Consolidated net sales at Oxford Industries decreased 26 percent in the fourth quarter, while full year consolidated net sales decreased 33 percent. The company said, full price e-commerce sales grew 26 percent and 28 percent in the fourth quarter and the full year, respectively, with growth in all the company’s branded businesses in the year. Full price retail sales were 43 percent and 56 percent lower, respectively, in the fourth quarter and full year, while wholesale sales decreased 48 percent in the fourth quarter and the full year.
Commenting on the company’s performance, Thomas C. Chubb III, Oxford Industries chairman and chief executive officer, said: “It is clear that e-commerce will be bigger and more important than ever following the accelerated shift to online spending during the pandemic. Despite the significant impact of temporary store closures and operating restrictions in 2020, we are confident that our retail strategy is going to serve us well as conditions normalize.”
Highlights of Oxford Industries Q4 and full year results
Gross margin was 54.3 percent in the fourth quarter compared to 55.9 percent and full year gross margin was 55.4 percent compared to 57.4 percent in fiscal 2019, with gross margin lower in each operating group. In the fourth quarter, the company reported an operating loss of 17 million dollars compared to an operating profit of 21 million dollars in the same period of the prior year. On an adjusted basis, operating income was 3 million dollars compared to 25 million dollars in the fourth quarter of fiscal 2019.
For the full 2020 fiscal year, the company reported an operating loss of 124 million dollars compared to an operating profit of 94 million dollars in fiscal 2019. For the full year, on an adjusted basis, the company’s operating loss was 43 million dollars in fiscal 2020 compared to an operating profit of 99 million dollars in the prior year.
The company reported a loss per share of 74 cents on a GAAP basis and income per share of 13 cents on an adjusted basis in the fourth quarter of fiscal 2020. For the full year, the company reported a loss of 5.77 dollars on a GAAP basis and 1.81 dollars on an adjusted basis.
Oxford Industries expects to report rise in FY21 sales and earnings
For the full 2021 fiscal year, ending on January 29, 2022, the company expects net sales to grow to between 940 million dollars and 980 million dollars as compared to net sales of 749 million dollars in fiscal 2020.
In fiscal 2021, GAAP earnings per share are expected to be between 2.65 dollars and 3.05 dollars and adjusted earnings per share are expected to be between 2.80 dollars and 3.20 dollars. This compares to a loss on a GAAP basis of 5.77 dollars per share and an adjusted loss of 1.81 dollars per share in fiscal 2020.
For the first quarter of fiscal 2021, ending May 1, 2021, the company expects net sales in a range of 220 million dollars to 240 million dollars compared to 160 million dollars in the first quarter of fiscal 2020, while GAAP earnings per share are expected to be between 90 cents and 1.10 dollars and adjusted earnings per share are expected to be between 95 cents and 1.15 dollars. This compares to a loss on a GAAP basis of 4.02 dollars per share and an adjusted loss of 1.12 dollars per share in the first quarter of fiscal 2020.
The company’s board of directors has declared a quarterly cash dividend of 37 cents per share, a 48 percent increase from the previous level of 25 cents per share.
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