Oxford reports net sales rise of 5 percent in Q2

REPORT_ Oxford Industries, announcing its financial results for its fiscal 2014

second quarter, ended August 2, 2014 said that its consolidated net sales increased 5 percent to 246.2 million dollars compared to 235 million dollars in the second quarter of fiscal 2013. On an adjusted basis, earnings per share were 0.94 dollars compared to 1.01 dollars in the second quarter of fiscal 2013. On a GAAP basis, earnings per share were 0.92 dollars compared to 0.96 dollars in the same period of the prior year. Company reaffirms full year adjusted EPS guidance of 3 dollars -3.15 dollars and GAAP EPS guidance of 2.88 dollars - 3.03 dollars.

For the first half of fiscal 2014, consolidated net sales increased 7 percent to 503.9 million dollars compared to 469.2 million dollars in the first half of fiscal 2013. On an adjusted basis, earnings per share were 1.88 dollars compared to 1.83 dollars in the first half of fiscal 2013. On a GAAP basis, earnings per share were 1.83 dollars compared to 1.78 dollars in the same period of the prior year.

Commenting on the results, Thomas C. Chubb III, CEO and President, said, “We are pleased with our second quarter results. Our performance continued to be driven by solid contributions from both Tommy Bahama and Lilly Pulitzer. Lilly's second quarter results were simply outstanding with sales increases in all channels of distribution, including extraordinary comps of 19 percent. As we enter the second half, we remain optimistic about our ability to achieve our full year financial goals and create ongoing value for our shareholders.”

Net sales for Tommy Bahama increased 3 percent to 157.8 million dollars in the second quarter of fiscal 2014 with increases in all direct to consumer channels, including a comparable store sales increase of 4 percent. At the end of the second quarter of fiscal 2014, Tommy Bahama operated 147 stores consisting of 94 full-price stores, 14 restaurant-retail locations and 39 outlets. This compares to 133 stores on August 3, 2013.

Tommy Bahama's adjusted operating income for the second quarter of fiscal 2014 decreased to 22.2 million dollars compared to 24.5 million dollars in the second quarter of fiscal 2013. On a GAAP basis, operating income for the second quarter of fiscal 2014 was 21.8 million dollars compared to 23.8 million dollars in the second quarter of fiscal 2013.

Lilly Pulitzer's strong second quarter results included a net sales increase of 22 percent to 46.6 million dollars with increased sales in all channels of distribution including a comparable store sales increase of 19 percent. Lilly Pulitzer operated 26 stores at the end of the second quarter of fiscal 2014 compared to 22 stores at August 3, 2013. Brand reported a 17 percent increase in operating income to 11.2 million dollars for the second quarter driven by the increased sales and higher gross margin in all channels of distribution.

Net sales for Lanier Clothes were 21.3 million dollars in the second quarter compared to 22.3 million dollars in the same quarter, last year. Net sales at Ben Sherman rose 15 percent to 18.7 million dollars for the second quarter of fiscal 2014. Corporate and Other had an adjusted operating loss of 4.7 million dollars compared to an adjusted operating loss of 3.5 million dollars in the second quarter of fiscal 2013 primarily due to lower Oxford Golf sales and higher corporate expenses.

For fiscal 2014, the company affirmed its full year adjusted earnings per share guidance on net sales of approximately 1 billion dollars. For the third quarter, ending on November 1, 2014, the company anticipates net sales in a range of 220 to 230 million dollars. On an adjusted per share basis, the Company expects to be in a range between a loss of 0.05 dollars and earnings of 0.05 dollars. On a GAAP per share basis, the company expects to be in a range between a loss of 0.08 dollars and earnings of 0.02 dollars. This compares with earnings per share of 0.10 dollars on an adjusted basis and 0.05 dollars on a GAAP basis in the third quarter of fiscal 2013 on sales of 197.5 million dollars.