Oxford Industries: Q2 net sales up but earnings decline to 1.36 dollars

Oxford Industries’ consolidated net sales increased to 284.7 million dollars compared to 283 million dollars in the second quarter of fiscal 2016. Earnings on a GAAP basis were 1.36 dollars per share compared to 1.44 dollars in the same period of the prior year. On an adjusted basis, earnings were 1.44 dollars compared to 1.48 dollars in the second quarter of fiscal 2016.

“We are pleased with our second quarter results, particularly for Tommy Bahama, and in the health of each our brands. Our retail stores continue to generate a very healthy return on investment. While key brick and mortar locations will always be an important point of distribution for each of our brands, our fastest growing channel of distribution is in our e-commerce businesses. This is, in any environment, a formula for success,” said Thomas C. Chubb III, the company’s Chairman and CEO in a media statement.

Tommy Bahama and Southern Tide perform well in Q2

The company said 1 percent increase in net sales included year over year increases at Tommy Bahama and Southern Tide partially offset by a decrease at Lanier Apparel. Lilly Pulitzer’s sales were essentially flat with the prior year.

Gross profit in the second quarter increased to 166 million dollars compared to 164.8 million dollars in the same period of the prior year. Gross margin was 58.3 percent compared to 58.2 percent in the second quarter of fiscal 2016. On an adjusted basis, gross margin expanded to 58.8 percent compared to 58.2 percent in the prior year.

Operating income was 36.4 million dollars compared to 38.7 million dollars in the same period of the prior year. On an adjusted basis, operating income was 38.4 million dollars compared to 39.7 million dollars in the second quarter of fiscal 2016.

Third quarter net sales expected in the range of 240-250 mn dollars

The company expects net sales in a range from 240 million to 250 million dollars compared to net sales of 222.3 million dollars in the third quarter of fiscal 2016. Earnings per share on a GAAP basis are expected to be in a range of 0.04 dollar to 0.14 dollar in the third quarter. On an adjusted basis, earnings per share are expected to be in a range of 0.09 dollar to 0.19 dollar. This compares with a third quarter fiscal 2016 loss per share of 0.10 dollar and an adjusted loss per share of 0.07 dollar.

The company has affirmed its adjusted earnings outlook for the full 2017 fiscal year and has revised its GAAP earnings outlook due to the impact of LIFO and purchase accounting. GAAP earnings per share are now expected to be between 3.23 dollars and 3.43 dollars. Adjusted earnings per share are expected to be between 3.50 dollars and 3.70 dollars. This compares to earnings on a GAAP basis of 3.27dollars per share and, on an adjusted basis, 3.30 dollars per share in fiscal 2016. The company expects net sales to grow to between 1.085 billion dollars to 1.105 billion dollars as compared to fiscal 2016 net sales of 1.023 billion dollars.

The company also announced that its board of directors has approved a cash dividend of 0.27 dollar per share payable on October 27, 2017 to shareholders of record as of the close of business on October 13, 2017. The company has paid dividends every quarter since it became publicly owned in 1960.

Picture:Tommy Bahama website