Within this category, full-price retail sales dropped by 2 per cent to $137 million, while e-commerce sales saw a 5 per cent reduction, totalling $120 million. Outlet sales presented a positive note, rising by 6 per cent to $18 million, driven primarily by a $1 million increase in Tommy Bahama sales. In contrast, wholesale sales fell significantly, decreasing by 16 per cent to $88 million compared to the previous year’s first quarter.

The company’s gross margin on a GAAP basis was 64.9 per cent, slightly down from 65.5 per cent in the same period last year. Selling, general, and administrative expenses increased to $213 million, up from $203 million in Q1 FY23, Oxford Industries said in a press release.

Operating income for Q1 FY24 was $52 million, representing 13.2 per cent of net sales, a decline from $80 million, or 19.1 per cent of net sales, in the first quarter of fiscal 2023. Adjusted operating income also decreased to $57 million, or 14.4 per cent of net sales, compared to $83 million, or 19.8 per cent of net sales, in the previous year’s first quarter.

In terms of performance by operating group, Tommy Bahama saw net sales decrease by 5.8 per cent to $225.6 million, compared to $239.4 million in Q1 FY23. Lilly Pulitzer’s net sales dropped by 9.3 per cent, totalling $88.4 million versus $97.5 million in the prior year. Johnny Was, however, saw a 3.5 per cent increase in net sales, rising to $51.2 million from $49.5 million. Emerging Brands experienced a sales fall of 2.9 per cent to $33 million, down from $34 million.

“Our strong brands and excellent team focused on executing our strategy allowed us to deliver sales and adjusted EPS within our guidance ranges for the first quarter despite continued macroeconomic headwinds and lower levels of consumer sentiment. While most economic indicators remain fairly positive, consumer sentiment has dropped meaningfully from levels at the start of this year and has driven the consumer to become more cautious than originally anticipated in her discretionary spending across our channels of distribution,” said Tom Chubb, chairman and CEO.

Fibre2Fashion News Desk (DP)