- Prachi Singh |
Oxford Industries’ consolidated net sales in the third quarter of fiscal 2017 increased 6 percent to 236 million dollars, while comparable sales were up 4 percent. The company said, earnings on a GAAP basis were 0.06 dollar per share compared to a loss of 0.10 dollar in the same period of the prior year. On an adjusted basis, earnings were 0.17 dollar per share compared to a loss of 0.07 dollar in the third quarter of fiscal 2016.
Commenting on the third quarter results, Thomas C. Chubb III, the company’s Chairman and CEO, said in a media release: “Our dynamic portfolio of strong lifestyle brands delivered solid year-over-year growth on both the top and bottom lines. A modest negative impact to earnings from the recent hurricanes was offset by some favorable tax benefits recognized in the quarter. More importantly, we are well-positioned for opportunities created by the emerging optimism among consumers during this holiday market.”
Oxford’s consolidated operating results
The company added that the third quarter net sales rise was led by meaningful increases at Lanier Apparel, Lilly Pulitzer and Southern Tide. Net sales at Tommy Bahama were 2 percent lower than the prior year’s third quarter, with increases in all full price direct to consumer channels offset by lower year-over-year sales in its off-price direct to consumer channels.
Gross profit increased 6 percent to 125.2 million dollars compared to 118.1 million dollars in the same period of the prior year. Gross margin in the third quarter was flat at 53 percent compared to 53.1 percent in the prior year. On an adjusted basis, gross margin expanded 60 basis points to 53.7 percent.
Operating income was 1.1 million dollars compared to an operating loss of 0.3 million dollars in the same period of the prior year. On an adjusted basis, operating income was 3.8 million dollars compared to 0.2 million dollars in the third quarter of fiscal 2016.
Oxford reveals positive sales and earnings outlook
For the full year fiscal 2017, the company now expects GAAP earnings per share to be between 3.23 dollars and 3.38 dollars, while adjusted earnings per share are expected to be between 3.55 dollars and 3.70 dollars. This compares to fiscal 2016 earnings on a GAAP basis of 3.27 dollars per share and, on an adjusted basis, 3.30 dollars per share. The company expects net sales to grow to between 1.08 billion dollars to 1.095 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 February 2, 2018 to shareholders of record as of the close of business on January 19, 2018. The company has paid dividends every quarter since it became publicly owned in 1960.
Picture:Tommy Bahama website