Oxford Industries fourth quarter beats, sees lower 2010 revenue
March 29 (Reuters) - Apparel maker Oxford Industries Inc (OXM.N) posted a better-than-expected quarterly profit, helped by improved gross margins at its Lanier segment, but the company forecast weak 2010 revenue.
Tommy Bahama from Oxford Industries - Photo: www.tommybahama.com
Shares of the Atlanta-based company fell 12 percent to $20.75 after the bell. The stock, which has risen 21 percent in value in the last one month, closed at $23.51 Monday 29 March on the New York Stock Exchange.
For fiscal 2010, the company sees earnings between $1.40 and $1.50 per share, on revenue of $760 million to $775 million. It posted revenue of $800.7 million in 2009.
The company said net income for the fourth quarter ended Jan. 30 was $3.9 million, or 24 cents a share. Last year, it posted a net loss of $288.4 million, or $18.19 a share, hurt by non-cash impairment charges and other items.
For the latest fourth quarter, the company earned 21 cents a share, excluding items.
Revenue at the company, whose businesses include Tommy Bahama, Ben Sherman, Lanier Clothes and Oxford apparel, fell 5 percent to $190.5 million.
Analysts on average were expecting earnings of 16 cents a share, before items, on revenue of $189.6 million, according to Thomson Reuters I/B/E/S.
The apparel maker raised its quarterly dividend by 22 percent to 11 cents per share.
For the fourth quarter, adjusted gross margins were 44.4 percent compared with 42 percent a year ago, primarily due to increased retail sales, which generally have higher gross margins than wholesale sales. (Reporting by Shobhana Chadha in Bangalore; Editing by Anne Pallivathuckal)