LONDON, UK / ACCESSWIRE / September 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Oxford Industries, Inc. (NYSE: OXM) ("Oxford"), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=OXM, following the Company's posting of its second quarter fiscal 2017 financial results on August 31, 2017. The owner of the Tommy Bahama, Lilly Pulitzer, and Southern Tide clothing lines reported a 1% gain in revenue. The Company also provided guidance for the upcoming quarter and revised its earnings outlook for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on OXM. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=OXM
Earnings Reviewed
Oxford's consolidated net sales increased to $284.7 million compared to net sales of $283.0 million in Q2 2016. The modest sales growth included y-o-y increases at Tommy Bahama and Southern Tide partially offset by a decrease at Lanier Apparel, the Company's Lilly Pulitzer's sales were essentially flat with the prior year. Oxford's net sales numbers fell short of analysts' estimates of $289.9 million.
Oxford's gross profit increased to $166.0 million in Q2 2017 compared to $164.8 million in Q2 2016. The Company's gross margin totaled 58.3% in the reported quarter compared to 58.2% in the prior year's same quarter. On an adjusted basis, Oxford's gross margin expanded to 58.8% compared to 58.2% in Q2 2016.
In Q2 2017, Oxford's selling, general, and administrative expense (SG&A) was 46.7% as a percentage of net sales, or $132.9 million, compared to 45.7%, or $129.4 million, in Q2 2016. The increase in SG&A was primarily due to incremental costs associated with operating additional retail stores and increased incentive compensation. For the reported quarter, royalties and other operating income were flat compared to $3.3 million in the prior year.
Oxford's operating income in Q2 2017 was $36.4 million compared to $38.7 million in Q2 2016. On an adjusted basis, the Company's operating income was $38.4 million in the reported quarter compared to $39.7 million in the prior year's same quarter. Oxford's interest expense was $0.7 million for Q2 2017 compared to $1.2 million in Q2 2016.
For Q2 2017, Oxford's earnings on a GAAP basis were $22.69 million, or $1.36 per diluted share, compared to earnings of $23.88 million, or $1.44 per diluted share, in Q2 2016. On an adjusted basis, the Company's earnings totaled $1.44 per share in the reported quarter compared to $1.48 in the prior year's same quarter. Oxford's earnings beat Wall Street's estimates of $1.43 per share.
Balance Sheet and Liquidity
Oxford's inventory decreased 11% to $119.6 million at July 29, 2017, from $133.7 million at the end of Q2 2016, reflecting lower inventories at Lanier Apparel, Southern Tide, and Tommy Bahama.
As of July 29, 2017, Oxford had $37.6 million of borrowings outstanding under its $325 million revolving credit agreement compared to $105.9 million at the end of Q2 2016, with the decrease attributable to strong cash flow from operations. The Company ended the reported quarter with $215.3 million of unused availability under its credit agreement.
Oxford also announced that its Board of Directors has approved a cash dividend of $0.27 per share payable on October 27, 2017, to shareholders of record as of the close of business on October 13, 2017. The Company has paid dividends every quarter since its IPO in 1960.
Outlook for Third Quarter and Fiscal Year 2017
Oxford initiated its guidance for Q3 2017 ending on October 28, 2017. The Company is forecasting net sales in the range of $240 million to $250 million compared to net sales of $222.3 million in Q3 2016. Oxford's earnings per share on a GAAP basis are expected to be in the band of $0.04 to $0.14, while on an adjusted basis, earnings per share for the upcoming quarter are expected to be in a range of $0.09 to $0.19.
Oxford re-affirmed its adjusted earnings outlook for the full 2017 fiscal year and has revised its GAAP earnings outlook due to the impact of LIFO and purchase accounting. The Company's GAAP earnings per share are now expected to be between $3.23 and $3.43 and adjusted earnings per share are expected to be between $3.50 and $3.70. Oxford is projecting net sales to grow to between $1.085 billion to $1.105 billion.
Oxford's effective tax rate for FY17 is expected to approach 39% compared to 37% in FY16, with the increase reflecting the unfavorable impact of the vesting of stock awards in Q1 2017 and a reduction in the utilization of operating loss carry forwards relative to fiscal 2016. Capital expenditures in FY17, including $18.5 million in H1 2017, are expected to be approximately $50 million.
Stock Performance
On Thursday, September 21, 2017, the stock closed the trading session at $59.74, marginally down 0.63% from its previous closing price of $60.12. A total volume of 87.87 thousand shares have exchanged hands. Oxford Industries' stock price surged 3.32% in the last one month and 11.75% in the past six months. The stock is trading at a PE ratio of 19.82 and has a dividend yield of 1.81%. The stock currently has a market cap of $993.48 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
