- Prachi Singh |
Oxford Industries, Inc. in its results announcement for its first quarter ended May 5, 2018 said that consolidated net sales increased slightly to 272.6 million dollars compared to 272.4 million dollars in the first quarter of fiscal 2017. Earnings on a GAAP basis were 1.23 dollars per share compared to 1.03 dollars in the same period of the prior year. On an adjusted basis, earnings were 1.28 dollars per share compared to 1.12 dollars in the first quarter of fiscal 2017.
Commenting on the company’s first quarter trading, Thomas C. Chubb III, the company’s Chairman and CEO, said in a statement: “We successfully executed our plans during the first quarter and delivered sales at the high-end of our guidance range and earnings per share that exceeded our expectations. By staying focused on providing a great brand experience to our customers, I am confident we are well-positioned to deliver consistent earnings growth and increased shareholder value over the long-term.”
Consolidated operating result highlights of Oxford’s Q1
The company said increased sales in the company’s direct to consumer business, including modestly positive comparable store sales, were offset by a planned decrease in wholesale sales.
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Gross profit in the first quarter increased to 164.1 million dollars compared to 159.4 million dollars in the same period of the prior year. Gross margin grew to 60.2 percent compared to 58.5 percent in the first quarter of fiscal 2017, while adjusted gross margin expanded 120 basis points to 60.4 percent from 59.2 percent in the same period of the prior year. The company added, gross margin improved as the company’s higher margin direct to consumer businesses comprised a greater proportion of sales.
Oxford reveals outlook for Q2 and FY18
In its guidance for the second quarter of fiscal 2018, ending on August 4, 2018, the company said, it expects net sales to grow to between 300 million dollars and 310 million dollars compared to 284.7 million dollars in the second quarter of fiscal 2017. Earnings per share on a GAAP basis are expected to be in a range of 1.72 dollars to 1.82 dollars, while on an adjusted basis, earnings per share are expected to be in a range of 1.75 dollars to 1.85 dollars. This compares with second quarter GAAP earnings per share of 1.36 dollars and adjusted earnings per share of 1.44 dollars last year.
The company’s third quarter is expected to remain its smallest sales and earnings quarter due to the seasonality of its Tommy Bahama and Lilly Pulitzer direct to consumer operations. Therefore, the company expects its third quarter earnings to be comparable to last year and expects to see meaningful direct to consumer growth in the fourth quarter.
The company has raised its outlook for the full year and now expects GAAP earnings to grow to between 4.32 dollars and 4.52 dollars. On an adjusted basis, earnings per share are expected to be in a range of 4.45 dollars to 4.65 dollars. This compares to earnings on a GAAP basis of 3.87 dollars per share and, on an adjusted basis, 3.66 dollars per share in fiscal 2017. The company expects net sales to grow to between 1.125 billion dollars and 1.145 billion dollars as compared to fiscal 2017 net sales of 1.086 billion dollars.