Oxford Industries Inc. Tuesday reported sharply lower earnings and sales for the third quarter and reduced full-year guidance.
In the three months ended Nov. 1, net income slid 65.1 percent to $4.8 million, or 31 cents a diluted share, from $13.7 million, or 76 cents, in the year-ago quarter. Excluding 7 cents a share in special charges, earning per share was 38 cents a share, 7 cents less than analysts’ consensus estimates.
Sales in the quarter backtracked 14.7 percent to $244.2 million from $286.3 million, falling short of the $259.8 million estimate of analysts. Gross margin fell to 38.3 percent of sales from 39.2 percent in the 2007 period. Inventories were cut 30.3 percent to $108.6 million from $155.8 million.
“Obviously, we are disappointed with our absolute results for the third quarter,” said J. Hicks Lanier, chairman and chief executive officer of the Atlanta-based firm. “However, we believe we managed the business well given what are indisputably the worst market conditions in decades. While we’ve been hurt like everyone else, our wounds are not self-inflicted.”
All four operating groups within Oxford posted an operating profit, although all withstood sales declines. Tommy Bahama’s sales dropped 18.7 percent to $83.7 million and operating income sagged 93.9 percent to $689,000. Ben Sherman’s sales were off 18.1 percent to $38.2 million while operating income fell 42.1 percent to $3.2 million. At Lanier Clothes, revenues dropped 16.2 percent to $44.3 million but operating income rose 71.2 percent to $4.5 million. Oxford Apparel Group’s sales dropped 6.3 percent to $78.1 million as income declined 0.4 percent to $7.3 million.
The company said the third quarter, historically the weakest at Tommy Bahama’s retail stores, “was particularly weak as a result of significantly diminished traffic during September and October.” The company doesn’t expect fourth-quarter operating income at Tommy Bahama to reach last year’s level, but it said it anticipates a “low-double-digit operating margin.”
On a conference call with analysts, Lanier said the company remained focused on not only cost containment, but brand protection as well. Speaking of the Tommy Bahama stores, which have resisted promotional temptations, he said, “We are not out there with dramatic sales. That’s our contrast with what’s going on out there. We know that has moderated our top line, [but] we think it’s the right strategy for us at this time. We will come out of this cycle whenever it turns in a very, very strong position with our brand.”
Based on the third-quarter performance and outlook for the current fourth quarter, Oxford lowered its EPS guidance for the full year to $1, including special items, down from the range of $1.50 to $1.65 provided at the conclusion of the second quarter. Net sales are now budgeted at $950 million, down from an earlier projection of $1 billion and the year-ago level of $1.09 billion.
For the nine months to date, net income dropped 60.1 percent to $15.8 million, or $1.00 a diluted share, while sales were off 9.2 percent to $747.6 million.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)