Oxford Ind. Profit Declines On Costs; Lifts FY Outlook - Update

(RTTNews) - Apparel retailer Oxford Industries Inc. (OXM) Wednesday reported a decline in third-quarter profit, hurt mostly by weak margins that offset growth at its Tommy Bahama, Lily Pulitzer and Lanier Clothes brands. Both earnings and revenue for the quarter came in short of Wall Street estimates.

Nonetheless, Oxford provided a strong outlook for the fourth quarter, while lifting its fiscal year 2013 net earnings and sales forecast.

"Both Tommy Bahama and Lilly Pulitzer have seen strength in e-commerce and in our retail stores over the first six weeks and we believe we will deliver strong fourth quarter results," said CEO Thomas Chubb III.

Atlanta, Georgia-based Oxford posted third quarter net income of $0.9 million or $0.05 per share, compared with $3 million or $.18 per share last year.

Excluding items, adjusted earnings for the quarter were $0.10 per share, compared with $0.19 per share last year. Seven analysts polled by Thomson Reuters estimated earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter rose 9 percent to $197.5 million from $181.4 million a year ago, but missed analysts' expectations of $199.55 million.

Tommy Bahama sales grew 10 percent year-over-year, with a comparable store sales increase of 8 percent. Lilly Pulitzer sales climbed 13 percent, while comparable store sales fell 2 percent. Lanier Clothes sales gained 11 percent.

Results were mainly offset by gross margin that shrunk 30 basis points to 53.1 percent.

For the fourth quarter, Oxford expects net earnings of $1.01 to $1.16 per share, adjusted earnings of $0.98 to $1.13 per share and sales of $255 million to $265 million. Analysts currently expect earnings of $1.04 per share on sales of $258.49 million for the quarter.

For fiscal year 2013, Oxford now expect net earnings in the range of $2.85 to $3.00 per share, from its prior range of $2.80 to $2.95 per share, and continue to anticipate adjusted earnings of $2.90 to $3.05 per share. Analysts currently expect earnings of $2.99 per share for the year.

Sales for 2013 are now expected between $922 million and $932 million, from a prior range of $920 million to $930 million. Analysts currently expect sales of $926.64 million for the year.

The company also announced a cash dividend of $0.18 per share.

Oxford stock closed Wednesday at $73.25, up $0.45 or 0.62%, on a volume of 125 thousand shares on the NYSE. In after hours, the stock dropped $0.37 or 0.50%.