Benzinga | Sep 3, 2021 06:47AM EDT

Oxford Industries Q2 Earnings Crushes Estimates

* Oxford Industries Inc (NYSE:OXM) reported second-quarter FY21 sales growth of 71.2% year-on-year and 8.8% from Q2 FY19, to $328.7 million, beating the analyst consensus of $307.76 million.

* Net sales from Tommy Bahama increased 119.1% Y/Y, Lilly Pulitzer rose 18.1%, and Southern Tide gained 65.9%.

* Full price direct to consumer sales grew 20% compared to Q2 FY19. Restaurant sales climbed 26%, and Wholesale sales fell 20% versus Q2 FY19.

* The Gross margin for the quarter expanded 430 basis points from Q2 FY19 to 63.8%.

* The operating margin was 20.7%, and operating income for the quarter rose 70% against Q2 FY19 to $68 million.

* The company held $180.4 million in cash and equivalents as of July 31, 2021.

* Adjusted EPS of $3.24 beat the analyst consensus of $2.32.

* The company's cash dividend of $0.42 per share is payable on October 29, 2021, to shareholders of record on October 15, 2021.

* Outlook: Oxford raised FY21 sales outlook to $1.085 billion - $1.105 billion (prior $1.015 billion - $1.05 billion), versus the consensus of $1.05 billion.

* The company raised the FY21 adjusted EPS forecast to $6.45 - $6.70 (prior $4.85 - $5.15) versus the consensus of $5.22.

* For Q3, the company expects net sales of $220 million - $230 million versus the consensus of $206.07 million.

* Q3 adjusted EPS of $0.20 - $0.30 versus the consensus of $(0.25).

* Price Action: OXM shares closed higher by 0.71% at $93.54 on Thursday.