Oxford Industries Inc. saw sales rise in the first quarter while profits dipped slightly.
The operator of Tommy Bahama and Lilly Pulitzer posted an operating income of $30 million, compared with $32 million during the same quarter last year, despite a 6 percent bump in net sales to $272.4 million, from $256.2 million a year ago.
Earnings for the quarter also fell to $1.03 per share from $1.21.
Chief executive officer Thomas Chubb III admitted that the company is still “facing formidable challenges in the consumer marketplace” but characterized the first-quarter results as a “good start” to 2017.
Chubb attributed the quarter’s sales increase to last year’s addition of preppy men’s sportswear brand Southern Tide, as well as sales associated with “new, full-price retail stores,” which led to an overall 2 percent increase in comparable-store sales.
While those increases were “partially offset” by a decrease in Oxford’s wholesale business, as many retailers and department stores are consolidating their store base amid traffic declines and an increasing shift to e-commerce, Chubb said the company is working to “carefully manage and control our exposure to department stores.”
Looking ahead to the second quarter, Oxford said it’s expecting a similar boost in sales, with projections in the range of $285 million to $295 million, compared with $283 million in the second quarter of 2016.
For the full year, Oxford expects net sales to come in around $1.1 billion and earnings to hit between $3.33 and $3.53 per share. Net sales for 2016 tallied $1.02 million and earnings per share were $3.27.
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