US' Oxford Industries' net sales surge 26% in Q3 FY22

Consolidated net sales in the first nine months of fiscal 2022 increased 22 per cent to $1,029 million compared to $842 million in the first nine months of fiscal 2021. Earnings per share (EPS) on a GAAP basis increased to $8.19 compared to $6.29 in the first nine months of fiscal 2021. On an adjusted basis, EPS increased to $8.59 compared to $6.32 in the first nine months of fiscal 2021.

In Q3 FY22, full-price direct-to-consumer (DTC) sales increased $35 million, or 24 per cent, to $178 million versus the third quarter of fiscal 2021. Full-price retail sales of $98 million were 22 per cent higher than Q3 FY21, including $8 million of full-price retail sales in Johnny Was and a 12 per cent aggregate increase in full-price retail sales in Tommy Bahama, Lilly Pulitzer, and Emerging Brands. The company’s full price e-commerce sales grew 26 per cent to $80 million compared to Q3 FY21.

Wholesale sales in Q3 FY22 were $69 million, 32 per cent higher than the third quarter of fiscal 2021. The third quarter of fiscal 2022 included $5 million of wholesale sales of Johnny Was, while the third quarter of fiscal 2021 included $4 million of wholesale sales of Lanier Apparel.

IN Q3 FY22, selling, general, and administrative expense was $175 million compared to $138 million in Q3 FY21. On an adjusted basis, selling, general, and administrative expense was $171 million in the third quarter of fiscal 2022 compared to $131 million for the same period of fiscal 2021.

Operating income was $27 million, compared to $31 million in Q3 FY21. This decrease reflects the gain on a sale of an unconsolidated entity in fiscal 2021, which was partially offset by improved operating income in Tommy Bahama.

For fiscal 2022 ending on January 28, 2023, Oxford Industries raised its previously issued guidance. The company now expects net sales in a range of $1.395–$1.410 billion as compared to net sales of $1.142 billion in fiscal 2021. In fiscal 2022, GAAP EPS is expected to be between $9.89 and $10.04. Adjusted EPS is expected to be between $10.60 and $10.75. This compares to GAAP EPS of $7.78 and adjusted EPS of $7.99 in fiscal 2021.

For the fourth quarter of fiscal 2022, the company expects net sales to be between $366 million and $381 million compared to net sales of $300 million in the fourth quarter of fiscal 2021. GAAP EPS is expected to be in a range of $1.70–$1.85 in the fourth quarter. Adjusted EPS is expected to be between $2.01 and $2.16. This compares with EPS of $1.50 on a GAAP basis and $1.68 on an adjusted basis in the fourth quarter of fiscal 2021.

“We are very pleased to be reporting record sales, gross margin and adjusted earnings for the sixth consecutive quarter. Our exceptional third quarter results were driven by the continued strength at our largest brand, Tommy Bahama, where we increased our sales 20 per cent year-over-year, combined with strong top line growth across our entire portfolio of brands. Importantly, our performance was highlighted by another period of robust full-price selling as our merchandise offerings continue to resonate strongly with our core consumers,” said Tom Chubb, chairman and CEO.

Fibre2Fashion News Desk (DP)