Wednesday, Oxford Industries, Inc. (OXM), a branded and private label apparel and footwear company, reported a sharp decline in profit for the second quarter, reflecting lower sales and the impact of some special items. However, the company's adjusted earnings were well ahead of analysts' consensus.
Net earnings for the second quarter declined to $0.53 million or $0.03 per share from $1.47 million or $0.09 per share in the previous year. Per share results for the quarter included restructuring charges of $0.06, unamortized financing costs of $0.08 and LIFO adjustments of $0.13.
On an adjuted basis, net earnings per share for the quarter was $0.30, compared to $0.37 in the previous year.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the second quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter were down to $192.89 million from $230.52 million last year, yet topped analysts' estimate of $189.91 million.
By segment, net sales from Tommy Bahama declined to $94.44 million from $1112.01 million a year ago. Sales from Ben Sherman were $23.63 million, compared to $32.49 million last year. Lanier Clothes net sales declined to $25.20 million from $28.18 million in the previous year. Net sales from Oxford Apparel were $49.46 million, compared to $58.02 million a year ago.
Consolidated gross margins for the second quarter of fiscal 2009 were 40.7%, compared to 41.9% in the second quarter of fiscal 2008. The decrease in gross margin was primarily due to the impact of LIFO accounting adjustments and the negative impact on Ben Sherman's gross margins related to inventory purchases denominated in United States dollars but sold in other currencies.
For the first half of fiscal 2009, net earnings were $7.04 million or $0.45 per share, down from $10.99 million or $0.69 per share in the same period of the previous year. Net sales for the period declined to $409.62 million from $503.46 million a year earlier.
Looking forward, the company expects net earnings per share in the range of $0.90 and $1.05 on sales in the range of $765 million to $780 million for the fiscal 2009. Analysts expect earnings of $0.67 per share on revenues of $794.44 million for the full year.
OXM closed Wednesday's regular trading at $14.10, up 0.58 or 4.29%, on a volume of 176K shares on the NYSE. In after hours, the stock further gained 1.40 or 9.93%, trading at $15.50.
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