Oxford Industries, Inc. · NYSE:OXM
Oxford Industries — 16th Annual ICR XChange 2014
18 slides from Oxford Industries's conference presentation, Jan 13, 2014
Slide 1: Oxford
OxFORD Tom Chubb NYSE: OXM
Slide 2: Cautionary Statements Regarding Forward-Looking Statements
Cautionary Statements Regarding Forward-Looking Statements This presentation may include statements that are forward-looking statements within the meaning of the federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expre
Slide 3: Oxford's Strategy
Oxford’s Strategy To own, develop and use powerful, emotional brands to drive sustained, profitable growth. Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 4: Oxford Highlights Fiscal 2013 – First Nine Months
Oxford Highlights Fiscal 2013 – First Nine Months (ended 11-2-13) Net Sales: $667 million Adjusted Operating Income: $60 million Adjusted EPS (diluted): $1.92 Dividends per share: $0.54 ($0.18 per quarter) Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 5: High-Growth Lifestyle Brands – 79% of Revenue
High-Growth Lifestyle Brands – 79% of Revenue (First 9 months of Fiscal 2013) Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014 Lanier Clothes Ben Sherman Other
Slide 6: Tommy Bahama first months of Fiscal 2013
Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014 First 9 months of Fiscal 2013 • Sales of $417 million • Operating Income (adj.) of $47.6 million • 50% Full Price Retail and Outlets (137) • 11% E-commerce • 11% Restaurants (14) • 28% Wholesale • Women’s was 30% of our full-price DT
Slide 7: Lifestyle Brands Drive Top-Line Growth
Lifestyle Brands Drive Top-Line Growth 13% YOY sales increase in 2011 17% YOY sales increase in 2012 12% YOY sales increase in first 9 mos. 2013 Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 8: High Margin Brands Drive Profitability
High Margin Brands Drive Profitability Operating margin of 13% in Fiscal 2012 with significant investments in international expansion and NY “island” Expect operating margin to begin to expand in 2014 with long-term potential in the mid- teens Oxford Industries, Inc. 16th Annual ICR XChange - Januar
Slide 9: Opportunities for Long-Term Growth
Opportunities for Long-Term Growth 7-10 new domestic stores per year Significant growth in: • E-commerce • Women’s sportswear • Accessories Asia-Pacific expansion with focus on: • Japan • Australia Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 10: Lilly Pulitzer first months of Fiscal 2013
First 9 months of Fiscal 2013 • Sales of $108 million • Operating Income (adj.) of $24.7 million • 32% Full Price Retail Stores (22) • 24% E-commerce • 44% Wholesale – Department and specialty stores – Signature Stores (69 locations) Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 11: Lifestyle Brands Drive Top-Line Growth
Lifestyle Brands Drive Top-Line Growth 30% YOY sales increase in 2011 30% YOY sales increase in 2012 15% YOY sales increase in first 9 mos. 2013 Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 12: High Margin Brands Drive Profitability
High Margin Brands Drive Profitability Operating margin (adj.) of 22% in Fiscal 2012 Expect to maintain operating margin in the range of 19-21% while investing in brand growth Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 13: Opportunities for Long-Term Growth
Opportunities for Long-Term Growth Significant growth drivers: • E-commerce • 4-6 new stores per year in U.S. • Sportswear key items Wholesale opportunities Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 14: Other Operating Groups
Other Operating Groups Lanier Clothes • Expect modest top line growth • Delivers high single to low double digit operating margins • Solid return on invested capital Ben Sherman • Implemented improvements in 2013 – Leadership – Expense reduction – Distribution control – Inventory management • Losses
Slide 15: Capital Structure to Support Growth
Capital Structure to Support Growth Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014 Solid financial position to invest in growing our business. • $235 million U.S. Revolving Credit Facility • Capital expenditures for fiscal 2013 are expected to be approximately $45 million • Stron
Slide 16: Holiday Update
Holiday Update • Solid Holiday performance • Good comp increases for the November/December period at Tommy Bahama and Lilly Pulitzer despite difficult market environment • January is also an important month for our brands Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014
Slide 17: 2014 Investment Highlights
Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014 Investment Highlights • Portfolio of high-margin, lifestyle oriented brands • Strong, well-developed market position for Tommy Bahama with unexploited potential in direct to consumer and international markets • Continued opportunitie
Slide 18: Questions?
Questions? Oxford Industries, Inc. 16th Annual ICR XChange - January 14, 2014