Oxford Industries Profit Tops Street On Growth In Sales, Margins - Update

(RTTNews) - Apparel retailer Oxford Industries Inc (OXM) Monday reported a better-than-expected increase in fourth-quarter profit, due mainly to a six percent growth in revenue. Demand was strong at its Tommy Bahama and Lanier Clothes brands, the company said, adding that gross margins improved.

Moving forward, Oxford provided some soft earnings for the first quarter and full year 2014. The company said that in 2014 it sees strength at Lilly Pulitzer, while harsh winter weather somewhat impacted business at Tommy Bahama.

The retailer has raised its quarterly dividend by 17 percent to $0.21 per share.

Atlanta, Georgia-based Oxford posted quarterly net earnings of $15 million or $0.91 per share, compared with $5 million or $0.32 per share last year.

Excluding items, adjusted earnings for the quarter were $14.6 million or $0.89 per share, compared with $11 million or $0.65 per share in the prior year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed to $250.4 million from $236.3 million a year ago. Analysts expected sales of $250.1 million.

Tommy Bahama sales climbed 7 percent year-over-year and same-store sales at the brand were up 5 percent. Among smaller brands, Lanier Clothes sales jumped 34 percent, while Ben Sherman declined and growth was modest at Lilly Pulitzer.

Results also were helped by an expansion in gross margin by 210 basis points to 55.1 percent.

For the first quarter, Oxford expects net earnings of $0.77 to $0.87 per share, adjusted earnings of $0.80 to $0.90 per share and sales of $250 million to $260 million. Analysts expect earnings of $0.87 per share on sales of $253.8 million.

For fiscal 2014, the company projects net earnings of $2.88 to $3.03 per share, adjusted earnings of $3.00 to $3.15 per share and sales of $980 million to $1 billion. Analysts expect earnings of $3.15 per share on sales of $993.4 million.

Oxford Industries stock closed Thursday at $73.90, up $0.78 or 1.07%, on a volume of 133k shares on the NYSE.