Oxford Industries Inc. posted mixed second-quarter results on Thursday after the markets closed, but at least beat Wall Street’s consensus earnings per share estimate by 1 cent.
Net income for the quarter ended July 29 slipped 5 percent to $22.7 million, or $1.36 a diluted share, from $23.9 million, or $1.44, a year ago. On an adjusted basis, EPS for the quarter was $1.44 compared with $1.48 a year ago. Net sales rose 0.6 percent to $284.7 million from $283 million. The company said royalties and other operating income were flat with the prior year at $3.3 million.
Wall Street was expecting adjusted EPS of $1.43 on revenues of $291.3 million.
In a conference call with analysts Thursday afternoon, Thomas Chubb, chief executive officer, said the performance of Tommy Bahama had a good quarter, with comp-store sales up 5 percent in the brand’s retail stores and 6 percent at its restaurants. “In a crowded marketplace, many brands struggle to deliver their message, but not Tommy Bahama,” he said.
Lilly Pulitzer sales were flat in the quarter, but Chubb said the brand just completed its largest end-of-the-season clearance sale in its history, “and full-price sales were also quite robust,” he said.
He also pointed to the acquisition of the 12 “In the Pink” and “Pink Palm” licensed Lilly Pulitzer signature stores as a positive for the brand. Additionally, “Lilly’s position as a resort lifestyle brand is a competitive advantage and the addition of stores in key resort locations such as Nantucket, Cape Cod and Martha’s Vineyard [all in Massachusetts] allows us to further leverage that advantage,” Chubb said.
“While key brick-and-mortar locations will always be an important point of distribution for each of our brands, our fastest-growing channel of distribution is in our e-commerce businesses,” he added. One-third of Lilly Pulitzer’s sales now come from online.
Looking ahead at the third quarter, Oxford provided guidance that had generally accepted accounting principles’ EPS at between 4 cents and 14 cents on net sales expected at between $240 and $250 million. The EPS forecast compares with the third-quarter loss a year ago of 10 cents a share.
Oxford also updated guidance for the full 2017 fiscal year. It now expects GAAP EPS to be between $3.23 and $3.43 on net sales projected at between $1.09 billion to $1.11 billion. GAAP earnings in fiscal 2016 were $3.27.
Shares of Oxford ended the day’s trading session down 1.08 percent to $57.81, but then rose 1.09 percent to $58.44 in after-hours trading following the posting of the results.