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.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion