Oxford Industries reports 9 percent rise in FY14 net sales

Oxford Industries consolidated net sales rose 10 percent to 274.5 million dollars in the fourth quarter, as compared to 250.4 million dollars in the fourth quarter of fiscal 2013. Adjusted earnings per share for the quarter rose 21 percent to 1.08 dollars, exceeding guidance and as compared to 0.89 dollars in the same period last year. Fourth quarter GAAP earnings per share were 0.96 dollars compared to 0.91 dollars in the same period of the prior year.

For the full year of fiscal 2014, consolidated net sales rose 9 percent to 997.8 million dollars from 917.1 million dollars in fiscal 2013. Full-year adjusted earnings per share rose 6 percent to 2.98 dollars for the 2014 fiscal year compared to 2.81 dollars in the prior year. Full year GAAP earnings per share increased to 2.78 dollars from 2.75 dollars in the prior year.

Commenting on the results, Thomas C. Chubb III, CEO and President commented, "Fiscal 2014 was another good year for Oxford capped by a strong fourth quarter performance driven by solid comparable store sales increases and improved gross margin.”

In the fourth quarter of fiscal 2014, Tommy Bahama reported an 11 percent increase in net sales. Adjusted operating income for the quarter increased 11 percent from the same period in the prior year to 29.6 million dollars primarily due to higher sales. The increase in net sales was driven by increases in all channels of distribution including a comparable store sales increase of 8 percent. In fiscal 2014, net sales at Tommy Bahama increased 7 percent and comparable store sales increased 4 percent. As of January 31, 2015, Tommy Bahama operated 157 retail stores globally, including 101 full-price stores, 15 restaurant-retail locations and 41 outlet stores, compared to 141 retail stores as of February 1, 2014.

Lilly Pulitzer's net sales in the fourth quarter increased to 34.8 million dollars compared to 30 million dollars during the same period of the prior year reflecting increases in all channels of distribution including a comparable store sales increase of 9 percent. Lilly Pulitzer's adjusted operating income in the fourth quarter of fiscal 2014 was 2.2 million dollars compared to 1.5 million dollars in the fourth quarter of fiscal 2013 due to higher sales and higher gross margin.

In fiscal 2014, net sales at Lilly Pulitzer increased 22 percent from the prior year to 167.7 million dollars and comparable store sales increase of 19 percent. Adjusted operating income increased 24 percent due to higher sales and higher gross margin. As of January 31, 2015, Lilly Pulitzer operated 28 retail stores compared to 23 retail stores as of February 1, 2014.

Lanier Clothes net sales in the fourth quarter were 27 million dollars compared to 29.8 million dollars in fiscal 2013. Fiscal 2014 net sales for Lanier Clothes increased to 112.9 million dollars from 109.5 million dollars in fiscal 2013 with operating income comparable to last year at 10.8 million dollars.

Ben Sherman fourth quarter net sales were 25.4 million dollars compared to 20.1 million dollars in the fourth quarter of fiscal 2013 with increases in all channels of distribution. In fiscal 2014, net sales for Ben Sherman increased to 77.5 million dollars compared to 67.2 million dollars in fiscal 2013. For the fourth quarter of fiscal 2014, Corporate and Other had an adjusted operating loss of 5.2 million dollars compared to an adjusted operating loss of 3.2 million dollars in the fourth quarter of fiscal 2013. For fiscal 2014, Corporate and Other had an adjusted operating loss of 17.6 million dollars compared to an adjusted operating loss of 12.8 million dollars in fiscal 2013.

The company has also decided pursue a sale of the Ben Sherman business. The company expects to complete the sale of Ben Sherman during fiscal 2015. Net sales and earnings for fiscal year 2015, the company expects net sales of 965 million dollars to 980 million dollars. Adjusted earnings per share are expected to be between 3.45 dollars and 3.60 dollars. For the first quarter of fiscal 2015, the company currently expects net sales of 250 million dollars to 260 million dollars and adjusted earnings per share to be between 1.15 dollars and 1.25 dollars.

For fiscal 2015, Tommy Bahama expects percentage net sales increases in the mid to high single digits compared to fiscal 2014.Tommy Bahama's operating margin in fiscal 2015 is expected to be slightly lower than fiscal 2014. Gross margin improvements are expected to be offset by higher SG&A. For fiscal 2015, Lilly Pulitzer is expecting net sales increases of 11 percent to 13 percent compared to fiscal 2014. In fiscal 2015, operating margin is expected to be comparable with fiscal 2014. Lanier Clothes expects a decrease in net sales. Operating margin on this reduced sales base is expected to decline to approximately 8.5 percent in fiscal 2015. The Corporate and Other operating loss is expected to increase by approximately 2 million dollars.

The company announced that its Board of Directors has declared a cash dividend of 0.25 dollar per share payable on May 1, 2015 to shareholders of record as of the close of business on April 17, 2015. This represents a 19 percent increase from the dividend paid in the fourth quarter of fiscal 2014.