Oxford Industries Inc. on Tuesday posted reduced fourth-quarter profits, but was upbeat about its Tommy Bahama and Lilly Pulitzer businesses.
For the three months ended Jan. 28, income fell 86.8 percent to $7.1 million, or 43 cents a diluted share, from $53.4 million, or $3.22, in the year-ago period. Sales rose 26.6 percent to $199.7 million from $157.7 million. The company acquired Lilly Pulitzer in December 2010, and included only six weeks of operating results for the prior-year results.
For the year, income fell 62.6 percent to $29.4 million, or $1.78 a diluted share, from $78.7 million, or $4.75, last year. Sales rose 25.7 percent to $758.9 million from $603.9 million.
J. Hicks Lanier, chairman and chief executive officer, said that the firm’s “Tommy Bahama and Lilly Pulitzer businesses continued the strength they had shown throughout the year in retail and e-commerce, and carried it through the holiday season and into January.”
He said that the strength of the businesses “gives us the confidence to make significant investments in their long-term growth.”
Among some of those investments are new stores in Asia for Tommy Bahama. Two company-owned stores are slated to open this year so far, one in Macau and the other in Singapore. The company also has plans for a retail store, bar and restaurant for the brand in Tokyo’s Ginza district for early 2013. As for Lilly Pulitzer, the company opened its first store in February at the SouthPark Mall in Charlotte, N.C., since brand’s acquisition. Another one at Phipps Plaza in Atlanta is set to open later this spring, according to Lanier.
The Ben Sherman business saw sales increase 23.9 percent to $25.9 million, but it incurred an operating loss of $300,000 in the fourth quarter. That’s at least an improvement from the $1.1 million operating loss, on an adjusted basis, in the year-ago quarter.
Lanier Clothes saw sales essentially flat at $19.8 million as the sales mix continued to shift from private label tailored clothing to branded tailored clothing. Operating income dipped slightly to $1.5 million in the quarter from $1.8 million a year ago.
The company forecasted adjusted earnings per diluted share to be between $2.70 and $2.80 for fiscal year 2012 ending Feb. 2, 2013, on sales of between $840 million to $855 million. The adjusted EPS excludes $9 million in anticipated charges in connection with the refinancing of senior secured notes.