A noncash impairment charge pushed Oxford Industries Inc. to a fourth-quarter net loss of $281.6 million, or $18.17 a diluted share, compared with profits of $5.9 million, or 36 cents a year earlier.
Net sales for the quarter ended Jan. 31 fell 23.7 percent to $199.9 million from $261.9 million a year ago.
The marketer of Tommy Bahama, Ben Sherman and Arnold Brant recorded a $311.5 million noncash impairment of goodwill, intangible assets and investments in joint ventures in the quarter, stemming primarily from a decline in its market capitalization.
Excluding the impairment charge and other one-time events, the company earned 6 cents a diluted share in the fourth quarter.
“While we are not satisfied with our results for the fourth quarter, there is no question that they have been impacted by perhaps the worst retail environment in the history of our company,” said J. Hicks Lanier, chairman and chief executive officer of the Atlanta-based company.
The company managed to maintain its gross margin rate while reducing inventories and debt levels and cutting costs and expenditures.
But the top line slumped across all divisions. Tommy Bahama sales slipped 15 percent in the quarter to $96.7 million, while Ben Sherman sales tumbled 28.2 percent to $26.2 million. Sales at the Lanier Clothes division, which includes Arnold Brant, decreased 27.4 percent to $24.4 million. The Oxford Apparel unit, which makes branded and private label sportswear, suffered a 32.9 percent sales decline to $52.3 million.
The company didn’t issue guidance for 2009 because of poor visibility tied to the economic environment. But Lanier said on a conference call with analysts that he expects sales to decrease “in the high teens” over the next 12 months, reflecting the recession, unfavorable exchange rates and the loss of underperforming businesses that were shed in 2008.
For the full year, Oxford reported a net loss of $265.8 million, or $17 a diluted share, compared with profits of $45.4 million, or $2.59 in the previous year. Sales for the year slipped 12.7 percent to $947.5 million.
Excluding impairment charges and one-time events, diluted earnings per share for fiscal 2008 was $1.44.
Cost-cutting measures are expected to reduce selling, general and administrative expenses by $40 million in 2009, and the company is also moderating its store rollout plan, with capital expenditures reduced to $10 million to $12 million this year, compared to $20.7 million last year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast