Oxford Industries delivers Q3 sales growth

Oxford Industries, Inc. net sales in the third quarter increased 4 percent to 327 million dollars. Net sales in the first nine months increased 13 percent to 1,167 million dollars.

The company reported EPS on a GAAP basis of 68 cents and 1.01 dollars on an adjusted basis. Nine months EPS on a GAAP basis decreased to 7.57 dollars and on an adjusted basis, EPS decreased to 8.27 dollars.

Commenting on the trading results, Tom Chubb, the company’s chairman and CEO, said: “We are pleased to deliver another quarter of solid results which were squarely in our sales and EPS forecast ranges and come on top of 12 percent positive comps during the same period last year.”

Highlights of Oxford Industries’ Q3 results

The company said, full-price direct-to-consumer (DTC) sales increased 9 percent to 194 million dollars, including 38 million dollars of DTC sales in Johnny Was and a 3 percent aggregate decrease in full-price DTC sales in the other businesses.

Full-price retail sales of 105 million dollars were 8 percent or 8 million dollars higher than the prior-year period. This includes full-price retail sales in Johnny Was of 18 million dollars. Full-price retail sales in the company’s other businesses decreased by 2 percent.

Full-price e-commerce sales grew 11 percent or 9 million dollars to 89 million dollars including full-price e-commerce sales in Johnny Was of 20 million dollars. Full-price e-commerce sales in the company’s other businesses decreased by 3 percent.

Outlet sales were 17 million dollars, a 13 percent or 2 million dollars increase versus prior-year results, due to the addition of Johnny Was and a 6 percent increase in Tommy Bahama.

Wholesale sales of 69 million dollars were 1 percent or 1 million dollars lower than the third quarter of fiscal 2022. Johnny Was contributed wholesale sales of 10 million dollars with the other businesses in the aggregate decreasing by 9 percent.

Oxford Industries operating performance and outlook

The company’s gross margin decreased to 62.9 percent on a GAAP basis, while operating income was 14 million dollars or 4.4 percent and adjusted operating income was 21 million dollars or 6.6 percent of net sales.

For fiscal 2023 ending on February 3, 2024, the company’s moderated sales and EPS guidance includes net sales in a range of 1.570 billion dollars to 1.590 billion dollars and GAAP EPS between 9.25 dollars and 9.45 dollars. Adjusted EPS is expected to be between 10.10 dollars and 10.30 dollars.

For the fourth quarter, the company expects net sales to be between 403 million dollars and 423 million dollars, GAAP EPS to be in a range of 1.67 dollars to 1.87 dollars and adjusted EPS to be between 1.83 dollars and 2.03 dollars.

The company’s board of directors declared a quarterly cash dividend of 65 cents per share payable on February 2, 2024 to shareholders of record as of the close of business on January 19, 2024.