Oxford’s 2023 Fiscal Report 11% Sales Growth, 3% Dividend Rise

Oxford Industries, Inc. (NYSE: OXM) has released its financial results for the fourth quarter and full fiscal year 2023, which concluded on February 3, 2024.

In fiscal 2023, consolidated net sales for the full year increased by 11% to $1.57 billion, compared to $1.41 billion in fiscal 2022. However, earnings per share (EPS) on a GAAP basis decreased by 63% to $3.82, down from $10.19 in fiscal 2022. This decline in EPS is primarily attributed to noncash impairment charges totaling $114 million, or $5.32 per share, related to the Johnny Was reporting unit. Adjusted EPS also decreased by 7% to $10.15 compared to $10.88 in fiscal 2022.

For the 14-week fourth quarter of fiscal 2023, consolidated net sales increased by 6% to $404 million compared to $382 million in the 13-week fourth quarter of fiscal 2022. However, including the noncash impairment charges recognized in the fourth quarter of 2023, loss per share on a GAAP basis was $3.85, compared to earnings per share of $2.00 in the fourth quarter of fiscal 2022. Adjusted EPS decreased to $1.90 compared to $2.28 in the fourth quarter of fiscal 2022.

Tom Chubb, Chairman and CEO, expressed satisfaction with fiscal 2023, citing it as the second strongest earnings year in the company’s 82-year history. Despite a 5% decline in EPS, the year was marked by generating $244 million in cash flow from operations, enabling investments in organic growth, acquisitions, shareholder returns, and debt reduction.

Looking ahead to 2024, Chubb highlighted the company’s robust balance sheet and cash flows, positioning them to invest further in future growth, expand their physical presence, and enhance distribution capabilities. He acknowledged the potential pressure on near-term EPS due to these investments and a cautious consumer environment but remained optimistic about executing initiatives to attract more consumers to their brands. Additionally, a 3% increase in the quarterly dividend for 2024 was announced.

Chubb concluded by expressing pride in the company’s brand portfolio, customer connections, and dedicated team. He reaffirmed the commitment to achieving near-term targets while focusing on long-term brand and business fundamentals. Notably, the results presented for fiscal 2023 include Johnny Was operations subsequent to its acquisition on September 19, 2022.

In terms of sales, full-price direct-to-consumer (DTC) sales saw a 12% increase to $1.0 billion for the full fiscal year, with a $100 million contribution from Johnny Was. Full-price retail sales increased by 9% to $533 million for the year, including a $47 million increase from Johnny Was. Full-price e-commerce sales grew by 16% to $478 million, with a $53 million increase from Johnny Was. Other segments such as outlet sales, restaurant sales, and wholesale sales also saw positive growth.

Gross margin improved to 63.4% on a GAAP basis and 64.0% on an adjusted basis for fiscal 2023, compared to the prior year. However, SG&A expenses increased primarily due to the inclusion of Johnny Was expenses. Operating income decreased to $81 million for fiscal 2023, with an adjusted operating income of $216 million. Interest expense and effective tax rates also saw changes compared to the previous year.

The company’s balance sheet showed a decrease in inventory levels, reflecting ongoing initiatives to manage inventory purchases efficiently. As of February 3, 2024, the company had $29 million of borrowings outstanding under its revolving credit agreement, with $8 million of cash and cash equivalents.

Overall, Oxford Industries remains focused on balancing short-term performance with long-term growth strategies, leveraging its strong financial position to drive continued success in the future.

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