Oxford Industries sales drop following weak April
Oxford Industries, Inc. announced on Tuesday the financial results for its first quarter of fiscal 2016 ended April 30, 2016.
Consolidated net sales decreased to $256.2 million from $260.4 million in the prior year first quarter with Tommy Bahama net sales decreasing 6% to $162.7 million and Lanier Apparel net sales decreasing to $26.6 million from $28 million. The decreases were offset by the 10% increase in Lilly Pulitzer net sales to $64.7 million.
Comparable store sales for Tommy Bahama and Lilly Pulitzer decreased 13% and increased 1%, respectively.
Thomas C. Chubb III, Chairman and CEO, commented, "Our businesses were impacted by the well-publicized weakness in the retail environment, particularly in fashion apparel. At Tommy Bahama, soft demand and reduced traffic in the marketplace were exacerbated by a year-over-year shift in the cadence of an important loyalty card promotion from April to May. While April was weaker than we expected, we are encouraged by the strength Tommy Bahama has been exhibiting to date in the second quarter. Lilly Pulitzer had a very good first quarter with a solid 10% increase in sales over last year and a 17% increase in operating profit. These results are even more impressive given Lilly Pulitzer's collaboration with Target, which helped fuel extraordinary growth last year. Despite a difficult year-over-year compare, we expect Lilly to deliver growth on both the top and bottom lines in fiscal 2016 and beyond."
Gross profit was $152.1 million compared to $154.4 million in the previous year, and gross margin increased slightly to 59.4% from 59.3%. SG&A was 48.5% of net sales, or $124.2 million, versus 47.1% of net sales, or $122.7 million, in the first quarter of 2015. Finally, earnings from continued operations were $1.21 per share compared to $1.29 in the same period of the prior year.
Chubb added, “We have thoughtfully strengthened our portfolio of brands through the acquisition of Southern Tide, we have carefully controlled discretionary costs and inventory levels, and we remain strong with our opportunities for growth intact, both for the remainder of this year and well into the future."
For the second quarter, Oxford Industries expects its net sales to range from $275 million to $285 million compared to net sales of $250.7 million, and earnings per share are expected to range from $1.27 to $1.37.
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