Shares of Oxford Industries Inc. added value in post-market trading after the Atlanta-based owner of Tommy Bahama and Lilly Pulitzer easily beat sales and earnings expectations and lifted guidance for the second quarter and year.
Shares, up 1.8 percent to $81.01 during the regular trading session, added another 4.9 percent to hit $85 in the first hour after numbers were released at 4 p.m.
Thomas Chubb 3rd, president and chief executive officer, noted that the strength the firm had seen in the fourth quarter had continued through the first quarter of the new year.
“We exceeded our forecast, led by a superb performance from Lilly Pulitzer and solid top-line growth in our direct-to-consumer business at Tommy Bahama,” he said.
In the three months ended May 2, net income grew 15.3 percent to $17.3 million, or $1.04 a diluted share, from $15 million, or 91 cents. Eliminating losses from the Ben Sherman operation, which Oxford has put up for sale and results for which have now been reclassified as a discontinued operation, net income for continuing operations was $21.3 million, or $1.29, 11.9 percent above the $19.1 million, or $1.16, reported in last year’s first quarter. The consensus estimate was for EPS of $1.21 for Oxford’s continuing operations.
Sales were up 7.3 percent to $260.4 million from $242.6 million a year ago, above the $256.4 million expected by Wall Street. Gross margin rose to 59.2 percent of sales from 58 percent, which Oxford attributed to a shift in its mix towards its two top brands.
At Tommy Bahama, sales rose 9 percent, to $172.7 million, while operating profit rose 4.6 percent to $20.8 million. The operation benefited not only from an increase in stores but from an 8 percent increase in comparable sales as well.
In addition to its blockbuster appearance at Target during the quarter, Lilly Pulitzer logged a 17.1 percent sales increase, to $59 million, while operating income rose 19.9 percent, to $17.7 million, and comparable sales leaped 20 percent.
Sales and profits were down at Lanier Clothes as the division exited certain store programs. Sales dropped 9 percent to $26.2 million while profits were off 21.8 percent to $2.1 million.
Oxford initiated second-quarter guidance for revenues between $245 million and $255 million, with adjusted EPS of between $1.15 and $1.25 expected. Analysts had estimated adjusted EPS of $1.14 on revenues of $243.8 million.
Full-year guidance was raised to adjusted EPS of $3.50 to $3.65 on sales of between $970 million and $985 million. Wall Street had expected adjusted EPS of $3.55 on sales of $974.1 million based on earlier guidance.