Oxford Industries posts upbeat Q1 results

Oxford Industries reported net sales in the first quarter increased 19 percent to 420 million dollars.

The company having Tommy Bahama, Lilly Pulitzer and Johnny Was under its portfolio, said EPS on a GAAP basis increased to 3.64 dollars compared to 3.45 dollars in the first quarter of fiscal 2022. On an adjusted basis, EPS increased to 3.78 dollars. Gross margin increased 130 basis points to 65.5 percent on a GAAP basis and 65.8 percent on an adjusted basis.

Commenting on the financial performance, Tom Chubb, the company’s chairman and CEO, said: “Our strong brands, exceptional products, aspirational messaging and balanced mix of direct retail, ecommerce and wholesale allowed us to deliver solid results for the first quarter of 2023.”

Highlights of Oxford’s Q1 trading

Full-price direct-to-consumer (DTC) sales increased 27 percent to 266 million dollars including 36 million dollars of DTC sales in Johnny Was and a 10 percent aggregate increase in DTC sales in Tommy Bahama, Lilly Pulitzer and emerging brands.

Full-price retail sales of 140 million dollars were 17 percent higher than the prior-year period. This includes full-price retail sales in Johnny Was of 17 million dollars. Full-price retail sales in Tommy Bahama, Lilly Pulitzer and emerging brands, in the aggregate, grew 2 percent.

Full-price e-commerce sales grew 41 percent to 126 million dollars versus last year. This includes full-price e-commerce sales in Johnny Was of 19 million dollars. Full-price e-commerce sales in Tommy Bahama, Lilly Pulitzer and emerging brands, in the aggregate, grew 20 percent.

Outlet sales were 17 million dollars, a 10 percent increase versus prior-year results. The first quarter of fiscal 2023 included 1 million dollars of Johnny Was outlet sales, with Tommy Bahama increasing 5 percent.

Wholesale sales of 105 million dollars were 18 percent higher than the first quarter of fiscal 2022. Johnny Was contributed wholesale sales of 13 million dollars, with the other businesses in the aggregate increasing 4 percent.

Oxford revises sales and EPS outlook

“While the year started strong, as the quarter progressed, we did see macroeconomic pressures drive the consumer to become more cautious in her discretionary spending and a high level of promotional activity within the marketplace. In light of these factors, we are moderating our growth forecast for the year,” Chubb added.

For fiscal 2023 ending on February 3, 2024, the company revised its sales and EPS guidance and now expects net sales in a range of 1.59 billion dollars to 1.63 billion dollars as compared to net sales of $1.41 billion in fiscal 2022.

In fiscal 2023, GAAP EPS is expected to be between 10.18 dollars and 10.58 dollars compared to fiscal 2022 GAAP EPS of 10.19 dollars. Adjusted EPS is expected to be between 10.80 dollars and 11.20 dollars, compared to 10.88 dollars last year.

For the second quarter, the company expects net sales to be between 415 million dollars and 435 million dollars and GAAP EPS in a range of 3.14 dollars to 3.34 dollars. Adjusted EPS is expected to be between 3.30 dollars and 3.50 dollars compared to 3.61 dollars in the second quarter of fiscal 2022.

The company’s board of directors declared a quarterly cash dividend of 65 cents per share payable on July 28, 2023 to shareholders of record as of the close of business on July 14, 2023.