Dec 9, 2008
Oxford Industries Q3 profit falls; sees weak Q4
Dec 9, 2008
* Oxford Industries Q3 profit falls 65 pct on charges
* Sees Q4 below Street view
Dec 9 (Reuters) - Apparel maker Oxford Industries Inc posted a 65 percent drop in quarterly profit, hurt by restructuring and other charges, and forecast fourth-quarter results below market estimates.
The company, whose brands include Tommy Bahama, Ben Sherman, Ely & Walker and Oxford Golf, posted a profit of $4.8 million, or 31 cents a share, for the third quarter ended Nov. 1. It earned $13.7 million, or 76 cents a share, a year earlier.
Excluding restructuring charges and other items, earnings for the quarter came to 38 cents a share.
Net sales at the company, which also holds licenses to make and sell certain product categories under the Kenneth Cole, Geoffrey Beene, Dockers and Tommy Hilfiger labels, fell about 15 percent to $244.2 million.
Analysts on average expected earnings of 45 cents a share, before exceptional items, on revenue of $259.8 million, according to Reuters Estimates.
For the fourth quarter, Oxford Industries expects to breakeven on a per share basis and sees sales of $195 million to $205 million. Analysts were expecting revenue of $242.5 million.
Excluding restructuring charges, the Atlanta-based company expects to earn 4 cents a share, well below the analysts' estimates of 37 cents a share.
The company, whose store roll out plans have been moderated due to weak economic conditions, expects capital expenditure of about $22 million for fiscal 2008 and less than $10 million next year.
Shares of the company closed at $6.62 Tuesday on the New York Stock Exchange. (Reporting by Dilipp S. Nag in Bangalore; Editing by Amitha Rajan)
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