Oxford Industries (OXM) Tops Q4 EPS by 4c, Revenues Beat; Offers 1Q EPS/Revenue Guidance Above Consensus, FY21 Mid-Point Guidance Above Consensus

Oxford Industries (NYSE: OXM) reported Q4 EPS of $0.25, $0.04 better than the analyst estimate of $0.21. Revenue for the quarter came in at $221.37 million versus the consensus estimate of $217.01 million.

Thomas C. Chubb III, Chairman and Chief Executive Officer, commented, ”This time last year, we were facing incredible uncertainties related to the pandemic, its duration and its effect on our business. In response we established three priorities for fiscal 2020: protect our people and our customers, protect our brands, and preserve liquidity. We were successful in achieving these important and fundamental goals. At the same time, as we moved through the year and our business gained momentum, it became even more evident that the strong strategic positioning of our brands in the marketplace combined with our omni-channel capabilities provides us with clear and compelling competitive advantages. The key learnings from the past year have helped further sharpen our focus on our highest return opportunities.”

“It is clear that e-commerce will be bigger and more important than ever following the accelerated shift to online spending during the pandemic,” continued Mr. Chubb. “The strength of our e-commerce platforms and our digital outreach to consumers led to a 28% increase in our full price e-commerce businesses in fiscal 2020. We added to these capabilities in 2020 and expanding our expertise and investment in digital will remain a priority in 2021 and beyond.”

“Despite the significant impact of temporary store closures and operating restrictions in 2020, we are confident that our retail strategy is going to serve us well as conditions normalize. Our 187 full-price retail stores are in desirable locations, where shopping is still entertainment. We believe food and beverage is an important complement to our beautiful stores and will continue to play a larger role in our retail evolution. In 2020, we opened four additional Tommy Bahama Marlin Bars and we will continue to invest in this promising concept moving forward. Whether online or in our stores and restaurants, we are committed to enhancing and delivering a shopping experience that recognizes and serves the customer in their brand discovery and purchasing preferences now and in the future.”

Mr. Chubb concluded, “Each of our brands - Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head, simply put, make people happy. Our talented, highly engaged teams will continue to evolve and update our products and brand messaging to ensure they stay relevant for today’s consumer and remain true to each brand’s unique DNA. This has been and will continue to be the key to our success as we deliver long-term value to our shareholders.”

GUIDANCE:

Oxford Industries sees Q1 2021 EPS of $0.95-$1.15, versus the consensus of $0.63. Oxford Industries sees Q1 2021 revenue of $220-240 million, versus the consensus of $193.51 million.

Oxford Industries sees FY2021 EPS of $2.80-$3.20, versus the consensus of $2.94. Oxford Industries sees FY2021 revenue of $940-980 million, versus the consensus of $947.17 million.

For the full 2021 fiscal year, ending on January 29, 2022, the Company expects net sales to grow to between $940 million and $980 million as compared to net sales of $749 million in fiscal 2020. In fiscal 2021, GAAP earnings per share are expected to be between $2.65 and $3.05. Adjusted earnings per share are expected to be between $2.80 and $3.20. 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.

For the first quarter of fiscal 2021, ending May 1, 2021, the Company expects net sales in a range of $220 million to $240 million, as compared to $160 million in the first quarter of fiscal 2020. In the first quarter of fiscal 2021, GAAP earnings per share are expected to be between $0.90 and $1.10. Adjusted earnings per share are expected to be between $0.95 and $1.15. This compares to a loss on a GAAP basis of $4.02 per share and an adjusted loss of $1.12 per share in the first quarter of fiscal 2020.

The Company’s interest expense is expected to be approximately $1 million. The Company’s effective tax rate for the first quarter is expected to be approximately 15% and for fiscal 2021 is expected to be approximately 20%. The tax rate for both the quarter and year are expected to benefit from certain discrete items.

Capital expenditures in fiscal 2021 are expected to be approximately $35 million, compared to $29 million in fiscal 2020, primarily reflecting investments in information technology initiatives and new Marlin Bars.

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

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