Investments in its growing Tommy Bahama and Lilly Pulitzer brands pushed Oxford Industries Inc.’s profits down in the first quarter.
Profits were flat at Lilly Pulitzer and down at Tommy Bahama while the loss at Ben Sherman grew, with improvement not expected until the year’s second half.
Net earnings fell 24.3 percent to $13.6 million, or 82 cents a share, from $18 million, or $1.09, a year ago as selling, general and administrative expenses expanded. Even so, earnings per share came in 4 cents ahead of the 78 cents analysts projected.
Sales for the quarter ended May 4 inched up 1.4 percent to $234.2 million from $231 million. Sales at the Tommy Bahama business rose 6.6 percent to $150.4 million, while sales at the Lilly Pulitzer unit gained 10.7 percent to $39.4 million and Ben Sherman’s sales fell 29.5 percent to $12.2 million.
Terry Pillow, chief executive officer of Tommy Bahama, noted that the brand’s comparable sales rose 10 percent, as a rebound in April offset weather-related weakness earlier in the quarter.
Thomas C. Chubb 3rd, president and chief executive officer of Oxford, commented, “During the quarter we made steady progress with respect to Tommy Bahama’s Asia-Pacific store rollout with the opening of our first two stores in Japan. In addition, early in the second quarter we expanded our presence in North America with the acquisition of nine stores in Canada previously operated by a licensee. Combined with a good pace of new Lilly Pulitzer store openings, we are looking forward to leveraging a significant increase in our overall retail presence.”
Chubb also said that the troubled Ben Sherman brand is making progress on “cost control as well as on the quality of our assortments and distribution. We remain optimistic that the actions taken will result in tangible improvements in the second half of fiscal 2013.”
Ben Sherman’s operating loss in the quarter rose to $4.8 million from a loss of $2.7 million a year ago, while Tommy Bahama’s profits fell 16.4 percent, to $21.4 million, and Lanier Clothes’ were off 39.2 percent to $2.5 million. Lilly Pulitzer’s profit was flat at $11 million.
For the full year, Oxford continues to project earnings of $3 to $3.15, which compares with adjusted earnings of $2.61 last year.
Eric Beder, analyst at Brean Capital LLC, elevated his price target for the stock to $71 from $70.
“We remain buyers of [Oxford] and view the company as one of the few key top- and bottom-line expansion stories in the retailing universe,” he wrote in a research note. “Further, with two value-added, underpenetrated and premium lifestyle brands in Tommy Bahama and Lilly Pulitzer, we believe Oxford Industries is also one of the few players in the mature apparel sector with the ability to surpass peak operating margins and register material bottom-line upside.”
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye