Oxford Industries posts rise in Q2 net sales and earnings

Oxford Industries, Inc. reported consolidated net sales increase of 6 percent to 302.6 million dollars compared to 284.7 million dollars in the second quarter of fiscal 2017. The company said, earnings on a GAAP basis were 1.61 dollars per share compared to 1.36 dollars in the same period of the prior year, while on an adjusted basis, earnings were 1.83 dollars per share compared to 1.44 dollars in the second quarter of fiscal 2017.

Commenting on the results, Thomas C. Chubb III, the company’s Chairman and CEO, said in a statement: “Our powerful portfolio of brands, Tommy Bahama, Lilly Pulitzer and Southern Tide, delivered strong comparable store sales growth in the second quarter, with a consolidated comp increase of 7percent. Importantly, these brands also delivered strong gross margin expansion, each growing over 100 basis points.”

Review of Oxford’s consolidated operating results

The company said that increased sales in the company’s direct to consumer business included a strong comparable store sales increase of 7 percent and the incremental sales associated with additional stores at Lilly Pulitzer.

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Gross profit in the second quarter increased to 179.3 million dollars compared to 166 million dollars in the same period of the prior year, reflecting higher sales and higher gross margin. Gross margin grew to 59.2 percent compared to 58.3 percent in the second quarter of fiscal 2017, while adjusted gross margin expanded 60 basis points to 59.4 percent from 58.8 percent in the same period of the prior year.

Oxford reveals expectations for Q3 and full year

For the third quarter, the company expects year over year increases in direct to consumer sales and reductions in wholesale sales. Net sales are expected to be in a range from 235 million dollars to 245 million dollars, compared to net sales of 236 million dollars in the third quarter of fiscal 2017. Earnings per share on a GAAP basis are expected to be in a range of 0.07 dollar to 0.17 dollar and on an adjusted basis, earnings per share are expected to be in a range of 0.10 dollar to 0.20 dollar compared with third quarter fiscal 2017 earnings per share of 0.06 dollar and adjusted earnings per share of 0.17 dollar.

The company has affirmed its net sales and adjusted earnings outlook for the full 2018 fiscal year and has revised its GAAP earnings outlook due to the net impact of the Tommy Bahama Japan restructuring charge and the LIFO accounting credit recognized in the second quarter. GAAP earnings per share are now expected to be between 4.13 dollars and 4.33 dollars, while adjusted earnings per share are expected to be between 4.45 dollars and 4.65 dollars. This compares to earnings on a GAAP basis of 3.87 dollars per share and, on an adjusted basis, 3.66 dollars per share in fiscal 2017. The company expects net sales to grow to between 1.125 billion dollars and 1.145 billion dollars compared to fiscal 2017 net sales of 1.086 billion dollars.

The company also announced that its board of directors has approved a cash dividend of 0.34 dollar per share payable on November 2, 2018 to shareholders of record as of the close of business on October 19, 2018.

Picture:Facebook/Tommy Bahama