US: Oxford Industries lowers full-year guidance
- Net income up to $15.8m from $5.02m
- Sales grew 14% to $235m
- Losses widened at Ben Sherman
Oxford Industries, the owner of the Tommy Bahama and Lilly Pulitzer brands, has lowered its full-year guidance despite recording a strong second quarter performance.
Net income shot up over the three months ended 28 July to reach US$15.8m, from $5.02m in the same period of the prior year. Consolidated net sales increased 14% to $235m.
Over the quarter, Tommy Bahama increased sales by 20% to $153.2m, with a comparable sales increase of 13%. Adjusted operating income was up 47% to $24.5m driven by higher sales and gross margin.
Lilly Pulitzer grew sales by 24% to $38.2m, with comparable sales growing 19%.
"We are quite pleased with our first half performance, which included strong top and bottom line growth at both Tommy Bahama and Lilly Pulitzer," said president and CEO Thomas Chubb.
"We were particularly pleased with how our direct to consumer channels performed with comparable store sales increases of 13% at Tommy Bahama and 19% at Lilly Pulitzer in the second quarter.
"Our results demonstrate the strength of these brands and the power of our direct to consumer strategy. We believe there are many more opportunities ahead for us to drive sustained, profitable growth in these businesses."
However the company recorded weaker results from its Lanier Clothes brand, which saw sales fell to $22.3m from $24.8 as some wholesale revenue shifted into the third quarter.
Ben Sherman also continued to face difficulties, with net sales falling to $16.3m from $20.1m in the same period of the prior year. Wholesale revenue declined by $3.9m as the company exited certain accounts in the UK in the US, and some sales slipped into the third quarter.
Operating losses widened to $3.8m from a $1.5m loss last year, due to decrease in sales, lower gross margin and lower royalty income.
Oxford Industries has lowered its full-year guidance, and now expects earnings per share in the range of US$2.90-3.05, down from its previous guidance range of $3.00 to $3.15 per share. Sales are now expected to be in the $920-930m range, compared with earlier expectations of $930-940m.
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