Oxford Industries reports rise in Q2 sales and earnings

Oxford Industries’ consolidated net sales increased 13 percent to 283 million dollars compared to 250.7 million dollars in the second quarter of fiscal 2015. Earnings from continuing operations were 1.44 dollars per share compared to 1.27 dollars in the same period of the prior year. On an adjusted basis, earnings were 1.48 dollars per share compared to 1.32 dollars in the same quarter of fiscal 2015.

Commenting on the company’s results, Thomas C. Chubb III, Chairman and CEO, said, "We are proud of our accomplishments in the second quarter. We exceeded our expectations for financial performance and demonstrated the strength of our business. We believe that with powerful brands like Tommy, Lilly and Southern Tide, Oxford is well-positioned to succeed in this rapidly evolving consumer marketplace.”

Consolidated operating results of the quarter

Tommy Bahama's net sales increased 11 percent to 184.1 million dollars in the second quarter of fiscal 2016, with a comparable store sales increase for the quarter of 7 percent. Lilly Pulitzer's net sales increased 8 percent to 69.7 million dollars but comparable store sales decreased 1 percent in the quarter following a 41 percent comparable store sales increase in the second quarter of fiscal 2015.

Lanier Apparel's net sales were down to 19.5 million dollars and Southern Tide, which was acquired on April 19, 2016, had net sales of 9.2 million dollars in the second quarter of fiscal 2016.

Gross margin was 58.6 percent compared to 60.3 percent in the prior year period. Gross profit was 165.7 million dollars compared to 151.1 million dollars in the prior year period. On an adjusted basis, gross margin was 58.6 percent compared to 60.6 percent in the second quarter of fiscal 2015 and adjusted gross profit was 165.7 million dollars compared to 151.8 million dollars in the second quarter of fiscal 2015.

Outlook for third quarter and fiscal year 2016

The company expects the third quarter of fiscal 2016, ending on October 29, 2016, to be the smallest sales and earnings quarter of the fiscal year reflecting the normal seasonality of the Tommy Bahama and Lilly Pulitzer businesses. The company expects net sales in a range from 220 million dollars to 230 million dollars compared to 198.6 million dollars in the third quarter of fiscal 2015. Loss per share is expected to be in a range of 0.12 dollar to 0.02 dollar and adjusted earnings per share in a range from a loss per share of 0.05 dollar to earnings per share of 0.05 dollar.

For the full year, the company has affirmed its guidance of net sales in the 1.03 billion dollars to 1.05 billion dollars range. The company also affirmed its adjusted earnings per share guidance of 3.65 dollars to 3.80 dollars.

The company also announced that its Board of Directors has approved a cash dividend of 0.27 dollar per share payable on October 28, 2016.

Picture:Tommy Bahama