US' Oxford Industries' sales up 4% to $327 million in Q3FY23

Consolidated net sales in the first nine months of fiscal 2023 increased 13 per cent to $1,167 million compared to $1,029 million in the first nine months of fiscal 2022. EPS on a GAAP basis decreased to $7.57 compared to $8.19 in the first nine months of fiscal 2022. On an adjusted basis, EPS decreased to $8.27 compared to $8.59 in the first nine months of fiscal 2022.

Full-price direct-to-consumer (DTC) sales grew 9 per cent to $194 million versus the third quarter of fiscal 2022, including $38 million of DTC sales in Johnny Was and a 3 per cent aggregate decrease in full-price DTC sales in the company’s other businesses.

Full-price retail sales of $105 million were 8 per cent, or $8 million, higher than the prior-year period. This includes full-price retail sales in Johnny Was of $18 million for the third quarter of fiscal 2023. Full-price retail sales in the company’s other businesses decreased by 2 per cent, the company said in a press release.

Full-price e-commerce sales grew 11 per cent, or $9 million, to $89 million versus last year. This includes full-price e-commerce sales in Johnny Was of $20 million. Full-price e-commerce sales in the company’s other businesses decreased by 3 per cent.

Gross margin was 62.9 per cent on a GAAP basis, compared to 63.2 per cent in the third quarter of fiscal 2022. The decrease in gross margin was primarily due to a $4 million higher LIFO accounting charge in the third quarter of fiscal 2023 compared to the third quarter of fiscal 2022. Adjusted gross margin, which excludes the effect of LIFO accounting, expanded to 64 per cent compared to 63.4 per cent on an adjusted basis in the third quarter of fiscal 2022 due to a full quarter of Johnny Was sales that yield a higher gross margin and a change in sales mix with direct to consumer sales comprising a larger proportion of total sales.

“We are pleased to deliver another quarter of solid results which were squarely in our sales and EPS forecast ranges and come on top of 12 per cent positive comps during the same period last year. We were able to do this by leveraging the strength of our powerful brands to send clear and consistent brand messages that inspire and resonate with customers and create desire for our products and services in a market where the consumer is more cautious. We could not do this without our exceptional team of people, to whom we extend our sincere gratitude,” Tom Chubb, chairman and CEO, said.

For fiscal 2023 ending on February 3, 2024, the company expects net sales in a range of $1.570 billion to $1.590 billion as compared to net sales of $1.41 billion in fiscal 2022. In fiscal 2023, GAAP EPS is expected to be between $9.25 and $9.45 compared to fiscal 2022 GAAP EPS of $10.19. Adjusted EPS is expected to be between $10.10 and $10.30, compared to fiscal 2022 adjusted EPS of $10.88.

For the fourth quarter of fiscal 2023, the company expects net sales to be between $403 million and $423 million compared to net sales of $382 million in the fourth quarter of fiscal 2022. GAAP EPS is expected to be in a range of $1.67 to $1.87 in the fourth quarter compared to GAAP EPS of $2.00 in the fourth quarter of fiscal 2022. Adjusted EPS is expected to be between $1.83 and $2.03 compared to adjusted EPS of $2.28 in the fourth quarter of fiscal 2022.

Fibre2Fashion News Desk (RR)