Tuesday, June 9, 2009

Oxford Industries beats handily

AlphaNinja - Oxford Industries (OXM), purveyor of labels such as Tommy Bahama and Ben Sherman, reported earnings of 42cents per share, blowing away the street estimate of 25cents. All-in all they performed admirably, considering the weak environment, currency challenges, and exiting some businesses (Tommy Bahama footwear license deal).


-While Tommy Bahama sales were down 24% year-over-year thanks to the weak retail environment and currency effects, Oxford defended its brand "integrity" (lower discounting), resulting in higher gross margin.
-Ben Sherman sales -34%, swung to an operating loss - what a wreck.
-Gross margins declined only a percent, despite the negative affects of a larger LIFO charge.
-SG&A as a % of sales actually decreased, as the company is serious about restructuring.

And true to AlphaNinja's heart, OXM's interest coverage ratio has stayed very healthy. Shares should continue higher from here - what a steal this stock was a couple months ago. Conference call ongoing, I will update with anything else of interest.

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