- Prachi Singh |
Consolidated net sales at Oxford Industries, Inc. increased 3 percent to 282 million dollars for its fiscal 2019 first quarter ended May 4, 2019. The company said, earnings on a GAAP basis were 1.29 dollars per share compared to 1.23 dollars in the same period of the prior year. On an adjusted basis, earnings were 1.30 dollars per share compared to 1.28 dollars in the first quarter of fiscal 2018.
“Fiscal 2019 has started well as we delivered our ninth consecutive quarter of consolidated comparable sales growth and our sales and earnings per share for the quarter were ahead of expectations. Looking ahead, we continue to expect solid increases in operating income and EPS in fiscal 2019. The proposed China tariffs have created some near-term uncertainty in the marketplace and our efforts are well-underway to mitigate the potential impact,” said Thomas C. Chubb III, the company’s Chairman and CEO in a statement.
Oxford Industries initiates second quarter outlook
The company’s gross profit in the first quarter increased to 165.8 million dollars compared to 164.1 million dollars in the same period of the prior year, while gross margin was 58.8 percent compared to 60.2 percent in the first quarter of fiscal 2018. Operating income was 29.7 million dollars compared to 28.4 million dollars in the same period of the prior year and on an adjusted basis, operating income was 30 million dollars compared to 29.4 million dollars in the first quarter of fiscal 2018.
For the second quarter, the company expects net sales to be between 300 million dollars and 310 million dollars compared to net sales of 302.6 million dollars in the second quarter of fiscal 2018. Earnings per share on a GAAP basis are expected to be in a range of 1.79 dollars to 1.89 dollars in the second quarter, while on an adjusted basis, earnings per share are expected to be in a range of 1.80 dollars to 1.90 dollars compared to GAAP earnings per share of 1.61 dollars and adjusted earnings per share of 1.83 dollars last year.
The company’s third quarter is expected to remain its smallest sales and earnings quarter due to the seasonality of its Tommy Bahama and Lilly Pulitzer direct to consumer operations. As a result, the company expects its third quarter earnings to be comparable to the third quarter of fiscal 2018 and expects to see meaningful earnings growth in the fourth quarter.
The company has affirmed its outlook for the full year and said that it expects net sales to grow to between 1.135 billion dollars and 1.155 billion dollars as compared to fiscal 2018 net sales of 1.107 billion dollars. In fiscal 2019, GAAP earnings per share are expected to be between 4.42 dollars and 4.62 dollars. 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 3.94 dollars per share and adjusted earnings of 4.32 dollars per share in fiscal 2018.