• Q1 net profit down 24.3% to US$13.6m
  • Net sales up 1.4% to $234.2m
  • Increased investment behind Tommy Bahama, Lilly Pulitzer

Apparel group Oxford Industries recorded a cut in first quarter net profit, despite a slight increase in revenues, as the company invested in expanding its flagship brands.

Sales of the US company’s Tommy Bahama brand were up 7% to US$150.4m, while Lilly Pulitzer revenues rose 11% to $39.4m.

However, Lanier Clothes registered a 17% revenue decline to $27.3m, while Ben Sherman’s sales slumped 30% to $12.2m.

Gross margins increased by 130 basis points to 57.2%, driven by a change in the sales mix towards direct-to-consumer, but Oxford Industries increased its investments to expand its Tommy Bahama and Lilly Pulitzer businesses.

“We delivered excellent financial results, driven by strength at Tommy Bahama and Lilly Pulitzer,” said Thomas Chubb III, president and CEO.

“In addition, our commitment to growing long-term shareholder value is evident in the continuing investment we are making in these two businesses.”

The company expects to post full-year earnings per share of $3.00-3.15 on revenues of $930-940m.