Oxford Industries Shares Volatile After-Hours Following Earnings Beat

Oxford Industries OXM shares were volatile after-hours Tuesday after rising intraday following a better than expected earnings report after the close. However, revenue was slightly weak although guidance was slightly above expectations.

First Quarter Results

For the fiscal first quarter of 2013 ended May 4, Oxford Industries reported earnings per share of $0.82. The consensus Wall Street forecast for EPS was $0.78, representing a 5.13 percent beat of expectations. Earnings per share fell nearly 25 percent from the same period a year ago when the company reported EPS of $1.09.

Revenue in the quarter was slightly weaker than expected, coming in at $234.2 million vs. the consensus forecast of $236.9 million. Revenues grew 1.4 percent from the first quarter of 2012.

Outlook

Oxford sees earnings per share of between $0.92 and $1.02 in the second quarter. The consensus analyst forecast for second quarter EPS is $0.95. The company expects revenue to be better than forecasts though, with revenue now expected to be between $240.0 million and $250.0 million, higher than the estimate of $233.8 million.

Oxford also reaffirmed its fiscal year guidance Tuesday. The company still expects to earn between $3.00 and $3.15 per share and revenues between $930 million and $940 million. Analysts expect earnings per share of $3.10 on revenue of $935.8 million for the full year.

Management Discussion

Thomas C. Chubb III, CEO and President, commented, "We are pleased with what we accomplished in the first quarter of fiscal 2013. We delivered excellent financial results driven by strength at Tommy Bahama and Lilly Pulitzer. In addition, our commitment to growing long-term shareholder value is evident in the continuing investment we are making in these two businesses. We continue to make significant capital and operating expense investments in these businesses and believe that they will pay off by supporting sustained, profitable growth."

"During the quarter we made steady progress with respect to Tommy Bahama's Asia-Pacific store roll-out with the opening of our first two stores in Japan. In addition, early in the second quarter we expanded our presence in North America with the acquisition of nine stores in Canada, previously operated by a licensee. Combined with a good pace of new Lilly Pulitzer store openings, we are looking forward to leveraging a significant increase in our overall retail presence."

Mr. Chubb continued, "The balance of our business is performing to plan. Our Lanier Clothes division is continuing to generate strong levels of free cash flow and demonstrate stability in the challenging tailored clothing market. With respect to Ben Sherman, we have realigned the leadership team and are pleased with the progress they are making on cost control as well as on the quality of our assortments and distribution. We remain optimistic that the actions taken will result in tangible improvements in the second half of fiscal 2013."

Mr. Chubb concluded, "We are excited by the strong start to fiscal 2013 and believe that we have an excellent opportunity to drive our growth, increase our profitability and, in the process, build an enduring business that will generate significant value for our shareholders."

Market Reaction

Shares slipped in after-hours trading after initially popping on the news. Shares fell 0.7 percent to $64.00 after rising 0.94 percent intraday.