Oxford Apparel reported net sales of $63.2 million for the first quarter of fiscal 2009 compared to $68.7 million in the first quarter of fiscal 2008. Operating income for Oxford Apparel was $5.2 million for the first quarter compared to $5.3 million in the first quarter of fiscal 2008. The decrease in sales was primarily due to Oxford Apparel's strategy to focus on key product categories and exit certain underperforming lines of business. The decrease in sales and corresponding decrease in gross profit were offset by decreases in SG&A in the form of reduced employment costs and other variable operating expenses.
The Corporate and Other operating loss for the first quarter of fiscal 2009 was flat with the first quarter of fiscal 2008. The first quarter of fiscal 2009 included a LIFO accounting charge of $1.6 million compared to a LIFO accounting charge of $0.5 million in the first quarter of fiscal 2008. This additional LIFO charge was offset by decreases in SG&A, primarily consisting of reduced employment costs.
Consolidated gross margins for the first quarter of fiscal 2009 decreased to 41.4% from 42.6% in the first quarter of fiscal 2008. The moderate decline in gross margin was primarily attributable to the larger LIFO charge previously referred to, as well as the company's sales mix.
SG&A for the first quarter of fiscal 2009 decreased to $78.7 million, or 36.3% of net sales, from $99.6 million, or 36.5% of net sales, in the first quarter of fiscal 2008. The decrease in SG&A was due primarily to significant reductions in the Company's overhead cost structure, cost reductions associated with the exit from certain businesses, the impact on Ben Sherman of the reduction in the average value of the British pound versus the United States dollar, reductions in pre-opening expenses for Tommy Bahama stores and restaurants and reductions in advertising expenses. These cost savings were partially offset by expenses associated with the operation of additional Tommy Bahama retail stores.
Royalties and other operating income for the first quarter of fiscal 2009 was $2.5 million compared to $4.2 million in the first quarter of fiscal 2008. The decrease was primarily due to the Company's termination of the license agreement for footwear in Tommy Bahama, the decline in the British pound versus the United States dollar referenced above, which impacted Ben Sherman royalty income, and the difficult economic conditions.
Balance Sheet & Liquidity As of May 2, 2009, the Company had approximately $122.8 million in unused availability under its U.S. revolving credit facility and $9.1 million in unused availability under its U.K. revolving credit facility. The Company's anticipated capital expenditures for fiscal 2009, including $3.8 million incurred during the first quarter, are expected to be approximately $12 million. These expenditures will consist primarily of additional Tommy Bahama and Ben Sherman retail stores and the costs associated with the implementation of a new integrated financial system.
Outlook for Fiscal 2009 The Company noted that given the lack of visibility caused by the highly uncertain economic environment, it will not be providing 2009 sales and earnings guidance. The Company also noted that its plans for 2009 are conservative and assume a continuation of the difficult economic environment. The Company's results were in line with its expectations for the first quarter of fiscal 2009.
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