US firm Oxford Industries reports 19% surge in net sales for Q1 FY23

Breaking down the net sales by the operating group, Tommy Bahama reported a 5 per cent year-on-year (YoY) increase to $239.4 million, while Lilly Pulitzer's sales grew by 6 per cent YoY to reach $97.5 million. Emerging brands saw a 7 per cent YoY rise in sales, reaching $34 million. The recently acquired Johnny Was contributed $49.5 million to the total net sales, Oxford Industries said in a press release.

Full-price direct-to-consumer (DTC) sales grew 27 per cent YoY to $266 million, including $36 million of DTC sales from Johnny Was and a 10 per cent aggregate increase from Tommy Bahama, Lilly Pulitzer, and emerging brands. The company reported an impressive 41 per cent YoY growth in full-price e-commerce sales, which stood at $126 million.

Full-price retail sales reached $140 million in Q1 FY23, marking a 17 per cent increase compared to the prior-year period. This includes Johnny Was' full-price retail sales of $17 million. In aggregate, Tommy Bahama, Lilly Pulitzer, and emerging brands reported a modest growth of 2 per cent YoY.

Outlet sales were reported at $17 million in Q1 FY23, reflecting a 10 per cent YoY increase from the prior-year results, including $1 million from Johnny Was. Tommy Bahama's outlet sales saw a 5 per cent boost.

Oxford's wholesale sales were strong in Q1 FY23, standing at $105 million, an 18 per cent increase from the first quarter of FY22. Johnny Was contributed $13 million to the wholesale sales, with other businesses collectively showing a 4 per cent rise.

The gross margin increased by 130 basis points to 65.5 per cent on a GAAP basis and 65.8 per cent on an adjusted basis. However, selling, general, and administrative expenses also rose to $203 million from $157 million in the previous year.

Operating income was reported at $80 million, or 19.1 per cent of net sales, in Q1 FY23 compared to $76 million in the first quarter of fiscal 2022, while royalties and other operating income showed a marginal increase, rising to $8 million from $7 million last year, the release added.

“Our strong brands, exceptional products, aspirational messaging and balanced mix of direct retail, ecommerce and wholesale allowed us to deliver solid results for the first quarter of 2023. While the year started strong, as the quarter progressed, we did see macroeconomic pressures drive the consumer to become more cautious in her discretionary spending and a high level of promotional activity within the marketplace,” said Tom Chubb, chairman and CEO.

Fibre2Fashion News Desk (DP)