Oxford Industries, Inc. (NYSE: OXM) has announced its financial results for the third quarter of fiscal 2024, ending November 2, 2024.
Key Financial Metrics:
| Financial Metric | Q3 FY2024 | Q3 FY2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $308 million | $327 million | -5.8% |
| GAAP Earnings (Loss) per Share | ($0.25) | $0.68 | N/A |
| Adjusted Earnings (Loss) per Share | ($0.11) | $1.01 | N/A |
The third quarter presented challenges for Oxford Industries, including a decrease in consolidated net sales to $308 million, a 5.8% drop compared to the $327 million recorded last year. The company reported a GAAP loss per share of $0.25 and adjusted loss per share of $0.11, contrasting with the robust performance exhibited in the prior year.
Revenue Performance by Segment:
| Segment | Q3 FY2024 Revenue | YoY Change |
|---|---|---|
| Full-price Direct-to-Consumer | $200 million | -8% |
| Full-price Retail | $99 million | -6% |
| E-commerce | $101 million | -11% |
| Outlet | $17 million | +3% |
| Food and Beverage | $24 million | +4% |
| Wholesale | $67 million | -2% |
Oxford Industries' revenue performance across key segments was mixed, with declines in full-price direct-to-consumer, e-commerce, and wholesale sales, while food and beverage and outlet segments showed modest growth. This underscores varied consumer trends and challenges faced during the quarter.
Key Developments and Operational Highlights:
- Gross margin increased slightly to 63.1% due to lower LIFO charges and reduced discounting. However, adjusted gross margin fell to 63.0%.
- SG&A expenses rose to $205 million, driven by the opening of 33 new stores and related pre-opening expenses, along with the addition of Jack Rogers.
- Operating loss was $6 million compared to an operating income of $14 million in Q3 FY2023.
Comments from Company Leadership:
Chairman and CEO Tom Chubb acknowledged a challenging quarter marked by high inflation and the impact of two significant hurricanes in the Southeastern USA, which affected consumer behavior and sales. Despite these headwinds, Chubb expressed optimism about the holiday season, noting positive consumer responses to new products and marketing efforts.
Dividend Announcement:
The Board of Directors declared a quarterly cash dividend of $0.67 per share, payable on January 31, 2025, to shareholders of record as of January 17, 2025.
Forward Guidance:
For fiscal 2024, Oxford Industries has revised its sales and EPS guidance downwards, with expected net sales ranging from $1.50 billion to $1.52 billion. The company anticipates adjusted EPS of $6.50 to $6.70, reflecting lower consumer spending and the impact of recent weather disruptions.
Overall, Oxford Industries aims to navigate through a challenging consumer environment, committing to long-term growth and shareholder value despite immediate financial pressures.
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