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
Date of Report (Date of earliest event reported) December 8, 2015
Oxford Industries, Inc.
(Exact name of registrant as specified in its charter)
| Georgia | 001-04365 | 58-0831862 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 999 Peachtree Street, N.E., Ste. 688, Atlanta, GA | 30309 |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (404) 659-2424
Not Applicable
(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:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | 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 December 8, 2015, Oxford Industries, Inc. issued a press release announcing, among other things, its financial results for the third quarter of fiscal 2015, which ended on October 31, 2015. 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
99.1
Press Release of Oxford Industries, Inc., dated December 8, 2015.
Number
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. |
|
| Date: December 8, 2015 |
By: | /s/ Thomas E. Campbell |
| Name: Thomas E. Campbell Title: Executive Vice President - Law & Administration, General Counsel and Secretary |
||
EXHIBIT 99.1
Oxford Reports Third Quarter Fiscal 2015 Results
--Continued Strength at Lilly Pulitzer--
--Gross Margin Expansion in All Operating Groups--
ATLANTA, Dec. 8, 2015 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fiscal 2015 third quarter, which ended October 31, 2015. Consolidated net sales were $198.6 million compared to $201.2 million in the third quarter of fiscal 2014. The adjusted net loss from continuing operations was $0.08 per diluted share in the third quarter of fiscal 2015 compared to adjusted net earnings of $0.12 per diluted share in the same period of the prior year. On a GAAP basis, the net loss from continuing operations was $0.08 per diluted share in the third quarter of fiscal 2015 compared to net earnings of $0.11 per diluted share in the same period of the prior year. The Company's third quarter is typically its smallest sales quarter due to the seasonality of its two brands, Tommy Bahama and Lilly Pulitzer. This, along with the meaningful fixed expense structure of the business, results in lower operating results in the third quarter compared to other quarters.
For the first nine months of fiscal 2015, consolidated net sales increased 6% to $709.7 million compared to $671.3 million in the first nine months of fiscal 2014. Adjusted earnings from continuing operations increased 7% to $2.55 per diluted share compared to $2.39 in the first nine months of fiscal 2014. On a GAAP basis, earnings from continuing operations in the first nine months of fiscal 2015 were $2.48 per diluted share compared to $2.32 in the same period of the prior year.
Thomas C. Chubb III, Chairman and Chief Executive Officer, commented, "In the context of the difficult environment, as well as the seasonality of our brands, we are generally pleased with our third quarter results. Our bottom line came in at the top end of our guidance range, we finished the quarter with inventories in excellent shape, and once again, Lilly Pulitzer delivered an outstanding performance."
"The strength of our brands is evident in the results they are posting so far for the fourth quarter. Both Tommy Bahama and Lilly Pulitzer comped up in November and have continued posting positive comps into December. While we are pleased with these results, we still have a long way to go and are cognizant of the market conditions facing all retailers this holiday season, with decreased mall traffic and a highly promotional environment. Because of this, we have moderated our guidance for the full year."
"We have worked hard to differentiate ourselves with two of the most distinctive brands in the marketplace, both of which connect with their consumers extremely well. Tommy Bahama and Lilly Pulitzer are premium brands that build long-term relationships with their consumers based on the strength of their brand message and product. These brands are well positioned with a good balance of bricks and mortar retail locations, robust e-commerce sites and select wholesale distribution. Our superior brand positioning coupled with strong teams running the businesses, gives us confidence in our ability to deliver future growth and compelling shareholder value."
All financial results and outlook information included in this release, unless otherwise noted, are from continuing operations and all earnings per share amounts are on a diluted basis. For reference, tables reconciling GAAP to adjusted measures are included at the end of this release.
Third Quarter Fiscal 2015 Consolidated Operating Results
Net Sales Consolidated net sales were $198.6 million compared to $201.2 million in the third quarter of fiscal 2014. Lilly Pulitzer's sales increased 22%, or $8.0 million, with growth in all channels of distribution, including a 27% comparable store sales increase. This was offset by a $9.7 million sales decrease at Lanier Clothes, as the third quarter of 2014 included significant shipments to a warehouse club customer. Tommy Bahama sales declined 1% in the third quarter of fiscal 2015, with a decrease in off-price wholesale sales and a 5% comparable store sales decrease, offset by sales from additional retail stores.
Gross Margin and Gross Profit Adjusted gross margin expanded by approximately 270 basis points to 54.1% with improvements in all operating groups. Adjusted gross profit for the third quarter of fiscal 2015 increased to $107.5 million from $103.4 million in the third quarter of fiscal 2014. On a GAAP basis, gross margin in the third quarter of fiscal 2015 was 54.3% compared to 51.6% in the prior year period. Gross profit in the third quarter of fiscal 2015 was $107.9 million compared to $103.9 million in the prior year period.
SG&A In the third quarter of fiscal 2015, SG&A, as adjusted, was $112.3 million, or 56.5% of net sales, compared to $102.4 million, or 50.9% of net sales, in the third quarter of fiscal 2014. The increase in SG&A was primarily due to incremental costs associated with operating additional retail stores, increased occupancy costs associated with Tommy Bahama's move to new office space and pre-opening expenses associated with Tommy Bahama's Waikiki retail-restaurant location. On a GAAP basis, SG&A was $112.7 million, or 56.7% of net sales, compared to $102.9 million, or 51.1% of net sales in the third quarter of fiscal 2014.
Royalties and Other Income Royalties and other income increased modestly to $3.6 million from $3.5 million in the third quarter of fiscal 2014.
Operating Income/Loss For the third quarter of fiscal 2015, the adjusted operating loss was $1.2 million compared to adjusted operating income of $4.5 million in the third quarter of fiscal 2014. On a GAAP basis, the operating loss was $1.2 million compared to operating income of $4.4 million in the third quarter of fiscal 2014.
Interest Expense For the third quarter of fiscal 2015, interest expense decreased to $0.4 million from $0.7 million in the third quarter of fiscal 2014.
Income Taxes For the third quarter of fiscal 2015, the Company recognized a tax benefit of 13.9% against a pretax loss. For the third quarter of fiscal 2014, the Company incurred a 51.6% tax expense against a pretax profit. The tax rates for both periods were unfavorably impacted by foreign losses incurred during the period. The effective tax rate for fiscal 2015 is expected to be approximately 38%.
Discontinued Operations As announced on July 20, 2015, the Company completed the sale of its Ben Sherman business for £40.8 million, or $63.7 million, and Ben Sherman is reflected as discontinued operations for all periods presented. For the third quarter of fiscal 2015, the Company reported a net loss from discontinued operations of $0.05 per share compared to $0.11 per share in the prior year period.
Balance Sheet and Liquidity
Inventory increased 2% to $120.6 million at October 31, 2015 from $118.1 million at the end of the third quarter of fiscal 2014. The Company believes inventory levels are appropriate to support anticipated sales in the fourth quarter of fiscal 2015.
As of October 31, 2015, the Company had $68.7 million of borrowings outstanding under its revolving credit agreement compared to $143.5 million in the prior year. The year-over-year decrease in borrowings outstanding was primarily due to the repayment of indebtedness using the proceeds received from the sale of the Ben Sherman business and strong cash flow from operations. The Company had $161.6 million of unused availability under its revolving credit agreement as of October 31, 2015.
The Company's capital expenditures for fiscal 2015, including $63.2 million incurred during the first nine months, are expected to approach $75 million. This includes investments associated with the new leased space for Tommy Bahama's Seattle office, Tommy Bahama's Waikiki retail-restaurant location, and additional distribution space for Lilly Pulitzer, as well as new retail stores, information technology initiatives and store remodeling. Of the $75 million of capital expenditures, approximately $13 million is expected to be funded by landlords through tenant improvement allowances.
Fiscal 2015 Outlook
The Company revised its prior guidance for fiscal 2015, ending January 30, 2016. It now expects adjusted earnings per share in a range of $3.53 to $3.63 on net sales in a range of $970 million to $985 million. On a GAAP basis, the Company now expects earnings per share in a range of $3.44 to $3.54. This compares with fiscal 2014 adjusted earnings per share of $3.46 and $3.27 per share on a GAAP basis on net sales of $920.3 million. The effective tax rate for fiscal 2015 is expected to be approximately 38%.
Dividend
The Company also announced that its Board of Directors has approved a cash dividend of $0.25 per share payable on January 29, 2016 to shareholders of record as of the close of business on January 15, 2016. 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 December 22, 2015 by dialing (858) 384-5517 access code 4221020.
About Oxford
Oxford Industries, Inc. is an apparel company which designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands. Oxford's owned brands include Tommy Bahama®, Lilly Pulitzer®, Oxford Golf®, and Billy London®. The Company operates retail stores, internet websites and restaurants. The Company has granted licenses to select third parties to produce and sell certain product categories under its Tommy Bahama and Lilly Pulitzer brands. The Company also holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole®, Geoffrey Beene®, and Dockers® labels. Oxford's wholesale customers include department stores, specialty stores, national chains, warehouse clubs, and Internet retailers. 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.
Non-GAAP Financial Information
The Company reports its condensed consolidated financial statements in accordance with generally accepted accounting principles (GAAP). To supplement these consolidated financial results, management believes that presentation and discussion of certain financial measures on an adjusted basis, which excludes certain non-operating or discrete charges or items, may provide a more meaningful basis on which investors may compare the Company's ongoing results of operations between periods. Reconciliations of certain GAAP to adjusted measures are presented in tables included in this release. These reconciliations present adjusted operating results information for certain historical and future periods. The Company uses adjusted financial measures to discuss its business with investment institutions, its board of directors and others.
Safe Harbor
This press release includes statements that constitute 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 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). Such statements are subject to a number of risks, uncertainties and assumptions including, without limitation, 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, competitive conditions, timing of shipments requested by our wholesale customers, expected pricing levels, 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 January 31, 2015 under the heading "Risk Factors" as updated by Part II, Item IA. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended August 1, 2015 and those described from time to time in our future reports filed with the SEC.
| Oxford Industries, Inc. | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except par amounts) | ||
| (unaudited) | ||
| October 31, 2015 | November 1, 2014 | |
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | $ 6,558 | $ 6,275 |
| Receivables, net | 60,344 | 70,269 |
| Inventories, net | 120,559 | 118,105 |
| Prepaid expenses, net | 26,570 | 25,278 |
| Deferred tax assets | 26,406 | 21,767 |
| Assets related to discontinued operations, net | — | 40,886 |
| Total Current Assets | $ 240,437 | $ 282,580 |
| Property and equipment, net | 183,482 | 143,480 |
| Intangible assets, net | 144,491 | 147,478 |
| Goodwill | 17,238 | 17,401 |
| Other non-current assets, net | 22,400 | 22,558 |
| Assets related to discontinued operations, net | — | 32,197 |
| Total Assets | $ 608,048 | $ 645,694 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current Liabilities | ||
| Accounts payable | $ 63,855 | $ 59,620 |
| Accrued compensation | 28,820 | 22,881 |
| Income tax payable | — | 440 |
| Other accrued expenses and liabilities | 24,049 | 22,421 |
| Contingent consideration | — | 12,431 |
| Liabilities related to discontinued operations | 6,208 | 14,436 |
| Total Current Liabilities | $ 122,932 | $ 132,229 |
| Long-term debt | 68,744 | 143,516 |
| Other non-current liabilities | 66,936 | 54,138 |
| Non-current deferred income taxes | 29,507 | 28,800 |
| Liabilities related to discontinued operations | — | 6,142 |
| Commitments and contingencies | ||
| Shareholders' Equity | ||
| Common stock, $1.00 par value per share | 16,582 | 16,473 |
| Additional paid-in capital | 123,698 | 117,622 |
| Retained earnings | 185,850 | 172,907 |
| Accumulated other comprehensive loss | (6,201) | (26,133) |
| Total Shareholders' Equity | $ 319,929 | $ 280,869 |
| Total Liabilities and Shareholders' Equity | $ 608,048 | $ 645,694 |
| Oxford Industries, Inc. | ||||
| Condensed Consolidated Statements of Operations | ||||
| (in thousands, except per share amounts) | ||||
| (unaudited) | ||||
| First Nine | First Nine | |||
| Third Quarter | Third Quarter | Months Fiscal | Months Fiscal | |
| Fiscal 2015 | Fiscal 2014 | 2015 | 2014 | |
| Net sales | $ 198,624 | $ 201,178 | $ 709,708 | $ 671,294 |
| Cost of goods sold | 90,735 | 97,313 | 296,340 | 290,786 |
| Gross profit | $ 107,889 | $ 103,865 | $ 413,368 | $ 380,508 |
| SG&A | 112,694 | 102,891 | 355,337 | 323,674 |
| Change in fair value of contingent consideration | — | 69 | — | 206 |
| Royalties and other operating income | 3,639 | 3,483 | 11,032 | 10,052 |
| Operating (loss) income | $ (1,166) | $ 4,388 | $ 69,063 | $ 66,680 |
| Interest expense, net | 449 | 730 | 1,961 | 2,588 |
| (Loss) earnings from continuing operations before income taxes | $ (1,615) | $ 3,658 | $ 67,102 | $ 64,092 |
| Income taxes | (225) | 1,886 | 26,119 | 25,973 |
| Net (loss) earnings from continuing operations | $ (1,390) | $ 1,772 | $ 40,983 | $ 38,119 |
| Net loss, including loss on sale, of discontinued operations, net of taxes | (754) | (1,846) | (27,892) | (8,155) |
| Net (loss) earnings | $ (2,144) | $ (74) | $ 13,091 | $ 29,964 |
| Net (loss) earnings from continuing operations per share: | ||||
| Basic | $ (0.08) | $ 0.11 | $ 2.49 | $ 2.32 |
| Diluted | $ (0.08) | $ 0.11 | $ 2.48 | $ 2.32 |
| Net loss, including loss on sale, of discontinued operations, net of taxes, per share: | ||||
| Basic | $ (0.05) | $ (0.11) | $ (1.70) | $ (0.50) |
| Diluted | $ (0.05) | $ (0.11) | $ (1.69) | $ (0.50) |
| Net (loss) earnings per share: | ||||
| Basic | $ (0.13) | $ — | $ 0.80 | $ 1.82 |
| Diluted | $ (0.13) | $ — | $ 0.79 | $ 1.82 |
| Weighted average shares outstanding: | ||||
| Basic | 16,457 | 16,435 | 16,451 | 16,426 |
| Diluted | 16,457 | 16,435 | 16,544 | 16,461 |
| Dividends declared per share | $ 0.25 | $ 0.21 | $ 0.75 | $ 0.63 |
| Oxford Industries, Inc. | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| (unaudited) | ||
| First Nine | ||
| Months Fiscal | First Nine Months | |
| 2015 | Fiscal 2014 | |
| Cash Flows From Operating Activities: | ||
| Net earnings | $ 13,091 | $ 29,964 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation | 25,438 | 25,881 |
| Amortization of intangible assets | 1,490 | 1,883 |
| Change in fair value of contingent consideration | — | 206 |
| Amortization of deferred financing costs | 289 | 288 |
| Loss on sale of discontinued operations | 20,437 | — |
| Equity compensation expense | 3,758 | 2,848 |
| Deferred income taxes | (767) | (630) |
| Changes in working capital, net of acquisitions and dispositions: | ||
| Receivables, net | 11,006 | (5,377) |
| Inventories, net | 808 | (2,920) |
| Prepaid expenses, net | (6,888) | (5,624) |
| Current liabilities | (11,071) | (10,084) |
| Other non-current assets, net | 593 | 195 |
| Other non-current liabilities | 10,428 | 4,051 |
| Net cash provided by operating activities | $ 68,612 | $ 40,681 |
| Cash Flows From Investing Activities: | ||
| Purchases of property and equipment | (63,217) | (36,549) |
| Proceeds from sale of discontinued operations | 59,336 | — |
| Investment in unconsolidated entity | (1,100) | — |
| Net cash used in investing activities | $ (4,981) | $ (36,549) |
| Cash Flows From Financing Activities: | ||
| Repayment of revolving credit arrangements | (272,953) | (244,242) |
| Proceeds from revolving credit arrangements | 234,051 | 250,338 |
| Payment of contingent consideration | (12,500) | (2,500) |
| Proceeds from issuance of common stock, including excess tax benefits | 991 | 812 |
| Dividends paid | (12,474) | (10,399) |
| Net cash used in financing activities | $ (62,885) | $ (5,991) |
| Net change in cash and cash equivalents | $ 746 | $ (1,859) |
| Effect of foreign currency translation on cash and cash equivalents | 531 | (349) |
| Cash and cash equivalents at the beginning of year | 5,281 | 8,483 |
| Cash and cash equivalents at the end of the period | $ 6,558 | $ 6,275 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest, net | $ 1,858 | $ 2,537 |
| Cash paid for income taxes | $ 32,141 | $ 37,658 |
| Oxford Industries, Inc. | ||||||
| Reconciliations of Certain Non-GAAP Financial Information | ||||||
| (in millions, except per share amounts) | ||||||
| (unaudited) | ||||||
| Third | Third | First Nine | First Nine | |||
| Quarter | Quarter | Months | Months | |||
| AS REPORTED | Fiscal 2015 | Fiscal 2014 | % Change | Fiscal 2015 | Fiscal 2014 | % Change |
| Tommy Bahama | ||||||
| Net sales | $124.1 | $125.4 | (1.0)% | $462.6 | $441.5 | 4.8% |
| Gross profit | $72.6 | $72.8 | (0.3)% | $278.3 | $267.0 | 4.2% |
| Gross margin | 58.5% | 58.0% | 60.2% | 60.5% | ||
| Operating (loss) income | $(6.3) | $0.4 | (1,781.6)% | $34.6 | $42.0 | (17.5)% |
| Operating margin | (5.1)% | 0.3% | 7.5% | 9.5% | ||
| Lilly Pulitzer | ||||||
| Net sales | $44.1 | $36.0 | 22.2% | $167.7 | $133.0 | 26.1% |
| Gross profit | $25.9 | $20.9 | 24.4% | $110.1 | $85.2 | 29.3% |
| Gross margin | 58.9% | 57.8% | 65.6% | 64.0% | ||
| Operating income | $5.1 | $4.1 | 23.7% | $42.4 | $30.1 | 40.7% |
| Operating margin | 11.6% | 11.5% | 25.3% | 22.6% | ||
| Lanier Clothes | ||||||
| Net sales | $26.2 | $35.9 | (27.1)% | $70.6 | $86.0 | (17.8)% |
| Gross profit | $7.5 | $8.6 | (12.5)% | $20.8 | $23.0 | (9.6)% |
| Gross margin | 28.7% | 23.9% | 29.4% | 26.7% | ||
| Operating income | $3.0 | $3.4 | (11.0)% | $6.7 | $7.7 | (13.4)% |
| Operating margin | 11.6% | 9.5% | 9.4% | 8.9% | ||
| Corporate and Other | ||||||
| Net sales | $4.3 | $3.9 | 11.8% | $8.8 | $10.8 | (19.1)% |
| Gross profit | $1.9 | $1.7 | 13.5% | $4.3 | $5.4 | (20.7)% |
| Operating loss | $(3.0) | $(3.5) | 14.3% | $(14.6) | $(13.1) | (11.3)% |
| Consolidated | ||||||
| Net sales | $198.6 | $201.2 | (1.3)% | $709.7 | $671.3 | 5.7% |
| Gross profit | $107.9 | $103.9 | 3.9% | $413.4 | $380.5 | 8.6% |
| Gross margin | 54.3% | 51.6% | 58.2% | 56.7% | ||
| SG&A | $112.7 | $102.9 | 9.5% | $355.3 | $323.7 | 9.8% |
| SG&A as % of net sales | 56.7% | 51.1% | 50.1% | 48.2% | ||
| Operating (loss) income | $(1.2) | $4.4 | (126.6)% | $69.1 | $66.7 | 3.6% |
| Operating margin | (0.6)% | 2.2% | 9.7% | 9.9% | ||
| (Loss) earnings from continuing operations before income taxes | $(1.6) | $3.7 | (144.1)% | $67.1 | $64.1 | 4.7% |
| Net (loss) earnings from continuing operations | $(1.4) | $1.8 | (178.4)% | $41.0 | $38.1 | 7.5% |
| Net (loss) earnings from continuing operations per diluted share | $(0.08) | $0.11 | (172.7)% | $2.48 | $2.32 | 6.9% |
| Weighted average shares outstanding - diluted | 16.5 | 16.4 | 0.1% | 16.5 | 16.5 | 0.5% |
| ADJUSTMENTS | ||||||
| LIFO accounting adjustments(1) | $(0.4) | $(0.4) | $0.0 | $(0.5) | ||
| Amortization of Canadian intangible assets(2) | $0.4 | $0.4 | $1.2 | $1.3 | ||
| Change in fair value of contingent consideration(3) | $0.0 | $0.1 | $0.0 | $0.2 | ||
| Impact of income taxes on adjustments above(4) | $0.2 | $0.1 | $0.0 | $0.1 | ||
| Adjustment to net (loss) earnings from continuing operations(5) | $0.1 | $0.2 | $1.1 | $1.2 | ||
| Third | Third | First Nine | First Nine | |||
| Quarter | Quarter | Months | Months | |||
| Fiscal 2015 | Fiscal 2014 | % Change | Fiscal 2015 | Fiscal 2014 | % Change | |
| AS ADJUSTED | ||||||
| Tommy Bahama | ||||||
| Net sales | $124.1 | $125.4 | (1.0)% | $462.6 | $441.5 | 4.8% |
| Gross profit | $72.6 | $72.8 | (0.3)% | $278.3 | $267.0 | 4.2% |
| Gross margin | 58.5% | 58.0% | 60.2% | 60.5% | ||
| Operating (loss) income | $(5.9) | $0.8 | (822.3)% | $35.8 | $43.3 | (17.4)% |
| Operating margin | (4.8)% | 0.7% | 7.7% | 9.8% | ||
| Lilly Pulitzer | ||||||
| Net sales | $44.1 | $36.0 | 22.2% | $167.7 | $133.0 | 26.1% |
| Gross profit | $25.9 | $20.9 | 24.4% | $110.1 | $85.2 | 29.3% |
| Gross margin | 58.9% | 57.8% | 65.6% | 64.0% | ||
| Operating income | $5.1 | $4.2 | 21.6% | $42.4 | $30.3 | 39.8% |
| Operating margin | 11.6% | 11.7% | 25.3% | 22.8% | ||
| Lanier Clothes | ||||||
| Net sales | $26.2 | $35.9 | (27.1)% | $70.6 | $86.0 | (17.8)% |
| Gross profit | $7.5 | $8.6 | (12.5)% | $20.8 | $23.0 | (9.6)% |
| Gross margin | 28.7% | 23.9% | 29.4% | 26.7% | ||
| Operating income | $3.0 | $3.4 | (11.0)% | $6.7 | $7.7 | (13.4)% |
| Operating margin | 11.6% | 9.5% | 9.4% | 8.9% | ||
| Corporate and Other | ||||||
| Net sales | $4.3 | $3.9 | 11.8% | $8.8 | $10.8 | (19.1)% |
| Gross profit | $1.5 | $1.2 | 19.1% | $4.2 | $4.9 | (13.7)% |
| Operating loss | $(3.4) | $(4.0) | 13.1% | $(14.6) | $(13.6) | (7.6)% |
| Consolidated | ||||||
| Net sales | $198.6 | $201.2 | (1.3)% | $709.7 | $671.3 | 5.7% |
| Gross profit | $107.5 | $103.4 | 3.9% | $413.3 | $380.0 | 8.8% |
| Gross margin | 54.1% | 51.4% | 58.2% | 56.6% | ||
| SG&A | $112.3 | $102.4 | 9.6% | $354.2 | $322.3 | 9.9% |
| SG&A as % of net sales | 56.5% | 50.9% | 49.9% | 48.0% | ||
| Operating (loss) income | $(1.2) | $4.5 | (127.0)% | $70.2 | $67.8 | 3.6% |
| Operating margin | (0.6)% | 2.2% | 9.9% | 10.1% | ||
| (Loss) earnings from continuing operations before income taxes | $(1.7) | $3.7 | (144.2)% | $68.2 | $65.2 | 4.7% |
| Net (loss) earnings from continuing operations | $(1.3) | $2.0 | (163.7)% | $42.1 | $39.3 | 7.2% |
| Net (loss) earnings from continuing operations per diluted share | $(0.08) | $0.12 | (166.7)% | $2.55 | $2.39 | 6.7% |
| First Nine | First Nine | ||||
| Third Quarter | Third Quarter | Third Quarter | Months Fiscal | Months Fiscal | |
| Fiscal 2015 | Fiscal 2015 | Fiscal 2014 | 2015 | 2014 | |
| Actual | Guidance(6) | Actual | Actual | Actual | |
| Net earnings from continuing operations per diluted share: | |||||
| GAAP basis | $(0.08) | $(0.07) - $(0.17) | $0.11 | $2.48 | $2.32 |
| LIFO accounting adjustments(7) | $(0.02) | $0.00 | $(0.02) | $0.00 | $(0.02) |
| Amortization of Canadian intangible assets(8) | $0.02 | $0.02 | $0.03 | $0.07 | $0.08 |
| Change in fair value of contingent consideration(9) | $0.00 | $0.00 | $0.00 | $0.00 | $0.01 |
| As adjusted(5) | $(0.08) | $(0.05) - $(0.15) | $0.12 | $2.55 | $2.39 |
| Fourth | Fourth | ||||
| Quarter Fiscal | Quarter Fiscal | ||||
| 2015 | 2014 | Fiscal 2015 | Fiscal 2014 | ||
| Guidance(10) | Actual | Guidance(10) | Actual | ||
| Net earnings from continuing operations per diluted share: | |||||
| GAAP basis | $0.96 - $1.06 | $0.95 | $3.44 - 3.54 | $3.27 | |
| LIFO accounting adjustments(7) | $0.00 | $0.10 | $0.00 | $0.08 | |
| Amortization of Canadian intangible assets(8) | $0.02 | $0.03 | $0.09 | $0.11 | |
| Change in fair value of contingent consideration(9) | $0.00 | $0.00 | $0.00 | $0.01 | |
| As adjusted(5) | $0.98 - $1.08 | $1.08 | $3.53 - 3.63 | $3.46 | |
| (1) LIFO accounting adjustments reflect the impact on cost of goods sold resulting from LIFO accounting adjustments. LIFO accounting adjustments are included in Corporate and Other. | |||||
| (2) Amortization of Canadian intangible assets reflects the amortization included in SG&A related to the intangible assets acquired as part of the Tommy Bahama Canada acquisition. Amortization of Tommy Bahama Canadian intangible assets are included in Tommy Bahama. | |||||
| (3) Change in fair value of contingent consideration reflects the impact resulting from the change in the fair value of contingent consideration pursuant to the earnout agreement with the sellers of the Lilly Pulitzer brand and operations. Change in fair value of contingent consideration related to the Lilly Pulitzer acquisition is included in Lilly Pulitzer. | |||||
| (4) Impact of income taxes reflects the estimated tax impact of the above adjustments based on the applicable estimated effective tax rate on current year earnings in the respective jurisdiction, before any discrete items. | |||||
| (5) Amounts in columns may not add due to rounding. | |||||
| (6) Guidance as issued on September 2, 2015. | |||||
| (7) LIFO accounting adjustments reflect the impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from LIFO accounting adjustments. No estimate for future LIFO accounting adjustments are reflected in the guidance for any period presented. | |||||
| (8) Amortization of Canadian intangible assets reflect the impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from the amortization related to intangible assets acquired as part of the Tommy Bahama Canada acquisition. | |||||
| (9) Change in fair value of contingent consideration reflects the impact, net of income taxes, on net earnings from continuing operations per diluted share resulting from the change in fair value of contingent consideration pursuant to the earnout agreement with the sellers of the Lilly Pulitzer brand and operations. No additional amounts for change in fair value of contingent consideration related to the Lilly Pulitzer acquisition are expected in future periods. | |||||
| (10) Guidance as issued on December 8, 2015. | |||||
| Comparable Store Sales Change | |||||
| 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. Prior period comparable store sales changes are as previously disclosed. | |||||
| Q1 | Q2 | Q3 | Q4 | Full Year | |
| Tommy Bahama | |||||
| Fiscal 2015 | 8% | 3% | (5)% | — | — |
| Fiscal 2014 | (1)% | 4% | 2% | 8% | 4% |
| Lilly Pulitzer | |||||
| Fiscal 2015 | 20% | 41% | 27% | — | — |
| Fiscal 2014 | 34% | 19% | 7% | 9% | 19% |
| Retail Location Count | |||||
| Beginning of Year | End of Q1 | End of Q2 | End of Q3 | End of Q4 | |
| Tommy Bahama | |||||
| Fiscal 2015 | |||||
| Full-price | 101 | 100 | 104 | 107 | — |
| Retail-restaurant | 15 | 15 | 15 | 16 | — |
| Outlet | 41 | 41 | 42 | 41 | — |
| Total | 157 | 156 | 161 | 164 | — |
| Fiscal 2014 | |||||
| Full-price | 91 | 91 | 94 | 96 | 101 |
| Retail-restaurant | 14 | 14 | 14 | 14 | 15 |
| Outlet | 36 | 36 | 39 | 40 | 41 |
| Total | 141 | 141 | 147 | 150 | 157 |
| Lilly Pulitzer | |||||
| Fiscal 2015 | |||||
| Full-price | 28 | 30 | 33 | 34 | — |
| Fiscal 2014 | |||||
| Full-price | 23 | 26 | 26 | 28 | 28 |
CONTACT: Anne M. Shoemaker
Oxford Industries, Inc.
999 Peachtree St., Suite 688
Atlanta, Georgia 30309
Telephone: (404) 653-1455
Fax: (404) 653-1545
Email: InvestorRelations@oxfordinc.com