American apparel brand Oxford's Q3 net sales increase 41% YoY

The gross margin, on both a GAAP and adjusted basis, increased to 62 per cent in Q3 2021 compared to 55 per cent in the third quarter of fiscal 2019 while the operating income increased to $31 million, or 12 per cent of net sales, compared to $3 million, or 1 per cent of net sales, in the third quarter of fiscal 2019.

The earnings on a GAAP basis increased to $1.54 per share in the third quarter of FY2021, compared to a loss of $0.64 per share in the same quarter of fiscal 2020 and earnings of $0.10 per share in the same quarter of fiscal 2019. On an adjusted basis, earnings increased to $1.19 per share in Q3 FY2021 compared to a loss of $0.44 per share in the corresponding quarter of fiscal 2020 and earnings of $0.10 per share in the third quarter of fiscal 2019.

“We are delighted to be reporting record net sales and earnings for the third quarter of fiscal 2021. These outstanding results are directly attributable to the power of our brand portfolio, the strength of our product offerings and our ability to connect with and serve customers across channels, combined with the great work our teams have done to fortify these foundational cornerstones during the pandemic. While the current operating environment has presented challenges including supply chain disruptions and additional cost pressures, we are managing them adeptly and I am confident in our ability to continue successfully executing our key strategies as we move through the fourth quarter and into fiscal 2022,” Thomas C Chubb III, chairman and chief executive officer of the company, commented in a press release.

As of October 30, 2021, the company had a strong liquidity position with $188 million of cash and short-term investments and no borrowings outstanding under its revolving credit agreement.

During the quarter, the company also announced that its board of directors has approved a cash dividend of $0.42 per share payable on January 28, 2022 to shareholders of record as of the close of business on January 14, 2022.

The strength of the company’s direct to consumer business is expected to continue through the remainder of 2021. For the fourth quarter of the current year, the company expects net sales to be between $285 million and $295 million, earnings per share on a GAAP and adjusted basis in a range of $1.20 to $1.35. The company now expects net sales in a range of $1.127 billion to $1.137 billion for the full fiscal.

Fibre2Fashion News Desk (DD)