Oxford Industries (NYSE: OXM) reported Q1 EPS of $1.28, $0.05 better than the analyst estimate of $1.23. Revenue for the quarter came in at $272.6 million versus the consensus estimate of $273.86 million.

Thomas C. Chubb III, Chairman and CEO, commented, “We successfully executed our plans during the first quarter and delivered sales at the high-end of our guidance range and earnings per share that exceeded our expectations. Importantly, our work included continuing to enhance the way our customers are able to experience our powerful portfolio of brands starting with our company operated stores and websites. We were pleased with the performance of our direct to consumer business, which included positive comparable sales growth led by strong gains in ecommerce. At the same time, as planned, we selectively reduced our wholesale door count to ensure a consistent customer experience across all of our distribution channels. This is an important step towards maintaining the strength and integrity of our leading brands.”

Mr. Chubb continued, “This year we are also continuing to build out more robust omnichannel capabilities and have achieved several major milestones across the organization. Among these is the all-new Lilly Pulitzer website, which provides the best digital presentation of the brand that we have ever delivered through both mobile and desktop devices. For Tommy Bahama, our multi-year omnichannel IT infrastructure project is progressing well and our customers should see additional benefits from our investments in the form of an enhanced brand experience later in fiscal 2018. On top of these initiatives, we are focusing on acquiring new customers as we believe our brands will resonate with a larger consumer audience. To this end, during the first quarter Lilly Pulitzer collaborated with Pottery Barn on an exclusive collection of home décor and furniture while Tommy Bahama ran targeted advertising campaigns in key markets such as San Diego, Scottsdale and Naples. We will continue to find other creative ways to fuel awareness and demand for our brands going forward.”

Mr. Chubb concluded, “We have a terrific portfolio of brands and an incredible team of people that bring these brands to life. By staying focused on providing a great brand experience to our customers, I am confident we are well-positioned to deliver consistent earnings growth and increased shareholder value over the long-term.”

Outlook for Second Quarter and Fiscal Year 2018

The Company initiated its guidance for the second quarter of fiscal 2018, ending on August 4, 2018. The Company expects net sales to grow to between $300 million and $310 million compared to net sales of $284.7 million in the second quarter of fiscal 2017. Earnings per share on a GAAP basis are expected to be in a range of $1.72 to $1.82 in the second quarter. On an adjusted basis, earnings per share for the second quarter of fiscal 2018 are expected to be in a range of $1.75 to $1.85. This compares with second quarter fiscal 2017 GAAP earnings per share of $1.36 and adjusted earnings per share of $1.44.

The Company’s third quarter is expected to remain its smallest sales and earnings quarter due to the seasonality of its Tommy Bahama and Lilly Pulitzer direct to consumer operations. Therefore, the Company expects its third quarter earnings to be comparable to last year and expects to see meaningful direct to consumer growth in the fourth quarter.

The Company has raised its outlook for the full year fiscal 2018. The Company now expects GAAP earnings to grow to between $4.32 and $4.52. On an adjusted basis, earnings per share for fiscal 2018 are expected to be in a range of $4.45 to $4.65. This compares to earnings on a GAAP basis of $3.87 per share and, on an adjusted basis, $3.66 per share in fiscal 2017. The Company expects net sales to grow to between $1.125 billion and $1.145 billion as compared to Fiscal 2017 net sales of $1.086 billion.

GUIDANCE:

Oxford Industries sees FY2018 EPS of $4.45-$4.65, versus the consensus of $4.55. Oxford Industries sees FY2018 revenue of $1.125-1.145 billion, versus the consensus of $1.13 billion.

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