Southern Tide
by Brian Lipton

Southern TideOxford Industries, Inc., owner of Tommy Bahama, Lanier, and Southern Tide, has announced financial results for its fiscal 2016 third quarter ended October 29, 2016.

Consolidated net sales increased 12% to $222.3 million compared to $198.6 million in the third quarter of fiscal 2015, driven primarily by the addition of Southern Tide to the company’s portfolio. Gross profit increased 10 percent in the quarter to $118.3 million.

The net loss from continuing operations was $0.10 per share in the third quarter of fiscal 2016 compared to a net loss from continuing operations of $0.08 in the same period of the prior year.

We are generally pleased with our third quarter results,” said Thomas C. Chubb III, chairman and CEO. “We delivered solid top line growth and modestly improved operating results.  We are mindful, however, that industry-wide traffic declines and an ongoing shift in consumer shopping patterns are increasingly evident features of today’s retailing environment.  We have seen this impact our business in the third quarter and in holiday to date, particularly for Tommy Bahama, with its larger and broader brick and mortar footprint.”

Looking ahead, Chubb continued: “The remaining eight weeks of our fiscal year are very important as they include not only holiday selling, but also the resort season and initial sping wholesale shipments, which are particularly meaningful to our brands. We are pleased to have entered the fourth quarter with clean, conservative inventories and believe we are well positioned with respect to our customers’ plans and the condition of the environment. While our teams have delivered exceptional product supported by strong holiday and resort marketing campaigns, given ongoing softness in traffic, we believe it is prudent to moderate our guidance for the year.”

For fiscal 2016, the Company expects net sales in the $1.020 billion to $1.035 billion range. GAAP earnings per share are expected to be in a range of $3.31 to $3.46 and adjusted earnings per share in a range of $3.50 to $3.65. This compares with fiscal 2015 net sales of $969 million and earnings per share of $3.64 on an adjusted basis and $3.54 on a GAAP basis.