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Oxford Industries Q2 net sales increase 10 percent

By Prachi Singh

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Reporting its financial results for its fiscal 2015 second quarter ended August 1, 2015, Oxford Industries said that consolidated net sales increased 10 percent to 250.7 million dollars compared to 227.6 million dollars same quarter of fiscal 2014.

Commenting on the development, Thomas C. Chubb III, Chairman and Chief Executive Officer, said, “We are extremely pleased with our very strong second quarter results which were fueled by another remarkable performance at Lilly Pulitzer. With Lilly's performance and a good contribution from Tommy Bahama, we delivered results that significantly exceeded our expectations.”

Q2 growth driven by Lilly Pulitzer and Tommy Bahama

Second quarter sales rise was primarily due to growth at Lilly Pulitzer and Tommy Bahama, partially offset by a sales decline at Lanier Clothes. Sales growth at Lilly Pulitzer was driven by a 41percent comparable store sales increase, new store openings and wholesale growth. Growth at Tommy Bahama was driven by new stores and a 3 percent comparable store sales increase, partially offset by a decrease in wholesale sales.

Adjusted net earnings from continuing operations grew 23 percent to 1.32 dollars per diluted share compared to 1.07 dollars in the same period of the prior year. On a GAAP basis, net earnings from continuing operations grew to 1.27 dollars per diluted share compared to 1.05 dollars in the same period of the prior year.

Adjusted gross margin expanded more than 70 basis points to 60.6 percent primarily due to Lilly Pulitzer's strong performance. Adjusted gross profit increased to 151.8 million dollars from 136.1 million dollars in the second quarter of fiscal 2014. On a GAAP basis, gross margin was 60.3 percent compared to 59.9 percent in the prior year period. Gross profit was 151.1 million dollars compared to 136.3 million dollars in the prior year period.

H1 sales improve 9 percent

For the first half of fiscal 2015, consolidated net sales increased 9 percent to 511.1 million dollars compared to 470.1 million dollars in the first half of fiscal 2014. Adjusted earnings from continuing operations were 2.62 dollars per diluted share compared to 2.27 dollars in the first half of fiscal 2014. On a GAAP basis, earnings from continuing operations were 2.56 dollars per diluted share compared to 2.21 in the same period of the prior year.

The company also announced that its Board of Directors has approved a cash dividend of 0.25 dollar per share payable on October 30, 2015 to shareholders of record as of the close of business on October 16, 2015. The company has paid dividends every quarter since it became publicly owned in 1960.

Expects further sales growth in FY15

The company has increased its outlook for fiscal 2015 to reflect the stronger than planned performance of Lilly Pulitzer in the first half. It now expects net sales in the 975 million dollars to 990 million dollars range and adjusted earnings per share in a range of 3.55 dollars to 3.70 dollars. On a GAAP basis, the Company expects earnings per share in a range of 3.44 dollars to 3.59 dollars.

The Company initiated its guidance for the third quarter of fiscal 2015, ending on October 31, 2015. The Company noted that it expects the third quarter to be the smallest sales quarter of the fiscal year reflecting the normal seasonality of the Tommy Bahama and Lilly Pulitzer businesses and lower year-over-year sales at Lanier Clothes. The company expects net sales in a range from 200 million dollars to 210 million dollars compared to net sales of 201.2 million dollars in the third quarter of fiscal 2014.

For the third quarter, the company expects an adjusted loss per share in a range of 0.05 dollar to 0.15 dollar and a GAAP loss per share in a range of 0.07 dollar to 0.17 dollar.

Oxford Industries