Oxford Industries Q2 net sales increased to $284.7 million
Staff Writer |
Oxford Industries announced financial results for its fiscal 2017 second quarter ended July 29, 2017.
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Consolidated net sales increased to $284.7 million compared to $283.0 million in the second quarter of fiscal 2016.
Earnings on a GAAP basis were $1.36 per share in the second quarter of fiscal 2017 compared to $1.44 in the same period of the prior year.
On an adjusted basis, earnings were $1.44 per share in the second quarter of fiscal 2017 compared to $1.48 in the second quarter of fiscal 2016.
Consolidated net sales in the second quarter of fiscal 2017 increased 1% to $284.7 million. This modest increase included year over year increases at Tommy Bahama and Southern Tide partially offset by a decrease at Lanier Apparel. Lilly Pulitzer’s sales were essentially flat with the prior year.
Gross profit in the second quarter increased to $166.0 million compared to $164.8 million in the same period of the prior year. Gross margin in the second quarter of fiscal 2017 was 58.3% compared to 58.2% in the second quarter of fiscal 2016. On an adjusted basis, gross margin expanded to 58.8% compared to 58.2% in the prior year.
In the second quarter of fiscal 2017, SG&A was 46.7% as a percentage of net sales or $132.9 million compared to 45.7% or $129.4 million in the prior year’s second quarter. The increase in SG&A was primarily due to incremental costs associated with operating additional retail stores and increased incentive compensation.
For the second quarter of fiscal 2017, royalties and other operating income were flat with the prior year at $3.3 million.
Operating income in the second quarter of fiscal 2017 was $36.4 million compared to $38.7 million in the same period of the prior year. On an adjusted basis, operating income was $38.4 million compared to $39.7 million in the second quarter of fiscal 2016.
Interest expense for the second quarter of fiscal 2017 was $0.7 million compared to $1.2 million in the second quarter of fiscal 2016.
Inventory decreased 11% to $119.6 million at July 29, 2017 from $133.7 million at the end of the second quarter of fiscal 2016 reflecting lower inventories at Lanier Apparel, Southern Tide and Tommy Bahama.
As of July 29, 2017, the company had $37.6 million of borrowings outstanding under its $325 million revolving credit agreement compared to $105.9 million at the end of the second quarter of fiscal 2016, with the decrease attributable to strong cash flow from operations.
The company ended the quarter with $215.3 million of unused availability under its credit agreement.
The company initiated its guidance for the third quarter of fiscal 2017, ending on October 28, 2017.
The company expects net sales in a range from $240 million to $250 million compared to net sales of $222.3 million in the third quarter of fiscal 2016. Earnings per share on a GAAP basis are expected to be in a range of $0.04 to $0.14 in the third quarter.
On an adjusted basis, earnings per share for the third quarter of fiscal 2017 are expected to be in a range of $0.09 to $0.19.
This compares with a third quarter fiscal 2016 loss per share of $0.10 and an adjusted loss per share of $0.07. ■