American company Oxford Industries posts sales of $393 mn in Q1

Full-price direct-to-consumer (DTC) sales declined by 3 per cent to $249 million in Q1 FY25 compared to the same period last year. Within this segment, full-price retail sales fell 1 per cent to $135 million, while e-commerce sales dropped 5 per cent to $114 million.

“We were able to deliver sales and adjusted EPS within our guidance ranges for the first quarter despite uncertain tariff and trade dynamics that are significantly impacting our industry and operating landscape. Despite the increasing headwinds, we were led by a low double digit increase at Lilly Pulitzer as the brand’s current assortment is resonating strongly with its core consumer, and overall sales were only modestly lower than last year. At the same time, we were able to maintain strong gross margins above 64 per cent,” Tom Chubb, chairman and CEO, said.

Gross margin was 64.2 per cent on a GAAP basis, compared to 64.9 per cent in the first quarter of fiscal 2024. On an adjusted basis, gross margin was 64.3 per cent compared to 65.4 per cent in the first quarter of fiscal 2024. The decreased gross margin on a GAAP basis was primarily due to increased freight expenses to e-commerce customers at Tommy Bahama, increased markdowns during clearance events at Lilly Pulitzer and Johnny Was and a change in sales mix with wholesale sales, including off-priced wholesale sales, representing a higher proportion of net sales, the company said in a press release.

The company also incurred $1 million of additional charges in cost of goods sold in the first quarter of fiscal 2025 resulting from the US tariffs on imported goods implemented in the first quarter of fiscal 2025. These decreases were partially offset by a $2 million lower LIFO accounting charge in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024.

“I am proud of the way the teams across our company have responded swiftly to rapidly changing trade and tariff developments. Our teams have made meaningful progress in diversifying and shifting our supply chain to reduce our exposure to future tariff developments. We believe that our portfolio of differentiated lifestyle brands and strong balance sheet will enable us to navigate this uncertain period, manage the business to drive long-term shareholder value and provide an opportunity to gain market share in the current environment. We will continue to focus on what we can control, including executing our strategy and servicing our customers,” Chubb concluded.

The company now expects net sales in a range of $1.475 billion to $1.515 billion in fiscal 2025 as compared to net sales of $1.52 billion in fiscal 2024. In fiscal 2025, GAAP EPS is expected to be between $2.28 and $2.68 compared to fiscal 2024 GAAP EPS of $5.87. Adjusted EPS is expected to be between $2.80 and $3.20, compared to fiscal 2024 adjusted EPS of $6.68. The revised fiscal 2025 EPS and adjusted EPS guidance includes $40 million in additional tariff costs, or $2.00 per share on an after-tax basis.

For the second quarter of fiscal 2025, the company expects net sales to be between $395 million and $415 million compared to net sales of $420 million in the second quarter of fiscal 2024. GAAP EPS is expected to be between $0.92 and $1.12 in the second quarter of fiscal 2025 compared to a GAAP EPS of $2.57 in the second quarter of fiscal 2024. Adjusted EPS is expected to be between $1.05 and $1.25 compared to adjusted EPS of $2.77 in the second quarter of fiscal 2024. The revised second quarter of fiscal 2025 EPS guidance includes $15 million in additional tariff costs, or $0.75 per share on an after-tax basis.

ALCHEMPro News Desk (RR)