Oxford Industries (NYSE: OXM) reported Q2 EPS of $1.44, $0.01 better than the analyst estimate of $1.43. Revenue for the quarter came in at $284.7 million versus the consensus estimate of $291.34 million.

Highlights

• Strong Performance at Tommy Bahama Continues
• Lilly Pulitzer Acquires Licensed Signature Stores in Key Northeast Markets
• Reports Second Quarter GAAP EPS of $1.36; Adjusted EPS of $1.44 at Top of GuidanceRange
• Reiterates Full-Year Adjusted EPS Guidance

Outlook for Third Quarter and Fiscal Year 2017

The Company initiated its guidance for the third quarter of fiscal 2017, ending on October 28, 2017. The Company expects net sales in a range from $240 million to $250 million compared to net sales of $222.3 million in the third quarter of fiscal 2016. Earnings per share on a GAAP basis are expected to be in a range of $0.04 to $0.14 in the third quarter. On an adjusted basis, earnings per share for the third quarter of fiscal 2017 are expected to be in a range of $0.09 to $0.19. This compares with a third quarter fiscal 2016 loss per share of $0.10 and an adjusted loss per share of $0.07.

The Company has affirmed its adjusted earnings outlook for the full 2017 fiscal year and has revised its GAAP earnings outlook due to the impact of LIFO and purchase accounting. GAAP earnings per share are now expected to be between $3.23 and $3.43. Adjusted earnings per share are expected to be between $3.50 and $3.70. This compares to earnings on a GAAP basis of $3.27 per share and, on an adjusted basis, $3.30 per share in fiscal 2016. The Company expects net sales to grow to between $1.085 billion to $1.105 billion as compared to Fiscal 2016 net sales of $1.023 billion.

The Company’s effective tax rate for fiscal 2017 is expected to approach 39% compared to 37% in the full 2016 fiscal year, with the increase reflecting the unfavorable impact of the vesting of stock awards in the first quarter and a reduction in the utilization of operating loss carryforwards relative to fiscal 2016. Full year interest expense is estimated to be approximately $3.4 million.

Capital expenditures in fiscal 2017, including $18.5 million in the first half of fiscal 2017, are expected to be approximately $50 million, primarily reflecting investments in information technology initiatives, new retail stores and restaurants, and investments to remodel and relocate existing retail stores.

GUIDANCE:

Oxford Industries sees FY2017 EPS of $3.50-$3.70, versus the consensus of $3.59. Oxford Industries sees FY2017 revenue of $1.085-1.105 billion, versus the consensus of $1.09 billion.

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