U.S. apparel brand’s third quarter Oxford net sales increase 41% year-on-year
Gross margin, both on a GAAP and adjusted basis, increased to 62% in the third quarter of 2021, from 55% in the third quarter of fiscal 2019, while operating profit increased to $ 31 million , or 12% of net sales, compared to $ 3 million, or 1% of net sales, in the third quarter of fiscal 2019.
Earnings on a GAAP basis increased to $ 1.54 per share in the third quarter of fiscal 2021, compared to a loss of $ 0.64 per share in the same quarter of fiscal 2020 and earnings of 0.10 $ per share in the same quarter of fiscal 2019. On an adjusted basis, earnings increased to $ 1.19 per share in the third quarter of fiscal 2021, compared to a loss of $ 0.44 per share in corresponding quarter of fiscal 2020 and earnings of $ 0.10 per share in the third quarter of fiscal 2019.
Consolidated net sales of the Oxford Industries Inc clothing brand reached $ 248 million in the third quarter of 2021, compared to $ 175 million in the third quarter of fiscal 2020 and $ 241 million in the third quarter of fiscal 2019, respectively. Sales increased 41 percent from the corresponding quarter last year. The total price of direct-to-consumer sales also increased 40% to $ 143 million.
“We are delighted to report record net sales and earnings for the third quarter of fiscal 2021. These exceptional results are directly attributable to the strength of our brand portfolio, the strength of our product offerings and our ability to connect and serve our customers across channels, combined with the great work our teams have done to strengthen these cornerstones during the pandemic. While the current operating environment has presented challenges including supply chain disruptions and additional cost pressures, we are managing them competently and I am confident in our ability to continue to successfully execute our key strategies. during the fourth quarter and fiscal year 2022 ”, Thomas C Chubb III, Chairman and CEO of the company, commented in a statement.
As of October 30, 2021, the company had a strong liquidity position with $ 188 million in cash and short-term investments and no outstanding borrowings under its revolving credit agreement.
During the quarter, the company also announced that its board of directors had approved a cash dividend of $ 0.42 per share payable on January 28, 2022 to shareholders of record at the close of business on January 14, 2022.
The strength of the company’s direct-to-consumer business is expected to continue through the end of 2021. For the fourth quarter of the current year, the company expects net sales to be between 285 and 295. million dollars, earnings per share under GAAP and adjusted basis in a range of $ 1.20 to $ 1.35. The company now expects net sales of between $ 1.127 billion and $ 1.137 billion for the full year.
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