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Oxford Industries (OXM) Tops Q1 EPS by 84c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus, Offers 2Q EPS/Revenues Outlook

June 9, 2021 4:10 PM EDT

Oxford Industries (NYSE: OXM) reported Q1 EPS of $1.89, $0.84 better than the analyst estimate of $1.05. Revenue for the quarter came in at $265.8 million versus the consensus estimate of $233.07 million.

  • Strong first quarter sales exceeding high end of revenue guidance range
  • Gross margin expands 390 basis points to 62.7% on a GAAP basis and 520 basis points to 64.0% on an adjusted basis over fiscal 2019
  • Operating margin expands 260 basis points to 13.1% on a GAAP basis and 410 basis points to 14.8% on an adjusted basis over fiscal 2019
  • Record first quarter GAAP EPS of $1.70 and adjusted EPS of $1.89 exceed high end of earnings guidance range
  • Raises full-year EPS guidance to $4.55 - $4.85 on a GAAP basis and $4.85 - $5.15 on an adjusted basis

Thomas C. Chubb III, Chairman and CEO, commented, “We are extremely pleased with our exceptionally strong start to fiscal 2021. We took decisive actions at the start of the pandemic to protect our people, our brands and our liquidity. This combined with our focus over the past year on delivering happiness to our customers and investing in enhanced digital, marketing and store capabilities, as well as in bars and restaurants, have strengthened our foundation for profitable growth. As consumers have become increasingly more comfortable returning to physical shopping, our overall engagement levels have greatly accelerated, leading to strong momentum across our entire portfolio of brands. We are grateful to our incredible teams for delivering record breaking first quarter earnings and look forward to the balance of what we believe is going to be an outstanding year.”

GUIDANCE:

Oxford Industries sees Q2 2021 EPS of $2.15-$2.35, versus the consensus of $1.16. Oxford Industries sees Q2 2021 revenue of $300-310 million, versus the consensus of $255.78 million.

Oxford Industries sees FY2021 EPS of $4.85-$5.15, versus the consensus of $3.05. Oxford Industries sees FY2021 revenue of $1.015-1.05 billion, versus the consensus of $0.96886 billion.

The Company initiated its guidance for the second quarter of fiscal 2021, ending on July 31, 2021. The Company expects net sales to be between $300 million and $310 million compared to net sales of $192 million in the second quarter of fiscal 2020 and $302 million in the second quarter of fiscal 2019. Earnings per share on a GAAP basis are expected to be in a range of $2.11 to $2.31 in the second quarter. On an adjusted basis, earnings per share for the second quarter of fiscal 2021 are expected to be in a range of $2.15 to $2.35. This compares with a loss of $0.37 per share on a GAAP basis and an adjusted loss per share of $0.38 in the second quarter of fiscal 2020, and earnings of $1.76 per share on a GAAP basis and $1.84 per share on an adjusted basis in the second quarter of fiscal 2019.

The Company’s third quarter is historically its smallest sales and earnings quarter due to the seasonality of its direct to consumer operations. Additionally, high sell-throughs in the first quarter and planned sales levels in the second quarter are expected to reduce the size of third quarter clearance events. As a result of lower planned revenue from clearance events and the impact of the Lanier Apparel exit, the Company expects a loss of $0.24 to $0.39 per share on a GAAP basis and a loss of $0.20 to $0.35 per share on an adjusted basis in the third quarter of fiscal 2021. This compares with a loss of $0.64 per share on a GAAP basis and an adjusted loss per share of $0.44 in the third quarter of fiscal 2020, and earnings of $0.10 per share on a GAAP and adjusted basis in the third quarter of fiscal 2019.

For fiscal 2021, the Company raised its previously issued guidance. The Company now expects net sales in a range of $1.015 billion to $1.05 billion as compared to net sales of $749 million in fiscal 2020 and $1.12 billion in fiscal 2019. The Company noted that it expects sales in Lanier Apparel to be approximately $75 million lower than in fiscal 2019 as it exits this busines. In fiscal 2021, GAAP earnings per share are expected to be between $4.55 and $4.85. Adjusted earnings per share are expected to be between $4.85 and $5.15. This compares to a loss on a GAAP basis of $5.77 per share and an adjusted loss of $1.81 per share in fiscal 2020, and earnings of $4.05 per share on a GAAP basis and $4.32 per share on an adjusted basis in fiscal 2019.

For fiscal 2021, the Company’s interest expense is expected to be approximately $1 million. The Company’s effective tax rate for the second quarter is expected to be approximately 24% and for fiscal 2021 is expected to be approximately 22%.

Capital expenditures in fiscal 2021, including $5 million in the first quarter of fiscal 2021, are expected to be approximately $35 million, primarily reflecting investments in information technology initiatives and new Marlin Bars and retail stores. Capital expenditures were $29 million in fiscal 2020 and $37 million in fiscal 2019.

For earnings history and earnings-related data on Oxford Industries (OXM) click here.



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