Oxford Industries Inc (NYSE:OXM) stock rallies 9.04% (As on Mar 24, 11:22:19 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. Lilly Pulitzer e-commerce flash clearance sales decreased to $32 million in fiscal 2021 compared to $48 million in fiscal 2019 due to higher full price sell through resulting in less inventory available for fiscal 2021 clearance events. In the fourth quarter, Lilly Pulitzer e-commerce flash clearance sales were $13 million compared to $17 million in the same period of 2019. In the fourth quarter of fiscal 2021, wholesale sales, excluding Lanier Apparel, decreased to $42 million compared to $57 million during the fourth quarter of fiscal 2019. This decrease includes the impact of most spring wholesale deliveries shifting into the first quarter of 2022. On an adjusted basis, gross margin for fiscal 2021 increased 540 basis points to 63% compared to fiscal 2019. In the fourth quarter, gross margin on a GAAP basis was 59% compared to 56% in the same period of 2019. Adjusted gross margin in the fourth quarter was 61% compared to 56% in the same period of 2019.

OXM in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.68, beating the analysts’ estimates for the adjusted earnings per share of $1.36. The company had reported the adjusted revenue growth of 8 percent to $299.9 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $295.1 million.

For the first quarter ending in May, Oxford Industries expects its per-share earnings to range from $2.65 to $2.90. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.88. The company expects revenue to be in the range of $315 million to $335 million for the fiscal first quarter. Analysts surveyed by Zacks had expected revenue of $271.6 million.

Oxford Industries expects full-year earnings in the range of $8.75 to $9.15 per share, with revenue ranging from $1.25 billion to $1.29 billion.

Meanwhile, the inventory decreased 4% to $118 million at the end of the fourth quarter compared to $124 million in the prior year as reported on a LIFO basis. On a FIFO basis, inventory increased by 6% and excluding Lanier Apparel, inventory increased 12% year over year. The Company has ended fiscal 2021 in a strong liquidity position with $210 million of cash, cash equivalents and short-term investments and no borrowings outstanding under its revolving credit agreement. The improvement in the Company’s liquidity position was attributable to $198 million of cash flow from operations which funded $32 million of capital expenditures primarily for information technology initiatives to enhance capabilities with regard to omni-channel, digital marketing and data, as well as investments in Marlin Bars and retail stores.