Oxford Industries Inc. delivered a double-digit sales increase for the second quarter, beating analyst estimates.
Net earnings for the quarter were $23 million, or $1.44 a diluted share, up from a loss of $2 million, or 12 cents, a year ago. The adjusted earnings were $1.48 a share. This topped the FactSet estimate for earnings of $1.38.
Net sales for the three months ending July 30 increased 13 percent to $283 million from $250 million a year earlier. This also was better than the FactSet estimate for sales of $275 million.
“Tommy Bahama had a solid performance in the quarter with a 7 percent increase in comp store sales. Lilly Pulitzer also had a strong quarter with a remarkable 32 percent operating margin,” said chief executive officer and chairman Thomas Chubb.
Tommy Bahama’s net sales increased 11 percent to $184.1 million. Lilly Pulitzer’s net sales increased 8 percent in the quarter to $69.7 million. Comparable store sales decreased 1 percent in the quarter. Lanier Apparel’s sales declined slightly in the quarter. Southern Tide, which was acquired in April, delivered net sales of $9.2 million in the second quarter.
Gross margins fell to 58.6 percent from 60.3 percent. Deeper discounts at Tommy Bahama in the off-price channels, especially in footwear and women’s, along with markdowns at Lanier were the reasons behind the decline in margins.
Looking ahead, the company said it expected the third quarter to be the lightest in sales, as is consistent with its seasonality. Net sales are forecast to be in the range of $220 million and $230 million. This is higher than last year’s $198 million and more promising than the Capital IQ estimate for sales of $219 million.
For the full year, Oxford has affirmed its guidance for net sales in the range of $1.03 billion to $1.05 billion. The Capital IQ estimate is for sales of $1.03 billion.
Remaining cautious, Chubb said, “We are also mindful that the retail environment remains uncertain for many of our wholesale customers, who are taking a more cautious approach to reorders and the upcoming holiday season.”
Oxford stock rose slightly by 17 cents to $62.58 in after market trading.