Oxford Industries plunges on Q1 sales decline
Oxford Industries, Inc. (NYSE: OXM) shares are plunging after the apparel company announced before the opening that first-quarter sales fell to $237.9 million, below views of $247.3 million and compared with $284.1 million a year earlier. The Atlanta-based company earnings for the three months ended Aug. 31 were $0.27 per share, below estimates of $0.46 per share and compared with $0.63 per share in the year-ago quarter.
"Our quarterly results reflect the difficult condition of the retailing market," CEO J. Lanier said in a statement. “We continue to advance our strategy to rationalize our less-profitable businesses and focus on the branded lifestyle market. We believe that the slowdown in our Tommy Bahama business is related to current market conditions, but that the Tommy Bahama brand remains strong and the business is well-positioned to rebound as these conditions abate.”
The clothing maker also announced it shifted its fiscal year to end on the Saturday closest to Jan. 31, which will coincide with the National Retail Federation’s reporting calendar.
The firm’s cost of goods sold during the first quarter declined to $140.5 million, from $176 million a year earlier. Oxford’s selling, general and administrative costs remained relatively stable at $88.9 million, from $86.4 million during the same period of calendar 2006.
During the first quarter, Oxford’s Tommy Bahama brand reported sales of $99.2 million, down 4.8% from $104.1 million a year earlier. Ben Sherman brand sales fell 3.9% to $37.6 million, compared with $39.1 million a year earlier. Sales for the Lanier Clothes brand declined 12.5% to $35.6 million, from $40.7 million in the prior-year’s first quarter. Oxford Apparel sales plunged 34% to $65.3 million, from $99 million during the same period of calendar 2006.
The company said the decline in Oxford Apparel was expected as the firm continues to exit certain lines of business and focus on key categories.
In morning trading, OXM shares are down 19.34%, or $7.01, at $29.24. Over the last 52 weeks, shares have ranged from $29.01 to $53.98.
