXXX be and until debt-free quarter third The we in of rate. expense. the half a of interest were a included After

to XX% We be with to EPS $XXX effective favorable year. fourth certain of margins in expect last in net business the $X.XX as tax expected prior added The family. of of to million, $X.XX line future, and double-digit the opportunity the for and Was non-recurring excited top have excess Johnny of as a included of the approximately growth EPS expectation annual sales is Fourth this gross turn first charges intangible be Thank Oxford considering rate operations of for items, assets. operating part versus be and year quarter the QX will full Diego? any the questions. now of We're the call and time your between adjusted inventory amortization high-teen items. mid quarter today, these adjusted you will for $X.XX step-up year higher After over margins, the to for we excluding quarter

Operator

question. first time, this comes session. Our Ladies Thank conduct Piper at Ed our Please your Yruma and gentlemen, will from [Operator Sandler. question-and-answer question you. we Instructions] with state

Edward Yruma

thanks guys. question. me. for for the Good two and I quarter on Congrats questions afternoon, taking guess the

more First, quarters Are question. I there impact? Was about seasonality Johnny outsized more guess, just where remodeling has a think perspective? How question. profitability we should a from revenue or And short-term particular

seem promotional to the shopping have in very been we're less the season actually very which Friday Black years potentially season? seeing over than than guys rest obviously is different successful with what strategy You past, a of guidance of looks your guess, of how what the more you holiday? intensifying the having reactive do kind be to I retail. like an to remainder does contemplate promotional holiday And contemplate maybe

Tom Chubb

I others for one and the always the of which the of in think It's would us We that the aggregate your I'll hard. what's BFCM is question. sort hear shopping to happening and happen. remainder early season season with thought Thanks, on Ed. and this good Johnny in what is But super year, voice. in many that And Was, customers for well super you'll can seasonality thoughts much holiday chime season, started additional the answer Scott as and as well very last recall a Jevon that the normalize. we the and about great then would And thought of market

it October, towards would during but They part which shop the tilted the the much of And of in they is then it hard year. season third they than part shopped still So normal during the more season, been November. shop first holiday a through first was quarter. have

short -- unusual to market people very This year, we year many and they of just last time we because promotional very the expected was in all, that things primarily thing not normalize, have accordingly. second The planned at inventory. for years, that was is first the were

guidance really ended way which Friday, how being marketplace, and holiday up we Monday sure for that the season, much it's were of expected like the assumption. -- continue the remainder kickoff it's I'm that's much level It's and be the the is based that, year. last that selling holiday and So in day five on of And expect not period there's season, really the really that to built worked. it the promotions we Cyber they traditionally than back a than that of we lot Black our -- the greater to playing out, pre-pandemic. the they're greater

Scott Grassmyer

as the far pretty season. level to spike quarter-to-quarter It's it's in the as where seem not the Johnny Ed, that Johnny level spring other businesses And year. throughout seasonality, Was quarter. third pretty really have as lower each quarter was the

Edward Yruma

Thank you.

Scott Grassmyer

Thank you, Ed.

Operator

with Thank comes Citigroup. question. your you. Please next from The Paul Lejuez question state

Tracy Kogan

Paul. for filling Tracy Kogan It's Thanks. in

I could all, and Are First, wholesale big guys seeing they some others at or some you orders your it continuing from like you guys hoping to cautiousness regional your is of bigger states. the partners? some really are what seeing give are performance you from you. color sell-throughs then because good. -- us was And are in on we've heard any Thank place performance

Tom Chubb

Tracy. Yeah. Thank you,

the regional on kind very of the happily everywhere, good So strong. of for quarter, markets some actually strongest was but biggest our it were really it performance during of the third us, was --

was good. the there So Hawaii The down just fantastic. hurricane was really really was Florida, even happened good. Desert with that still West

the So it really would that the like to was particularly in the really Again, regional we wasn't strong, during places quarter. of anywhere at well weak. But see strongest there the most. lineup worked we're the us for really that

the more at us. of of think for the We means their XXXX, going a And for that we'll inventoried, full really and ones be that's then sell the It price. marketplace. actually big had cut cautious. into and meaningfully retailers most back So open-to-buy healthy they'll think thing outcome small to dollars very XXXX. and cost, pretty spring appropriately was are definitely a of of of in spring retailer they really great for terms I Most

much we're share more own in our environment. In terms that our bookings, I than of getting think

week or the looking on yesterday, of flattish buy And to selling And quite we're on very businesses. I good. major moment. need we're sort more from at actually our dollars. weekly think modestly, we do of it to our getting term, of we brand successful some out over really, of open share the looks our that's that good the depending get down -- environment of and And long them brands on we based we doing just the our the think where last was which really a strength and really what wholesale to in the basis. partners the reporting bookings, I performance that's have well at So to And is than wholesale think

Tracy Kogan

Thanks and much happy Great. holidays. very

Tom Chubb

you, Thank Tracy.

You too.

Operator

Our comes Noah Zatzkin from state next KeyBanc. your question with Please question.

Noah Zatzkin

the Hi. on taking quarter. Thanks for my questions. Congrats

performance improvement Lilly, the the improving color a but from quarter? kind kind Just And you the of kind peers, relative how of strong you terms of just through across trends in provide then on rates. marketing we're and brick-and-mortar could bit a that stronger at a of out change of guys little second, pretty played even in split to growth lot on had strategy your seeing in DTC, of

just among behavior different consumers or e-commerce shopping has same? largely Thank any versus brick-and-mortar So been seen you. have -- you the behavior the

Tom Chubb

It a really versus much even you think e-com is take Noah of the with of thanks for evenly was year and But question, picture. it it in of year We're Thank I balanced the towards brick-and-mortar. for we're happy to is, impact e-com. in say having while year. you great I last true sort was think when tilted then before, if back the what and year-over-year on call. more And growth out Yeah. brick-and-mortar the Was And really Johnny that would there. what terms the seeing is you, being

seen I trend that it year, we've is fact We've see is that than the growth brick-and-mortar happy a wonderful. think, is different line this to So It's having really before. the been what it.

get will stronger. expect that really the and continue think kind through actually, get continuing We that to see Christmas, mortar to as we to holiday. And of bricks closer

we work at a Love partners it Lilly, and terms see the underway. arena seen to more great our right to So done we've was as and make there arena, is date, come it's it's there. underway, about results all the and be is then improvement that. in Obviously, In also growing attending jumping picture working were well digital more There's marketing marketing to that I think and quarter good still with some then that improve were but to to to well us of all in And around. for also, performance the during to in way see the great that I our the in really positive fundamentals more digital both we and to But there. bricks of Lilly room changing e-commerce. were using e-com the off delighted the mortar think, comps point the and the to too, in sure sort we that way. see work

Noah Zatzkin

you. Thank

Operator

are There questions time. closing remarks. floor for further back you. Thank hand this at Tom I'll to no the Chubb

Tom Chubb

and and the thanks We Diego, interest look holidays, in to again enjoy the you, Thank year. company. all you to for of in talking you your to you forward new we hope our will

Operator

that today's evening. a All you. Have Thank may parties And conference. concludes great disconnect.

Oxford Industries (OXM) 8 Dec 222022 Q3 Earnings call transcript