Oxford: Owner of Tommy Bahama, Lilly Pulitzer and Johnny Was Reports Fourth Quarter and Full-Year Fiscal 2024 Results
ATLANTA, March 27, 2025 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fourth quarter and full fiscal year 2024 ended February 1, 2025 and initiated guidance for the first quarter and full fiscal year 2025.
Consolidated net sales in the 13-week fourth quarter of fiscal 2024 were $391 million compared to $404 million in the 14-week fourth quarter of fiscal 2023. Diluted earnings per share (EPS) on a GAAP basis was $1.13 compared to a loss per share of $3.85 in the fourth quarter of fiscal 2023. On an adjusted basis, EPS was $1.37 compared to $1.90 in the fourth quarter of fiscal 2023.
Consolidated net sales for the 52-week fiscal 2024 year decreased 3% to $1.52 billion compared to $1.57 billion in the 53-week fiscal 2023 year. EPS was $5.87 compared to $3.82 in fiscal 2023. Fiscal 2023 results included noncash impairment charges totaling $114 million, or $5.32 per share primarily associated with the Johnny Was reporting unit. On an adjusted basis, EPS was to $6.68 in fiscal 2024 compared to $10.15 in fiscal 2023.
Tom Chubb, Chairman and CEO, commented, "We are pleased to report fourth quarter net sales and adjusted earnings per share that were near the top end of our guidance ranges. Our results were driven by a successful holiday season as our consumer showed up to buy their loved ones and friends the gifts that they really wanted from the brands that they love. Following a strong finish to calendar year 2024, trends moderated in January as there was less of a reason to shop, a pattern we've witnessed for the past several quarters, as well as a deterioration in consumer sentiment that also weighed on demand."
Mr. Chubb concluded, "We believe the challenging trends experienced in January that accelerated into February are likely an indicator of what we can expect in the first half of fiscal 2025. We also believe the strong occasion driven performance experienced during the holiday season in the fourth quarter of fiscal 2024 will continue for key events in fiscal 2025 including Easter, Mother's Day, Father's Day and the summer holidays. In the times between these major selling periods, we expect the consumer to be more hesitant to shop given the current uncertainty in the marketplace. In response to this backdrop, each of our brands has developed plans with a sharp focus on building on the core of what makes it great. We are confident that our business model will guide us through this period of uncertainty and drive profitable growth and long-term shareholder value well into the future. We could not do this without our exceptional team of people, to whom we extend our sincere gratitude."
Fiscal 2024 versus Fiscal 2023
Net Sales by Operating Group
Fourth Quarter
Fiscal Year
($ in millions)
2024
2023
% Change
2024
2023
% Change
Tommy Bahama
$237.6
$243.8
(3%)
$869.6
$898.8
(3%)
Lilly Pulitzer
74.0
78.4
(6%)
323.9
343.5
(6%)
Johnny Was
47.4
52.2
(9%)
195.0
202.9
(4%)
Emerging Brands
31.6
30.1
5%
128.4
126.8
1%
Other
(0.1)
(0.1)
NM
(0.3)
(0.5)
NM
Total Company
$390.5
$404.4
(3%)
$1,516.6
$1,571.5
(3%)
For the full fiscal year 2024, consolidated net sales of $1.52 billion decreased 3% compared to sales of $1.57 billion in the prior year. Fourth quarter consolidated net sales decreased 3% over the prior year to $391 million. The net sales decrease includes the following in each of our distribution channels.
For the full fiscal year 2024, full-price DTC sales of $1.0 billion decreased 3% versus fiscal 2023. For the fourth quarter, full-price DTC sales of $282 million in fiscal 2024 decreased 1% versus the prior year fourth quarter.
Full-price retail sales of $524 million decreased 2% for the year. For the fourth quarter, full-price retail sales of $136 million decreased 1%;
E-commerce sales of $519 million decreased 4% for the year. For the fourth quarter, e-commerce sales of $145 million decreased 1%;
Outlet sales of $75 million increased 3% for the year. For the fourth quarter, outlet sales were flat.
Food and beverage sales grew 1% for the year. For the fourth quarter, food and beverage sales decreased 7%.
Wholesale sales of $281 million decreased 10% for the year. For the fourth quarter, wholesale sales of $61 million decreased 13%.
Gross margin was 62.9% on a GAAP basis and 63.2% on an adjusted basis for the full fiscal year 2024 compared to 63.4% on a GAAP basis and 64.0% on an adjusted basis in the prior year. For the fourth quarter of fiscal 2024, gross margin was 60.6% on a GAAP basis and 60.8% on an adjusted basis compared to 60.9% on a GAAP basis and 61.7% on an adjusted basis in the prior year. The decreased gross margin for both the fourth quarter and year was primarily due to full-price retail and e-commerce sales representing a lower proportion of net sales at Tommy Bahama, Lilly Pulitzer and Johnny Was with more sales occurring during promotional and clearance events.
SG&A was $855 million for the full fiscal year 2024 compared to $821 million in the prior year. On an adjusted basis, SG&A was $841 million compared to $807 million in the prior year. For the fourth quarter, SG&A was $220 million compared to $218 million in the prior year. On an adjusted basis, SG&A was $216 million compared to $214 million in the prior year. The increase in SG&A for the full fiscal year 2024 was primarily driven by:
The annualization of expenses related to the 23 net new stores opened in fiscal 2023 and the 30 net new store openings during fiscal 2024, including three Tommy Bahama Marlin Bars;
Pre-opening expenses related to five Tommy Bahama Marlin Bars, three of which opened in Fiscal 2024 and two that opened last week; and
The addition of Jack Rogers.
Full-year operating income was $119 million in fiscal 2024, compared to $81 million in fiscal 2023. On an adjusted basis, full-year operating income was $136 million compared to $216 million in fiscal 2023. For the fourth quarter of fiscal 2024, on a GAAP basis, operating income was $20 million compared to an operating loss of $81 million in the prior year, while adjusted operating income was $25 million in fiscal 2024 and $39 million in fiscal 2023.
Interest expense decreased to $2 million from $6 million in the prior year period primarily due to lower average outstanding debt during fiscal 2024 than the prior year.
The effective tax rate for fiscal 2024 was 20% compared to 19% for fiscal 2023, both of which are lower than a typical effective tax rate of 25%. The effective tax rate for the fourth quarter of fiscal 2024 was 8% compared to 27% for the fourth quarter of fiscal 2023. The effective tax rates for each period included certain favorable discrete items that are not expected to recur in future periods.
Balance Sheet and Liquidity
Inventory increased $8 million, or 5%, on a LIFO basis and increased $11 million, or 5%, on a FIFO basis compared to the end of fiscal 2023 primarily due to the timing of the Chinese New Year and early shipments from Asia. The Company believes that inventory levels in all operating groups are appropriate to support anticipated sales plans.
During fiscal 2024, cash flow from operations was $194 million compared to $244 million in fiscal 2023. The cash flow from operations in fiscal 2024, along with borrowings under our credit facility, provided sufficient cash to fund $134 million of capital expenditures, $43 million of dividends and our working capital needs.
Long-term debt increased by $2 million to $31 million of borrowings outstanding at the end of fiscal 2024 as increased capital expenditures primarily associated with the project to build a new distribution center in Lyons, Georgia, acquisitions of $8 million, payments of dividends and working capital requirements nominally exceeded cash flow from operations. At the end of fiscal 2024, the Company had $9 million of cash and cash equivalents versus $8 million of cash and cash equivalents at the end of fiscal 2023.
Dividend
On March 24, 2025, the Board of Directors declared a quarterly cash dividend of $0.69 per share, or a 3% increase above the previous dividend payment. The dividend is payable on May 2, 2025 to shareholders of record as of the close of business on April 17, 2025. The Company has paid dividends every quarter since it became publicly owned in 1960.
Share Repurchases
The Company initiated, and completed, a $50 million 10b5-1 program in the first quarter of fiscal 2025 under its December 10, 2024 $100 million share repurchase authorization. The Company repurchased 842,000 shares, or approximately 5% of outstanding shares, at an average price of $59.38.
On March 24, 2025, our Board of Directors authorized us to spend up to $100 million to repurchase shares of our stock. This authorization superseded and replaced all previous authorizations to repurchase shares of our stock and has no automatic expiration.
Outlook
The Company initiated sales and EPS guidance for fiscal 2025. The Company expects net sales in a range of $1.49 billion to $1.53 billion compared to net sales of $1.52 billion in fiscal 2024. In fiscal 2025, GAAP EPS is expected to be between $4.21 and $4.61 compared to fiscal 2024 GAAP EPS of $5.87. Adjusted EPS is expected to be between $4.60 and $5.00, compared to fiscal 2024 adjusted EPS of $6.68. Fiscal 2025 EPS figures include a return to a normalized effective tax rate of 25% in 2025 that will result in a $0.20 to $0.25 per share negative impact after certain favorable discrete items lowered the tax rate in fiscal 2024. The fiscal 2025 guidance also includes a $9 million to $10 million, or approximately $0.45 to $0.50 per share negative impact from recently enacted, additional tariffs that are currently in effect.
For the first quarter of fiscal 2025, the Company expects net sales to be between $375 million and $395 million compared to net sales of $398 million in the first quarter of fiscal 2024. GAAP EPS is expected to be in a range of $1.61 to $1.81 in the first quarter compared to GAAP EPS of $2.42 in the first quarter of fiscal 2024. Adjusted EPS is expected to be between $1.70 and $1.90 compared to adjusted EPS of $2.66 in the first quarter of fiscal 2024.
The Company anticipates interest expense of $7 million in fiscal 2025, or a $0.20 to $0.25 per share increase, including $2 million in the first quarter of fiscal 2025. We expect higher average debt levels in fiscal 2025 due to capital expenditures primarily associated with completing the new Lyons, Georgia distribution center, opening new stores and the share repurchases executed during the first quarter of fiscal 2025.
Capital expenditures in fiscal 2025 are expected to be approximately $125 million compared to $134 million in fiscal 2024. The decrease is due to reductions in expenditures related to the completion of the new distribution center in Lyons, Georgia along with fewer new store openings. We will also continue with our investments in our various technology systems initiatives, data management and analytics, customer data and insights, cybersecurity, automation (including artificial intelligence) and infrastructure.
Conference Call
The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company's website at www.oxfordinc.com. A replay of the call will be available through April 10, 2025 by dialing (412) 317-6671 access code 13752206.
About Oxford
Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly Pulitzer®, Johnny Was®, Southern Tide®, The Beaufort Bonnet Company®, Duck Head® and Jack Rogers® lifestyle brands. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford's website at www.oxfordinc.com.
Basis of Presentation
All per share information is presented on a diluted basis.
Non-GAAP Financial Information
The Company reports its consolidated financial statements in accordance with generally accepted accounting principles (GAAP). To supplement these consolidated financial results, management believes that a presentation and discussion of certain financial measures on an adjusted basis, which exclude certain non-operating or discrete gains, charges or other items, may provide a more meaningful basis on which investors may compare the Company's ongoing results of operations between periods. These measures include adjusted earnings, adjusted earnings per share, adjusted gross profit, adjusted gross margin, adjusted SG&A, adjusted royalties and other operating income, and adjusted operating income, among others.
Management uses these non-GAAP financial measures in making financial, operational, and planning decisions to evaluate the Company's ongoing performance. Management also uses these adjusted financial measures to discuss its business with investment and other financial institutions, its board of directors and others. Reconciliations of these adjusted measures to the most directly comparable financial measures calculated in accordance with GAAP are presented in tables included at the end of this release.
Safe Harbor
This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. We intend for all forward-looking statements contained herein, in our press releases or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Such statements are subject to a number of risks, uncertainties and assumptions including, without limitation:
demand for our products, which may be impacted by macroeconomic factors that may impact consumer discretionary spending and pricing levels for apparel and related products, many of which may be impacted by inflationary pressures, volatile and/or elevated interest rates, concerns about a potential global recession the stability of the banking industry or general economic uncertainty, and the effectiveness of measures to mitigate the impact of these factors;
possible changes in governmental monetary and fiscal policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures and the impact of the recent elections in the United States;
competitive conditions and/or evolving consumer shopping patterns, particularly in a highly promotional retail environment;
acquisition activities (such as the acquisition of Johnny Was), including our ability to integrate key functions, recognize anticipated synergies and minimize related disruptions or distractions to our business as a result of these activities;
global supply chain constraints that have, and could continue, to affect freight, transit, and other costs;
changes in trade policies and regulations, including the potential for increases or changes in duties, current and potentially new tariffs or quotas;
costs and availability of labor and freight deliveries, including our ability to appropriately staff our retail stores and food and beverage locations;
costs of products as well as the raw materials used in those products, as well as our ability to pass along price increases to consumers;
energy costs;
our ability to respond to rapidly changing consumer expectations;
unseasonal or extreme weather conditions or natural disasters, such as the September and October 2024 hurricanes impacting the Southeastern United States;
lack of or insufficient insurance coverage;
the ability of business partners, including suppliers, vendors, wholesale customers, licensees, logistics providers and landlords, to meet their obligations to us and/or continue our business relationship to the same degree as they have historically;
hiring of, retention of and disciplined execution by key management and other critical personnel;
cybersecurity breaches and ransomware attacks, as well as our and our third party vendors' ability to properly collect, use, manage and secure business, consumer and employee data and maintain continuity of our information technology systems;
the effectiveness of our advertising initiatives in defining, launching and communicating brand-relevant customer experiences;
the level of our indebtedness, including the risks associated with heightened interest rates on the debt and the potential impact on our ability to operate and expand our business;
the timing of shipments requested by our wholesale customers;
fluctuations and volatility in global financial and/or real estate markets;
our ability to identify and secure suitable locations for new retail store and food and beverage openings;
the timing and cost of retail store and food and beverage location openings and remodels, technology implementations and other capital expenditures;
the timing, cost and successful implementation of changes to our distribution network;
the effectiveness of recent, focused efforts to reassess and realign our operating costs in light of revenue trends, including potential disruptions to our operations as a result of these efforts;
pandemics or other public health crises;
expected outcomes of pending or potential litigation and regulatory actions;
the increased consumer, employee and regulatory focus on sustainability issues and practices, including failures by our suppliers to adhere to our vendor code of conduct;
the regulation or prohibition of goods sourced, or containing raw materials or components, from certain regions and our ability to evidence compliance;
access to capital and/or credit markets;
factors that could affect our consolidated effective tax rate;
the risk of impairment to goodwill and other intangible assets such as the recent impairment charges incurred in our Johnny Was segment; and
geopolitical risks, including ongoing challenges between the United States and China and those related to the ongoing war in Ukraine, the Israel-Hamas war and the conflict in the Red Sea region.
Forward-looking statements reflect our expectations at the time such forward-looking statements are made, based on information available at such time, and are not guarantees of performance.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I. Item 1A. Risk Factors contained in our Fiscal 2023 Form 10-K, and those described from time to time in our future reports filed with the SEC. We caution that one should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Brian Smith
E-mail:
Oxford Industries, Inc.
Consolidated Balance Sheets
(in thousands, except par amounts)
(unaudited)
February 1,
February 3,
2025
2024
ASSETS
Current Assets
Cash and cash equivalents
$
9,470
$
7,604
Receivables, net
72,433
63,362
Inventories, net
167,287
159,565
Income tax receivable
5,323
19,549
Prepaid expenses and other current assets
38,269
43,035
Total Current Assets
$
292,782
$
293,115
Property and equipment, net
272,690
195,137
Intangible assets, net
257,915
262,101
Goodwill
27,383
27,190
Operating lease assets
364,436
263,934
Other assets, net
54,279
32,188
Deferred income taxes
20,320
24,179
Total Assets
1,289,805
1,097,844
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
104,825
$
85,545
Accrued compensation
22,309
23,660
Current portion of operating lease liabilities
58,711
64,576
Accrued expenses and other liabilities
62,430
66,863
Total Current Liabilities
$
248,275
$
240,644
Long-term debt
31,105
29,304
Non-current portion of operating lease liabilities
359,366
243,703
Other non-current liabilities
28,499
23,279
Shareholders' Equity
Common stock, $1.00 par value per share
15,707
15,629
Additional paid-in capital
190,816
178,567
Retained earnings
419,713
369,453
Accumulated other comprehensive loss
(3,676
)
(2,735
)
Total Shareholders' Equity
$
622,560
$
560,914
Total Liabilities and Shareholders' Equity
$
1,289,805
$
1,097,844
Oxford Industries, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Fourth Quarter
Fiscal 2024
Fiscal 2023
Fiscal 2024
Fiscal 2023
Net sales
$
390,505
$
404,429
$
1,516,601
$
1,571,475
Cost of goods sold
153,821
158,121
562,030
575,890
Gross profit
$
236,684
$
246,308
$
954,571
$
995,585
SG&A
220,175
217,503
854,849
820,705
Impairment of goodwill, intangible assets and equity method investments
113,611
—
113,611
Royalties and other operating income
3,805
3,353
19,314
19,713
Operating income
$
20,314
$
(81,453
)
$
119,036
$
80,982
Interest expense, net
895
1,180
2,468
6,036
Earnings before income taxes
$
19,419
$
(82,633
)
$
116,568
$
74,946
Income tax expense
1,525
(22,563
)
23,595
14,243
Net earnings
$
17,894
$
(60,070
)
$
92,973
$
60,703
Net earnings per share:
Basic
$
1.14
$
(3.85
)
$
5.94
$
3.89
Diluted
$
1.13
$
(3.85
)
$
5.87
$
3.82
Weighted average shares outstanding:
Basic
15,703
15,592
15,665
15,590
Diluted
15,834
15,592
15,827
15,906
Dividends declared per share
$
0.67
$
0.65
$
2.68
$
2.60
Oxford Industries, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Fiscal 2024
Fiscal 2023
Cash Flows From Operating Activities:
Net earnings
$
92,973
$
60,703
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation
55,872
49,323
Amortization of intangible assets
12,000
14,743
Impairment of goodwill, intangible assets and equity method investments
—
113,611
Impairment of property and equipment
1,174
584
Equity compensation expense
16,674
14,473
Impairment of operating lease assets
1,303
—
Gain on sale of property and equipment
—
(1,756
)
Amortization and write-off of deferred financing costs
385
569
Deferred income taxes
3,825
(23,890
)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Receivables, net
(7,654
)
(14,994
)
Inventories, net
(8,237
)
62,507
Income tax receivable
14,225
(109
)
Prepaid expenses and other current assets
4,755
(4,931
)
Current liabilities
