Southern Tide biz boosts Oxford Industries’ Q1 net sales

Oxford Industries’ consolidated net sales increased 6 percent to 272.4 million dollars in the first quarter compared to 256.2 million dollars in the first quarter of fiscal 2016. Earnings on a GAAP basis were 1.03 dollars per share compared to 1.21 dollars in the same period of the prior year. On an adjusted basis, earnings were 1.12 dollars per share against 1.26 dollars in the first quarter of fiscal 2016.

Commenting on the trading update, Thomas C. Chubb III, the company’s Chairman and CEO, said in a media statement, "Our top line increased 6 percent, driven by several factors including the addition of Southern Tide to our portfolio, sales associated with new, full-price retail stores, increased sales in our restaurants and a 2 percent increase in comparable store sales. These increases were partially offset by a decrease in wholesale sales as we carefully manage and control our exposure to department stores, a strategy critical to maintaining the strength of our brands."

Southern Tide addition boosts sales

The company said, increase in first quarter net sales was driven by the addition of the Southern Tide business, new stores and Tommy Bahama's strong comparable store sales. At Lilly Pulitzer, first quarter sales decreased by 2 percent with sales contribution of new stores getting offset by lower wholesale sales. The comparable store sales decline, the company said, was a combination of positive comparable sales in e-commerce and negative comparable sales in brick and mortar stores. Sales at Lanier Apparel were lower than last year.

Gross profit in the first quarter increased to 159.4 million dollars compared to 151.5 million dollars in the same period of the prior year. Gross margin was 58.5 percent compared to 59.1 percent in the first quarter of fiscal 2016. On an adjusted basis, the company saw modest gross margin expansion.

Oxford Industries reveals Q2 outlook

The company expects net sales in a range from 285 million dollars to 295 million dollars for the second quarter compared to 283 million dollars in the second quarter of fiscal 2016. Earnings per share on a GAAP basis are expected to be in a range of 1.33 dollars to 1.43 dollars. On an adjusted basis, earnings per share are expected to be in a range of 1.35 dollars to 1.45 dollars compared with second quarter fiscal 2016 earnings per share of 1.44 dollars and adjusted earnings per share of 1.48 dollars.

The company has also affirmed its adjusted earnings outlook for the full year fiscal 2017 and has revised its GAAP earnings outlook due to the impact of LIFO accounting. GAAP earnings per share are now expected to be between 3.33 dollars and 3.53 dollars. Adjusted earnings per share are expected to be between 3.50 dollars and 3.70 dollars compared to earnings on a GAAP basis of 3.27 dollars per share and, on an adjusted basis, 3.30 dollars per share in fiscal 2016. The company now expects net sales to grow to between 1.09 billion dollars to 1.11 billion dollars compared to fiscal 2016 net sales of 1.023 billion dollars.

Picture:Southern Tide website