Oxford Industries posts 2nd-qtr profit, reversing year-ago loss, as restructuring takes hold

Wednesday, September 1, 2010

Oxford posts 2Q profit, reversing year-ago loss

ATLANTA — Clothing company Oxford Industries Inc. on Wednesday posted a fiscal second quarter profit as it benefited from restructuring and from exiting businesses that were no longer profitable. The company also raised its guidance for the full year.

Oxford said net income for the three months ended July 31 was $7.2 million, or 44 cents per share, compared with a loss of $180,000, or a penny per share, in the 2009 second quarter. The 2009 loss included restructuring charges and other items.

Sales fell 3 percent to $186.5 million, from $192.9 million in the year-ago quarter. Last year’s results included $13.4 million in sales from businesses the company has exited.

Analysts polled by Thomson Reuters, on average, expected profit of 35 cents per share, on revenue of $189.85 million.

Both sales at stores open at least a year and online sales saw “healthy increases,” Chairman and CEO J. Hicks Lanier said.

He pointed to strong results for the company’s Tommy Bahama line, which saw sales rise 4 percent to $99.3 million.

The CEO said the Lanier Clothes and Oxford Apparel businesses “both posted gratifying results.” Lanier Clothes sales slipped 10 percent to $22.7 million, with most of the decline reflecting businesses the company has exited. Oxford sales fell 8 percent to $45.6 million, with most of that drop also due to discontinued business lines.

For the full fiscal year, Oxford now expects earnings per share to range between $1.82 and $1.92, and sales between $800 and $815 million.

Wall Street was expected profit of $1.79 for the fiscal year, with estimates between $1.76 and $1.81.

Analysts are forecasting revenue of $801.4 million, with estimates ranging from $796.3 million to $806 million.

Oxford Industries shares were flat at $21.38 in aftermarket trading after gaining $1.66, or 8.4 percent, during Wednesday’s regular session.

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