The recession seems to be still on for retailers. Rising gas prices have caused the middle and lower classes to reduce their discretionary spending, and apparel makers such as American Eagle
A look at the numbers
Revenues for the company went up 27%, to $208.3 million, from the year-ago period, driven by its Tommy Bahama businesses and the acquisition of Lilly Pulitzer, which it bought for $60 million in December. Tommy Bahama's sales got a boost from new store openings, strong comps, and high e-commerce sales.
Gross margins increased to 56.5% from 54.8% last year, primarily because of a more diverse product mix from the addition of Lilly Pulitzer and increased direct-to-consumer sales.
The company predicts capital expenditures this year of $35 million, which it will use primarily to fund new stores, remodel its existing ones, and enhance its distribution channels.
Based on the strong start to the year, Oxford raised its full-year guidance. It now hopes to earn adjusted EPS of between $2.15 and $2.25, up from its earlier view of $1.95 to $2.05. The company expects revenue in the range of $730 million to $745 million, up from $603.9 million earned last year.
If all goes as planned, Oxford may be in for a good time ahead, with a potential boost to both its top and bottom lines as it expands and reinvigorates its business. This is definitely a good sign for investors.
Fool contributor Shubh Datta doesn’t own any shares in the companies mentioned above. The Motley Fool owns shares of Oxford Industries. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.