POOR TOMMY BAHAMA SALES RESULT IN OXFORD’S LOWER FIRST QUARTER EARNINGS
Apparel company Oxford Industries, which owns such brands as Tommy Bahama, Lanier Clothes and Lilly Pulitzer, has reported adjusted first quarter earnings of $1.26, which was approximately 10 cents below most analysts’ estimates. Revenue for the quarter was $256.2 million, which was lower than its previous quarter and below the analysts’ estimate of $271.93 million.
The company announced that its Fiscal Year 2015 earnings will be $3.65-$3.80 per share versus, also below previous estimates, and revenue will be in the $1.03-1.05 billion range.
Clearly, our businesses were impacted by the well-publicized weakness in the retail environment, particularly in fashion apparel,” said Thomas Chubb, Oxford chairman and chief executive. “Our consolidated results for the first quarter fell short of our expectations driven primarily by a sales shortfall at Tommy Bahama our largest operating group.”
Oxford acquired Southern Tide early this year, but it is treated as a separate operating group.
I’m not surprised Tommy Bahama sales are in decline. Their quality and design have been going downhill for some time. They are cheapening the brand.