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Image: Lilly Pulitzer website

Oxford Industries swings to Q1 profit, raises outlook

By Prachi Singh

10 Jun 2021

Consolidated net sales in the first quarter at Oxford Industries were 266 million dollars compared to 160 million dollars and 282 million dollars in the first quarters of fiscal 2020 and fiscal 2019, respectively.

Earnings on a GAAP basis increased to 1.70 dollars per share compared to a loss of 4.02 dollars in the first quarter of fiscal 2020 and earnings per share of 1.29 dollars in the first quarter of fiscal 2019. On an adjusted basis, earnings increased to 1.89 dollars per share compared to a loss of 1.12 dollars in the first quarter of fiscal 2020 and earnings of 1.30 dollars in the first quarter of fiscal 2019.

The company noted that 14 million dollars of the 16 million dollars sales decrease from the first quarter of fiscal 2019 was due to lower sales in Lanier Apparel, which the company is exiting.

Commenting on the first quarter performance, Thomas C. Chubb III, the company’s chairman and CEO, said: “Our focus over the past year on delivering happiness to our customers and investing in enhanced digital, marketing and store capabilities, as well as in bars and restaurants, have strengthened our foundation for profitable growth.”

Oxford’s results against Q12019

Compared to the first quarter of fiscal 2019, full price e-commerce sales grew 55 percent to 74 million dollars, with growth in all branded businesses.

The company said, retail sales of 91 million dollars were 16 percent lower, with a stronger performance in the Southeast and Southwest than in the rest of the country.

Wholesale sales of 74 million dollars were 27 percent lower than the first quarter of fiscal 2019. Excluding Lanier Apparel, which the company is exiting in fiscal 2021, wholesale sales decreased 18 percent.

Gross margin increased to 62.7 percent compared to 58.8 percent in the first quarter of fiscal 2019, while on an adjusted basis, gross margin increased to 64 percent.

Operating income increased to 35 million dollars compared to 30 million dollars in the first quarter of fiscal 2019 and on an adjusted basis, operating income increased to 39 million dollars with operating margin expansion in all operating groups.

Oxford provides Q2 and FY21 outlook

The company expects second quarter net sales to be between 300 million dollars and 310 million dollars compared to net sales of 192 million dollars in the second quarter of fiscal 2020 and 302 million dollars in the second quarter of fiscal 2019.

Earnings per share on a GAAP basis are expected to be in a range of 2.11 dollars to 2.31 dollars in the second quarter. On an adjusted basis, earnings per share are expected to be in a range of 2.15 dollars to 2.35 dollars. This compares with a loss of 37 cents per share on a GAAP basis and an adjusted loss per share of 38 cents in the second quarter of fiscal 2020, and earnings of 1.76 dollars per share on a GAAP basis and 1.84 dollars per share on an adjusted basis in the second quarter of fiscal 2019.

As a result of lower planned revenue from clearance events and the impact of the Lanier Apparel exit, the Company expects a loss of 24 cents to 39 cents per share on a GAAP basis and a loss of 20 cents to 35 cents per share on an adjusted basis in the third quarter of fiscal 2021. This compares with a loss of 64 cents per share on a GAAP basis and an adjusted loss per share of 44 cents in the third quarter of fiscal 2020, and earnings of 10 cents per share on a GAAP and adjusted basis in the third quarter of fiscal 2019.

For fiscal 2021, the company has raised its previously issued guidance. The company now expects net sales in a range of 1.015 billion dollars to 1.05 billion dollars as compared to net sales of 749 million dollars in fiscal 2020 and 1.12 billion dollars in fiscal 2019.

The company added that GAAP earnings per share are expected to be between 4.55 dollars and 4.85 dollars and adjusted earnings per share are expected to be between 4.85 dollars and 5.15 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.