Oxford Industries, Inc. Press Release

222 Piedmont Avenue, N.E. • Atlanta, Georgia 30308

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


FOR IMMEDIATE RELEASE — September 23, 2002

OXFORD INDUSTRIES ANNOUNCES FIRST QUARTER FINANCIAL RESULTS

ATLANTA, GA. — Oxford Industries, Inc. (NYSE:OXM) announced today financial results for the first quarter ended August 30, 2002. Consolidated net sales declined 4.1% to $172.1 million from $179.5 million last year. First quarter net earnings increased 44.2% to $4.5 million from $3.1 million last year. Diluted earnings per share increased 42.9% to $0.60 from $0.42.

“We are gratified to see the dramatic improvement in our profitability in the first quarter,“ commented J. Hicks Lanier, Chairman and President. “Our efforts to aggressively manage inventory and improve sourcing have been key to our improving financial results. Significantly lower inventories have resulted in reduced markdowns. Better sourcing and more efficient manufacturing have led to a 210 basis point increase in our first quarter gross margins.“

The sales decline was driven primarily by the discontinuation of the DKNY® Kids business and was in line with the company’s expectations. Gross margins improved 210 basis points to 22.3% from 20.2% last year. Operating expenses declined slightly from last year.

Total inventories declined 30% from last year with substantially all of the reduction coming in the finished goods inventory. Total funded debt inclusive of outstanding debt under the trade receivables securitization program declined to $2.9 million from $53.6 million last year.

SEGMENT HIGHLIGHTS
Oxford Slacks reported a 3% sales decline to $21.4 million from $22.0 million last year. Sales gains in the specialty catalog channel were offset by sales declines to chain stores. Profitability increased significantly due primarily to improved manufacturing and sourcing performance. Operating earnings increased 23% over last year to $1.3 million.

Oxford Womenswear Group posted first quarter sales of $66.6 million, a 7% increase over last year. Growth at the group's mass merchant customers was responsible for most of the sales increase. Operating earnings declined 12% from last year to $3.5 million due to gross margin pressures.

First quarter sales for the Oxford Shirt Group declined 13% to $47.2 million from $54.5 million. A majority of the sales decline was attributable to the exit of the DKNY® Kids business and the balance was due to lower planned sales in the group's sportshirt division. Operating earnings declined 12%, slightly less than the sales decline.

Lanier Clothes, the company's tailored clothing group, reported a 9% sales decline from last year to $36.9 million. The sales decline was driven by lower demand from the department store channel. Despite the sales decline, operating earnings increased 11% over last year to $4.9 million driven by lower markdowns and improved manufacturing performance.

CONCLUSION
"While the business climate remains quite challenging, we are increasingly optimistic about our financial performance going forward," concluded Lanier. “Comparatively lower wholesale and retail inventories should provide us with the opportunity to replenish a somewhat depleted supply chain. The rollout of selected Lands' End apparel products to Sears stores this fall and next spring should have a favorable impact on our sales. Order bookings and backlog were strongly positive at quarter-end. With respect to profitability, sourcing and manufacturing initiatives implemented last year should continue to drive improvements in gross margin."

For the second quarter, the company expects a material improvement in sales and earnings compared to last year’s depressed levels. For the full year, the company expects a significant rebound in earnings on a moderate sales increase.

Oxford Industries, Inc. is a diversified international manufacturer and wholesale marketer of branded and private label apparel for men, women and children. With manufacturing and sourcing operations in over 40 countries around the globe, Oxford provides retailers and consumers with a wide variety of apparel products and services to suit their individual needs. Major licensed brands include Tommy Hilfiger®, Nautica®, Geoffrey Beene®, Slates®, Oscar de la Renta® and Izod Club®. Oxford's private label customers are found in every major channel of distribution, including national chains, specialty catalogs, mass merchandisers, department stores, specialty stores and Internet retailers. The Company's stock has traded on the NYSE since 1964 under the symbol OXM. Please visit our Web site at www.oxfordinc.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This document contains forward-looking statements of the Company's beliefs or expectations regarding anticipated future results of the Company. These statements are based on numerous assumptions and are subject to risks and uncertainties. Although the Company feels that the beliefs and expectations in the forward-looking statements are reasonable, it does not and cannot give any assurance that the beliefs and expectations will prove to be correct. Many factors could significantly affect the Company's operations and cause the Company's actual results to be substantially different from the Company's expectations. Those factors include, but are not limited to: (i) general economic and apparel business conditions; (ii) continued retailer and consumer acceptance of the Company's products; (iii) global manufacturing costs; (iv) the financial condition of customers or suppliers; (v) changes in capital market conditions; (vi) governmental and business conditions in countries where the Company's products are manufactured; (vii) changes in trade regulations; (viii) the impact of acquisition activity; (ix) changes in the Company's plans, strategies, objectives, expectations or intentions, which may happen at any time in the discretion of the Company; and (x) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not have an obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

 

OXFORD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
QUARTERS ENDED AUGUST 30, 2002 AND AUGUST 31, 2001
(UNAUDITED)


  Quarter Ended
$ in thousands, except per share amounts
Aug. 30, 2002
Aug. 31, 2001

Net Sales     $172,139 $179,530
Cost of Goods Sold     133,677 143,210

Gross Profit     38,462 36,320
Selling, General and Administrative     30,968 31,203

Earnings Before Interest and Taxes     7,494 5,117
Interest     41 73

Earnings Before Income Taxes     7,453 5,044
Income Taxes     2,943 1,917

Net Earnings     $    4,510 $    3,127

Basic Earnings Per Common Share     $      0.60 $      0.42

Diluted Earnings Per Common Share     $      0.60 $      0.42

Basic Number of Shares Outstanding     7,515,577 7,439,168

Diluted Number of Shares Outstanding     7,560,674 7,487,273

Dividends Per Share     $      0.21 $      0.21

 

 

OXFORD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
AUGUST 30, 2002 AND AUGUST 31, 2001
(UNAUDITED)


$ in thousands
Aug. 30, 2002
Aug. 31, 2001

Assets
Current Assets:
   Cash $    6,253 $    6,330
   Receivables 121,011 59,387
   Inventories:    
     Finished goods 57,458 91,748
     Work in process 13,459 16,484
     Fabric, trim and supplies 19,103 19,483

       Total Inventories 90,020 127,715
   Prepaid expenses 10,133 11,450

       Total Current Assets 227,417 204,882
Property, Plant and Equipment 26,079 32,151
Deferred Income Taxes 256
Other Assets 8,216 9,468

Total Assets $261,712 $246,757

Liabilities and Stockholders' Equity
Current Liabilities:
   Notes payable $    2,500 $          —
   Trade accounts payable 45,666 35,928
   Accrued compensation 10,734 9,730
   Other accrued expenses 14,860 20,541
   Dividends payable 1,578 1,571
   Income taxes 2,924 1,570
   Current maturities of long-term debt 236 245

      Total Current Liabilities 78,498 69,585

Long-Term Debt, less current maturities 139 399
Noncurrent Liabilities 4,500 4,500
Deferred Income Taxes 423
     
Stockholders' Equity:    
   Common stock 7,516 7,504
   Additional paid-in capital 14,633 14,386
   Retained earnings 156,003 150,383

      Total Stockholders' Equity 178,152 172,273

Total Liabilities and Stockholders' Equity $261,712 $246,757

 

 

OXFORD INDUSTRIES, INC.
SEGMENT INFORMATION
QUARTERS ENDED AUGUST 30, 2002 AND AUGUST 31, 2001
(UNAUDITED)


$ in thousands   First Quarter
   
Aug. 30, 2002
Aug. 31, 2001

Net Sales
   Oxford Shirt Group     $  47,173 $  54,469
   Lanier Clothes     36,940 40,711
   Oxford Slacks     21,354 22,002
   Oxford Womenswear     66,599 62,227
   Corporate and Other     73 121

Net Sales     $172,139 $179,530
 
Earnings Before Interest and Taxes
   Oxford Shirt Group     $    1,254 $    1,427
   Lanier Clothes     4,896 4,407
   Oxford Slacks     1,349 1,095
   Oxford Womenswear     3,541 4,036
   Corporate and Other     (3,546) (5,848)

Total     7,494 5,117
Interest expense, net     41 73

Earnings Before Interest and Taxes     $    7,453 $    5,044