Oxford Industries 4Q profit slips, revenue rises

ATLANTA (AP) -- Oxford Industries Inc.'s fiscal fourth-quarter profit fell about 25 percent, but its adjusted results showed a gain in profit with strength in its Tommy Bahama and Lily Pulitzer brands offsetting weakness of its Ben Sherman's business.

The Atlanta-based clothing company said Tuesday earned $5.3 million, or 32 cents per share, for the period that ended Feb. 2. That is down from $7.1 million, or 43 cents per share, earned in the same quarter of the prior year. After adjusting for accounting and other unusual items in both periods, it earned 65 cents per share versus 61 cents per share.

Oxford's revenue increased 18 percent to $236.2 million from $199.7 million, helped by an extra week in the most recent quarter.

Analysts polled by FactSet were expecting the company to earn an adjusted 69 cents per share on revenue of $227.7 million.

Its revenue from the Tommy Bahama's brand increased 23 percent to $156.8 million. Lilly Pulitzer revenue increased 26 percent to $29.1 million and Lanier Clothes revenue increased 13 percent to $22.3 million. Meanwhile, its revenue from Ben Sherman business slipped to $24.7 million from $25.9 million.

Oxford has been heavily promoting its more popular brands recently, including taking its Tommy Bahama chain to Asia this year. It plans to add four to six new stores each year for its Lily Pulitzer brand.

The company said missteps in strategy and the difficult economy in Europe led to the disappointing performance by its Ben Sherman brand. While Oxford is taking steps to stabilize and improve the business, it expects the brand's woes will continue into the first half of its fiscal year 2013, which ends Feb. 1, 2014.

Oxford said it expects to earn between $3 and $3.15 per share for the year on revenue of $930 million to $945 million. Analysts were expecting $3.16 a share on $923 million in revenue, according to FactSet.

The company expects earnings of 72 to 82 cents per share for its first quarter on revenue between $230 million and $240 million. Oxford said its first quarter will be weighed down with the pre-opening costs for Tommy Bahama stores in Tokyo and Chicago, as well as higher international and other infrastructure expenses. It also expects sales declines at Ben Sherman and Lanier Clothes.

Investors sent the company's shares down $1.54, or 3 percent, to $50.51 in after-hours trading. Its stock fell 28 cents to close regular trading at $52.05.