Oxford Industries announced financial results for its fiscal 2016 first quarter ended April 30, 2016. Consolidated net sales were $256.2 million compared to $260.4 million in Q1 2015.
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Earnings from continuing operations were $1.21 per share in the first quarter of fiscal 2016 compared to $1.29 in the same period of the prior year.
On an adjusted basis, earnings from continuing operations were $1.26 per share in the first quarter of fiscal 2016 compared to $1.30 in the first quarter of fiscal 2015.
Tommy Bahama's net sales decreased 6% to $162.7 million in the first quarter of fiscal 2016, with a comparable store sales decrease for the quarter of 13%, partially offset by sales from new stores.
Lilly Pulitzer's net sales increased 10% in the first quarter of fiscal 2016 to $64.7 million with increases in all channels of distribution and a 1% comparable store sales increase in the quarter.
Lanier Apparel's net sales were $26.6 million in the first quarter of fiscal 2016 compared to $28.0 million in the first quarter of 2015.
From the acquisition date of April 19, 2016 through the end of the first quarter, Southern Tide generated $1.4 million of net sales.
Gross Margin and Gross Profit Gross margin in the first quarter of fiscal 2016 increased slightly to 59.4% compared to 59.3% in the prior year period.
Gross profit in the first quarter of fiscal 2016 was $152.1 million compared to $154.4 million in the prior year period.
On an adjusted basis, gross margin in the first quarter of fiscal 2016 was 59.3% compared to 59.2% in the first quarter of fiscal 2015. Adjusted gross profit for the first quarter of fiscal 2016 was $152.0 million compared to $154.1 million in the first quarter of fiscal 2015.
SG&A In the first quarter of fiscal 2016, SG&A was $124.2 million, or 48.5% of net sales, compared to $122.7 million, or 47.1% of net sales, in the first quarter of fiscal 2015. On an adjusted basis, SG&A was $123.0 million, or 48.0% of net sales, compared to $122.3 million, or 47.0% of net sales, in the first quarter of fiscal 2015.
The increase in SG&A on both a GAAP and an adjusted basis was primarily due to incremental costs associated with operating additional retail stores and restaurants.
Royalties and Other Operating Income For the first quarter of fiscal 2016, royalties and other operating income were $4.0 million compared to $3.8 million in the first quarter of fiscal 2015.
Operating Income In the first quarter of fiscal 2016, operating income was $32.0 million compared to $35.5 million in the first quarter of fiscal 2015. On an adjusted basis, operating income was $33.0 million in the first quarter of fiscal 2016 compared to $35.5 million in the first quarter of fiscal 2015.
Interest Expense Interest expense for the first quarter of fiscal 2016 was $0.6 million compared to $0.8 million in the first quarter of fiscal 2015.
Income Taxes For the first quarter of fiscal 2016, the effective tax rate was 35.7% compared to 38.6% in the first quarter of fiscal 2015 primarily due to improved international operating results, lower domestic earnings and the favorable benefit of certain discrete items.
Inventory increased to $143.6 million at April 30, 2016 from $114.4 million at the end of the first quarter of fiscal 2015.
This increase reflects the addition of Southern Tide as well as inventory to support anticipated sales growth in the Company's other businesses in the second quarter of fiscal 2016. ■