- Prachi Singh |
Consolidated net sales at Oxford Industries, Inc. in the third quarter of fiscal 2018 were 233.7 million dollars, down 1 percent, compared to 236 million dollars in the third quarter of fiscal 2017. The company said, earnings on a GAAP basis were 11 cents per share compared to 6 cents per share in the same period of the prior year. On an adjusted basis, earnings were 14 cents per share compared to earnings of 17 cents per share in the third quarter of fiscal 2017.
Commenting on the third quarter trading, Thomas C. Chubb III, the company’s Chairman and CEO, said in a statement: “The strong sales trends we experienced in our direct businesses during the first half of the fiscal year continued through the third quarter with a 7 percent comparable sales gain. We have moderated our fourth quarter comparable sales assumptions from a high single digit increase to a low single digit increase, as demand in our direct to consumer channels over the last few weeks has not been as strong as we previously expected. In addition, we have seen continued softness in our wholesale replenishment business.”
Highlights of Oxford’s Q3 sales performance
Gross profit in the third quarter increased to 129.3 million dollars compared to 125.2 million dollars in the same period of the prior year, reflecting higher gross margin. Gross margin grew to 55.3 percent compared to 53 percent in the third quarter of fiscal 2017, while adjusted gross margin expanded 160 basis points to 55.3 percent from 53.7 percent in the prior year third quarter.
For the fourth quarter, the company expects net sales in a range from 297 million dollars to 307 million dollars compared to net sales of 293.2 million dollars in the 14-week fourth quarter of fiscal 2017. Earnings per share on a GAAP basis are expected to be in a range of 94 cents to 1.09 dollars in the fourth quarter. On an adjusted basis, earnings per share are expected to be in a range of 96 cents to 1.11 dollars. This compares with fourth quarter fiscal 2017 GAAP earnings per share of 1.41 dollars and adjusted earnings per share of 93 cents.
For the full year fiscal 2018, the company expects GAAP earnings per share to be between 3.89 dollars and 4.04 dollars, while adjusted earnings per share are expected to be between 4.20 dollars and 4.35 dollar. This compares to fiscal 2017 earnings on a GAAP basis of 3.87 dollars per share and, on an adjusted basis, 3.66 dollars per share. The company expects net sales to grow to between 1.106 billion to 1.116 billion dollars compared to fiscal 2017 net sales of 1.086 billion dollars.
The company also announced a cash dividend of 34 cents per share payable on February 1, 2019 to shareholders of record as of the close of business on January 18, 2019. The company has paid dividends every quarter since it became publicly owned in 1960.