--Strong Performance at Tommy Bahama Drives Solid
First Quarter----Affirms Full-Year Adjusted EPS Guidance--
Oxford Industries, Inc. (NYSE:OXM) today announced financial
results for its fiscal 2017 first quarter ended April 29, 2017.
Consolidated net sales increased to $272.4 million compared
to $256.2 million in the first quarter of fiscal 2016. Earnings on
a GAAP basis were $1.03 per share in the first quarter of fiscal
2017 compared to $1.21 in the same period of the prior year.
On an adjusted basis, earnings were $1.12 per share in the first
quarter of fiscal 2017 compared to $1.26 in the first quarter of
fiscal 2016.
For the first quarter of fiscal 2017, the Company’s effective
tax rate was 40.8% compared to 35.7% in the first quarter of fiscal
2016. The current year effective tax rate reflects the unfavorable
impact of the accounting treatment for the vesting of certain stock
awards in the first quarter of fiscal 2017. Additionally, fiscal
2016’s tax rate reflected the benefit of the utilization of
operating loss carryforwards. The change in the effective tax
rate resulted in a $0.09 year-over-year reduction in earnings per
share.
Thomas C. Chubb III, Chairman and CEO, commented, “Oxford, with
its dynamic portfolio of lifestyle brands, is positioned well to
succeed in this challenging marketplace and I am very pleased with
our first quarter results. Our top line increased 6%, driven
by several factors including the addition of Southern Tide to our
portfolio, sales associated with new, full-price retail stores,
increased sales in our restaurants and a 2% increase in comparable
store sales. These increases were partially offset by a
decrease in wholesale sales as we carefully manage and control our
exposure to department stores, a strategy critical to maintaining
the strength of our brands. We also delivered on the bottom
line with first quarter earnings that exceeded our guidance.”
Mr. Chubb continued, “We are particularly encouraged by the
progress made at Tommy Bahama in the first quarter. We know
that the right combination of beautiful product supported by a
strong marketing campaign can deliver great results. Driven
by positive comp store sales, we were pleased to see Tommy Bahama’s
operating margin expand over a hundred basis points in the quarter.
During the first quarter, Lilly delivered a modest expansion in
gross margin and an impressive 28% operating margin even with a
slight decline in sales compared to last year’s first quarter. The
first quarter of 2017 also included a very solid performance from
Southern Tide. This spring, Southern Tide saw strength in
their e-commerce and at-once wholesale businesses and delivered a
17% operating margin.”
Mr. Chubb concluded, “We have come out of the gate with a good
start to fiscal 2017. While we are still facing formidable
challenges in the consumer marketplace, our portfolio of unique,
compelling brands and carefully controlled distribution positions
us well to deliver shareholder
value.”
Consolidated Operating Results
First quarter fiscal 2017 net sales increased 6% to $272.4
million. This increase was driven by the addition of the
Southern Tide business, new stores and Tommy Bahama’s strong
comparable store sales. At Lilly Pulitzer, first quarter
sales decreased modestly by 2%. The sales contribution of new
stores was more than offset by lower wholesale sales, as Lilly
Pulitzer continued to closely manage and control this channel of
distribution, and negative comparable store sales. The comparable
store sales decline was a combination of positive comparable sales
in e-commerce and negative comparable sales in brick and mortar
stores. As expected, sales at Lanier Apparel were lower than last
year.
Gross profit in the first quarter increased to $159.4 million
compared to $151.5 million in the same period of the prior year.
Gross margin in the first quarter of fiscal 2017 was 58.5% compared
to 59.1% in the first quarter of fiscal 2016. Modest gross margin
expansion at Tommy Bahama and Lilly Pulitzer was more than offset
by the impact of LIFO accounting and a decline in gross margin at
Lanier Apparel. On an adjusted basis, the Company had modest gross
margin expansion.
In the first quarter of fiscal 2017, SG&A as a percentage of
net sales was 48.9% or $133.2 million compared to 48.2% or $123.5
million in the prior year’s first quarter. The increase was
primarily due to SG&A associated with the Southern Tide
business and incremental costs associated with operating additional
retail stores.
For the first quarter of fiscal 2017, royalties and other
operating income were $3.7 million compared to $4.0 million in the
first quarter of fiscal 2016.
Operating income in the first quarter of fiscal 2017 was $30.0
million compared to $32.0 million in the same period of the prior
year. On an adjusted basis, operating income was $32.1 million
compared to $33.0 million in the first quarter of fiscal
2016.
Interest expense for the first quarter of fiscal 2017 was $0.9
million compared to $0.6 million in the first quarter of fiscal
2016.
Balance Sheet and Liquidity
Inventory decreased to $127.1 million at April 29, 2017 from
$143.6 million at the end of the first quarter of fiscal 2016
primarily reflecting lower inventories at Tommy Bahama and Lanier
Apparel.
As of April 29, 2017, the Company had $93.3 million of
borrowings outstanding under its $325 million revolving credit
agreement compared to $152.9 million at the end of the first
quarter of fiscal 2016, with the decrease attributable to strong
cash flow from operations. The Company ended the quarter with
$194.4 million of unused availability under its credit
agreement.
Outlook for Second Quarter and Fiscal Year
2017
The Company initiated its guidance for the second quarter of
fiscal 2017, ending on July 29, 2017. The Company expects net
sales in a range from $285 million to $295 million compared to net
sales of $283.0 million in the second quarter of fiscal 2016.
Earnings per share on a GAAP basis are expected to be in a range of
$1.33 to $1.43 in the second quarter. On an adjusted basis,
earnings per share for the second quarter of fiscal 2017 are
expected to be in a range of $1.35 to $1.45. This compares
with second quarter fiscal 2016 earnings per share of $1.44 and
adjusted earnings per share of $1.48.
The Company has affirmed its adjusted earnings outlook for the
full year fiscal 2017 and has revised its GAAP earnings outlook due
to the impact of LIFO accounting. GAAP earnings per share are now
expected to be between $3.33 and $3.53. Adjusted earnings per share
are expected to be between $3.50 and $3.70. This compares to
earnings on a GAAP basis of $3.27 per share and, on an adjusted
basis, $3.30 per share in fiscal 2016. The Company now expects net
sales to grow to between $1.09 billion to $1.11 billion as compared
to Fiscal 2016 net sales of $1.023 billion.
The Company’s effective tax rate for fiscal 2017 is expected to
be approximately 39% compared to 37% in the full 2016 fiscal year,
with the increase reflecting the unfavorable impact of the vesting
of stock awards and a reduction in the utilization of operating
loss carryforwards relative to fiscal 2016. Full year interest
expense is estimated to be approximately $3.5 million.
Capital expenditures in fiscal 2017, including $8.5 million in
the first quarter of fiscal 2017, are expected to be in a range of
$50 million to $55 million, primarily reflecting investments in
information technology initiatives, new retail stores and
restaurants, and investments to remodel and relocate existing
retail stores.
Conference Call
The Company will hold a conference call with senior management
to discuss its financial results at 4:30 p.m. ET today. A live web
cast of the conference call will be available on the Company’s
website at www.oxfordinc.com. A replay of the call will be
available through June 20, 2017 by dialing (412) 317-6671 access
code 4078920.
About Oxford
Oxford Industries, Inc., a leader in the apparel industry, owns
and markets the distinctive Tommy Bahama®, Lilly Pulitzer® and
Southern Tide® lifestyle brands. Oxford also produces certain
licensed and private label apparel products. Oxford's stock has
traded on the New York Stock Exchange since 1964 under the symbol
OXM. For more information, please visit Oxford's website at
www.oxfordinc.com.
Non-GAAP Financial Information
The Company reports its consolidated financial statements in
accordance with generally accepted accounting principles
(GAAP). To supplement these consolidated financial results,
management believes that a presentation and discussion of certain
financial measures on an adjusted basis, which exclude certain
non-operating or discrete gains, charges or other items, may
provide a more meaningful basis on which investors may compare the
Company’s ongoing results of operations between periods.
These measures include adjusted earnings, adjusted earnings
per share, adjusted gross profit, adjusted gross margin, adjusted
SG&A and adjusted operating income, among others. Management
uses these non-GAAP financial measures in making financial,
operational and planning decisions to evaluate the Company’s
ongoing performance. Management also uses these adjusted financial
measures to discuss its business with investment and other
financial institutions, its board of directors and others.
Reconciliations of these adjusted measures to the most directly
comparable financial measures calculated in accordance with GAAP
are presented in tables included at the end of this release.
These reconciliations present adjusted operating results
information for certain historical and future periods.
Basis of Presentation
All financial results and outlook information included in this
release, unless otherwise noted, are from continuing operations and
all per share amounts are on a diluted basis. The results from the
Ben Sherman business, which was sold on July 17, 2015, are
reflected as discontinued operations for all periods
presented. Fiscal 2017, which ends February 3, 2018, is a
53-week year.
Safe Harbor
This press release includes statements that constitute
forward-looking statements within the meaning of the federal
securities laws. Generally, the words "believe," "expect,"
"intend," "estimate," "anticipate," "project," "will" and similar
expressions identify forward-looking statements, which are not
historical in nature. We intend for all forward-looking statements
contained herein or on our website, and all subsequent written and
oral forward-looking statements attributable to us or persons
acting on our behalf, to be covered by the safe harbor provisions
for forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 (which Sections were adopted as
part of the Private Securities Litigation Reform Act of 1995). Such
statements are subject to a number of risks, uncertainties and
assumptions including, without limitation, competitive conditions,
which may be impacted by evolving consumer shopping patterns; the
impact of economic conditions on consumer demand and spending for
apparel and related products, particularly in light of general
economic uncertainty; changes in international, federal or state,
tax, trade and other laws and regulations, including changes in
corporate tax rates, quota restrictions or the imposition of
safeguard controls; demand for our products; timing of shipments
requested by our wholesale customers; expected pricing levels;
retention of and disciplined execution by key management; the
timing and cost of store openings and of planned capital
expenditures; weather; costs of products as well as the raw
materials used in those products; costs of labor; acquisition and
disposition activities; expected outcomes of pending or potential
litigation and regulatory actions; access to capital and/or credit
markets; our ability to timely recognize our expected
synergies from any acquisitions we pursue; and factors that could
affect our consolidated effective tax rate such as the results of
foreign operations or stock based compensation. Forward-looking
statements reflect our current expectations, based on currently
available information, and are not guarantees of performance.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, these expectations could
prove inaccurate as such statements involve risks and
uncertainties, many of which are beyond our ability to control or
predict. Should one or more of these risks or uncertainties, or
other risks or uncertainties not currently known to us or that we
currently deem to be immaterial, materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those anticipated, estimated or projected. Important factors
relating to these risks and uncertainties include, but are not
limited to, those described in Part I, Item 1A. contained in our
Annual Report on Form 10-K for the period ended January 28, 2017
under the heading "Risk Factors" and those described from time to
time in our future reports filed with the SEC.
|
Oxford Industries, Inc. |
Condensed Consolidated Balance
Sheets |
(in thousands, except par
amounts) |
(unaudited) |
|
|
April 29, 2017 |
|
|
April 30, 2016 |
|
ASSETS |
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
6,554 |
|
$ |
6,974 |
|
Receivables, net |
|
79,042 |
|
|
81,493 |
|
Inventories, net |
|
127,061 |
|
|
143,641 |
|
Prepaid
expenses |
|
24,325 |
|
|
23,442 |
|
Total Current
Assets |
$ |
236,982 |
|
$ |
255,550 |
|
Property and equipment,
net |
|
192,734 |
|
|
185,971 |
|
Intangible assets,
net |
|
174,603 |
|
|
185,416 |
|
Goodwill |
|
60,002 |
|
|
50,058 |
|
Other
non-current assets, net |
|
24,258 |
|
|
21,800 |
|
Total Assets |
$ |
688,579 |
|
$ |
698,795 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
Accounts payable |
$ |
63,982 |
|
$ |
62,497 |
|
Accrued
compensation |
|
16,593 |
|
|
14,948 |
|
Other accrued expenses
and liabilities |
|
35,591 |
|
|
31,925 |
|
Liabilities related to discontinued operations |
|
3,143 |
|
|
— |
|
Total Current
Liabilities |
$ |
119,309 |
|
$ |
109,370 |
|
Long-term debt |
|
93,289 |
|
|
152,905 |
|
Other non-current
liabilities |
|
69,370 |
|
|
67,551 |
|
Deferred taxes |
|
16,183 |
|
|
12,323 |
|
Liabilities related to
discontinued operations |
|
2,022 |
|
|
4,278 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Shareholders’
Equity |
|
|
|
|
|
|
Common stock,
$1.00 par value per share |
|
16,821 |
|
|
16,757 |
|
Additional paid-in
capital |
|
131,011 |
|
|
125,662 |
|
Retained earnings |
|
246,136 |
|
|
214,798 |
|
Accumulated other comprehensive loss |
|
(5,562 |
) |
|
(4,849 |
) |
Total Shareholders’ Equity |
$ |
388,406 |
|
$ |
352,368 |
|
Total Liabilities and Shareholders’ Equity |
$ |
688,579 |
|
$ |
698,795 |
|
|
Oxford Industries, Inc. |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
(unaudited) |
|
|
First Quarter Fiscal 2017 |
|
|
First Quarter Fiscal 2016 |
Net sales |
$ |
272,363 |
|
$ |
256,235 |
Cost of
goods sold |
|
112,953 |
|
|
104,771 |
Gross
profit |
$ |
159,410 |
|
$ |
151,464 |
SG&A |
|
133,191 |
|
|
123,498 |
Royalties
and other operating income |
|
3,740 |
|
|
4,040 |
Operating
income |
$ |
29,959 |
|
$ |
32,006 |
Interest
expense, net |
|
930 |
|
|
614 |
Earnings from
continuing operations before income taxes |
$ |
29,029 |
|
$ |
31,392 |
Income
taxes |
|
11,832 |
|
|
11,215 |
Net earnings
from continuing operations |
$ |
17,197 |
|
$ |
20,177 |
Earnings
from discontinued operations, net of taxes |
|
— |
|
|
— |
Net earnings |
$ |
17,197 |
|
$ |
20,177 |
|
|
|
|
|
|
Net earnings
from continuing operations per share: |
|
|
|
|
|
Basic |
$ |
1.04 |
|
$ |
1.22 |
Diluted |
$ |
1.03 |
|
$ |
1.21 |
Earnings from
discontinued operations, net of taxes, per share: |
|
|
Basic |
$ |
— |
|
$ |
— |
Diluted |
$ |
— |
|
$ |
— |
Net earnings
per share: |
|
|
|
|
|
Basic |
$ |
1.04 |
|
$ |
1.22 |
Diluted |
$ |
1.03 |
|
$ |
1.21 |
Weighted
average shares outstanding: |
|
|
|
|
|
Basic |
|
16,549 |
|
|
16,503 |
Diluted |
|
16,695 |
|
|
16,617 |
Dividends
declared per share |
$ |
0.27 |
|
$ |
0.27 |
|
|
|
Oxford Industries, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands) |
(unaudited) |
|
|
First Quarter Fiscal 2017 |
|
|
First Quarter Fiscal 2016 |
|
Cash Flows From
Operating Activities: |
|
|
|
|
|
|
Net earnings |
$ |
17,197 |
|
$ |
20,177 |
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation |
|
9,651 |
|
|
9,464 |
|
Amortization of intangible assets |
|
539 |
|
|
490 |
|
Equity
compensation expense |
|
1,739 |
|
|
1,575 |
|
Amortization of deferred financing costs |
|
105 |
|
|
96 |
|
Deferred
income taxes |
|
2,605 |
|
|
4,688 |
|
Changes
in working capital, net of acquisitions and dispositions: |
|
|
|
|
|
|
Receivables, net |
|
(20,474 |
) |
|
(16,562 |
) |
Inventories, net |
|
15,000 |
|
|
2,767 |
|
Prepaid
expenses |
|
508 |
|
|
(375 |
) |
Current
liabilities |
|
(12,171 |
) |
|
(20,081 |
) |
Other
non-current assets, net |
|
7 |
|
|
(515 |
) |
Other non-current liabilities |
|
(1,095 |
) |
|
(27 |
) |
Cash provided by operating activities |
$ |
13,611 |
|
$ |
1,697 |
|
Cash Flows From
Investing Activities: |
|
|
|
|
|
|
Acquisitions, net of
cash acquired |
|
(225 |
) |
|
(91,871 |
) |
Purchases of property
and equipment |
|
(8,545 |
) |
|
(10,582 |
) |
Other
investing activities |
|
— |
|
|
(2,030 |
) |
Cash used in investing activities |
$ |
(8,770 |
) |
$ |
(104,483 |
) |
Cash Flows From
Financing Activities: |
|
|
|
|
|
|
Repayment of revolving
credit arrangements |
|
(67,373 |
) |
|
(60,642 |
) |
Proceeds from revolving
credit arrangements |
|
69,153 |
|
|
169,572 |
|
Proceeds from issuance
of common stock |
|
386 |
|
|
315 |
|
Repurchase of equity
awards for employee tax withholding liabilities |
|
(2,206 |
) |
|
(1,549 |
) |
Cash
dividends declared and paid |
|
(4,552 |
) |
|
(4,531 |
) |
Cash (used in) provided by financing
activities |
$ |
(4,592 |
) |
$ |
103,165 |
|
Net change in cash and
cash equivalents |
$ |
249 |
|
$ |
379 |
|
Effect of foreign
currency translation on cash and cash equivalents |
|
(27 |
) |
|
272 |
|
Cash and
cash equivalents at the beginning of year |
|
6,332 |
|
|
6,323 |
|
Cash and cash equivalents at the end of the
period |
$ |
6,554 |
|
$ |
6,974 |
|
Supplemental
disclosure of cash flow information: |
|
|
Cash paid for interest,
net |
$ |
876 |
|
$ |
416 |
|
Cash paid
for income taxes |
$ |
833 |
|
$ |
3,438 |
|
|
|
|
Oxford Industries, Inc. |
Reconciliations of Certain Non-GAAP Financial
Information |
(in millions, except per share
amounts) |
(unaudited) |
AS
REPORTED |
First Quarter Fiscal 2017 |
First Quarter Fiscal 2016 |
% Change |
Tommy
Bahama |
|
|
|
Net
sales |
$ |
172.5 |
|
$ |
162.7 |
|
6.0 |
% |
Gross
profit |
$ |
105.2 |
|
$ |
98.8 |
|
6.4 |
% |
Gross
margin |
|
61.0 |
% |
|
60.7 |
% |
|
Operating
income |
$ |
16.0 |
|
$ |
13.3 |
|
20.4 |
% |
Operating margin |
|
9.3 |
% |
|
8.2 |
% |
|
Lilly
Pulitzer |
|
|
|
Net
sales |
$ |
63.3 |
|
$ |
64.7 |
|
(2.1 |
)% |
Gross
profit |
$ |
42.1 |
|
$ |
42.7 |
|
(1.3 |
)% |
Gross
margin |
|
66.5 |
% |
|
65.9 |
% |
|
Operating
income |
$ |
17.7 |
|
$ |
20.8 |
|
(14.9 |
)% |
Operating margin |
|
27.9 |
% |
|
32.1 |
% |
|
Lanier
Apparel |
|
|
|
Net
sales |
$ |
23.4 |
|
$ |
26.6 |
|
(12.2 |
)% |
Gross
profit |
$ |
7.0 |
|
$ |
8.6 |
|
(18.4 |
)% |
Gross
margin |
|
30.0 |
% |
|
32.3 |
% |
|
Operating
income |
$ |
0.9 |
|
$ |
2.9 |
|
(70.1 |
)% |
Operating margin |
|
3.7 |
% |
|
10.8 |
% |
|
Southern
Tide |
|
|
|
Net
sales |
$ |
12.6 |
|
$ |
1.4 |
|
NM |
|
Gross
profit |
$ |
6.5 |
|
$ |
0.6 |
|
NM |
|
Gross
margin |
|
51.4 |
% |
|
NM |
|
|
|
Operating
income |
$ |
2.1 |
|
|
— |
|
NM |
|
Operating margin |
|
16.6 |
% |
|
NM |
|
|
Corporate and
Other |
|
|
|
Net
sales |
$ |
0.5 |
|
$ |
0.7 |
|
NM |
|
Gross
profit |
$ |
(1.4 |
) |
$ |
0.8 |
|
NM |
|
Operating loss |
$ |
(6.7 |
) |
$ |
(5.0 |
) |
(34.1 |
)% |
Consolidated |
|
|
|
Net
sales |
$ |
272.4 |
|
$ |
256.2 |
|
6.3 |
% |
Gross
profit |
$ |
159.4 |
|
$ |
151.5 |
|
5.2 |
% |
Gross
margin |
|
58.5 |
% |
|
59.1 |
% |
|
SG&A |
$ |
133.2 |
|
$ |
123.5 |
|
7.8 |
% |
SG&A
as % of net sales |
|
48.9 |
% |
|
48.2 |
% |
|
Operating
income |
$ |
30.0 |
|
$ |
32.0 |
|
(6.4 |
)% |
Operating
margin |
|
11.0 |
% |
|
12.5 |
% |
|
Earnings
from continuing operations before income taxes |
$ |
29.0 |
|
$ |
31.4 |
|
(7.5 |
)% |
Net
earnings from continuing operations |
$ |
17.2 |
|
$ |
20.2 |
|
(14.8 |
)% |
Net earnings from continuing operations per diluted share |
$ |
1.03 |
|
$ |
1.21 |
|
(14.9 |
)% |
Weighted
average shares outstanding - diluted |
|
16.7 |
|
|
16.6 |
|
0.5 |
% |
ADJUSTMENTS |
|
First Quarter Fiscal 2017 |
|
|
First Quarter Fiscal 2016 |
|
% Change |
LIFO
adjustments(1) |
$ |
1.7 |
|
$ |
(0.3 |
) |
|
Inventory step-up
charges(2) |
$ |
0.0 |
|
$ |
0.2 |
|
|
Amortization of
Canadian intangible assets(3) |
$ |
0.4 |
|
$ |
0.4 |
|
|
Amortization of
Southern Tide intangible assets(4) |
$ |
0.1 |
|
$ |
0.1 |
|
|
Transaction expenses
for acquisition(5) |
$ |
0.0 |
|
$ |
0.8 |
|
|
Impact of
income taxes(6) |
$ |
(0.7 |
) |
$ |
(0.3 |
) |
|
Adjustment to net earnings from continuing operations(7) |
$ |
1.5 |
|
$ |
0.8 |
|
|
AS
ADJUSTED |
|
|
|
Tommy
Bahama |
|
|
|
Net
sales |
$ |
172.5 |
|
$ |
162.7 |
|
6.0 |
% |
Gross
profit |
$ |
105.2 |
|
$ |
98.8 |
|
6.4 |
% |
Gross
margin |
|
61.0 |
% |
|
60.7 |
% |
|
Operating
income |
$ |
16.4 |
|
$ |
13.7 |
|
19.9 |
% |
Operating margin |
|
9.5 |
% |
|
8.4 |
% |
|
Lilly
Pulitzer |
|
|
|
Net
sales |
$ |
63.3 |
|
$ |
64.7 |
|
(2.1 |
)% |
Gross
profit |
$ |
42.1 |
|
$ |
42.7 |
|
(1.3 |
)% |
Gross
margin |
|
66.5 |
% |
|
65.9 |
% |
|
Operating
income |
$ |
17.7 |
|
$ |
20.8 |
|
(14.9 |
)% |
Operating margin |
|
27.9 |
% |
|
32.1 |
% |
|
Lanier
Apparel |
|
|
|
Net
sales |
$ |
23.4 |
|
$ |
26.6 |
|
(12.2 |
)% |
Gross
profit |
$ |
7.0 |
|
$ |
8.6 |
|
(18.4 |
)% |
Gross
margin |
|
30.0 |
% |
|
32.3 |
% |
|
Operating
income |
$ |
0.9 |
|
$ |
2.9 |
|
(70.1 |
)% |
Operating margin |
|
3.7 |
% |
|
10.8 |
% |
|
Southern
Tide |
|
|
|
Net
sales |
$ |
12.6 |
|
$ |
1.4 |
|
NM |
|
Gross
profit |
$ |
6.5 |
|
$ |
0.7 |
|
NM |
|
Gross
margin |
|
51.4 |
% |
|
NM |
|
|
|
Operating
income |
$ |
2.2 |
|
$ |
0.3 |
|
NM |
|
Operating margin |
|
17.2 |
% |
|
NM |
|
|
Corporate and
Other |
|
|
|
Net
sales |
$ |
0.5 |
|
$ |
0.7 |
|
NM |
|
Gross
profit |
$ |
0.3 |
|
$ |
0.5 |
|
NM |
|
Operating loss |
$ |
(5.0 |
) |
$ |
(4.6 |
) |
(10.3 |
)% |
Consolidated |
|
|
|
Net
sales |
$ |
272.4 |
|
$ |
256.2 |
|
6.3 |
% |
Gross
profit |
$ |
161.1 |
|
$ |
151.3 |
|
6.5 |
% |
Gross
margin |
|
59.2 |
% |
|
59.1 |
% |
|
SG&A |
$ |
132.7 |
|
$ |
122.3 |
|
8.5 |
% |
SG&A
as % of net sales |
|
48.7 |
% |
|
47.7 |
% |
|
Operating
income |
$ |
32.1 |
|
$ |
33.0 |
|
(2.8 |
)% |
Operating
margin |
|
11.8 |
% |
|
12.9 |
% |
|
Earnings
from continuing operations before income taxes |
$ |
31.2 |
|
$ |
32.4 |
|
(3.9 |
)% |
Net
earnings from continuing operations |
$ |
18.7 |
|
$ |
21.0 |
|
(11.0 |
)% |
Net earnings from continuing operations per diluted share |
$ |
1.12 |
|
$ |
1.26 |
|
(11.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter Fiscal 2017 |
First Quarter Fiscal 2017 |
First Quarter Fiscal 2016 |
|
|
|
Actual |
Guidance(8) |
Actual |
|
|
Net earnings (loss)
from continuing operations per diluted share: |
|
|
|
|
|
GAAP basis |
$1.03 |
$0.98 - $1.08 |
$1.21 |
|
|
|
LIFO
adjustments(9) |
0.06 |
0.00 |
(0.01) |
|
|
Inventory step-up
charges(10) |
0.00 |
0.00 |
0.01 |
|
|
Amortization of
Canadian intangible assets(11) |
0.02 |
0.02 |
0.02 |
|
|
Amortization of
Southern Tide intangible assets(12) |
0.00 |
0.00 |
0.00 |
|
|
Transaction expenses for acquisition(13) |
0.00 |
0.00 |
0.03 |
|
|
As
adjusted(7) |
$
1.12 |
$1.00 - $1.10 |
$1.26 |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Fiscal 2017 |
Second Quarter Fiscal 2016 |
Fiscal 2017 |
Fiscal 2016 |
|
|
|
Guidance(14) |
Actual |
Guidance(14) |
Actual |
|
|
Net earnings (loss)
from continuing operations per diluted share: |
|
|
|
|
|
|
GAAP basis |
$1.33 - $1.43 |
$1.44 |
$3.33 - 3.53 |
$3.27 |
|
|
LIFO
adjustments(9) |
0.00 |
(0.04) |
0.06 |
(0.22) |
|
|
Inventory step-up
charges(10) |
0.00 |
0.04 |
0.00 |
0.10 |
|
|
Amortization of
Canadian intangible assets(11) |
0.02 |
0.02 |
0.09 |
0.09 |
|
|
Amortization of
Southern Tide intangible assets(12) |
0.00 |
0.01 |
0.01 |
0.01 |
|
|
Transaction expenses
for acquisition(13) |
0.00 |
0.00 |
0.00 |
0.03 |
|
|
Distribution center
integration charges (15) |
0.00 |
0.02 |
0.00 |
0.02 |
|
|
As adjusted(7) |
$1.35 - $1.45 |
$ 1.48 |
$3.50 - 3.70 |
$ 3.30 |
|
|
|
|
|
|
|
|
|
(1) LIFO
adjustments represent the impact on cost of goods sold resulting
from LIFO accounting adjustments. LIFO adjustments are included in
Corporate and Other. |
(2)
Inventory step-up charges represent the impact of purchase
accounting adjustments resulting from the step-up of inventory at
acquisition related to the Southern Tide acquisition. These
inventory step-up charges are included in cost of goods sold in
Southern Tide. |
(3)
Amortization of Canadian intangible assets represents the
amortization related to the intangible assets acquired as part of
the Tommy Bahama Canada acquisition. Amortization of Canadian
intangible assets are included in SG&A in Tommy Bahama. |
(4)
Amortization of Southern Tide intangible assets represents the
amortization related to the intangible assets acquired as part of
the Southern Tide acquisition. Amortization of Southern Tide
intangible assets are included in SG&A in Southern Tide. |
(5)
Transaction expenses for acquisition represent the transaction
costs associated with the Southern Tide acquisition. These
transaction expenses for acquisition are included in SG&A in
Corporate and Other. |
(6) Impact
of income taxes represents the estimated tax impact of the above
adjustments based on the applicable estimated effective tax rate on
current year earnings in the respective jurisdiction, before
any discrete items. |
(7)
Amounts in columns may not add due to rounding. |
(8)
Guidance as issued on March 23, 2017. |
(9) LIFO
adjustments represent the impact, net of income taxes, on net
earnings from continuing operations per diluted share resulting
from LIFO accounting adjustments. No estimate for future LIFO
accounting adjustments are reflected in the guidance for any period
presented. |
(10)
Inventory step-up charges represent the impact, net of income
taxes, on net earnings from continuing operations per diluted share
resulting from inventory step-up charges related to the
Southern Tide acquisition. |
(11)
Amortization of Canadian intangible assets represents the impact,
net of income taxes, on net earnings from continuing operations per
diluted share resulting from the amortization of
intangible assets acquired as part of the Tommy Bahama Canada
acquisition. |
(12)
Amortization of Southern Tide intangible assets represents the
impact, net of income taxes, on net earnings from continuing
operations per diluted share resulting from the amortization
of intangible assets acquired as part of the Southern Tide
acquisition. |
(13)
Transaction expenses for acquisition represent the impact, net of
income taxes, on net earnings from continuing operations per
diluted share resulting from the transaction costs associated
with the Southern Tide acquisition. |
(14)
Guidance as issued on June 6, 2017. |
(15)
Distribution center integration charges represent the impact, net
of income taxes, on net earnings from continuing operations
per diluted share resulting from one-time charges related to
transitioning Southern Tide's distribution center functions during
the Second Quarter of Fiscal 2016. |
Comparable Store Sales Change |
The
Company's disclosures about comparable store sales include sales
from its full-price stores and e-commerce sites, excluding sales
associated with e-commerce flash clearance sales. |
Prior
period comparable store sales changes are as previously
disclosed. |
|
Q1 |
Q2 |
Q3 |
Q4 |
Full Year |
|
Tommy
Bahama |
|
|
|
|
|
|
Fiscal
2017 |
5 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
|
Fiscal
2016 |
(13 |
)% |
7 |
% |
(6 |
)% |
(3 |
)% |
(3 |
)% |
|
Fiscal
2015 |
8 |
% |
3 |
% |
(5 |
)% |
2 |
% |
3 |
% |
|
Lilly
Pulitzer |
|
|
|
|
|
|
Fiscal
2017 |
(7 |
)% |
— |
% |
— |
% |
— |
% |
— |
% |
|
Fiscal
2016 |
1 |
% |
(1 |
)% |
12 |
% |
2 |
% |
2 |
% |
|
Fiscal
2015 |
20 |
% |
41 |
% |
27 |
% |
13 |
% |
27 |
% |
|
|
|
|
|
|
|
|
Retail Location Count |
|
Beginning of Year |
|
End of Q1 |
|
End of Q2 |
|
End of Q3 |
|
End of Q4 |
|
Tommy
Bahama |
|
|
|
|
|
|
|
|
|
|
Fiscal 2017 |
|
|
|
|
|
|
|
|
|
|
Full-price |
111 |
|
112 |
|
— |
|
— |
|
— |
|
Retail-restaurant |
17 |
|
17 |
|
— |
|
— |
|
— |
|
Outlet |
40 |
|
40 |
|
— |
|
— |
|
— |
|
Total |
168 |
|
169 |
|
— |
|
— |
|
— |
|
Fiscal 2016 |
|
|
|
|
|
|
|
|
|
|
Full-price |
107 |
|
109 |
|
111 |
|
113 |
|
111 |
|
Retail-restaurant |
16 |
|
16 |
|
16 |
|
16 |
|
17 |
|
Outlet |
41 |
|
41 |
|
41 |
|
41 |
|
40 |
|
Total |
164 |
|
166 |
|
168 |
|
170 |
|
168 |
|
|
|
|
|
|
|
|
|
|
|
|
Lilly
Pulitzer |
|
|
|
|
|
|
|
|
|
|
Fiscal 2017 |
|
|
|
|
|
|
|
|
|
|
Full-price |
40 |
|
41 |
|
— |
|
— |
|
— |
|
Fiscal 2016 |
|
|
|
|
|
|
|
|
|
|
Full-price |
34 |
|
34 |
|
37 |
|
39 |
|
40 |
|
|
Contact: Anne M. Shoemaker
Telephone: (404) 653-1455
Fax: (404) 653-1545
E-mail: InvestorRelations@oxfordinc.com
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