Press Release Details

-- Top-Line Growth Driven by Lilly Pulitzer and Tommy Bahama --

-- Lilly Pulitzer and Tommy Bahama Report Positive Comps in Quarter --

-- Second Quarter Adjusted EPS of $0.94 and GAAP EPS of $0.92 at High End of Guidance Range --

-- Reaffirms Full Year Adjusted EPS Guidance of $3.00 - $3.15 and GAAP EPS Guidance of $2.88 - $3.03 --

ATLANTA, Sept. 9, 2014 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2014 second quarter, which ended August 2, 2014. Consolidated net sales increased 5% to $246.2 million compared to $235.0 million in the second quarter of fiscal 2013. On an adjusted basis, earnings per share were $0.94 compared to $1.01 in the second quarter of fiscal 2013. On a GAAP basis, earnings per share in the second quarter of fiscal 2014 were $0.92 compared to $0.96 in the same period of the prior year.

For the first half of fiscal 2014, consolidated net sales increased 7% to $503.9 million compared to $469.2 million in the first half of fiscal 2013. On an adjusted basis, earnings per share were $1.88 compared to $1.83 in the first half of fiscal 2013. On a GAAP basis, earnings per share in the first half of fiscal 2014 were $1.83 compared to $1.78 in the same period of the prior year. For reference, tables reconciling GAAP to adjusted measures are included at the end of this release.

Thomas C. Chubb III, CEO and President, commented, "We are pleased with our second quarter results. Our performance continued to be driven by solid contributions from both Tommy Bahama and Lilly Pulitzer. Lilly's second quarter results were simply outstanding with sales increases in all channels of distribution, including extraordinary comps of 19%. Tommy Bahama was clearly impacted by the difficult, highly promotional consumer market, but the team navigated through the quarter well and posted positive comps. As we enter the second half, we remain optimistic about our ability to achieve our full year financial goals and create ongoing value for our shareholders."

Operating Results

Tommy Bahama Net sales for Tommy Bahama increased 3% to $157.8 million in the second quarter of fiscal 2014 with increases in all direct to consumer channels, including a comparable store sales increase of 4%. These sales increases were partially offset by decreased wholesale sales.  At the end of the second quarter of fiscal 2014, Tommy Bahama operated 147 stores consisting of 94 full-price stores, 14 restaurant-retail locations and 39 outlets. This compares to 133 stores on August 3, 2013.

Tommy Bahama's adjusted operating income for the second quarter of fiscal 2014 decreased to $22.2 million compared to $24.5 million in the second quarter of fiscal 2013. On a GAAP basis, Tommy Bahama's operating income for the second quarter of fiscal 2014 was $21.8 million compared to $23.8 million in the second quarter of fiscal 2013. The decrease in operating income was primarily due to lower gross margin and higher SG&A partially offset by the increased sales. Gross margin decreased 118 basis points primarily as a result of deeper discounts in the outlet stores and wholesale channels, a higher proportion of Tommy Bahama sales from outlet stores, and increased sales associated with the Father's Day loyalty cards and flip-side events in the full price direct to consumer businesses.

Lilly Pulitzer Lilly Pulitzer's strong second quarter results included a net sales increase of 22% to $46.6 million with increased sales in all channels of distribution including a comparable store sales increase of 19%.  Lilly Pulitzer operated 26 stores at the end of the second quarter of fiscal 2014 compared to 22 stores at August 3, 2013.

Lilly Pulitzer reported a 17% increase in operating income to $11.2 million for the second quarter of fiscal 2014 driven by the increased sales and higher gross margin in all channels of distribution.  

Lanier Clothes Net sales for Lanier Clothes were $21.3 million in the second quarter of fiscal 2014 compared to $22.3 million in the second quarter of fiscal 2013.  Operating income in the second quarter of fiscal 2014 was $1.5 million compared to $2.0 million in the second quarter of fiscal 2013, reflecting the lower sales.                                                                                                             

Ben Sherman Net sales at Ben Sherman rose 15% to $18.7 million for the second quarter of fiscal 2014. The sales growth was primarily due to the impact of foreign currency translation and a stronger performance in its retail stores. The operating loss in the second quarter of fiscal 2014 improved to $3.1 million compared to an operating loss of $3.8 million in the prior year period with the improvement driven by the higher direct to consumer sales and gross margin improvement, partially offset by a $0.2 million impact of foreign currency translation.  

Corporate and Other For the second quarter of fiscal 2014, Corporate and Other had an adjusted operating loss of $4.7 million compared to an adjusted operating loss of $3.5 million in the second quarter of fiscal 2013 primarily due to lower Oxford Golf sales and higher corporate expenses. On a GAAP basis, Corporate and Other had an operating loss of $4.5 million in the second quarter of fiscal 2014 compared to a loss of $3.9 million in the second quarter of fiscal 2013.  

Consolidated Operating Results

Net Sales For the second quarter of fiscal 2014, consolidated net sales were $246.2 million compared to $235.0 million in the second quarter of fiscal 2013.

Gross Profit and Gross Margin For the second quarter of fiscal 2014, consolidated gross margin increased to 59.1% from 58.2% in the prior year period. Gross profit for the second quarter of fiscal 2014 increased to $145.4 million from $136.8 million in the second quarter of fiscal 2013.

SG&A For the second quarter of fiscal 2014, SG&A was $122.4 million, or 49.7% of net sales, compared to $112.4 million, or 47.8% of net sales, in the second quarter of fiscal 2013. The increase in SG&A was primarily due to increased incentive compensation expense, principally at Lilly Pulitzer, incremental costs associated with operating additional retail stores, and investments in infrastructure and systems.

Royalties and Other Income   Royalties and other income were $3.9 million in the second quarter of fiscal 2014 compared to $3.4 million in the second quarter of fiscal 2013. 

Operating Income   For the second quarter of fiscal 2014, consolidated operating income was $26.8 million compared to $27.7 million in the second quarter of fiscal 2013.

Interest Expense   For the second quarter of fiscal 2014, interest expense decreased to $0.9 million from $1.0 million in the second quarter of fiscal 2013.

Income Taxes The effective tax rate for the second quarter of fiscal 2014 was 41.8% compared to 40.7% in the second quarter of fiscal 2013. The rate in both periods was unfavorably impacted by the Company's inability to recognize a tax benefit for losses in foreign jurisdictions. The rate in fiscal 2013 benefited from a reduction in the enacted tax rate in the U.K.

Balance Sheet and Liquidity

Inventories at the close of the second quarter of fiscal 2014 were $141.3 million, compared to $101.9 million at the close of the second quarter of fiscal 2013. Inventory levels increased primarily to support anticipated sales growth, particularly within the direct to consumer businesses.  Inventory levels also increased as a result of the earlier receipt of shipments from suppliers for fall goods and the impact of currency translation.

As of August 2, 2014, the Company had $108.5 million of aggregate borrowings outstanding and $124.0 million of aggregate unused availability under its revolving credit agreements.

The Company's capital expenditures for fiscal 2014, including $19.6 million incurred during the first half of fiscal 2014, are expected to be approximately $55 million. These expenditures consist primarily of costs associated with both new and remodeled retail stores and restaurants. The Company will also continue to invest in information technology and e-commerce capabilities and make certain enhancements to its facilities.

Fiscal 2014 Outlook 

For fiscal 2014, the Company affirmed its full year adjusted earnings per share guidance in a range of $3.00 to $3.15 on net sales of approximately $1 billion. On a GAAP basis, the Company expects earnings per share in a range of $2.88 to $3.03 for the fiscal year. This compares with fiscal 2013 earnings per share of $2.81 on an adjusted basis and $2.75 on a GAAP basis.

For the third quarter, ending on November 1, 2014, the Company anticipates net sales in a range of $220 to $230 million. On an adjusted per share basis, the Company expects to be in a range between a loss of $0.05 and earnings of $0.05. On a GAAP per share basis, the Company expects to be in a range between a loss of $0.08 and earnings of $0.02. This compares with earnings per share of $0.10 on an adjusted basis and $0.05 on a GAAP basis in the third quarter of fiscal 2013 on sales of $197.5 million. The Company expects the third quarter to be the smallest sales quarter of the fiscal year reflecting the seasonality of the Tommy Bahama and Lilly Pulitzer businesses. This, along with the meaningful fixed expense structure of the business, results in lower operating income compared to other quarters.

The effective tax rate is expected to be approximately 43% for the fiscal year.

Dividend

The Company also announced that its Board of Directors has approved a cash dividend of $0.21 per share payable on October 31, 2014 to shareholders of record as of the close of business on October 17, 2014. The Company has paid dividends every quarter since it became publicly owned in 1960.

Conference Call

The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company's website at www.oxfordinc.com. A replay of the call will be available through September 23, 2014 by dialing (858) 384-5517 access code 7023580. 

About Oxford

Oxford Industries, Inc. is a global apparel company which designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands. Oxford's brands include Tommy Bahama^®, Lilly Pulitzer^®, Ben Sherman^®, Oxford Golf^®, and Billy London^®. The Company operates retail stores, internet websites and restaurants. The Company also has license arrangements with select third parties to produce and sell certain product categories under its Tommy Bahama, Lilly Pulitzer and Ben Sherman brands. The Company holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole^®, Geoffrey Beene^®, Dockers^® and Ike Behar^® labels. Oxford's wholesale customers include department stores, specialty stores, national chains, Internet retailers, and warehouse clubs. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford's website at www.oxfordinc.com.

Comparable Store Sales

The Company's disclosures about comparable store sales include sales from its full-price stores and e-commerce sites, excluding sales associated with e-commerce flash clearance sales. Definitions and calculations of comparable store sales differ among companies in the retail industry, and therefore comparable store metrics disclosed by the Company may not be comparable to the metrics disclosed by other companies.

Safe Harbor

This press release may include statements that are forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. We intend for all forward-looking statements contained herein or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Important assumptions relating to these forward‑looking statements include, among others, assumptions regarding the impact of economic conditions on consumer demand and spending, particularly in light of general economic uncertainty that continues to prevail, demand for our products, timing of shipments requested by our wholesale customers, expected pricing levels, competitive conditions, retention of and disciplined execution by key management, the timing and cost of store openings and of planned capital expenditures, weather, costs of products as well as the raw materials used in those products, costs of labor, acquisition and disposition activities, expected outcomes of pending or potential litigation and regulatory actions, access to capital and/or credit markets and the impact of foreign losses on our effective tax rate. Forward-looking statements reflect our current expectations, based on currently available information, and are not guarantees of performance. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I, Item 1A. contained in our Annual Report on Form 10-K for the period ended February 1, 2014 under the heading "Risk Factors" and those described from time to time in our future reports filed with the SEC.

CONTACT: Anne M. Shoemaker     

         Telephone: (404) 653-1455     

         Fax: (404) 653-1545     

         E-mail: InvestorRelations@oxfordinc.com

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