Oxford Industries, Inc.

Greetings and welcome to the Oxford Industries third quarter fiscal 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now turn the conference over to our host, Jevin Strasser of Investor Relations. Thank you. You may begin.

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 a 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 Grassmeyer, CFO and COO. Thank you for your attention, and now I'd like to turn the call over to Tom Chubb.

Thank you, Jevin. Good afternoon and thank you for joining us for the third quarter of fiscal 2022 OXM conference call. As most of you know, our purpose as a company is to evoke happiness in our customers with the products, services, and experiences we offer through our portfolio of brands. When we are successful in evoking that happiness, our businesses deliver profitable growth And of course, sustained profitable growth is what allows us to accomplish our objective of driving long-term shareholder value. And we certainly did that during the third quarter, delivering our sixth consecutive quarter of record-adjusted earnings. Strong top-line growth across all our brands, combined with the acquisition of the Johnny Was brand in September, fueled a 26% sales gain. Sales in the aggregated group of Tommy Bahama, Lilly Pulitzer, and emerging brands grew 19%, with Johnny Wise contributing an additional $23 million of sales for the quarter. At the same time, adjusted gross margin improved an impressive 120 basis points. All of these factors, along with our repurchase activity, helped drive a 23% or 27 cent increase in adjusted earnings per share from $1.19 last year to $1.46 this year. The biggest contributor to our increased earnings was our largest brand, Tommy Bahama, which delivered 20% top line growth and a $9 million increase in adjusted operating income for the quarter. with excellent results in all channels of distribution. Lilly Pellets are also at a successful quarter with sales growing 16% and positive comps in both retail and e-commerce. Finally, our newly constituted Emerging Brands Group had a revenue increase of 22% during the third quarter. We have also recently advanced a number of strategic initiatives. I will highlight just three among many. First, during September, we added the Johnny Was brand to our portfolio of lifestyle brands. The brand has clearly defined positioning, which drives emotional connection and strong engagement with its very loyal customer base. Johnny Wise is priced a bit higher than our other brands and sits in the very attractive affordable luxury portion of the market. The brand has an excellent balanced distribution model with 40% of sales coming through e-commerce bolstered by a fleet of 60 plus carefully located stores with attractive unit economics and a brand enhancing and mutually profitable wholesale business. Currently generating annualized sales of over $200 million with operating margins in the mid to high teen range, Johnny Woz has a profitable growth trajectory ahead of it. The brand is led by an excellent management team that has been in place for many years and is well aligned culturally and strategically with OXM. The Johnny Was and OXM corporate teams have been working hard on the integration and laying the foundation for future growth in the brand. I'm grateful to all of them for their extraordinary efforts and the successes that they have achieved so far. In November, we were also pleased to announce our first Tommy Bahama branded hotel, the Tommy Bahama Miramonte Resort, which should open in late 2023. Tommy Bahama is a longtime player in the hospitality business with a restaurant business that's over 25 years old and does more than $100 million in business annually. Our customers have long viewed a resort hotel is a natural extension of our hospitality business. One of our most successful restaurants is located in the Coachella Valley in California, where we've been operating a bar, restaurant, and store in Palm Desert since 1998. We also opened a Marlin bar in Palm Springs in 2018. For those of you who are familiar with the Coachella Valley, and or are tennis fans, the location of the Tommy Bahama Miramonte Resort will be in Indian Wells, which is also home to the BNP Paribas Tennis Tournament. We have a fantastic partner in the Lowe Group and have been discussing this opportunity with them for a number of years. We're glad to see it coming to fruition. We look forward to the opening of the hotel and hope that all of you will be able to visit. Third, we continue to make excellent progress in our ability to attract and retain customers and drive customer engagement. As of the end of the quarter, our customer base, excluding Johnny Was customers, increased by 16% versus last year's third quarter. Including Johnny Was, As of the end of the quarter, we had 2.5 million identifiable unique customers who have transacted in the last 12 months. We not only brought in more customers, but they spent more with us as well, with average annual spending increasing across all of our brands. We believe that most of these gains are attributable to our digital marketing efforts which have been a strategic priority for us across the enterprise this year. Included in those efforts have been the establishment of a marketing center of excellence whose principal function is to service the brands within our emerging brands group. This team was built during this fiscal year and began posting some very impressive results during the third quarter particularly during the Black Friday Cyber Monday weekend. With a little less than three weeks to go before Christmas, we feel very positive about the holiday selling season and our ability to deliver a strong fourth quarter. Scott will elaborate more in a minute, but our inventories are in excellent shape to support holiday season as the result of more normalized levels as well as bringing in inventory early to avoid any supply chain snarls. Finally, as I do every quarter, I would like to thank and express my gratitude to our incredible team of people. Whatever their role within the company may be, their commitment and dedication to evoking happiness in our customers is simply unparalleled. A great example of this occurred during the aftermath of Hurricane Ian. Notwithstanding the fact that it struck one of the most important markets we have in the entire company and notwithstanding the challenges the hurricane had on their personal lives, due to the commitment and resilience of our people, we hardly missed a beat and we were operating on a business as usual basis within a very short time. This is just one example among many of how focused our people are on serving our customers. We are very grateful to all of them and wish all of them and all of you a very happy holiday season. I'll now hand the call over to Scott, who will provide more details on the quarter and our outlook for the balance of the year. Scott? Thank you, Tom.