Oxford reports decline in Q3 net sales and earnings

Oxford Industries said that for its fiscal 2015 third quarter, which ended October 31, 2015 consolidated net sales were 198.6 million dollars compared to 201.2 million dollars in the third quarter of fiscal 2014. The adjusted net loss from continuing operations was 0.08 dollar per diluted share compared to adjusted net earnings of 0.12 dollar per diluted share in the same period of the prior year.

Commenting on the results, Thomas C. Chubb III, Chairman and Chief Executive Officer, said, “In the context of the difficult environment, as well as the seasonality of our brands, we are generally pleased with our third quarter results. Our bottom line came in at the top end of our guidance range, we finished the quarter with inventories in excellent shape, and once again, Lilly Pulitzer delivered an outstanding performance. These brands are well positioned with a good balance of bricks and mortar retail locations, robust e-commerce sites and select wholesale distribution.”

Third quarter consolidated operating results

On a GAAP basis, the net loss from continuing operations was 0.08 dollar per diluted share in the third quarter compared to net earnings of 0.11 dollar per diluted share in the same period of the prior year.

Lilly Pulitzer's sales increased 22 percent, or 8 million dollars, with growth in all channels of distribution, including a 27 percent comparable store sales increase. This was offset by a 9.7 million dollars sales decrease at Lanier Clothes, as the third quarter of 2014 included significant shipments to a warehouse club customer. Tommy Bahama sales declined 1 percent, with a decrease in off-price wholesale sales and a 5 percent comparable store sales decrease, offset by sales from additional retail stores.

Adjusted gross margin expanded by approximately 270 basis points to 54.1 percent with improvements in all operating groups. Adjusted gross profit increased to 107.5 million dollars from 103.4 million dollars in the third quarter of fiscal 2014. On a GAAP basis, gross margin was 54.3 percent compared to 51.6 percent in the prior year period. Gross profit was 107.9 million dollars compared to 103.9 million dollars in the prior year period.

For the first nine months of fiscal 2015, consolidated net sales increased 6 percent to 709.7 million dollars compared to 671.3 million dollars in the first nine months of fiscal 2014. Adjusted earnings from continuing operations increased 7 percent to 2.55 dollars per diluted share compared to 2.39 dollars in the first nine months of fiscal 2014. On a GAAP basis, earnings from continuing operations were 2.48 dollars per diluted share compared to 2.32 dollars in the same period of the prior year.

Fiscal 2015 outlook

The company revised its prior guidance for fiscal 2015, ending January 30, 2016 and now expects adjusted earnings per share in a range of 3.53 dollars to 3.63 dollars on net sales in a range of 970 million dollars to 985 million dollars. On a GAAP basis, the company now expects earnings per share in a range of 3.44 dollars to 3.54 dollars.

The company also announced that its Board of Directors has approved a cash dividend of 0.25 dollar per share payable on January 29, 2016 to shareholders of record as of the close of business on January 15, 2016. The Company has paid dividends every quarter since it became publicly owned in 1960.