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Oxford Industries, Inc. (NYSE:OXM)
Q2 2018 Earnings Conference Call
September 12, 2018, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day, everyone. Welcome to today's Oxford Industries, Incorporated second quarter 2018 earnings conference. Today's conference is being recorded. At this time, for opening remarks and introductions, I'd like to turn the floor over to Miss Anne Shoemaker. Please go ahead, ma'am.

Anne Shoemaker -- Vice President of Capital Markets, Treasurer 

Thank you, Stephanie, and good afternoon, everyone. 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 law. Forward-looking statements are not guaranteed and actual results may differ materially from those expressed or implied in the forward looking statements.

Important factors that could cause actual results of operation 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.

Please note that all financial results and outlook information discussed on this call, unless otherwise noted are from continuing operations and all per share amounts are on a diluted basis. Our disclosures about comparable store sales include sales from our full-price stores and e-commerce sites and exclude sales associated with outlet stores and e-commerce flash clearance sales.

Because this fiscal 2017 had 53 weeks, each fiscal week in fiscal 2018 starts and ends one calendar week later than in fiscal 2017. To provide a more accurate assessment of our fiscal 2018 comparable store productivity, we are presenting fiscal 2018 comparable store sales on a calendar adjusted basis by comparing the fiscal 2018 period to the comparable calendar period in the preceding year. That's comparable store sales for the second quarter of fiscal 2018 compared to sales in the 13-week period ended August 4th, 2018 to the 13-week period ending August 5th, 2017.

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 III -- Chairman and Chief Executive Officer

Good afternoon and thank you for joining us. We are quite pleased with our second quarter results, which reflect sales increases in all operating groups, highlighted by a solid 7% comp store sales increase. At our two largest brands, Tommy Bahama and Lilly Pulitzer, we saw low single-digit comps in our retail stores and double-digit comps in our e-commerce business. At the same time, our overall gross margin expanded as our sales mix continues to shift toward a greater proportion of DTC business.

By brand, Tommy Bahama adjusted gross margin adjusted 176 basis points and Lilly Pulitzer's expanded 139 basis points. Our recent performance underscores the strong positioning of our powerful brands coupled with the tailwinds from a strong economy and a healthy consumer.

The combination of a high single-digit consolidated comp game and robust gross margin improvement is a great indication that our brands our truly resonating with our customers through innovative, differentiated product, controlled distribution, and compelling communication. Creating this emotional connection between our brands and our customers is critical to driving sustainable growth and increased shareholder value over the long-term.

To support our direct to consumer businesses, we continue to make significant investments to ensure we effectively reach and delight our consumers. Our multi-year IT infrastructure projects are proceeding well. These initiatives are supporting our businesses with fantastic digital presentations of our brands and improvements designed to create a more seamless omnichannel experience.

One of the key benefits of these initiatives is the ability to better leverage inventory across the system to satisfy demand regardless of where it originates. Another benefit is the enhanced ability to aggregate and analyze data in ways that will allow us to better serve the wants and needs of our customers on a more individual, personalized basis.

Investments in marketing are also a priority for 2018, particularly in the first half. Across the enterprise, marketing to acquire and retain customers is a major focus point and includes the addition of staff, increased spending levels, and experimenting with some new and different marketing techniques. While the return on these programs will vary in terms of attracting and retaining customers, the learnings from these investments are important to our brands and their ability to continue to drive profitable growth.

Lastly, we are investing in our stores and restaurants, which generate almost half of our consolidated revenue and do a magnificent job presenting our brands to our guests. An exciting example of this is the Lilly Pulitzer store that we opened in Whalers Village on Maui. During the planning phase, we believed that this location would be an excellent opportunity to introduce the Lilly brand to new customers.

To date, the results are providing that belief to be well-founded. An exceptionally high percentage of the customers who have shopped Lilly Pulitzer in Whalers Village are new to the brand. And even more exciting to us is that a high percentage of the new customers are from California. Currently, we have no Lilly stores in California and this is still a largely untapped market for the brand. We are looking forward to opening our new Lilly location in Newport Beach, California, in early 2019.

At Tommy Bahama, we remain very excited about the Marlin Bar concept. We have seen strong results so far in the two we have opened at Coconut Point and Palm Springs. We are working hard on finding additional locations and landlords are sharing our enthusiasm for the concept. We believe we will open two and three additional Marlin Bar locations in the back half of Fiscal 2019 and we'll have more to say about this in subsequent quarters.

Now, a bit about the back half of the year -- our third quarter is quite small because of the seasonality of our brands, but the quarter does include the highly anticipated Lilly Pulitzer end of season clearance event. The After Party Sale, as it's known, began in stores last Saturday and online on Monday of this week.

Here's a quick update -- this is going to be the largest, most successful event ever. There has been tremendous customer enthusiasm, with lines outside the stores over the weekend and our guests queueing up to shop online. This amazing event will end this evening at midnight Eastern.

Looking further ahead, we believe the consumer and our businesses are ready and excited for a robust holiday and resort season. We have compelling, well-planned offerings for our guests with beautiful products and marketing campaigns that are engineered to drive strong sales throughout the fourth quarter.

This afternoon, I've spent quite a bit of time discussing our larger brands, Tommy Bahama and Lily Pulitzer. So, now, I want to take just a minute to bring you up to date on Southern Tide. We have gained a lot of traction so far in 2018. We are doing a better job than ever articulating what this brand represents. It is authentic, coastal, southern.

With the idea of southern style being not about geography, but rather a state of mind, Southern Tide has broadened its reach and 13 signature stores now pepper the eastern US, including locations as far north as Massachusetts and Connecticut, with plans to add two more stores in Florida before the end of the year.

Southern Tide's e-commerce business, which is about 20% of the brand's sales is an increasingly important channel of distribution and one in which we are investing. Southern Tide is now operating on a new e-commerce platform and we have beefed up our digital and e-commerce teams.

We entered 2018 with a plan for Southern Tide to deliver a low solid double-digit sales increase a low double-digit operating margin and we are on track to achieve those objectives. Across Oxford, our people are talented and focused and our brands are very well-positioned in the marketplace. We remain confident in our ability to achieve our full-year financial, operational, and strategic objectives while making significant investments in our businesses for the long-term.

I'll now turn the call over to Scott Grassmyer for a bit more about our Q2 results and more details on our guidance for the back half of the year. Scott?

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Thanks, Tom. Before I cover our consolidated results and our outlook, I want to take a minute to discuss actions we have taken related to our Tommy Bahama business in Japan. In the second quarter, we incurred $3.7 million of charges associated with the restructuring and downsizing of this business, including the forthcoming closure of the flagship retail restaurant location in Ginza.

As a reminder, in Fiscal 2017, we lost $5.4 million in our Asian Pacific operations. Because of these restructuring actions and other cost reductions and improvements, after Fiscal 2018, we expect only a negligible impact to our profitable from the Tommy Bahama APAC operations.

Now, I'll move on to our second quarter results. On a consolidated basis, net sales, increased 6% with strong comp store sales increases to each of our branded businesses. In the second quarter of Fiscal 2018, SG&A as a percentage of net sales increased to 48% compared to 47% last year. Approximately $5 million of the increase was marketing. We had $3.2 million of SG&A related to charges associated with the Tommy Bahama Japan restructuring, as well as costs associated with the operation of additional Lilly Pulitzer retail stores.

US tax reform had a positive effect on our earnings in the second quarter with a tax rate of 34% compared to 36% last year. Our adjusted EPS was $1.83 in the second quarter of '18 versus $1.44 last year and close to the top of our guidance range of $1.75 to $1.85.

Our balance sheet and capital structure remain very strong and support our growth initiatives and investments. We saw our inventory balance increase about $4 million or 3% over last year to $124 million. This increase is just for planned sales increases and the operation of additional retail stores. We also ended the quarter with $228 million of unused availability under our evolving credit facility.

Our guidance for the third quarter of Fiscal 2018 includes net sales in a range of $235 million to $245 million and adjusted earnings per share to be between $0.10 and $0.20. This compares with sales of $236 million in the third quarter of Fiscal 2017 and adjusted earnings per share of $0.17. Our third quarter remains our smallest sales and earnings quarter due to the seasonality of our Tommy Bahama and Lily Pulitzer direct to consumer operations.

Lanier Apparel had a very strong third quarter in Fiscal 2017. This year, Lanier has had some major programs shift from the third quarter into the fourth quarter, putting some downward pressure on our third quarter results. For the full fiscal year, we have affirmed our guidance and expect sales to be between $1.125 billion and $1.145 billion and adjusted earnings in a range of $4.45 to $4.65 per share. This compares to net sales of $1.086 billion in Fiscal 2017 and adjusted earnings of $3.66 per share.

Our interest expense is expected to be less than $3 million and our effective tax rate for Fiscal 2018 is expected to be approximately 26%. Capital expenditures, including $22 million in the first half of Fiscal 2018 are expected to be approximately $50 million in Fiscal 2018. This will primarily consist of investments in information technology initiatives, new retail stores and restaurants, and investments to remodel existing retail stores and restaurants.

Free cashflow for Fiscal 2018 is expected to be approximately $50 million. Finally, our board of directors has approved a quarterly cash dividend of $0.34 per share. Oxford has paid a dividend every quarter since becoming a public company in 1960.

Stephanie, with that, we are ready for questions.

Questions and Answers:

Operator

Thank you. If you would like to ask a question, please signal by pressing *1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach out equipment. Again, press *1 to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions.

And we'll take our first question from Edward Yruma from KeyBanc. Please go ahead.

Edward Yruma -- KeyBanc Capital Markets -- Analyst

Hey, good evening, guys. Thanks for taking the question. I guess first on Tommy Bahama, I know you highlighted some of the marketing step up in the first half of '18. I know you tried different things. You blanketed an airport, did more social media. I guess if you kind of had to rank what you did, maybe some of the returns or benefits you saw, what was successful and what was least successful, and then I guess second, good to hear the reduction in Asia losses going forward.

Just for clarification -- do the minimal losses, is that for all of Fiscal 19 or is that it's going to start to trend that way once the stores close? Thanks.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Okay. First, with respect to the marketing in Tommy Bahama and this would be in Lilly Pulitzer too, we really spent more this year, significantly more than we have in the past. We tried a lot of different things. I'm not sure that we're prepared to actually rank them, but we will talk about some of the things that we really liked a lot.

One of them is the thing that you called out, the sort of blanketing an airport, where we blanketed the Fort Meyers Airport with advertising in an airport that serves the West Coast of Florida. As you know, that's a very, very important market for us. We liked the way that worked. We think it had a positive impact on our business.

We also liked getting the video aspects out in a variety of formats. I think we liked the way that presented the brand to our guests and, in some ways, I think, changed the perception of the breadth and the depth of the brand, enhanced the guests' view of it. I think one of the things that's been particularly exciting that we've liked watching a lot is the combination of some very targeted television advertising using those video assets.

And then some terrific PR that's coupled with that that gets us placed on the local morning shows -- so, in a given locality after "The Today Show," they may have the local version of "The Today Show" and we would be featured on there, some of our people, and they would be perhaps talking about the food and drink at our restaurant and some of the clothes or maybe they're talking about how to host a backyard barbeque or tailgate party.

Again, they sort of integrate into those discussions not only the clothes, but other items that we sell and all aspects of the Tommy Bahama lifestyle and some of these segments go on for six, seven or even more minutes. We're sort of throughout those segments, there are references, both visual and otherwise, to Tommy Bahama. It's just a great way to get the brand out there. That PR activity in combination with the television advertising is proving to be a very powerful combination. We've had a lot of that. We'll have a lot more through the back-half of the year.

Then with regard to the other question, I'll let Scott...

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Yeah. On the Ginza flagship, the restaurant will close later this month and then we'll go through sometime in January closing the retail side and liquidating the inventory and having those sales. So, we'll be out of Ginza by the end of the year. So, '19, our complete Asia Pacific operations, we should be somewhere close to break even. There won't be any kind of material impact from those operations for '19.

Edward Yruma -- KeyBanc Capital Markets -- Analyst

Great. Thanks so much.

Operator

If you find that your question has been answered, you may remove yourself from the queue by pressing *2. We'll move on to Brick Patel with Needham & Company.

Rick Patel -- Needham & Company -- Analyst

Hey, good afternoon, guys. Congrats on the strong execution once again. Obviously, we wish the people in the Carolinas all the best as they prepare for Hurricane Florence. As we think about the exposure the storm could have to Oxford, could remind us how many stores or sales you have in the region by brand.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Yeah. Rick, to start with, I would echo your comments. In these kinds of situations, obviously, our first concern and priority is the health and safety and wellbeing of our customers, our employees, and everybody else that's living in the affected regions, but in terms of our exposure, we've got a total of 12 stores in North Carolina and South Carolina, which seems a little more where it's headed, at least at the moment and that would be about 5% of our total store count and also about 5% of the total retail sales.

That's the way that we're looking at it right now. Again, we're most concerned about the health and safety of the people, but that's a relatively small part of the store portfolio in terms of impact on the business. I think we've already got some of those stores closed and would expect to experience a few more days' worth of at least a few stores being closed.

But in terms of the time of year it's happening, this is, as you know, a very small business time of year for us. Sales numbers tend to be pretty small during the middle to latter part of September. So, if you're going to lose some sales days, this is probably a pretty good time to do it.

Rick Patel -- Needham & Company -- Analyst

Then a question on Lilly Pulitzer -- great performance there. As we think about the back-half, you're up against some tougher comparisons. Do you still expect to generate positive comps in both 3Q and 4Q or should we be taking a more conservative view in light of your very strong holiday last year?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

No, really, with respect to both Tommy and Lilly, we expect the momentum that we saw in the second quarter to continue, really, for the back-half of the year and have good solid upper-single-digit comps across the company for the back-half of the year. And you know, it's based on the product offerings we have and the marketing initiatives we have, combined with what we view as a very healthy economy and consumer market.

As proud as we are of our execution, I think to be fair, we also have to acknowledge that it's a pretty good consumer market right now as well. You throw all that in the mix together. We're expecting to have a good back-half, particularly fourth quarter.

Rick Patel -- Needham & Company -- Analyst

Just a quick one on Lanier, if I may -- can you provide some context on how much sales will move from 3Q to 4Q as we think about that decline in the third quarter? Do you still expect to generate mid-single-digit growth for Lanier as a whole for the year?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

It's going to be about $7 million for the shift from Q3 to Q4, about $7 million. In terms of the total growth for the year, I think it would be...

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Kind of low-single-digits.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Low singles more than mid-singles. I think we ended up a little softer in Q2 than we might have thought that we might have been in the end. So, when you add all that up, you're going to end up probably closer to low singles than mid.

Rick Patel -- Needham & Company -- Analyst

Great. Thank you very much.

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Thanks a lot, Rick.

Operator

Up next is Susan Anderson with B. Riley FBR.

Susan Anderson -- B. Riley FBR -- Managing Director

Hi, good evening. Congrats on the really nice quarter.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Hi, Susan. Thank you.

Susan Anderson -- B. Riley FBR -- Managing Director

Hi. I was wondering if you could talk a little bit about the wholesale business. It looks like DTC continues to be very strong for both of your brands. How did wholesale perform versus your expectations and when should we expect -- can you just remind us when we should expect the pressure to abate there?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

I think for the quarter, we were down in wholesale about $10 million in Q2, I believe. No, I'm sorry.

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Kind of less in total, but Lanier was up, but up less than we planned.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

And you said when are we going to start to see the pressure in the wholesale parts --

Susan Anderson -- B. Riley FBR -- Managing Director

Yeah. I know you're rationalizing some of those -- yeah. Sorry. Go ahead.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

So, I think that we've hit a point in wholesale where I believe that we're starting to stabilize a bit. As you know, it hasn't been a huge growth priority for us. We've been mindful of protecting our brands and where that meant rationalizing some doors, we've done that.

I think we've gotten to a point where we're going to start to stabilize and perhaps even have some growth opportunities in wholesale. It's still not our major focus of growth, but I think we can start to grow a bit in wholesale. We're seeing some very healthy performances from most of our major wholesale partners or doing quite well with our product right now, which is good to see.

Susan Anderson -- B. Riley FBR -- Managing Director

Great. Then on Lilly, you talked about the after-party sale. I think you mentioned it potentially being the biggest sale ever. Maybe if you could talk about what's driving it bigger. Is it just the higher DTC penetration?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Well, I think that there are a couple of things that are driving it. First of all, there's the overall enthusiasm for the brand. Secondly, I think it's the extremely clean distribution that they're running in Lilly Pulitzer. So, it's very controlled. We're very careful the wholesale partners we select and how they run their businesses. And then in our own stores, we do very limited markdowns other than during the After Party Sale. And then on our e-commerce website, we never have any markdowns except during the After Party Sales.

So, the consumer is really starved for reduced opportunities in Lilly. They know that we're going to have it and they anxiously await the arrival of the After Party Sale. This year, we did it a couple of weeks later than we have historically. We thought that could better synchronize the sale with when we want to be on sale and when the consumer is ready to buy and it seems to have worked really well. So, we had an absolutely outstanding sale last August, but this one is going to end up being even bigger than that.

Susan Anderson -- B. Riley FBR -- Managing Director

Great. That sounds good. One more on the Marlin Bar -- it sounds like they continue to go pretty well. Are you still seeing outsized productivity in the stores next to the Marlin Bars versus kind of just the original stores. Has that continued now that they've been open -- the one has been for a longer period of time?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Yeah. So, we've got two. We've got the one in Coconut Point, Florida, which we opened in the latter part of 2016. So, we've got a full year-plus of data on that. It has continued to comp quite nicely and better than the fleet average, if you will. So, we've got a huge growth there the first year and continue to have strong comps this year in the retail part of it. So, very, very pleased with the way that's worked.

Palm Springs opened in May. As you know, if you've ever been to Palm Springs, it's already been about 108 degrees in May and getting hotter by the day. So, we've been thrilled with what we've seen there so far. We won't really get into the season in Palm Springs until later in the calendar year and then it will be a full year after that before you start comping in a way.

But we're very pleased with our early signs and we're highly confident that it's going to be successful. We view it as a success so far. We think when we get into the real season in Palm Springs, it's going to be something else. Then we've got, like we said, a lot of discussions going and believing that we'll get a few more open in the back-half of '19.

Susan Anderson -- B. Riley FBR -- Managing Director

Great. If I can just get in one more on the resort stores -- I know early in the year you said that they were doing very well. I'm just curious if they continued that strength throughout the summer months. Was there any change there, acceleration or deceleration, I guess to gauge the health of the consumer?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

No. I think we've been really pleased with the way we've performed pretty much across the board in resort markets. We have the New England stores with Lilly Pulitzer this summer. We really got those, I guess, at the end of the summer last year, but had them for the full summer this year. That was pretty exciting to see some of the numbers that those small stores could put up even -- some of those are quite small in terms of their square footage, but some of the numbers they were putting up on days during the summer were very impressive. I think really, you look across the portfolio, there are maybe one or two exceptions, but the resort business has been quite strong.

Susan Anderson -- B. Riley FBR -- Managing Director

Great. That sounds good. Thanks so much. Good luck next quarter.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Thanks a lot.

Operator

Once again, if you would like to ask a question, please press *1. We'll take our next question from Dana Tesley from Tesley Advisory Group.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Hi, Dana.

Dana Telsey -- Telsey Advisory Group -- Analyst

Good afternoon, everyone. Hi and nice to see the progress. As you think of the same-store sales, what were the levers that drove the same-store sales? There's CapEx, transactions, conversions. What do you see on same-store sales? Then I have a follow-up.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Well, we would like to believe that our marketing activities help with the comp sum, but in terms of the underlying KPIs that actually drove the results, in bricks and mortar, it's not really traffic. It's much more about conversion. In the case of Lily Pulitzer, both conversion and average ticket size.

On e-commerce, we are seeing some growth in conversion -- excuse me, in traffic, but then we're also seeing upticks in conversion and, again, in Lily, growth in the ticket size as well. So, it's those things that are really driving the number. We think that those are the result of having great differentiated innovative product and compelling marketing messages delivered through appropriate channels.

Dana Telsey -- Telsey Advisory Group -- Analyst

And on the Tommy business, how is the improved data analytics and replenishment system -- how is that helping, whether it's localization of product, what are you seeing there and how is it impacting your margin expectations?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Well, I think you can look at some of the numbers that we're putting out. We're doing more business on less inventory, which makes us really happy and the Tommy team really happy. That in and of itself should help improve margins. We're able to better satisfy demand from a customer, wherever they are, with inventory, wherever it may be located. Now, we still have additional capabilities in those areas that will be rolling out over the next year, but we've come a long way in that regard and it's showing up in the results.

Some of the back-half stuff, we're beginning to see benefits as well, as you mentioned, in the merchandising, planning, and allocation, but I don't think we've seen the full benefit of that yet, either. So, I think there's still more to be gained. You saw, again, more business, less inventory, higher gross margins -- those are all good things.

Dana Telsey -- Telsey Advisory Group -- Analyst

And when you think about the Tommy business and the Lilly business, is the guidance still for Tommy sales to be up modestly and what about the operating margin? And is Lily still expected to grow high single-digits this year with an operating margin kind of flat with last year?

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Yes. I think that's right. So, Tommy up modestly in topline and a modest uptick in operating margin. Lily up a bit more in topline than that, I think closer to high singles.

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Yeah.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

And then the operating margin should be maybe a hair lower than last year.

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Yeah.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

That's still very strong.

Dana Telsey -- Telsey Advisory Group -- Analyst

And what kind of comps do you need to leverage expenses? How do you think about it?

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

We need a couple points to leverage some of the inflationary expenses. We can keep comp the way we did. In Q2, we'll have some good leverage there, particularly in the fourth quarter.

Dana Telsey -- Telsey Advisory Group -- Analyst

Thank you.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Thank you, Dana.

Operator

It appears there are no further questions at this time. Mr. Chubb, I'd like to turn the conference back to you for any additional or closing remarks.

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Thank you, Stephanie. Our focus on long-term value has and will continue to drive our initiatives at Oxford. We believe the keys to our success have been our unwavering focus on long-term shareholder value, having the very best people in the industry, which is the foundation of our business, and our dynamic portfolio of sensational lifestyle brands. Thank you, again, for your time this afternoon. We appreciate your interest and look forward to talking to you again in December.

Duration: 37 minutes

Call participants:

Anne Shoemaker -- Vice President of Capital Markets, Treasurer 

Thomas C. Chubb III -- Chairman and Chief Executive Officer

Scott Grassmyer -- Executive Vice President and Chief Financial Officer

Edward Yruma -- KeyBanc Capital Markets -- Analyst

Rick Patel -- Needham & Company -- Analyst

Susan Anderson -- B. Riley FBR -- Managing Director

Dana Telsey -- Telsey Advisory Group -- Analyst

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