Oxford Industries, Inc. (NYSE:OXM) Q4 2023 Earnings Call Transcript March 28, 2024
Oxford Industries, Inc. misses on earnings expectations. Reported EPS is $1.9 EPS, expectations were $1.92. Oxford Industries, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and welcome to the Oxford Industries, Inc., Fourth Quarter, Fiscal 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Brian Smith. Please go ahead.
Brian Smith: Thank you, and good afternoon. Before we begin, I would like to remind participants that certain statements made on today’s call and in the Q&A session may constitute forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements are not guarantees and actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results of operations or our financial condition to differ are discussed in our press release issued earlier today and in documents filed by us with the SEC, including the risk factors contained in our Form 10-K. We undertake no duty to update any forward-looking statements. During this call, we will be discussing certain non-GAAP financial measures.
You can find a reconciliation of non-GAAP to GAAP financial measures in our press release issued earlier today, which is posted under the Investor Relations tab of our website at oxfordinc.com. And now I’d like to introduce today’s call participants. With me today are Tom Chubb, Chairman and CEO, and Scott Grassmyer, CFO and COO. Thank you for your attention, and now I’d like to turn the call over to Tom Chubb.
Tom Chubb: Good afternoon and thank you for joining us. We are pleased with our results for fiscal 2023, which represent the second-strongest annual earnings in our 82-year history. The conclusion of FY’23 also caps the end of a five-year period during which we delivered compound annual adjusted EPS growth exceeding 18%. In addition, we generated strong cash flow from operations of $244 million in fiscal 2023, allowing us to invest in both organic growth and acquisitions, return capital to our shareholders via our quarterly dividend and opportunistic share repurchases, and pay down almost all our outstanding debt. On today’s call, we’ll walk through our recent performance and provide an update on the initiatives we have planned for fiscal 2024 that we believe will position us to continue to deliver sustained profitable growth and drive long-term shareholder value for many years to come.
In terms of how we wrapped up the fiscal year, January was a bit softer than expected, and as a result, both our fourth quarter and full year came in at the low end of our forecast with sales for fiscal 2023 totaling $1.571 billion and adjusted earnings per share coming in at $10.15. The January softness continued into the new fiscal year, and February was also down as we cycled strong double-digit comps in February of last year. In March, as comparisons eased, business has picked up, and month-to-date, we are comping modestly positive. We believe the choppiness we have experienced is reflective of a somewhat unusual situation where most economic indicators are actually fairly positive, and yet consumer sentiment remains materially below where it was for the four or five years prior to the pandemic.
The muted consumer sentiment is manifesting itself in consumers who have the ability to spend but are being much more cautious in their spending on discretionary items such as the fashion apparel, which is the core of our business. Experience has shown us that during times like this, when near-term demand is choppy, it is best to stay focused on the long-term opportunity and strengthening the fundamentals of the business that have created our strong foundation, and that is exactly what we plan to do during fiscal 2024. First, we will double down on our efforts to make sure that we have fresh, new, differentiated products that gives the consumer a good reason to open her wallet. Second, we will make sure we maintain the elevated, happy, and optimistic messaging that is representative of each of our brands.
Third, we will make sure that we are being diversified and creative in the media channels that we use to try to communicate our brand messages to the customer. And finally, we will make sure that we are making our product available to our customer when and where she wants it, including our own…
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