Oxford Chief pleased with outstanding performance of D2C biz
Oxford Industries Inc announced financial results for its fiscal 2011 first quarter ended April 30, 2011. Consolidated net sales were $208.3 million compared to $163.6 million in the first quarter of fiscal 2010.
On an adjusted basis, earnings from continuing operations per diluted share were $1.07 compared to $0.54 in the first quarter of fiscal 2010. Because Oxford acquired Lilly Pulitzer on December 21, 2010, operating activities for Lilly Pulitzer were not included in the Company's consolidated first quarter fiscal 2010 results.
The adjusted earnings per share exclude the impact of purchase accounting charges and LIFO accounting adjustments. For reference, tables reconciling U.S. GAAP to adjusted measures are included at the end of this release. On a U.S. GAAP basis, earnings from continuing operations per diluted share were $1.03 in the first quarter of fiscal 2011 compared to $0.52 in the same period of the prior year.
"We are very happy with our results for the quarter, which were exceptionally strong at Tommy Bahama, Lilly Pulitzer and Lanier Clothes. We are particularly pleased with the outstanding performance of our direct to consumer businesses as both comp store and e-commerce sales remained strong throughout the first quarter. The Tommy Bahama team continues to do a superb job of expanding its full price, direct to consumer business," commented J. Hicks Lanier, Chairman and Chief Executive Officer of Oxford Industries, Inc.
"With Lilly Pulitzer's resort chic positioning, the first quarter is the biggest and most important for the brand and the results exceeded our expectations in all channels of distribution. The Spring/Summer product is clearly resonating with an expanding base of consumers to yield outstanding profitability. The integration of Lilly Pulitzer onto our corporate support platform is going very well and we continue to be impressed with the quality and talent of the people."
Mr. Lanier continued, “We finished the first quarter with a great deal of momentum, but are certainly cognizant of the macro-economic deterioration in recent weeks and have factored that into our outlook for the balance of the year. We believe that our focus on strengthening our brands by further developing the direct to consumer businesses and being selective in wholesale distribution will serve our shareholders well.”
Tommy Bahama reported net sales of $122.9 million for the first quarter of fiscal 2011 compared to $109.1 million in the first quarter of fiscal 2010. The increase in sales was primarily due to strong comparable store sales increases, higher e-commerce sales and sales from additional stores.
Tommy Bahama's operating income for the first quarter was $23.8 million compared to $17.9 million in the first quarter of 2010. The increase in operating income resulted from increased sales and improved gross margins due to direct to consumersales representing a greater proportion of Tommy Bahama sales. As of April 30, 2011, Tommy Bahama operated 89 retail stores compared to 84 stores at the end of the first quarter of fiscal 2010.