Home / Knowledge / News / Apparel/Garments / Sales drop at Oxford Apparel
Sales drop at Oxford Apparel
10
Jun '09
Oxford Industries Inc announced financial results for its fiscal 2009 first quarter ended May 2, 2009. Consolidated net sales were $216.7 million compared to $272.9 million in the first quarter of fiscal 2008. Diluted net earnings per common share were $0.42 compared to $0.59 in the first quarter of fiscal 2008.

J. Hicks Lanier, Chairman and Chief Executive Officer of Oxford Industries, Inc., commented, "Despite reduced consumer demand for discretionary items, including apparel, Oxford is solidly profitable and we expect to continue to generate substantial cash flow from operations. We remain confident that our fundamental strategy is on target and will allow us to generate excellent financial returns as conditions in our markets improve."

Mr. Lanier continued, "For the first quarter of this year, we reduced SG&A by over 20% from $99.6 million to $78.7 million. We also reduced inventories from $122.7 million at the end of the first quarter last year to $103.3 million as of May 2, 2009. At the same time we have maintained the integrity of our Tommy Bahama and Ben Sherman brands and believe that we have strengthened the position of each in its core market. Additionally, our legacy businesses have performed quite well and are clearly showing the benefits of the restructuring efforts we initiated prior to the downturn in market conditions."

Operating Results
Tommy Bahama reported net sales of $98.4 million for the first quarter of fiscal 2009 compared to $129.3 million in the first quarter of fiscal 2008. The decrease in net sales was primarily due to the impact of the difficult retail environment on both sales at wholesale and in its owned retail stores. Tommy Bahama's operating income for the first quarter was $12.3 million compared to $19.5 million in the first quarter of 2008. The decrease in operating income was due to lower sales and lower royalty income. However, Tommy Bahama was able to mitigate the impact of lower sales with improved gross margins and lower SG&A.

Ben Sherman reported net sales of $24.2 million for the first quarter of fiscal 2009 compared to $36.6 million in the first quarter of 2008. Ben Sherman reported an operating loss of $2.0 million in the first quarter compared to operating income of $0.3 million in the first quarter of 2008.

The decrease in net sales and operating income was primarily due to the 26% reduction in the average exchange rate of the British pound versus the United States dollar coupled with challenging consumer market conditions in the United Kingdom. Because the majority of Ben Sherman's inventory purchases are denominated in United States dollars, while Ben Sherman's sales are primarily in other currencies, the currency fluctuation negatively impacted Ben Sherman's gross margins. The lower margins were partially offset by reductions in SG&A.

Net sales for Lanier Clothes were $31.5 million in the first quarter of fiscal 2009 compared to $38.7 million in the first quarter of fiscal 2008. For the quarter, Lanier Clothes reported operating income of $2.7 million compared to breakeven results in the first quarter of fiscal 2008. The reduced sales and improved profitability resulted from Lanier Clothes' exit from the Nautica and Oscar de la Renta businesses and restructuring of the Arnold Brant business as well as initiatives to reduce overhead.


Must ReadView All

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Top executives
Textile industry

The foremost issue is bridging the skill gap

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search