SOUTHERN TIDE, TOMMY BAHAMA HELP OXFORD INDUSTRIES IN FIRST QUARTER
First quarter fiscal 2017 net sales increased 6 percent to $272.4 million for Atlanta-based apparel company Oxford Industries.
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 percent. 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.
“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,” said Thomas C. Chubb III, chairman and CEO. “Our top line increased 6 percent, 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.”
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 percent 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 percent operating margin.”
The company expects net sales in a range from $285 million to $295 million compared to net sales of $283 million in the second quarter of fiscal 2016.
