Oxford Industries posts sales and earnings growth

Oxford Industries, Inc. consolidated net sales rose 3 percent in the third quarter of fiscal 2021 to 248 million dollars compared to 175 million dollars and 241 million dollars in the third quarters of fiscal 2020 and fiscal 2019, respectively, despite significantly lower sales at Lanier Apparel.

The company said in a statement that earnings on a GAAP basis increased to 1.54 dollars per share compared to a loss of 64 cents per share in the third quarter of fiscal 2020 and earnings of 10 cents per share in the third quarter of fiscal 2019. On an adjusted basis, earnings increased to 1.19 dollars per share compared to a loss of 44 cents per share in the third quarter of fiscal 2020 and earnings of 10 cents per share in the third quarter of fiscal 2019.

Commenting on the results, Thomas C. Chubb III, the company’s chairman and CEO, said: “While the current operating environment has presented challenges including supply chain disruptions and additional cost pressures, we are managing them adeptly and I am confident in our ability to continue successfully executing our key strategies as we move through the fourth quarter and into fiscal 2022.”

Highlights of Oxford’s Q3 results

The company’s full-price direct to consumer sales grew 40 percent to 143 million dollars, with growth in each of the brands compared to the third quarter of fiscal 2019. Full-price retail sales grew 13 percent and full-price e-commerce sales grew 100 percent compared to the third quarter of fiscal 2019.

Off-price sales in the direct to consumer channels, which include the Lilly Pulitzer e-commerce flash clearance sale and Tommy Bahama outlet store sales, decreased by 12 million dollars compared to the third quarter of fiscal 2019. Sales from the Lilly Pulitzer e-commerce flash clearance sale were 19 million dollars in the third quarter of fiscal 2021 compared to 31 million dollars in the third quarter of fiscal 2019.

Wholesale sales were 53 million dollars during the third quarter of fiscal 2021 compared to 78 million dollars during the third quarter of fiscal 2019 due to 25 million dollars of lower sales in Lanier Apparel.

Gross margin, on both a GAAP and adjusted basis, increased to 62 percent compared to 55 percent in the third quarter of fiscal 2019.

Oxford reveals expectations for Q4 and full year

For the fourth quarter, the company expects net sales to be between 285 million dollars and 295 million dollars compared to 221 million dollars in the fourth quarter of fiscal 2020 and 298 million dollars in the fourth quarter of fiscal 2019.

The company expects earnings per share on a GAAP and adjusted basis in a range of 1.20 dollars to 1.35 dollars in the fourth quarter of fiscal 2021. This compares with a loss of 74 cents per share on a GAAP basis and an adjusted earnings per share of 13 cents in the fourth quarter of fiscal 2020, and earnings of 90 cents per share on a GAAP basis and an adjusted earnings per share of 1.09 dollars in the fourth quarter of fiscal 2019.

For the full fiscal year, the company now expects net sales in a range of 1.127 billion dollars to 1.137 billion dollars as compared to 749 million dollars in fiscal 2020 and 1.123 billion dollars in fiscal 2019.

In fiscal 2021, GAAP earnings per share are expected to be between 7.49 dollars and 7.64 dollars. Adjusted earnings per share are expected to be between 7.52 dollars and 7.67 dollars. This compares to a loss on a GAAP basis of 5.77 dollars per share and an adjusted loss of 1.81 dollars per share in fiscal 2020, and earnings of 4.05 dollars per share on a GAAP basis and 4.32 dollars per share on an adjusted basis in fiscal 2019.

The company’s board of directors has approved a cash dividend of 42 cents per share payable on January 28, 2022 to shareholders of record as of the close of business on January 14, 2022.