Oxford Industries reports strong Q3, raises outlook

Oxford Industries, Inc. reported net sales for the third quarter increased 26 percent to 313 million dollars including the contribution of 23 million dollars of Johnny Was. Consolidated net sales in the first nine months increased 22 percent to 1,029 million dollars.

The company’s earnings per share (EPS) on a GAAP basis were 1.22 dollars compared to 1.54 dollars in the third quarter of fiscal 2021. On an adjusted basis, EPS increased to 1.46 dollars compared to 1.19 dollars in the third quarter of fiscal 2021.

EPS on a GAAP basis increased to 8.19 dollars compared to 6.29 dollars in the first nine months of fiscal 2021. On an adjusted basis, EPS increased to 8.59 dollars compared to 6.32 dollars in the first nine months of fiscal 2021.

Commenting on the third quarter trading, Tom Chubb, the company’s chairman and CEO, said: “We are very pleased to be reporting record sales, gross margin and adjusted earnings for the sixth consecutive quarter. Our exceptional third quarter results were driven by the continued strength at our largest brand, Tommy Bahama, where we increased our sales 20 percent, combined with strong top line growth across our entire portfolio of brands.”

“We also advanced our long-term strategy with our acquisition of the Johnny Was brand and the announcement of the first Tommy Bahama branded resort, the Tommy Bahama Miramonte Resort in Indian Wells, California, which is scheduled to open in late 2023,” Chubb added.

Highlights of Oxford’s third quarter results

The company’s full-price DTC sales increased 35 million dollars or 24 percent to 178 million dollars versus the third quarter of fiscal 2021, including 18 million dollars of DTC sales in Johnny Was and a 12 percent aggregate increase in DTC sales in Tommy Bahama, Lilly Pulitzer and emerging brands.

Full-price retail sales of 98 million dollars were 22 percent, including 8 million dollars of full-price retail sales in Johnny Was and a 12 percent aggregate increase in full-price retail sales in Tommy Bahama, Lilly Pulitzer and emerging brands.

Full price e-commerce sales grew 26 percent to 80 million dollars, including 9 million dollars of full-price e-commerce sales in Johnny Was and a 12 percent aggregate increase in full-price e-commerce sales in Tommy Bahama, Lilly Pulitzer and emerging brands.

Sales from the Lilly Pulitzer flash sale were 28 million dollars versus 19 million dollars in the third quarter of fiscal 2021. Outlet sales were 15 million dollars, a 15 percent increase versus the third quarter of fiscal 2021.

Wholesale sales of 69 million dollars were 32 percent higher, including 5 million dollars of wholesale sales of Johnny Was, while the third quarter of fiscal 2021 included 4 million dollars of wholesale sales of Lanier Apparel.

Gross margin increased to 63.2 percent compared to 61.6 percent in the third quarter of fiscal 2021. Operating income was 27 million dollars, compared to 31 million dollars in the third quarter of fiscal 2021.

Oxford raises full year outlook

For fiscal 2022 ending on January 28, 2023, the company raised its previously issued guidance and now expects net sales in a range of 1.395 billion dollars to 1.410 billion dollars compared to net sales of 1.142 billion dollars in fiscal 2021.

GAAP EPS is expected to be between 9.89 dollars and 10.04 dollars and adjusted EPS is expected to be between 10.60 dollars and 10.75 dollars. This compares to GAAP EPS of 7.78 dollars and adjusted EPS of 7.99 dollars in fiscal 2021.

For the fourth quarter of fiscal 2022, the company expects net sales to be between 366 million dollars and 381 million dollars compared to net sales of 300 million dollars in the fourth quarter of fiscal 2021.

GAAP EPS is expected to be in a range of 1.70 dollars to 1.85 dollars in the fourth quarter and adjusted EPS is expected to be between 2.01 dollars and 2.16 dollars. This compares with EPS of 1.50 dollars on a GAAP basis and 1.68 dollars on an adjusted basis in the fourth quarter of fiscal 2021.

Commenting on the outlook, Chubb further said: “We kicked off the holiday season with excellent Thanksgiving weekend sales and are optimistic that we can deliver a strong fourth quarter to complete an excellent year.”

The board of directors declared a quarterly cash dividend of 55 cents per share payable on January 27, 2023 to shareholders of record as of the close of business on January 13, 2023.