UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

OXFORD INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Georgia (State or other jurisdiction of incorporation)		001-04365 (Commission File Number)		58-0831862 (IRS Employer Identification No.)

222 Piedmont Avenue, NE, Atlanta, GA 30308
(Address of principal executive offices) (Zip Code)

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 9, 2007, Oxford Industries, Inc. issued a press release announcing, among other things, its financial results for the quarter ended December 1, 2006. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

EXHIBIT
NUMBER
99.1		Press Release of Oxford Industries, Inc., dated January 9, 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

OXFORD INDUSTRIES, INC.

January 9, 2007		By:		/s/ Thomas Caldecot Chubb III
				Thomas Caldecot Chubb III
				Executive Vice President

Exhibit 99.1

Oxford Industries, Inc. Press Release

Contact:		J. Reese Lanier, Jr.
Telephone:		(404) 653-1446
Fax:		(404) 653-1545
E-Mail:		rlanier @ oxfordinc.com

FOR IMMEDIATE RELEASE

January 9, 2007

Oxford Industries Announces Second Quarter Fiscal 2007 Results
—Tommy Bahama Continues to Exceed Plan, Grows Operating Income by 38%—
—Ben Sherman Recovery Continues As Expected—
—Company Reduces FY07 Guidance to New Range of $3.00 to $3.15 to Reflect Softness and
Accelerated Transitioning in Historical Menswear Business—
—Board of Directors Approves a 20% Increase in Quarterly Cash Dividend to $0.18 Per Share—

ATLANTA, GA. — Oxford Industries, Inc. (NYSE:OXM) today announced financial results for the fiscal 2007 second quarter ended December 1, 2006. Results for Oxford’s Womenswear Group, the assets of which were sold in the fourth quarter of fiscal 2006, have been classified as discontinued operations for all periods presented.

Consolidated net sales increased 4.7% to $291.0 million in the second quarter of fiscal 2007 from $277.9 million in the second quarter of fiscal 2006. Diluted earnings from continuing operations per common share increased 19.3% to $0.68 in the second quarter of fiscal 2007 from $0.57 in the second quarter of fiscal 2006.

“We continue to be very pleased with the outstanding results that have been generated by Tommy Bahama, which have tracked consistently above plan. The Ben Sherman business is continuing its recovery in the U.S. and we remain confident that, with controlled distribution and sell-in, this brand can become a leading global lifestyle brand,” commented J. Hicks Lanier, Chairman and CEO of Oxford Industries, Inc. “At the same time, we clearly continue to have challenges to address in our historical menswear business. We are moving aggressively to respond to these challenges and, while our near-term results will be affected by some transitioning and refocusing, we believe we will be able to improve the profitability and competitive position of our historical menswear business.”

The Tommy Bahama Group reported a second quarter net sales increase of 19.3% to $107.8 million in the second quarter of fiscal 2007 from $90.4 million in the second quarter of fiscal 2006. The sales growth was driven by the introduction of new product offerings including Tommy Bahama Relax™, Tommy Bahama Golf 18™ and Tommy Bahama Swim™, continuing strength in the Tommy Bahama^®, Indigo Palms^® and Island Soft^® brands and additional retail stores. Second quarter operating income increased 37.8% to $13.9 million in the second quarter of fiscal 2007 from $10.1 million in the second quarter of fiscal 2006 due primarily to the significant increase in sales volume.

The Menswear Group reported a second quarter net sales decline of 2.3% to $183.1 million from $187.3 million in the second quarter of fiscal 2006. The decline in net sales resulted primarily from a planned sales reduction in Ben Sherman’s U.S. business to tighten distribution and improve performance at retail. Second quarter operating income declined 14.3% to $13.7 million in the second quarter of fiscal 2007 from $16.0 million in the second quarter of fiscal 2006 due to lower sales volume and heightened margin pressure in certain of the group’s tailored clothing businesses.

Consolidated gross margins for the second quarter of fiscal 2007 increased to 38.4% from 37.0% in the second quarter of fiscal 2006. The expansion in gross margin was driven primarily by sales mix. Net sales of the Tommy Bahama Group, which generates higher gross margins than the Menswear Group, represented a larger percentage of consolidated net sales in the current year’s second quarter than in the prior year’s second quarter.

Selling, general and administrative expenses for the second quarter of fiscal 2007 increased to $89.1 million, or 30.6% of net sales, from $82.4 million, or 29.7% of net sales, in the second quarter of fiscal 2006. The increase in SG&A expenses as a percentage of sales was also attributable to sales mix. The Tommy Bahama Group, which carries higher SG&A expenses than the Menswear Group, represented a larger percentage of consolidated net sales in the current year’s second quarter than in the prior year’s second quarter.

Intangible asset amortization expense declined to $1.6 million in the second quarter from $1.9 million in the second quarter of fiscal 2006. The amortization of intangible assets acquired in recent acquisitions was greater in the periods immediately following the acquisitions than in more recent periods. These non-cash expenses reduced diluted earnings from continuing operations per common share by $0.06 for the quarter.

Accounts receivable at quarter-end increased to $166.7 million from $149.2 million at the end of last year’s second quarter due primarily to higher sales volume and the timing of sales during the quarter. Total inventories at quarter-end increased to $139.0 million from $136.1 million at the end of the second quarter of fiscal 2006. Higher inventories in the Tommy Bahama Group to support sales growth were partially offset by lower inventories in the Menswear Group.

The Company issued revised guidance for the remainder of fiscal 2007 to reflect a variety of factors, including approximately $0.09 per share of non-recurring after-tax charges and expenses associated with further rationalization in the Company’s historical menswear business, $0.02 per share of start-up expenses for a new e-commerce initiative for the Tommy Bahama business and approximately $0.14 per share related to reduced operating expectations for the historical menswear business. The Company noted that it had not revised its plan for the Ben Sherman business.

As a result of these factors, the Company has set new guidance for diluted earnings from continuing operations per common share for the fiscal year ending June 1, 2007 to a range of $3.00 to $3.15. It now expects net sales for fiscal 2007 to be within a range of $1.14 billion and $1.16 billion compared to initial full year guidance of $1.16 billion to $1.18 billion.

For the third quarter of fiscal 2007, the Company expects net sales of between $265 million and $275 million and diluted earnings from continuing operations per common share of between $0.52 and $0.597. The bulk of the charges and expenses associated with further rationalization in the historical menswear business are expected to occur in the third quarter.

For the fourth quarter of fiscal 2007, the Company expects net sales of between $295 million and $305 million and diluted earnings from continuing operations per common share of between $1.17 and $1.25.

The Company also announced that its Board of Directors has approved a cash dividend of $0.18 per common share payable on March 2, 2007 to shareholders of record as of the close of business on February 15, 2007. This cash dividend is a 20% increase over the quarterly cash dividends paid by the Company during calendar year 2006.

The Company will hold a conference call with senior management to discuss its financial results at 4:30p.m. ET today. A live web cast of the conference call will be available on the Company’s web site at www.oxfordinc.com. Please visit the web site at least 15 minutes before the call to register for the teleconference web cast and download any necessary software. A replay of the call will be available on the Company’s web site at www.oxfordinc.com through January 16, 2007. To access the telephone replay, participants should dial (719) 457-0820. The access code for the replay is 7644207. A replay of the web cast will also be available following the teleconference on Oxford Industries’ corporate web site at www.oxfordinc.com.

Oxford Industries, Inc. is a producer and marketer of branded and private label apparel for men, women and children. Oxford provides retailers and consumers with a wide variety of apparel products and services to suit their individual needs. Oxford’s brands include Tommy Bahama^®, Indigo Palms^®, Island Soft^®, Ben Sherman^®, Arnold Brant^®, Ely & Walker^® and Oxford Golf^®. The Company also holds exclusive licenses to produce and sell certain product categories under the Tommy Hilfiger^®, Nautica^®, Geoffrey Beene^®, Dockers^® and Oscar de la Renta^® labels. Oxford’s wholesale customers are found in every major channel of distribution, including national chains, specialty catalogs, mass merchants, department stores, specialty stores and Internet retailers.

Oxford’s stock has traded on the NYSE since 1964 under the symbol OXM. For more information, please visit our web site at www.oxfordinc.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

Various statements in this press release, in future filings by us with the Securities and Exchange Commission and in oral statements made by or with the approval of our management include forward-looking statements about future events. 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 such forward-looking statements contained herein, the entire contents of our web site, 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 demand for our products, expected pricing levels, raw material costs, the timing and cost of planned capital expenditures, expected outcomes of pending litigation and regulatory actions, competitive conditions, general economic conditions and expected synergies in connection with acquisitions and joint ventures. 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 materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. You are encouraged to review the information in our Form 10-K for the fiscal year ended June 2, 2006 under the heading “Risk Factors” (and those described from time to time in our future reports filed with the Securities and Exchange Commission), which contains additional important factors that may cause our actual results to differ materially from those projected in any forward-looking statements. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(in thousands, except per share amounts)

		Second Quarter								First Half
		Fiscal 2007				Fiscal 2006				Fiscal 2007				Fiscal 2006
Net sales		$	290,987			$	277,903			$	575,065			$	546,378
Cost of goods sold			179,187				175,097				355,154				337,857
Gross profit			111,800				102,806				219,911				208,521
Selling, general and administrative expenses			89,124				82,416				175,570				165,204
Amortization of intangible assets			1,550				1,851				3,097				3,704
			90,674				84,267				178,667				168,908
Royalties and other operating income			3,894				3,653				6,786				6,914
Operating income			25,020				22,192				48,030				46,527
Interest expense, net			5,951				6,272				11,443				12,105
Earnings before income taxes			19,069				15,920				36,587				34,422
Income taxes			6,924				5,743				13,287				12,425
Earnings from continuing operations			12,145				10,177				23,300				21,997
Earnings (loss) from discontinued operations, net of taxes			8				831				(197	)			2,895
Net earnings		$	12,153			$	11,008			$	23,103			$	24,892
Earnings from continuing operations per common share:
Basic		$	0.69			$	0.58			$	1.32			$	1.26
Diluted		$	0.68			$	0.57			$	1.31			$	1.24
Earnings (loss) from discontinued operations per common share:
Basic		$	0.00			$	0.05			$	(0.01	)		$	0.17
Diluted		$	0.00			$	0.05			$	(0.01	)		$	0.16
Net earnings per common share:
Basic		$	0.69			$	0.63			$	1.31			$	1.43
Diluted		$	0.68			$	0.62			$	1.30			$	1.40
Weighted average common shares outstanding:
Basic			17,654				17,490				17,624				17,440
Dilutive impact of options and restricted shares			209				257				204				295
Diluted			17,863				17,747				17,828				17,735
Dividends per common share		$	0.15			$	0.135			$	0.30			$	0.270

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)

		December 1, 2006				December 2, 2005
Assets
Current Assets:
Cash and cash equivalents		$	8,794			$	6,848
Receivables, net			166,680				149,194
Inventories			138,990				136,102
Prepaid expenses			19,618				24,739
Current assets related to discontinued operations, net			—				69,779
Total current assets			334,082				386,662
Property, plant and equipment, net			81,021				65,236
Goodwill, net			202,054				180,152
Intangible assets, net			236,261				234,812
Other non-current assets, net			29,990				22,945
Non-current assets related to discontinued operations, net			—				4,810
Total Assets		$	883,408			$	894,617
Liabilities and Shareholders’ Equity
Current Liabilities:
Trade accounts payable and other accrued expenses		$	98,538			$	97,901
Accrued compensation			19,788				24,155
Dividends payable			—				2,310
Income taxes payable			1,200				3,334
Short-term debt and current maturities of long-term debt			90				4,879
Current liabilities related to discontinued operations			5,452				17,646
Total current liabilities			125,068				150,225
Long-term debt, less current maturities			217,005				298,942
Other non-current liabilities			35,082				27,503
Deferred income taxes			81,075				75,254
Non-current liabilities related to discontinued operations			—				47
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, $1.00 par value; 30,000 authorized and none issued and outstanding at December 1, 2006 and December 2, 2005			—				—
Common stock, $1.00 par value; 60,000 authorized and 17,775 issued and outstanding at December 1, 2006 and 17,602 issued and outstanding at December 2, 2005			17,775				17,602
Additional paid-in capital			78,625				71,164
Retained earnings			318,749				260,979
Accumulated other comprehensive income (loss)			10,029				(7,099	)
Total shareholders’ equity			425,178				342,646
Total Liabilities and Shareholders’ Equity		$	883,408			$	894,617

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

		First Half
		Fiscal 2007				Fiscal 2006
Cash Flows from Operating Activities:
Earnings from continuing operations		$	23,300			$	21,997
Adjustments to reconcile earnings from continuing operations to net cash provided by (used in) operating activities:
Depreciation			7,642				7,183
Amortization of intangible assets			3,097				3,704
Amortization of deferred financing costs and bond discount			1,232				1,232
Stock compensation expense			1,702				1,149
Loss (Gain) on the sale of assets			476				(83	)
Equity loss (income) from unconsolidated entities			(604	)			(39	)
Deferred income taxes			785				(1,353	)
Changes in working capital:
Receivables			(21,273	)			(1,651	)
Inventories			(14,676	)			10,190
Prepaid expenses			(170	)			(5,493	)
Current liabilities			(16,371	)			(35,798	)
Other non-current assets			(905	)			(3,966	)
Other non-current liabilities			5,067				4,446
Net cash provided by (used in) operating activities			(10,698	)			1,518
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired			(12,111	)			(11,501	)
Investment in unconsolidated entity			(9,090	)			—
Distribution from unconsolidated entity			—				1,856
Purchases of property, plant and equipment			(15,268	)			(8,471	)
Proceeds from sale of property, plant and equipment			32				6
Net cash provided by (used in) investing activities			(36,437	)			(18,110	)
Cash Flows from Financing Activities:
Repayment of financing arrangements			(123,676	)			(179,591	)
Proceeds from financing arrangements			140,526				191,059
Proceeds from issuance of common stock			2,240				4,556
Dividends on common stock			(7,970	)			(4,579	)
Net cash provided by (used in) financing activities			11,120				11,445
Cash Flows from Discontinued Operations:
Net operating cash flows provided by (used in) discontinued operations			33,746				6,137
Net investing cash flows provided by (used in) discontinued operations			—				(25	)
Net cash provided by (used in) discontinued operations			33,746				6,112
Net change in cash and cash equivalents			(2,269	)			965
Effect of foreign currency translation on cash and cash equivalents			584				(616	)
Cash and cash equivalents at the beginning of period			10,479				6,499
Cash and cash equivalents at the end of period		$	8,794			$	6,848

OXFORD INDUSTRIES, INC.
SEGMENT INFORMATION
(UNAUDITED)
(in thousands)

		Second Quarter								First Half
		Fiscal 2007				Fiscal 2006				Fiscal 2007				Fiscal 2006
Net Sales
Menswear Group		$	183,067			$	187,332			$	361,878			$	364,408
Tommy Bahama Group			107,807				90,388				211,955				181,932
Corporate and Other			113				183				1,232				38
Total Net Sales		$	290,987			$	277,903			$	575,065			$	546,378
Operating Income
Menswear Group		$	13,690			$	15,968			$	24,301			$	30,972
Tommy Bahama Group			13,927				10,109				30,762				24,466
Corporate and Other			(2,597	)			(3,885	)			(7,033	)			(8,911	)
Total Operating Income		$	25,020			$	22,192			$	48,030			$	46,527
Interest expense, net			5,951				6,272				11,443				12,105
Earnings before taxes		$	19,069			$	15,920			$	36,587			$	34,422