Oxford Industries Inc. (NYSE:OXM) Q2 2020 Earnings Conference Call - Final Transcript

Sep 03, 2020 • 04:30 pm ET


Oxford Industries Inc. (NYSE:OXM) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to Oxford Industries Second Quarter 2020 Fiscal Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now like to turn this conference over to your host, Ms. Anne Shoemaker, Treasurer of Oxford Industries. Thank you. You may begin.

Anne M. Shoemaker

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 and first quarter 10-Q. 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. Thank you for your attention. And now, I'd like to turn the call over to Tom Chubb.

Thomas C. Chubb

Good afternoon and thank you for joining us. Before I start, I would like to wish you and your families my personal best for your health and safety during these difficult times. I'd also like to pause just for a moment to thank our incredible people for all they are doing to delight our customers under such difficult circumstances.

Our strategy at Oxford is a simple one, to own brands that make people happy, to delight our customers with memorable experiences and products they love. During 2020 we have faced a myriad of new challenges. Nonetheless every day we are finding ways to successfully execute this strategy. In order to do this in the current environment, we've leaned heavily into our advanced digital capabilities. The investments we made in our e-commerce channel over the past several years allowed us to capitalize on the accelerated shift to online spending. Each of our brand, Tommy Bahama, Lilly Pulitzer and Southern Tide, positively contributed to the 52% year-over-year increase in e-commerce sales in the second quarter. Lilly Pulitzer was the standout, up an extraordinary 142%. The Lilly product collection this summer was very strong and in many ways offered exactly what the customer was looking for, fun, happy, easy-to-wear apparel. The collection was highlighted by very effective digital marketing to which we shifted more resources in the quarter.

A non-comp flash sale in June also added to the success of Lilly's second quarter results. Historically, the Lilly website offers sale items only five