OXFORD INDUSTRIES INC Q4 FY2024 earnings call

• Strong holiday season with December comps up 2% due to performance of newer products like Tommy Bahama's Indigo Palms Denim and Lilly Pulitzer Reserve Collection. • January and February saw moderation and decline in demand. • Focus on four-point North Star strategy: maximize long-term shareholder value, own lifestyle brands, evoke happiness in consumers, generate cash for growth and returns. • Brand-specific plans: Tommy Bahama focusing on top 25 markets, Lilly Pulitzer on top 20% of customer base, Johnny Was returning to roots with enhanced collection product merchandise. • Investments in omni-channel platform, completed e-commerce website upgrades, expect to complete new distribution center, plan to open ~20 new stores including 4 Marlin bars, and increased dividend by 3% to $0.69.

Consolidated net sales in fiscal 2024 decreased 3% to $1.52 billion. Full price brick and mortar locations had a mid-single digit negative comp, but new store locations partially offset, with sales down 2%. E-commerce sales decreased 4%. Food and beverage locations saw a 1% sales increase, and outlet locations had a 3% increase. Wholesale channel decreased $31 million or 10% due to specialty store struggles but was partially offset by increased sales to major department stores. Adjusted gross margin contracted 80 basis points to 63.2% primarily due to higher promotional and clearance sales.

• Full year 2025 net sales expected between $1.49 billion and $1.53 billion (down 2% to up 1% vs 2024). • Adjusted EPS expected between $4.60 and $5 vs $6.68 in 2024. • First quarter 2025 sales expected $375 million to $395 million, adjusted EPS $1.76 to $1.90. • Capital expenditures focus on completion of Lyons, Georgia distribution facility and new stores/Marlin bars. • Cash flow from operations expected strong to fund investments, dividends, and share repurchases.

• Macro uncertainty and consumer spending pullback. • Caution in wholesale market with retailers potentially tightening order books. • Tariff impact on gross margin, with unmitigated impact of ~$9 million to $10 million expected in 2025, though mitigation strategies are in place but uncertainty remains.

Q: Could you unpack the first quarter guide, brand performance variances, and revenue guidance range?

A: Lilly is strongest, other bigger brands off; Easter shift affected March comps; new stores help offset negative comps.

Q: Are customers responding to newness, and is assortment balanced?

A: Customers responding positively to newness; Tommy and Lily have increased newness this spring, with products like Tommy Bahama's Barbados Pro short and Lilly Pulitzer's Disney capsule collection performing well.

Q: About sales cadence, store openings, and SG&A control?

A: March better than February; first half comps negative, second half flatter; SG&A controlled through marketing efficiency, vendor negotiations, and personnel reductions.

Q: Insights on wholesale order books and tariff mitigation?

A: Wholesale order books are cautious but brand performance in retail stores is strong; tariff impact is unmitigated but mitigation strategies are ongoing with hope for improvement by spring 2026.