Oxford Industries updates guidance for full year & Q1 fiscal 2008
06 Jun '07
2 min read
Oxford Industries Inc updated its guidance for the fourth quarter of fiscal 2007 and initiated guidance for the full year and first quarter of fiscal 2008.
The Company noted that Tommy Bahama and Ben Sherman achieved their plan for the fourth quarter of fiscal 2007. For Ben Sherman, this represented a dramatic improvement in profitability over the fourth quarter of fiscal 2006. However, continued weakness in the tailored clothing sector depressed the results of the Menswear Group for the fourth quarter of fiscal 2007.
The Company believes that below plan results at many retailers for the combined months of March and April led to shipment deferrals and tight selling windows.
As a result, the Company expects to report fourth quarter net sales in the lower half of its previously issued net sales guidance of $285 million to $295 million.
In response to this situation, the Company accelerated efforts to rationalize underperforming businesses and incurred approximately $0.03 per diluted share of previously unanticipated severance cost during the fourth quarter of fiscal 2007.
Based on the challenges in tailored clothing and severance costs, the Company now anticipates fourth quarter earnings from continuing operations per diluted share of between $1.00 and $1.05 which compares to its previous guidance range of $1.07 to $1.14.
Diluted earnings from continuing operations for the fourth quarter of fiscal 2007, adjusted for unusual items, are expected to be within a range of $0.96 to $1.01 compared to diluted earnings from continuing operations per common share of $0.91, adjusted for unusual items, for the fourth quarter of fiscal 2006. Please see the attached reconciliation of GAAP and adjusted diluted earnings from continuing operations per common share.
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