EXHIBIT 99.1
OXFORD INDUSTRIES, INC. PRESS RELEASE
222 PIEDMONT AVENUE, N.E. - ATLANTA, GEORGIA 30308
Contact: J. Reese Lanier, Jr.
Telephone: (404) 653-1446
Fax: (404) 653-1545
E-Mail: rlanier@oxfordinc.com
FOR IMMEDIATE RELEASE
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May 1, 2006
OXFORD INDUSTRIES ANNOUNCES AGREEMENT TO SELL WOMENSWEAR GROUP
ATLANTA, GA. - Oxford Industries, Inc. (NYSE:OXM) announced today that it has
signed a definitive agreement to sell its Womenswear Group to a division of Hong
Kong-based Li & Fung Group. The all cash transaction includes the sale of
substantially all of the assets and certain liabilities of Oxford's Womenswear
Group except for accounts receivable and in-transit inventories. The sale is
subject to customary closing conditions and is expected to close on or about the
end of the Company's fiscal fourth quarter which ends on June 2, 2006.
"Our Womenswear Group has made a significant contribution to our success over
the years and the decision to pursue its sale has been very difficult. However,
we believe this divestiture is an important step in the ongoing strategic
repositioning of our company," commented J. Hicks Lanier, Chairman and Chief
Executive Officer of Oxford Industries, Inc. "This transaction will result in a
significant improvement in our balance sheet and enable us to continue to invest
in the growth of our key consumer lifestyle brands as well as to pursue the
acquisition of similar businesses."
Total cash consideration at closing is projected to be approximately $37 million
which equates to a projected net asset value of $12 million plus a $25 million
premium over the book value of assets conveyed. After closing, retained accounts
receivable will be collected by Oxford, in-transit inventories will be sold by
Oxford upon delivery to Li & Fung and retained liabilities, employee bonuses,
transaction expenses and taxes on the gain will be paid by Oxford, all which is
currently expected to net additional cash proceeds of approximately $30 million.
This will result in anticipated total after tax cash proceeds of approximately
$67 million. The net cash proceeds plus the elimination of trade letters of
credit associated with the womenswear business will increase the Company's
available borrowing capacity by approximately $110 million, subject to the terms
of its existing credit agreement.
The Company will hold a conference call with executive management to discuss the
transaction at 8:30 a.m. ET, Tuesday, May 2, 2006. A live webcast of the
conference call will be available on the Company's Web site at
www.oxfordinc.com. Please visit the Web site at least 15 minutes before the call
to register for the teleconference webcast and download any necessary software.
A replay of the call will be available through May 9, 2006. To access the
telephone replay, participants should dial (719) 457-0820. The access code for
the replay is 8428078. A replay of the webcast will also be available following
the conference call on Oxford Industries' corporate web site.
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Oxford Industries, Inc. is a producer and marketer of branded and private label
apparel for men, women and children. Oxford provides retailers and consumers
with a wide variety of apparel products and services to suit their individual
needs. Oxford's brands include Tommy Bahama(R), Indigo Palms(R), Island Soft(R),
Ben Sherman(R), Arnold Brant(R), Ely & Walker(R) and Oxford Golf(R). The Company
also holds exclusive licenses to produce and sell certain product categories
under the Tommy Hilfiger(R), Nautica(R), Geoffrey Beene(R), Slates(R),
Dockers(R) and Oscar de la Renta(R) labels. Oxford's wholesale customers are
found in every major channel of distribution including national chains,
specialty catalogs, mass merchants, department stores, specialty stores and
Internet retailers.
Oxford's stock has traded on the NYSE since 1964 under the symbol OXM. For more
information, please visit our web site at www.oxfordinc.com.
CAUTIONARY STATEMENT FOR THE PURPOSE OF THE SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements about future events. We
intend for all such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Important assumptions relating to these forward-looking statements include,
among others, assumptions regarding demand for our products, expected pricing
levels, raw material costs, the timing and cost of planned capital expenditures,
expected outcomes of pending litigation or regulatory actions, competitive
conditions, general economic conditions and expected synergies in connection
with acquisitions and joint ventures. Forward-looking statements reflect our
current expectations and are not guarantees of performance. These statements are
based on our management's beliefs and assumptions, which in turn are based on
currently available information. These beliefs and assumptions could prove
inaccurate. Forward-looking statements involve risks and uncertainties. Should
one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
anticipated, estimated or projected. Many of these risks and uncertainties are
beyond our ability to control or predict.
Such risks and uncertainties include, but are not limited to: (1) general
economic cycles; (2) competitive conditions in our industry; (3) price deflation
in the worldwide apparel industry; (4) our ability to identify and respond to
rapidly changing fashion trends and to offer innovative and distinctive
products; (5) changes in trade quotas or other trade regulations; (6) our
ability to continue to finance our working capital and growth on acceptable
terms; (7) unseasonable weather or natural disasters; (8) the price and
availability of raw materials and finished goods; (9) the impact of rising
energy costs on our costs and consumer spending; (10) our dependence on and
relationships with key customers; (11) consolidation among our customer base;
(12) the ability of our third party producers to deliver quality products in a
timely manner; (13) potential disruptions in the operation of our distribution
facilities; (14) any disruption or failure of our computer systems or data
networks; (15) the integration of our acquired businesses; (16) our ability to
successfully implement our growth plans, including growth by acquisition; (17)
unforeseen liabilities associated with our acquisitions and dispositions; (18)
unforeseen costs associated with entry into and exit from certain lines of
business; (19) economic and political conditions in the foreign countries in
which we operate or source our products; (20) increased competition from direct
sourcing; (21) our ability to maintain our licenses; (22) our ability to protect
and exploit our intellectual property and prevent our trademarks, service marks
and goodwill from being harmed by competitors' products; (23) our reliance on
key management and our ability to develop effective succession plans; (24) our
ability to develop and maintain an effective organization structure; (25) risks
associated with changes in global currency exchange rates; (26) changes in
interest rates on our variable rate debt; (27) the impact of labor disputes,
wars or acts of terrorism on our business; (28) the effectiveness of our
internal controls and disclosure controls related to financial reporting; (29)
our ability to maintain current pricing on our products given competitive or
other factors; and (30) our ability to expand our retail operations.
You are cautioned not to place undue reliance on forward-looking statements,
which are current as of the date of this press release. We disclaim any
intention, obligation or duty to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by law. Other risks or uncertainties may be detailed from
time to time in our future Securities and Exchange Commission filings.
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