Oxford Industries Posts Declines

by MR Magazine Staff

ATLANTA – Fourth quarter increases in its Ben Sherman and Tommy Bahama groups didn’t save Oxford Industries from posting consolidated net sales declines – $287.2 million in the fourth quarter compared to $287.6 million in the fourth quarter of last year. Lanier Clothes, the company’s tailored clothing group, contributed to the poor numbers, posting an operating loss of $1.6 million in the fourth quarter of this year compared to the same time last year.

Profits in the fourth quarter for Oxford Industries dropped 38% to $19.3 million ($1.08 per diluted share) from $31 million ($1.74 per diluted share) in the fourth quarter of fiscal 2006, because of the sale of its Womenswear Group last year.

“In Lanier Clothes, our tailored clothing group, we faced very challenging market conditions, which clearly impacted our financial results,” said CEO J. Hicks Lanier. “However, we have implemented strategic and operational changes to improve its performance and believe that we will see improved financial results in fiscal 2008.”

Tommy Bahama’s 12.9% sales increase to $134.0 million was a result of the new products in Tommy Bahama Relax, Tommy Bahama Golf 18 and Tommy Bahama Women’s Swim, the company said. Oxford has opened nine more Tommy Bahama retail stores since last year. Tommy Bahama’s operating income increased 14.0% over fiscal 2006 to $81.5.

Ben Sherman also enjoyed sales increases – 6.7% to $42.8 million in the fourth quarter. Operating income is up to $2.8 million from an operating loss of $0.4 million in Q4 of fiscal 2006. The company says the improvements were a result of tighter wholesale distribution, expanded company-owned retail stores, and good currency exchange rates.

Oxford’s brands include Tommy Bahama, Ben Sherman, and Arnold Brant. The company is licensed to produce clothing for Dockers, Geoffrey Beene, Oscar de la Renta, Nautica, and Tommy Hilfiger.