Oxford Industries net sale increase 11 percent in Q3

REPORT_ Oxford Industries, for the third quarter of fiscal 2014 ended November 1, 2014 reported consolidated net sales increase of 11 percent to 219.5 million dollars compared to 197.5 million dollars, same quarter; last year. Adjusted earnings per share in the third quarter were 0.01 dollar compared to 0.10 dollars in the third quarter of fiscal 2013. On a GAAP basis, earnings per share in the third quarter of fiscal 2014 were breakeven compared to 0.05 dollars in the same period of the prior year.

Commenting on the results, Thomas C. Chubb III, CEO and President, said, “We are pleased to have delivered a solid increase to our top line and to have met our earnings expectations in the difficult environment we faced in the third quarter. Looking forward, although the retail environment has continued to be heavily promotional and traffic remains soft, we believe we are successfully navigating the holiday season and expect to report solid results. We expect fourth quarter adjusted EPS in a range of 0.96 dollars to 1.06 dollars compared to 0.89 dollars last year and, for the full year, adjusted EPS of 2.85 dollars to 2.95 dollars.

Net sales at Tommy Bahama increased 10 percent year-over-year to 125.4 million dollars in the third quarter of fiscal 2014. Growth was driven by increased wholesale sales, an e-commerce flash clearance sale, sales from additional retail stores and a comparable store sales increase of 2 percent. At the end of the third quarter of fiscal 2014, Tommy Bahama operated 150 stores consisting of 96 full-price stores, 14 restaurant-retail locations and 40 outlets. This compares to 137 stores at the end of the third quarter of fiscal 2013.

Lilly Pulitzer's net sales increased 19 percent year-over-year to 36 million dollars in the third quarter of fiscal 2014. The net sales increase was primarily due to higher sales at the semi-annual e-commerce flash sale, sales from additional retail stores and a comparable store sales increase of 7 percent. At the end of the third quarter of fiscal 2014, Lilly Pulitzer operated 28 stores compared to 22 stores at the end of the third quarter of fiscal 2013.

Net sales at Lanier Clothes increased to 35.9 million dollars in the third quarter of fiscal 2014 from 30.1 million dollars in the third quarter of fiscal 2013. The net sales increase was due to the impact of a large, private label warehouse club program. Net sales at Ben Sherman were 18.3 million dollars in the third quarter of fiscal 2014 compared to 18.6 million dollars in the third quarter due to decreased wholesale sales.

For the third quarter of fiscal 2014, Corporate and Other had an adjusted operating loss of 3.6 million dollars compared to an adjusted operating loss of 2.1 million dollars in the third quarter of fiscal 2013, primarily due to higher corporate expenses and lower Oxford Golf sales. For the third quarter of fiscal 2014, consolidated gross profit increased to 112.9 million dollars from 104.8 million dollars in fiscal 2013. Gross margin in the third quarter of fiscal 2014 decreased to 51.5 percent from 53.1 percent.

For fiscal 2014, the Company expects adjusted earnings per share in a range of 2.85 dollars to 2.95 dollars and net sales in a range of 990 million dollars to 1 billion dollars. On a GAAP basis, the Company expects earnings per share in a range of 2.75 dollars to 2.85 dollars for the year. For the fourth quarter, ending on January 31, 2015, the company expects net sales in a range of 267 million dollars to 277 million dollars and earnings per share in a range of 0.96 dollars to 1.06 dollars on an adjusted basis and 0.93 dollars to 1.03 dollars on a GAAP basis. The Board of Directors has approved a cash dividend of 0.21 dollars per share payable on January 30, 2015.