ATLANTA, June 08, 2022 (GLOBE NEWSWIRE) Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2022 first quarter ended April 30, 2022.

Consolidated net sales in the first quarter of fiscal 2022 increased 33% to $353 million compared to $266 million in the first quarter of fiscal 2021. Earnings per share (EPS) on a GAAP basis increased to $3.45 compared to $1.70 in the first quarter of fiscal 2021. On an adjusted basis, EPS increased to $3.50 compared to $1.89 in the first quarter of fiscal 2021.

Thomas C. Chubb III, Chairman and CEO, commented, “After posting record earnings throughout fiscal 2021, we are delighted to be reporting a terrific first quarter in fiscal 2022.  Across our entire portfolio we drove excellent results, with all brands and all channels of distribution delivering strong year over year gains.  As more and more people are returning to social events, leisure travel and even the more casually-attired post-pandemic physical workplace, consumers are increasingly attracted to our happy, upbeat brands and the beautiful products we provide which are both true to our brands’ unique DNA and relevant to today’s consumer and marketplace.”

“We were extremely pleased with the strong top and bottom line results we achieved in our largest brand, Tommy Bahama.  Sales in Tommy Bahama grew by 46% while operating margin expanded 990 basis points to 23%. We are also proud of the 25% sales growth and characteristically strong 28% operating margin we recorded in Lilly Pulitzer and the excellent growth in sales and operating profit at our newly-designated Emerging Brands operating group which includes Southern Tide, The Beaufort Bonnet Company and Duck Head. Our significant beat in the first quarter and the momentum we’ve seen so far in the second quarter give us confidence to raise our sales and EPS guidance for the year.”

Mr. Chubb concluded, “Over the last two years, our incredible team of people worked very hard to position ourselves to emerge from the pandemic stronger than we went in. We are grateful to our associates for all that they do to delight our customers and deliver excellent long-term value for our shareholders.” 

First Quarter of Fiscal 2022 versus Fiscal 2021

On a FIFO basis, inventory increased 18% compared to the end of the first quarter of fiscal 2021 to support planned sales growth in each brand. On a LIFO basis, inventory increased 13% compared to the end of the first quarter of fiscal 2021.

As of April 30, 2022, the Company had a strong liquidity position with $166 million of cash, cash equivalents and short-term investments versus $92 million at the end of the first quarter of fiscal 2021. The increase in cash and short-term investments was driven by strong operating cash flows, which exceeded capital expenditures, share repurchases, and dividend payments. The Company had no borrowings outstanding under its revolving credit agreement during either the first quarter of fiscal 2022 or fiscal 2021.

The Board of Directors declared a quarterly cash dividend of $0.55 per share. The dividend is payable on July 29, 2022 to shareholders of record as of the close of business on July 15, 2022. The Company has paid dividends every quarter since it became publicly owned in 1960.

To date, the Company has repurchased approximately 800,000 shares, or nearly 5% of total shares outstanding, for $70 million, including $8 million in the fourth quarter of 2021, $43 million in the first quarter of 2022, and $19 million subsequent to quarter-end under its December 7, 2021 $150 million share repurchase authorization and associated $100 million 10b5-1 trading plan.

The Company initiated its guidance for the second quarter of fiscal 2022, ending on July 30, 2022. The Company expects net sales to be between $350 million and $370 million compared to net sales of $329 million in the second quarter of fiscal 2021, which included $8 million of Lanier Apparel sales. Both GAAP and adjusted EPS are expected to be in a range of $3.30 to $3.50 in the second quarter. This compares with EPS of $3.05 on a GAAP basis and $3.24 on an adjusted basis in the second quarter of fiscal 2021.

For fiscal 2022, the Company raised its previously issued guidance. The Company now expects net sales in a range of $1.285 billion to $1.325 billion as compared to net sales of $1.142 billion in fiscal 2021. In fiscal 2022, GAAP EPS is expected to be between $9.55 and $9.95. Adjusted EPS is expected to be between $9.60 and $10.00. This compares to GAAP EPS of $7.78 and adjusted EPS of $7.99 in fiscal 2021.

The Company’s effective tax rate is expected to be between 24% and 25% for both the second quarter and fiscal 2022.

Capital expenditures in fiscal 2022 are expected to be approximately $50 million, primarily reflecting investments in information technology initiatives, the development of new direct to consumer locations, including construction of a new Marlin Bar opening in 2023 in Palm Beach Gardens, and remodeling existing stores. Capital expenditures were $32 million in fiscal 2021.

Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly Pulitzer®, Southern Tide®, The Beaufort Bonnet Company® and Duck Head® lifestyle brands. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM.