Oxford Industries returns to earnings growth in Q2

Oxford Industries, Inc. reported consolidated net sales in the second quarter of fiscal 2021 increased to 329 million dollars compared to 192 million dollars and 302 million dollars in the second quarters of fiscal 2020 and fiscal 2019, respectively.

Earnings on a GAAP basis increased to 3.05 dollars per share compared to a loss of 37 cents per share in the second quarter of fiscal 2020 and earnings of 1.76 dollars per share in the second quarter of fiscal 2019.

On an adjusted basis, earnings increased to 3.24 dollars per share compared to a loss of 38 cents per share in the second quarter of fiscal 2020 and earnings of 1.84 dollars per share in the second quarter of fiscal 2019.

Commenting on the company’s performance, Thomas C. Chubb III, chairman and CEO, said: “We are extremely pleased to be reporting record second quarter results driven by excellent performance in all five of our brands – Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company, and Duck Head. Double-digit sales growth in all brands, combined with record gross margin and careful expense control, contributed to record operating margin and earnings per share for the quarter.”

Oxford Industries Q2 full price sales increase 20 percent
The company’s full price direct to consumer sales growth of 20 percent to 223 million dollars compared to the second quarter of fiscal 2019, with growth in all branded businesses.

The company’s wholesale sales of 62 million dollars were 20 percent lower than the second quarter of fiscal 2019. Excluding Lanier Apparel, which the company is exiting in fiscal 2021, wholesale sales decreased 6 percent compared to the second quarter of fiscal 2019.

Operating income increased to 68 million dollars or 20.7 percent of sales, compared to 40 million dollars or 13.3 percent of sales, in the second quarter of fiscal 2019. On an adjusted basis, operating income increased to 72 million dollars or 22 percent of sales, compared to 42 million dollars or 13.8 percent of sales, in the second quarter of fiscal 2019 with operating margin expansion in all operating groups.

Oxford Industries forecasts sales and earnings growth for FY21
For the full fiscal year, the Company now expects net sales in a range of 1.085 billion dollars to 1.105 billion dollars compared to sales of 1.12 billion dollars in 2019.

In fiscal 2021, GAAP earnings per share are expected to be between 6.03 dollars and 6.28 dollars. Adjusted earnings per share are expected to be between 6.45 dollars and 6.70 dollars. This compares to a loss on a GAAP basis of 5.77 dollars per share and an adjusted loss of 1.81 dollars per share in fiscal 2020, and earnings of 4.05 dollars per share on a GAAP basis and 4.32 dollars per share on an adjusted basis in fiscal 2019.

For the third quarter, the company expects net sales to be between 220 million dollars and 230 million dollars compared to net sales of 175 million dollars in the third quarter of fiscal 2020 and 241 million dollars in the third quarter of fiscal 2019.

The company expects earnings per share on a GAAP basis in a range of 17 cents to 27 cents in the third quarter of fiscal 2021. On an adjusted basis, earnings per share is expected to be in a range of 20 cents to 30 cents. This compares with a loss of 64 cents per share on a GAAP basis and an adjusted loss per share of 44 cents in the third quarter of fiscal 2020, and earnings of 10 cents per share on both a GAAP and an adjusted basis in the third quarter of fiscal 2019.

The company’s board of directors has approved a cash dividend of 42 cents per share payable on October 29, 2021 to shareholders of record as of the close of business on October 15, 2021.