Oxford Industries (OXM) Misses Q4 EPS by 5c, Revenues Miss; Offers Q1 EPS/Revenue Guidance Below Consensus, FY19 EPS/Revenue Guidance Above Consensus

Oxford Industries (NYSE: OXM) reported Q4 EPS of $0.99, $0.05 worse than the analyst estimate of $1.04. Revenue for the quarter came in at $298.5 million versus the consensus estimate of $301.84 million.

Thomas C. Chubb III, Chairman and Chief Executive Officer, commented, “Oxford’s fiscal 2018 was solid with a 4% comparable sales increase, gross margin expansion and significant earnings growth. Central to our success was the ability of Tommy Bahama and Lilly Pulitzer, which make up over 85% of our revenue, to continue shifting consumer demand towards their own stores and websites. Underscoring our progress on this important front, our e-commerce business was our fastest growing channel in fiscal 2018, increasing 270 basis points to 21% of total full year revenue. At the same time, our brands strengthened their wholesale positioning by strategically limiting distribution to a select group of premium partners.”

“I am extremely pleased with how well each of our brands continues to navigate the challenges of the rapidly changing marketplace. Lilly Pulitzer remains strong, aspirational and relevant to an affluent and multigenerational customer base. In 2018, Lilly Pulitzer delivered another year of outstanding results with 9% top line growth, positive comps in all four quarters and an operating margin of over 17%. Tommy Bahama’s positive momentum continued in 2018 as their operational focus delivered improvements in both gross and operating margin, while Southern Tide contributed to our 2018 success with an 11% sales increase and a 13% operating margin.”

Mr. Chubb continued, “Looking ahead, our focus remains on driving long-term value to our shareholders. In 2019, our plan calls for a modest top-line increase with e-commerce growth outpacing our other channels of distribution. With respect to our physical footprint, future expansion will be at a measured pace as we prudently manage bricks and mortar investments. We will focus on select opportunities we believe represent the highest return potential such as Tommy Bahama Marlin Bar locations and Lilly Pulitzer stores in newer, underpenetrated markets. On the wholesale front, we have reduced our department store exposure to 12% of our total sales and are not expecting further reductions in 2019.”

Mr. Chubb concluded, “We expect solid increases in operating income and EPS in fiscal 2019. As has been widely reported, February was challenging for much of the retail industry which will soften our first quarter results a bit. But as the weather improved, so has our business and we are confident in our plans for profitable growth in 2019. Our optimism is grounded in our talented, hard-working team and we are grateful for their dedication and commitment to delighting our customers every single day.”

GUIDANCE:

Oxford Industries sees Q1 2019 EPS of $1.15-$1.25, versus the consensus of $1.32. Oxford Industries sees Q1 2019 revenue of $270-280 million, versus the consensus of $285.57 million.

Oxford Industries sees FY2019 EPS of $4.45-$4.65, versus the consensus of $4.29. Oxford Industries sees FY2019 revenue of $1.135-1.155 billion, versus the consensus of $1.11 billion.

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

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