Press Release Details

• Record second quarter sales exceeded high end of revenue guidance range
• Record second quarter GAAP EPS of $3.05 and adjusted EPS of $3.24 exceeded high end of earnings guidance range
• Raises full-year EPS guidance to $6.03 - $6.28 on a GAAP basis and $6.45 - $6.70 on an adjusted basis

ATLANTA, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2021 second quarter ended July 31, 2021. Due to the material impact of COVID-19 on the Company’s business in fiscal 2020, this release includes comparisons of fiscal 2021 results to both fiscal 2019 and fiscal 2020.

Consolidated net sales in the second quarter of fiscal 2021 were $329 million compared to $192 million and $302 million in the second quarters of fiscal 2020 and fiscal 2019, respectively. Earnings on a GAAP basis increased to $3.05 per share compared to a loss of $0.37 per share in the second quarter of fiscal 2020 and earnings of $1.76 per share in the second quarter of fiscal 2019. On an adjusted basis, earnings increased to $3.24 per share compared to a loss of $0.38 per share in the second quarter of fiscal 2020 and earnings of $1.84 per share in the second quarter of fiscal 2019. Both net sales and earnings per share exceeded the Company’s guidance issued on June 9, 2021.

Thomas C. Chubb III, Chairman and CEO, commented, “We are extremely pleased to be reporting record second quarter results driven by excellent performance in all five of our brands – Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company, and Duck Head. Double-digit sales growth in all brands, combined with record gross margin and careful expense control, contributed to record operating margin and earnings per share for the quarter. All of our direct to consumer channels performed well led by our highly profitable, full-price ecommerce business, with sales growth of 49% compared to the second quarter of fiscal 2019. As we head into the second half of the year, while being mindful of the ongoing COVID-related challenges in supply chain and store and restaurant operations, we believe that our focus on executing our long-term strategic initiatives will continue to drive strength in our business. We are grateful to our incredible team of women and men for all they do to deliver happiness to our customers and long-term value to our shareholders.”

Summary of Results

Second Quarter of Fiscal 2021 Compared to Second Quarter of Fiscal 2019

• Full price direct to consumer sales grew 20% to $223 million compared to the second quarter of fiscal 2019, with growth in all branded businesses.
   
• Restaurant sales grew 26% to $26 million compared to the second quarter of fiscal 2019. Every location that operated in both fiscal periods posted positive comps relative to fiscal 2019, with most at double-digit percentage increases. The quarter also benefited from the operation of five additional Marlin Bar locations. The Company’s New York restaurant remains closed.
   
• Wholesale sales of $62 million were 20% lower than the second quarter of fiscal 2019. Excluding Lanier Apparel, which the Company is exiting in fiscal 2021, wholesale sales decreased 6% compared to the second quarter of fiscal 2019.
   
• Gross margin increased to 63.8% compared to 59.5% in the second quarter of fiscal 2019, fueled by strong full price sales, a shift in sales mix towards direct to consumer channels, and higher initial gross margin. On an adjusted basis, gross margin increased to 64.3% compared to 59.8% in the second quarter of fiscal 2019.
   
• SG&A was $146 million, or 45% of sales, compared to $143 million, or 48% of sales, in the second quarter of fiscal 2019. Increased performance-based incentive compensation and advertising expense were partially offset by decreases in other employment costs due to reduced headcount and lower occupancy costs. On an adjusted basis, SG&A was $144 million, or 44% of sales, compared to $143 million, or 47% of sales, in the second quarter of fiscal 2019.
   
• Operating income increased to $68 million, or 20.7% of sales, compared to $40 million, or 13.3% of sales, in the second quarter of fiscal 2019. On an adjusted basis, operating income increased to $72 million, or 22.0% of sales, compared to $42 million, or 13.8% of sales, in the second quarter of fiscal 2019 with operating margin expansion in all operating groups.
   
• The effective tax rate in the second quarter of fiscal 2021 was 24% compared to an effective tax rate of 25% in the second quarter of fiscal 2019.

Balance Sheet and Liquidity

On a FIFO basis, inventory decreased 34% compared to August 1, 2020. Excluding Lanier Apparel, which the Company is exiting, inventory decreased 26% compared to August 1, 2020. Tommy Bahama, Lilly Pulitzer, and Southern Tide each lowered inventory levels year over year with conservative purchases of seasonal inventory and higher than expected first half sales. Ongoing enhancements to enterprise order management systems are also contributing to a more efficient use of inventory. On a LIFO basis, inventory decreased 48% and, excluding Lanier Apparel, decreased 39% compared to August 1, 2020.

As of July 31, 2021, the Company had a strong liquidity position with $180 million of cash and cash equivalents and no borrowings outstanding under its revolving credit agreement. In the first half of fiscal 2021, cash provided by operating activities was $149 million compared to $24 million in the first half of fiscal 2020.

Outlook

The strength and profitability of the Company’s direct to consumer business, which contributed to its outstanding first half results, is expected to continue in the second half of 2021. For the full fiscal year, the Company now expects net sales in a range of $1.085 billion to $1.105 billion as compared to sales of $1.12 billion in 2019. In fiscal 2021, GAAP earnings per share are expected to be between $6.03 and $6.28. Adjusted earnings per share are expected to be between $6.45 and $6.70. This compares to a loss on a GAAP basis of $5.77 per share and an adjusted loss of $1.81 per share in fiscal 2020, and earnings of $4.05 per share on a GAAP basis and $4.32 per share on an adjusted basis in fiscal 2019.

For the third quarter, the Company expects net sales to be between $220 million and $230 million compared to net sales of $175 million in the third quarter of fiscal 2020 and $241 million in the third quarter of fiscal 2019. The Company expects earnings per share on a GAAP basis in a range of $0.17 to $0.27 in the third quarter of fiscal 2021. On an adjusted basis, earnings per share for the third quarter of fiscal 2021 is expected to be in a range of $0.20 to $0.30. This compares with a loss of $0.64 per share on a GAAP basis and an adjusted loss per share of $0.44 in the third quarter of fiscal 2020, and earnings of $0.10 per share on both a GAAP and an adjusted basis in the third quarter of fiscal 2019.

The Company’s effective tax rate for the full year fiscal 2021 is expected to be approximately 23%.

The Company noted that it anticipates a third quarter, pre-tax gain of approximately $11 million on the September 1, 2021 sale of its minority ownership interest in an unconsolidated entity, which is not included in the Company’s financial outlook above.

Capital expenditures in fiscal 2021, including $16 million in the first half of fiscal 2021, are expected to be approximately $40 million, primarily reflecting investments in information technology initiatives, new Marlin Bars, and retail stores. Capital expenditures were $29 million in fiscal 2020 and $37 million in fiscal 2019.

Dividend

The Company also announced that its Board of Directors has approved a cash dividend of $0.42 per share payable on October 29, 2021 to shareholders of record as of the close of business on October 15, 2021. The Company has paid dividends every quarter since it became publicly owned in 1960.

Conference Call

The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company’s website at www.oxfordinc.com. A replay of the call will be available through September 16, 2021 by dialing (412) 317- 6671 access code 13722351.

About Oxford

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® brands. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford's website at www.oxfordinc.com.

Basis of Presentation

All per share information is presented on a diluted basis.

Non-GAAP Financial Information

The Company reports its consolidated financial statements in accordance with generally accepted accounting principles (GAAP). To supplement these consolidated financial results, management believes that a presentation and discussion of certain financial measures on an adjusted basis, which exclude certain non-operating or discrete gains, charges or other items, may provide a more meaningful basis on which investors may compare the Company’s ongoing results of operations between periods. These measures include adjusted earnings, adjusted earnings per share, adjusted gross profit, adjusted gross margin, adjusted SG&A, and adjusted operating income, among others.

Management uses these non-GAAP financial measures in making financial, operational, and planning decisions to evaluate the Company’s ongoing performance. Management also uses these adjusted financial measures to discuss its business with investment and other financial institutions, its board of directors and others. Reconciliations of these adjusted measures to the most directly comparable financial measures calculated in accordance with GAAP are presented in tables included at the end of this release.

Safe Harbor

This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which typically are not historical in nature. We intend for all forward-looking statements contained herein, in our press releases or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Such statements are subject to a number of risks, uncertainties and assumptions including, without limitation, the impact of the coronavirus (COVID-19) pandemic on our business, operations and financial results, including due to uncertainties about scope and duration, future store closures or other restrictions (including reduced hours and capacity and/or operating requirements) due to government and health department mandates and/or recommendations, the effectiveness of store and restaurant re-openings (including impacts on consumer traffic) and supply chain disruptions, any or all of which may also affect many of the following risks; demand for our products, which may be impacted by competitive conditions and/or evolving consumer shopping patterns; macroeconomic factors that may impact consumer discretionary spending for apparel and related products; supply chain disruptions, including the potential lack of inventory to support demand for our products, which may be impacted by capacity constraints, closed factories, and cost and availability of freight deliveries; costs of products as well as the raw materials used in those products; expected pricing levels; costs and availability of labor; the timing of shipments requested by our wholesale customers; expected outcomes of pending or potential litigation and regulatory actions; the impact of any restructuring initiatives we may undertake in one or more of our business lines, including the process, timing, costs, uncertainties and effects of our ongoing exit of the Lanier Apparel business; cybersecurity breaches; changes in international, federal or state tax, trade and other laws and regulations, including the potential increase in the U.S. corporate federal income tax rate and/or imposition of additional duties; the ability of business partners, including suppliers, vendors, licensees and landlords, to meet their obligations to us and/or continue our business relationship to the same degree in light of current or future financial stress, staffing shortages, liquidity challenges and/or bankruptcy filings; weather; fluctuations and volatility in global financial markets; retention of and disciplined execution by key management; the timing and cost of store and restaurant openings and remodels, technology implementations and other capital expenditures; acquisition and disposition activities, including our ability to timely recognize expected synergies from acquisitions; access to capital and/or credit markets; the impact of tax and other legislative changes; changes in accounting standards and related guidance; and factors that could affect our consolidated effective tax rate, including estimated Fiscal 2020 taxable losses eligible for carry back under the CARES Act. Forward-looking statements reflect our expectations at the time such forward-looking statements are made, based on information available at such time, and are not guarantees of performance. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I. Item 1A. Risk Factors contained in our Annual Report on Form 10-K for Fiscal 2020, and those described from time to time in our future reports filed with the SEC. We caution that one should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact: Anne M. Shoemaker
E-mail: InvestorRelations@oxfordinc.com

Oxford Industries, Inc.