Oxford Industries Inc. is spending to grow Lilly Pulitzer and cutting back on Tommy Bahama in Japan.
The company’s second-quarter net earnings rose 19.8 percent to $27.2 million, or $1.61 a diluted share, from $22.7 million, or $1.36, a year ago.
The quarter included charges of $3.7 million, or 19 cents a share, to restructure and downsize the firm’s Tommy Bahama operations in Japan, including the planned closure of the brand’s Ginza flagship and restaurant location.
Adjusted earnings came in at $1.83 a share, meeting analyst projections.
Sales for the three months ended Aug. 4 increased 6.3 percent to $302.6 million from $284.7 million
Thomas C. Chubb III, chairman and chief executive officer, said its portfolio of brands, which also includes Southern Tide, drove comparable sales up 7 percent, with each brand expanding its gross margins.
“We continue to invest in our business to ensure that we reach and delight our customers by having both a strong digital and strong physical presence that are woven together to provide a seamless omnichannel experience,” Chubb said. “We are achieving this by executing our multiyear IT infrastructure projects, continuing to open beautiful stores and restaurants in iconic locations and supporting all our channels with increased investments in marketing.”
The company’s selling, general and administrative expenses for the quarter rose to $146.3 million from $132.9 million, including an additional $5 million spent on advertising, the restructuring in Japan and the cost of operating 50 Lilly Pulitzer stores, 10 more than a year ago.