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Last updated on April 18, 2014 at 13:45 EDT

Oxford Industries Reports Fiscal 2012 Results and Issues Fiscal 2013 Guidance

April 2, 2013

-Tommy Bahama and Lilly Pulitzer Deliver Strong Sales and Earnings Increases-

ATLANTA, April 2, 2013 /PRNewswire/ — Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its fourth quarter and 2012 fiscal year ended February 2, 2013. For fiscal 2012, a 53-week fiscal year, consolidated net sales rose 13% to $855.5 million from $758.9 million in fiscal 2011, which was a 52-week fiscal year. On an adjusted basis, earnings per share rose to $2.61 for the 2012 fiscal year compared to $2.41 in the prior year.

In the fourteen-week fourth quarter of fiscal 2012, consolidated net sales rose 18% to $236.2 million compared to $199.7 million in the thirteen-week fourth quarter of fiscal 2011. Adjusted earnings per share for the quarter were $0.65 compared to $0.61 in the same period last year.

For the full year, GAAP earnings per share increased to $1.89 from $1.77 in the prior year. In the fourth quarter of fiscal 2012, GAAP earnings per share were $0.32 compared to $0.43 in the same period of the prior year. For reference, tables reconciling GAAP to adjusted measures are included at the end of this release.

“We are very pleased with the 2012 performance of our two largest brands, Tommy Bahama and Lilly Pulitzer,” commented Thomas C. Chubb III, CEO and President. “We launched Tommy Bahama’s international expansion in 2012 and we now operate nine stores in the Asia-Pacific region, including our newest in Yokohama, Japan. We believe this is an excellent long-term investment and the runway it creates for us is substantial. Tommy Bahama continues a store opening pace that will add approximately 12 stores on the domestic front and approximately four international stores in fiscal 2013. Our e-commerce business also continues to grow rapidly and, in conjunction with our retail stores, we are well on our way to creating a seamless omni-channel experience for our consumers.”

Mr. Chubb continued, “Lilly Pulitzer also had a year of extraordinary growth as our brand continues to reach more and more customers. A measured pace of four to six new stores each year, a growing e-commerce business that now exceeds 20% of Lilly’s sales and the potential for carefully executed product extensions demonstrate the significant growth potential for Lilly Pulitzer.

“Needless to say, Ben Sherman’s operating results in fiscal 2012 were extremely disappointing. Missteps in the execution of our strategy coupled with a difficult consumer market in the UK and Europe have put pressures on both our top line and gross margins. We are taking specific actions to stabilize and improve this business, but the impact of these challenges is expected to continue into 2013, particularly in the first half.

Mr. Chubb concluded, “Notwithstanding the challenges with Ben Sherman, the overall picture for fiscal 2013 is bright. Tommy Bahama and Lilly Pulitzer each clearly demonstrate a powerful ability to drive our consolidated revenues and profitability. We expect our continued investment in their direct to consumer initiatives, including people, systems and infrastructure, to deliver long-term, sustainable growth for our shareholders in the years to come.”

Operating Group Results

Tommy Bahama In fiscal 2012, net sales at Tommy Bahama increased 17% to $528.6 million from $452.2 million in fiscal 2011. Operating income for the year increased 8% compared to the prior year, to $69.5 million. Growth in operating income in fiscal 2012 was suppressed by a $15.9 million negative impact related to investments in Tommy Bahama’s international expansion and its New York flagship store on Fifth Avenue compared to $3.5 million in fiscal 2011.

Tommy Bahama’s fourth quarter results were very strong with a 23% increase in net sales to $156.8 million compared to $127.6 million in the fourth quarter of fiscal 2011. Operating income for the quarter increased 27% from the same period in the prior year to $23.9 million. The increase in net sales and operating income was driven by a low-teens percentage comparable store sales increase (which includes full price stores and e-commerce) on a comparable 13-week basis. Sales also increased due to the operation of additional retail stores, a mid-teens percentage increase in wholesale sales and the benefit of the extra week included in the fourth quarter and fiscal year 2012. As of February 2, 2013, Tommy Bahama operated 113 retail stores globally, including 75 full-price stores, 14 restaurant-retail locations and 24 outlet stores, compared to 96 retail stores as of January 28, 2012.

Lilly Pulitzer In fiscal 2012, net sales at Lilly Pulitzer increased 30% from the prior year to $122.6 million. Adjusted operating income rose 50% to $26.6 million compared to $17.7 million in fiscal 2011. The fiscal 2012 adjusted operating income excludes a $6.3 million charge for the change in the fair value of contingent consideration for the earn-out obligation related to the Lilly Pulitzer acquisition. Fiscal 2011 adjusted operating income excluded a $2.4 million charge for the change in the fair value of contingent consideration as well as a $1.0 million purchase accounting charge.

The strong financial performance of Lilly Pulitzer has increased the certainty that the contingent consideration will be earned in full. As a result, a charge was taken in the fourth quarter of fiscal 2012 to bring the fair value of the obligation to $14.5 million, which represents all but $0.5 million of the maximum remaining potential payment of $15 million. The remaining $0.5 million charge is expected to be recognized in fiscal 2013 and 2014.

GAAP operating income for fiscal 2012 at Lilly Pulitzer increased to $20.3 million from $14.3 million in fiscal 2011.

At Lilly Pulitzer, net sales in the fourth quarter of fiscal 2012 increased 26% to $29.1 million compared to $23.1 million during the same period of the prior year. Net sales increased primarily due to a more than 20% increase in comparable store sales (which includes full price retail and e-commerce excluding flash clearance sales). Sales also increased due to higher e-commerce flash clearance sales, the impact of operating additional retail stores on a comparable 13-week basis and the benefit of the extra week. As of February 2, 2013, Lilly Pulitzer operated 19 retail stores compared to 16 retail stores as of January 28, 2012.

Lilly Pulitzer’s adjusted operating income in the fourth quarter of fiscal 2012 was $2.8 million compared to $2.6 million in the fourth quarter of fiscal 2011. SG&A increased in the quarter due to the operation of new stores and additional infrastructure to support the growth of the brand. Lilly Pulitzer reported a GAAP operating loss in the fourth quarter of fiscal 2012 of $1.7 million compared to operating income of $2.0 million in the fourth quarter of fiscal 2011. The only adjustment to GAAP earnings in the fourth quarter of each year was a charge to increase the fair value of contingent consideration. In the fourth quarter of fiscal 2012, the charge was $4.5 million compared to $0.6 million in the same period of the prior year.

Lanier Clothes Fiscal 2012 net sales for Lanier Clothes decreased slightly to $107.3 million from $108.8 million in fiscal 2011. Operating income also decreased to $10.8 million in fiscal 2012 from $12.9 million in fiscal 2011, primarily due to continued pressures on gross margins.

Net sales in the fourth quarter of fiscal 2012 increased 13% to $22.3 million from $19.8 million in fiscal 2011, primarily due to certain spring merchandise shipping in the fourth quarter of fiscal 2012, which would have typically shipped in the first quarter of the following year. Lanier Clothes’ operating income increased 29% to $2.0 million from $1.5 million in the fourth quarter of fiscal 2011.

Ben Sherman In fiscal 2012, net sales for Ben Sherman fell 10% to $81.9 million from $91.4 million in fiscal 2011. The loss from operations increased to $10.9 million in fiscal 2012 from $2.5 million in fiscal 2011. In the fourth quarter of fiscal 2012, net sales were $24.7 million compared to $25.9 million in the fourth quarter of fiscal 2011 and the loss from operations was $4.5 million compared to $0.3 million in the fourth quarter of fiscal 2011.

The increase in the operating loss in the fourth quarter of fiscal 2012 was primarily due to lower wholesale sales, lower gross margins and severance costs as well as the impact of the difficult economic conditions in the United Kingdom and Europe. The lower gross margins reflected heavier direct to consumer promotions, inventory markdowns and an increased mix of off-price sales. To improve results in Ben Sherman, the Company plans to reduce expenses, lower inventory risk, exit low potential and unprofitable businesses, and emphasize areas of potential profitability, such as e-commerce and existing retail stores.

Corporate and Other For fiscal 2012, Corporate and Other operating results, as adjusted, were a loss of $16.6 million compared to a loss of $15.4 million in fiscal 2011. On a GAAP basis, Corporate and Other reported a loss of $20.7 million in fiscal 2012 compared to a loss of $20.0 million in the prior year, primarily due to a decrease in transition service income related to the Oxford Apparel disposition.

For the fourth quarter of fiscal 2012, Corporate and Other operating results, as adjusted, were a loss of $5.3 million compared to a loss of $3.9 million in the fourth quarter of fiscal 2011 due to increased costs associated with certain benefits and the timing of incentive compensation, as well as the decrease in transition service income. On a GAAP basis, Corporate and Other reported a loss of $9.8 million in the fourth quarter of fiscal 2012 compared to a loss of $8.5 million in the same period of the prior year.

Consolidated Operating Results

Net Sales For fiscal 2012, consolidated net sales rose 13% to $855.5 million from $758.9 million in fiscal 2011. In the fourth quarter of fiscal 2012, consolidated net sales rose 18% to $236.2 million compared to $199.7 million in the fourth quarter of fiscal 2011. The sales increases in the quarter and the year were driven by strong performance from both Tommy Bahama and Lilly Pulitzer and the impact of the additional week in fiscal 2012.

Gross Profit and Margins For fiscal 2012, consolidated gross margins increased 50 basis points to 54.9% primarily due to the impact of LIFO accounting. Gross profit for the year rose to $469.6 million from $413.0 million in fiscal 2011. For the fourth quarter of fiscal 2012, consolidated gross margins increased to 53.0% compared to 51.9% for the fourth quarter of fiscal 2011, due to the net impact of LIFO accounting and a change in sales mix towards direct to consumer sales. Gross profit for the fourth quarter of fiscal 2012 increased to $125.2 million from $103.6 million in the fourth quarter of fiscal 2011.

SG&A For fiscal 2012, SG&A was $410.7 million or 48.0% of net sales compared to $358.6 million, or 47.2% of net sales in the prior year. For the fourth quarter of fiscal 2012, SG&A was $115.1 million, or 48.7% of net sales, compared to $93.6 million, or 46.9% of net sales in the fourth quarter of fiscal 2011. The increase in SG&A reflects expenses relating to the Tommy Bahama international expansion and the New York store of $8.4 million and $20.0 million for the fourth quarter and full fiscal year, respectively. This compares to $1.6 million and $3.6 million of these expenses for the 2011 fourth quarter and full fiscal year, respectively. SG&A also increased due to the costs of operating additional retail stores, other expenses to support the growing Tommy Bahama and Lilly Pulitzer businesses and the SG&A impact of the additional week in fiscal 2012.

Royalties and Other Income Royalties and other income was $16.4 million in fiscal 2012 compared to $16.8 million in fiscal 2011. For the fourth quarter of fiscal 2012, royalties and other income of $4.3 million was comparable to last year.

Operating Income For fiscal 2012, consolidated operating income, as adjusted, increased to $79.3 million from $76.8 million in fiscal 2011. In the fourth quarter of fiscal 2012, consolidated operating income, as adjusted, increased to $18.9 million from $18.8 million in the fourth quarter of fiscal 2011. GAAP consolidated operating income in fiscal 2012 was $69.0 million compared to $68.8 million in fiscal 2011. In the fourth quarter of fiscal 2012, GAAP consolidated operating income was $9.9 million compared to $13.6 million in the fourth quarter of fiscal 2011.

Interest Expense For fiscal 2012, interest expense declined 45% to $8.9 million from $16.3 million in fiscal 2011. The decrease was primarily due to repurchases in fiscal 2011 and the full redemption in fiscal 2012 of our senior secured notes. Interest expense for the fourth quarter of fiscal 2012 was $1.1 million compared to $3.5 million in the fourth quarter of fiscal 2011.

Income Taxes For fiscal 2012, the Company’s effective tax rate rose to 38.5% compared to 32.8% in fiscal 2011. For the fourth quarter of fiscal 2012, the effective tax rate increased to 40.6% from 30.0% in the fourth quarter of fiscal 2011. The fourth quarter of fiscal 2012 was negatively impacted by the Company’s inability to recognize a tax benefit for losses in foreign jurisdictions while the fourth quarter of fiscal 2011 benefited from certain favorable items.

Cash Flow From Operations For fiscal 2012, cash flow from operations increased 51% to $67.5 million from $44.6 million in fiscal 2011 primarily due to more efficient management of working capital and higher earnings.

Balance Sheet and Liquidity

Total inventories at February 2, 2013 were $109.6 million, compared to $103.4 million at January 28, 2012. The increase in inventory levels was primarily to support anticipated sales growth and additional Tommy Bahama and Lilly Pulitzer stores, while inventory levels at both Lanier Clothes and Ben Sherman decreased from January 28, 2012. Receivables increased to $62.8 million compared to $59.7 million at such dates primarily due to the timing of wholesale shipments.

As of February 2, 2013, the Company had $116.5 million of borrowings outstanding and approximately $105.7 million of unused availability under its U.S. and U.K revolving credit facilities.

The Company’s capital expenditures for fiscal 2012 were $60.7 million. These expenditures consisted primarily of investments associated with new retail stores, information technology investments, store remodeling and distribution center enhancements.

Dividend

The Company announced that its Board of Directors has declared a cash dividend of $0.18 per share payable on May 3, 2013 to shareholders of record as of the close of business on April 19, 2013. This represents a 20% increase from the dividend paid in the fourth quarter of fiscal 2012. The Company has paid dividends every quarter since it became publicly owned in 1960.

Outlook for Fiscal 2013 and the First Quarter of Fiscal 2013

For fiscal year 2013, which ends on February 1, 2014, the Company expects continued solid sales growth, a moderate expansion of operating margins and significant growth in earnings per share. The Company currently expects net sales of $930 to $945 million in fiscal 2013 compared to $855.5 million in fiscal 2012. Earnings per share are expected to be between $3.00 and $3.15. This compares with fiscal 2012 adjusted earnings per share of $2.61 and GAAP earnings per share of $1.89.

The Company expects net sales in the first quarter of fiscal 2013 to be in the range of $230 to $240 million compared to net sales of $231.0 million in the first quarter of fiscal 2012. Earnings per share for the first quarter of 2013 are expected to be in a range of $0.72 to $0.82 compared to adjusted earnings per share of $1.12 and GAAP earnings per share of $1.09 in the first quarter of fiscal 2012. The first quarter is expected to be impacted by the pre-opening costs for the Tommy Bahama Tokyo and Chicago stores, higher international and other infrastructure expenses and first quarter sales declines at Ben Sherman and Lanier Clothes.

Net Sales For fiscal 2013, the Company expects Tommy Bahama and Lilly Pulitzer to have percentage net sales increases in the low-teens compared to fiscal 2012. The Company expects sales to be relatively flat with fiscal 2012 for Lanier Clothes and percentage sales decreases in the mid to high single digits compared to fiscal 2012 for Ben Sherman.

Gross Margins The Company expects full year gross margins to increase approximately 150 basis points in fiscal 2013 as Tommy Bahama and Lilly Pulitzer grow at a faster pace and become a larger percentage of the total mix of net sales. Gross margins are also expected to benefit from the continuing shift within these businesses to direct to consumer channels, which generally carry higher gross margins than wholesale sales. Gross margin is expected to decline slightly at Lanier Clothes as competitive pricing and cost pressures continue. Modest gross margin improvements are anticipated at Ben Sherman in fiscal 2013.

SG&A SG&A is expected to rise at a pace slightly higher than the expected increase in net sales in fiscal 2013. Depreciation and amortization of intangible assets is expected to be approximately $33 million in fiscal 2013 from $26 million in fiscal 2012.

Royalties and Other Income For fiscal 2013, royalties and other income is expected to be comparable to fiscal 2012 at approximately $16 million.

Operating Margin For fiscal 2013, operating margin for Tommy Bahama is expected to increase modestly. The operating loss in its international business is expected to continue at a level comparable to fiscal 2012. For the first quarter, operating profit is expected to decrease primarily due to pre-opening costs for the Tokyo and Chicago stores as well as higher international and other infrastructure expenses. Operating margin at Lilly Pulitzer is expected to remain comparable to last year at slightly above 20%. Lanier Clothes is expected to have a slight reduction in operating margin due to the gross margin pressures described above.

While the Company expects lower sales at Ben Sherman, reductions in SG&A and gross margin improvements are expected to reduce operating losses in fiscal 2013. However, in the first quarter of fiscal 2013, a more pronounced sales decrease of approximately $6 million is expected to drive a larger operating loss than in the first quarter of fiscal 2012.

Interest Expense The full benefit of the Company’s debt refinancing in fiscal 2012 will be realized in fiscal 2013. Full year interest expense is estimated to be approximately $4.5 million in fiscal 2013.

Effective Tax Rate The effective tax rate for fiscal 2013 is anticipated to rise to approximately 40.5% compared to an effective tax rate of 38.5% in fiscal 2012. The impact of foreign losses in fiscal 2012 was offset by certain discrete items, which will not be available to the Company in fiscal 2013. As foreign losses are projected to be highest in the first quarter of fiscal 2013, the increased tax rate will be more pronounced and is currently estimated to be 45.0% in that quarter.

Capital Expenditures Capital expenditures for fiscal 2013 are expected to decrease to approximately $45 million.

Comparable Store Sales The Company’s disclosures about comparable store sales have historically only included sales at its full-price retail stores. Beginning with the fourth quarter of fiscal 2012, the Company’s disclosures include sales from its full-price stores and e-commerce sites, excluding sales associated with e-commerce flash clearance sales and sales from the Company’s restaurants. The Company believes that this change better aligns its disclosures with other companies within its industry. However, definitions and calculations of comparable store sales differ among companies in the retail industry, and therefore comparable store metrics disclosed by the Company may not be comparable to the metrics disclosed by other companies.

Conference Call

The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company’s website at www.oxfordinc.com. Please visit the website at least 15 minutes before the call to register for the teleconference web cast and download any necessary software. A replay of the call will be available through April 16, 2013. To access the telephone replay, participants should dial (858) 384-5517. The access code for the replay is 8115594. A replay of the web cast will also be available following the teleconference on the Company’s website at www.oxfordinc.com.

About Oxford

Oxford Industries, Inc. is a global apparel company which designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands. Oxford’s brands include Tommy Bahama(®), Lilly Pulitzer(®), Ben Sherman(®), Oxford Golf(®), Arnold Brant(® )and Billy London(®). The Company operates retail stores, restaurants and Internet websites. The Company also has license arrangements with select third parties to produce and sell certain product categories under its Tommy Bahama, Lilly Pulitzer and Ben Sherman brands. The Company holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole(®), Geoffrey Beene(®), Dockers(® )and Ike Behar(®) labels. Oxford’s wholesale customers include department stores, specialty stores, national chains, specialty catalogs and Internet retailers. Oxford’s stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford’s website at www.oxfordinc.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This press release may include statements that are forward-looking statements within the meaning of the federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. We intend for all forward-looking statements contained herein or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Important assumptions relating to these forward?looking statements include, among others, assumptions regarding the impact of economic conditions on consumer demand and spending, particularly in light of general economic uncertainty that continues to prevail, demand for our products, timing of shipments requested by our wholesale customers, expected pricing levels, competitive conditions, retention of and disciplined execution by key management, the timing and cost of store openings and of planned capital expenditures, costs of products as well as the raw materials used in those products, costs of labor, acquisition and disposition activities, expected outcomes of pending or potential litigation and regulatory actions, access to capital and/or credit markets and the impact of foreign losses on our effective tax rate. Forward-looking statements reflect our current expectations, based on currently available information, and are not guarantees of performance. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I, Item 1A. contained in our Annual Report on Form 10-K for the period ended January 28, 2012 under the heading “Risk Factors” and those described from time to time in our future reports filed with the SEC.

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except par amounts)

                                                February 2,          January 28,

                                                               2013                2012
                                                               ----                ----

    ASSETS

    Current Assets:

    Cash and cash equivalents                                $7,517             $13,373

    Receivables, net                                         62,805              59,706

    Inventories, net                                        109,605             103,420

    Prepaid expenses, net                                    19,511              17,838

    Deferred tax assets                                      22,952              19,733

    Total current assets                                    222,390             214,070

    Property and equipment, net                             128,882              93,206

    Intangible assets, net                                  164,317             165,193

    Goodwill                                                 17,275              16,495

    Other non-current assets, net                            23,206              20,243

    Total Assets                                           $556,070            $509,207
                                                           ========            ========

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:

    Accounts payable and other accrued expenses             $90,850             $89,149

    Accrued compensation                                     25,472              23,334

    Contingent consideration current liability                    -               2,500

    Short-term debt                                           7,944               2,571

    Total current liabilities                               124,266             117,554

    Long-term debt                                          108,552             103,405

    Non-current contingent consideration                     14,450              10,645

    Other non-current liabilities                            44,572              38,652

    Non-current deferred income taxes                        34,385              34,882

    Commitments and contingencies

    Shareholders' Equity:

    Common stock, $1.00 par value per share                  16,595              16,522

    Additional paid-in capital                              104,891              99,670

    Retained earnings                                       132,944             111,551

    Accumulated other comprehensive loss                    (24,585)            (23,674)
                                                            -------             -------

    Total shareholders' equity                              229,845             204,069
                                                            -------             -------

    Total Liabilities and Shareholders' Equity             $556,070            $509,207
                                                           ========            ========

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(in thousands, except per share amounts)

                   Fourth           Fourth Quarter        Full            Full

                   Quarter              Fiscal            Year            Year

                   Fiscal                          2011  Fiscal          Fiscal

                               2012                                 2012            2011
                               ----                                 ----            ----

     Net
     sales                 $236,246            $199,679         $855,542        $758,913

     Cost
     of
     goods
     sold                   111,005              96,047          385,985         345,944
                            -------              ------          -------         -------

     Gross
     profit                 125,241             103,632          469,557         412,969

    SG&A                    115,081              93,635          410,737         358,582

     Change
     in
     fair
     value
     of
     contingent
     consideration            4,485                 600            6,285           2,400

     Royalties
     and
     other
     operating
     income                   4,270               4,170           16,436          16,820
                              -----               -----           ------          ------

     Operating
     income                   9,945              13,567           68,971          68,807

     Interest
     expense,
     net                      1,063               3,489            8,939          16,266

     Loss
     on
     repurchase
     of
     senior
     secured
     notes                        -                   -            9,143           9,017
                                ---                 ---            -----           -----

     Earnings
     from
     continuing
     operations
     before
     income
     taxes                    8,882              10,078           50,889          43,524

     Income
     taxes                    3,605               3,026           19,572          14,281
                              -----               -----           ------          ------

     Earnings
     from
     continuing
     operations               5,277               7,052           31,317          29,243

     Earnings
     from
     discontinued
     operations,
     net
     of
     taxes                        -                   -                -             137

     Net
     earnings                $5,277              $7,052          $31,317         $29,380
                             ======              ======          =======         =======

     Earnings
     from
     continuing
     operations
     per
     share:

    Basic                     $0.32               $0.43            $1.89           $1.77

    Diluted                   $0.32               $0.43            $1.89           $1.77

     Earnings
     from
     discontinued
     operations,
     net
     of
     taxes,
     per
     share:

    Basic           $             -     $             - $              -           $0.01

    Diluted         $             -     $             - $              -           $0.01

     Net
     earnings
     per
     share:

    Basic                     $0.32               $0.43            $1.89           $1.78

    Diluted                   $0.32               $0.43            $1.89           $1.78

     Weighted
     average
     common
     shares
     outstanding:

    Basic                    16,585              16,509           16,563          16,510
                             ======              ======           ======          ======

    Diluted                  16,608              16,528           16,586          16,529
                             ======              ======           ======          ======

     Dividends
     declared
     per
     common
     share                    $0.15               $0.13            $0.60           $0.52

OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

                                 Fiscal 2012           Fiscal 2011
                                 -----------           -----------

    Cash Flows From Operating
     Activities:

    Earnings from continuing
     operations                               $31,317               $29,243

    Adjustments to reconcile
     earnings from continuing
     operations to net cash
     provided by operating
     activities:

     Depreciation                              25,310                25,959

     Amortization of
      intangible assets                         1,025                 1,195

     Change in fair value of
      contingent consideration                  6,285                 2,400

     Amortization of deferred
      financing costs and bond
      discount                                    962                 1,662

     Loss on repurchase of
      senior secured notes                      9,143                 9,017

     Stock compensation
      expense                                   2,756                 2,180

     Deferred income taxes                     (3,753)                5,375

    Changes in working
     capital, net of
     acquisitions and
     dispositions:

     Receivables                               (3,026)               (9,740)

      Inventories                              (5,408)              (18,332)

      Prepaid expenses                         (1,640)               (6,030)

      Current liabilities                       2,429                 6,074

        Other non-current assets               (3,886)                1,684

        Other non-current
         liabilities                            5,938                (6,042)
                                                -----                ------

    Net cash provided by
     operating activities                      67,452                44,645

    Cash Flows From Investing
     Activities:

    Acquisitions, net of cash
     acquired                                  (1,813)                 (398)

    Purchases of property and
     equipment                                (60,702)              (35,310)

    Net cash used in
     investing activities                     (62,515)              (35,708)

    Cash Flows From Financing
     Activities:

    Repayment of revolving
     credit arrangements                     (193,328)             (112,212)

    Proceeds from revolving
     credit arrangements                      307,270               114,835

    Repurchase of senior
     secured notes                           (111,000)              (52,175)

    Deferred financing costs
     paid                                      (1,524)                    -

    Payment of contingent
     consideration amount
     earned                                    (4,980)                    -

    Proceeds from issuance of
     common stock                               2,538                 2,731

    Repurchase of common
     stock                                          -                (1,827)

    Dividends on common stock                  (9,924)               (8,568)
                                               ------                ------

    Net cash used in
     financing activities                     (10,948)              (57,216)

    Cash Flows from
     Discontinued Operations:

    Net cash provided by
     discontinued operations                        -                17,479

    Net change in cash and
     cash equivalents                          (6,011)              (30,800)

    Effect of foreign
     currency translation on
     cash and cash
     equivalents                                  155                    79

    Cash and cash equivalents
     at the beginning of year                  13,373                44,094
                                               ------                ------

    Cash and cash equivalents
     at the end of the period                  $7,517               $13,373
                                               ======               =======

    Supplemental disclosure
     of cash flow
     information:

    Cash paid for interest,
     net                                       $8,348               $15,033

    Cash paid for income
     taxes, including income
     taxes paid for
     discontinued operations                  $25,442               $40,839

OXFORD INDUSTRIES, INC.
OPERATING GROUP INFORMATION
(UNAUDITED)
(in thousands)

                 Fourth              Fourth             Full Year           Full Year
                 Quarter             Quarter
                                                       Fiscal 2012         Fiscal 2011
               Fiscal 2012         Fiscal 2011
               -----------         -----------

     Net
     Sales

     Tommy
     Bahama              $156,849            $127,610            $528,639            $452,156

     Lilly
     Pulitzer              29,117              23,131             122,592              94,495

     Lanier
     Clothes               22,277              19,776             107,272             108,771

     Ben
     Sherman               24,688              25,930              81,922              91,435

     Corporate
     and
     Other                  3,315               3,232              15,117              12,056
                            -----               -----              ------              ------

    Total                $236,246            $199,679            $855,542            $758,913
                         ========            ========            ========            ========

     Operating
     Income
     (Loss)

     Tommy
     Bahama               $23,943             $18,790             $69,454             $64,171

     Lilly
     Pulitzer              (1,682)              2,014              20,267              14,278

     Lanier
     Clothes                1,995               1,543              10,840              12,862

     Ben
     Sherman               (4,546)               (254)            (10,898)             (2,535)

     Corporate
     and
     Other                 (9,765)             (8,526)            (20,692)            (19,969)
                           ------              ------             -------             -------

     Total
     Operating
     Income                $9,945             $13,567             $68,971             $68,807
                           ======             =======             =======             =======


RECONCILIATION OF CERTAIN OPERATING RESULTS INFORMATION PRESENTED IN ACCORDANCE WITH GAAP TO CERTAIN OPERATING RESULTS INFORMATION, AS ADJUSTED (UNAUDITED)

Set forth below is the reconciliation, in thousands except per share amounts, of certain operating results information, presented in accordance with generally accepted accounting principles, or GAAP, to the operating results information, as adjusted, for certain historical periods. The Company believes that investors often look at ongoing operations as a measure of assessing performance and as a basis for comparing past results against future results. Therefore, the Company believes that presenting operating results, as adjusted, provides useful information to investors because this allows investors to make decisions based on ongoing operations. The Company uses the operating results, as adjusted, to discuss its business with investment institutions, its board of directors and others. Further, the Company believes that presenting operating results, as adjusted, provides useful information to investors because this allows investors to compare the Company’s operating results for the periods presented to other periods.


                                                               Fourth Quarter           Fourth Quarter

                                                                   Fiscal                   Fiscal               Full Year           Full Year
                                                                                  2012                     2011
                                                                                                                  Fiscal              Fiscal
                                                                                                                               2012                2011
                                                                                                                               ----                ----

    As reported

    Net sales                                                                 $236,246                 $199,679            $855,542            $758,913

    Gross profit                                                              $125,241                 $103,632            $469,557            $412,969

    Gross margin (1)                                                              53.0%                    51.9%               54.9%               54.4%

    SG&A                                                                      $115,081                  $93,635            $410,737            $358,582

    SG&A as percentage of net sales                                               48.7%                    46.9%               48.0%               47.2%

    Operating income                                                            $9,945                  $13,567             $68,971             $68,807

    Operating margin (2)                                                           4.2%                     6.8%                8.1%                9.1%

    Earnings from continuing operations before income taxes                     $8,882                  $10,078             $50,889             $43,524

    Earnings from continuing operations                                         $5,277                   $7,052             $31,317             $29,243

    Diluted earnings from continuing operations per share                        $0.32                    $0.43               $1.89               $1.77

    Weighted average shares outstanding - diluted                               16,608                   16,528              16,586              16,529

    Increase (decrease) in earnings from continuing operations

    LIFO accounting adjustment (3)                                              $4,504                   $5,766              $4,043              $5,772

    Purchase accounting adjustments (4)                               $              -         $              -      $            -                $996

    Life insurance death benefit gain (5)                             $              -                  $(1,155)     $            -             $(1,155)

    Change in fair value of contingent consideration (6)                        $4,485                     $600              $6,285              $2,400

    Loss on repurchase of senior secured notes (7)                    $              -        $               -              $9,143              $9,017

    Impact of income taxes on adjustments above (8)                            $(3,412)                 $(2,244)            $(7,497)            $(6,510)
                                                                               -------                  -------             -------             -------

    Adjustment to earnings from continuing operations                           $5,577                   $2,967             $11,974             $10,520
                                                                                ======                   ======             =======             =======


                   Fourth Quarter        Fourth Quarter

                       Fiscal                Fiscal            Full Year           Full Year
                                   2012                  2011
                                                                Fiscal              Fiscal
                                                                             2012                2011
                                                                             ----                ----

    As adjusted

    Gross profit               $129,745              $109,398            $473,600            $419,737

    Gross margin
     (1)                           54.9%                 54.8%               55.4%               55.3%

    SG&A                       $115,081               $94,790            $410,737            $359,737

    SG&A as
     percentage of
     net sales                     48.7%                 47.5%               48.0%               47.4%

    Operating
     income                     $18,934               $18,778             $79,299             $76,820

    Operating
     margin (2)                     8.0%                  9.4%                9.3%               10.1%

    Earnings from
     continuing
     operations
     before income
     taxes                      $17,871               $15,289             $70,360             $60,554

    Earnings from
     continuing
     operations                 $10,854               $10,019             $43,291             $39,763

    Diluted
     earnings from
     continuing
     operations
     per share                    $0.65                 $0.61               $2.61               $2.41

    (1)   Gross margin reflects gross
     profit divided by net sales.

    (2)  Operating margin reflects
     operating income divided by net
     sales.

    (3)  LIFO accounting adjustment
     reflects the impact on cost of
     goods sold in our consolidated
     statements of earnings resulting
     from LIFO accounting adjustments
     in each period. LIFO accounting
     adjustments are included in
     Corporate and Other for operating
     group reporting purposes.

    (4)   Purchase accounting
     adjustments reflect the impact of
     the write-up of inventory at
     acquisition related to the
     December 2010 acquisition of the
     Lilly Pulitzer brand and
     operations. These charges were
     included in cost of goods sold in
     the Lilly Pulitzer operating
     group results of operations.

    (5)   Life insurance death benefit
     gain reflects the impact on
     earnings from continuing
     operations per diluted share from
     the proceeds received related to
     a corporate-owned life insurance
     policy less the cash surrender
     value of the policy. The death
     benefit is non-taxable income.

    (6)  Change in fair value of
     contingent consideration reflects
     the statement of earnings impact
     resulting from the change in fair
     value of contingent consideration
     pursuant to the earnout agreement
     with the sellers of the Lilly
     Pulitzer brand and operations.
     The periodic assessment of fair
     value is based on assumptions
     regarding the probability of the
     payment of all or part of the
     contingent consideration, cash
     flows of the Lilly Pulitzer
     operations and discount rates,
     among other factors. The change
     in fair value of contingent
     consideration is recorded
     quarterly with the passage of
     time as the payment date of the
     contingent consideration
     approaches and additional amounts
     are also recognized as an
     increase or decrease in the
     expense as a result of the
     periodic assessment of fair
     value. A change in assumptions
     could result in a material change
     to the fair value of the
     contingent consideration. The
     change in fair value of
     contingent consideration is
     reflected in the Lilly Pulitzer
     operating group results of
     operations.

    (7)   Loss on repurchase of senior
     secured notes reflects the impact
     on earnings from continuing
     operations resulting from the
     loss attributable to the
     repurchase or redemption of our
     senior secured notes.

    (8)  Impact of income taxes
     reflects the estimated earnings
     from continuing operations tax
     impact of the above adjustments
     based on the applicable estimated
     effective tax rate on current
     year earnings, before any
     discrete items.


RECONCILIATION OF OPERATING INCOME (LOSS) IN ACCORDANCE WITH GAAP TO OPERATING INCOME (LOSS), AS ADJUSTED (UNAUDITED)

Set forth below is the reconciliation, in thousands, of operating income (loss) for each operating group and in total, calculated in accordance with GAAP, to operating income (loss), as adjusted, for certain historical periods. The Company believes that investors often look at ongoing operating group operating results as a measure of assessing performance and as a basis for comparing past results against future results. Therefore, the Company believes that presenting our operating income (loss), as adjusted, provides useful information to investors because this allows investors to make decisions based on ongoing operating group results. The Company uses the operating income (loss), as adjusted, to discuss its operating groups with investment institutions, its board of directors and others. Further, the Company believes that presenting its operating results, as adjusted, provides useful information to investors because this allows investors to compare the Company’s operating group operating income (loss) for the periods presented to other periods.

                            Fourth Quarter of Fiscal 2012

                                      Operating                         LIFO                    Change in fair               Operating
                                    income (loss),                                                 value of                income (loss),
                                     as reported                accounting adjustment      contingent consideration         as adjusted

    Tommy Bahama                                       $23,943      $                    -        $                      -                $23,943

    Lilly Pulitzer (1)                                  (1,682)                          -                           4,485                  2,803

    Lanier Clothes                                       1,995                           -                               -                  1,995

    Ben Sherman                                         (4,546)                          -                               -                 (4,546)

    Corporate and Other (2)                             (9,765)                      4,504                               -                 (5,261)
                                                        ------                       -----                             ---                 ------

    Total                                               $9,945                      $4,504                          $4,485                $18,934
                                                        ======                      ======                          ======                =======

                                                 Fourth Quarter of Fiscal 2011

                        Operating income (loss), as reported                    LIFO                Change in fair value of contingent
                                                                                                              consideration                                                   Operating income (loss), as adjusted

                                                                       accounting adjustment                                            Life insurance death benefit gain

    Tommy Bahama                                      $18,790                 $                   -            $                      -             $                      -                                $18,790

    Lilly Pulitzer (1)                                  2,014                                     -                                 600                                    -                                  2,614

    Lanier Clothes                                      1,543                                     -                                   -                                    -                                  1,543

    Ben Sherman                                          (254)                                    -                                   -                                    -                                   (254)

    Corporate and Other
     (2)(3)                                            (8,526)                                5,766                                   -                               (1,155)                                (3,915)
                                                       ------                                 -----                                 ---                               ------                                 ------

    Total                                             $13,567                                $5,766                                $600                              $(1,155)                               $18,778
                                                      =======                                ======                                ====                              =======                                =======

                 Fiscal 2012

                  Operating                     LIFO                    Change in fair                     Operating
                income (loss),                                             value of                income (loss), as adjusted
                 as reported            accounting adjustment      contingent consideration

    Tommy
     Bahama                    $69,454      $                    -        $                      -                     $69,454

    Lilly
     Pulitzer
     (1)                        20,267                           -                           6,285                      26,552

    Lanier
     Clothes                    10,840                           -                               -                      10,840

    Ben Sherman                (10,898)                          -                               -                     (10,898)

    Corporate
     and Other
     (2)                       (20,692)                      4,043                               -                     (16,649)
                               -------                       -----                             ---                     -------

    Total                      $68,971                      $4,043                          $6,285                     $79,299
                               =======                      ======                          ======                     =======

                                                 Fiscal 2011

                                 Operating                            LIFO                                                 Change in fair value of contingent
                                                                                                                                      consideration                                                     Operating
                               income (loss),                                                                                                                                                         income(loss),
                                as reported                  accounting adjustment        Purchase accounting charges                                           Life insurance death benefit gain      as adjusted

    Tommy Bahama                              $64,171               $                   -          $                     -             $                      -             $                      -                $64,171

    Lilly Pulitzer (1)(4)                      14,278                                   -                              996                                2,400                                    -                 17,674

    Lanier Clothes                             12,862                                   -                                -                                    -                                    -                 12,862

    Ben Sherman                                (2,535)                                  -                                -                                    -                                    -                 (2,535)

    Corporate and Other (2)(3)                (19,969)                              5,772                                -                                    -                               (1,155)               (15,352)
                                              -------                               -----                              ---                                  ---                               ------                -------

    Total                                     $68,807                              $5,772                             $996                               $2,400                              $(1,155)               $76,820
                                              =======                              ======                             ====                               ======                              =======                =======

    (1)     Change in fair value of
     contingent consideration reflects
     the statement of earnings impact
     resulting from the change in fair
     value of contingent consideration
     pursuant to the earnout agreement
     with the sellers of the Lilly
     Pulitzer brand and operations.
     The periodic assessment of fair
     value is based on assumptions
     regarding the probability of the
     payment of all or part of the
     contingent consideration, cash
     flows of the Lilly Pulitzer
     operations and discount rates,
     among other factors. The change
     in fair value of contingent
     consideration is recorded
     quarterly with the passage of
     time as the payment date of the
     contingent consideration
     approaches and additional amounts
     are also recognized as an
     increase or decrease in the
     expense as a result of the
     periodic assessment of fair
     value. A change in assumptions
     could result in a material change
     to the fair value of the
     contingent consideration.

    (2)     LIFO accounting adjustment
     reflects the impact on cost of
     goods sold in our consolidated
     statements of earnings resulting
     from LIFO accounting adjustments
     in each period.

    (3)     Life insurance death
     benefit gain reflects the impact
     on earnings from continuing
     operations per diluted share from
     the proceeds received related to
     a corporate-owned life insurance
     policy less the cash surrender
     value of the policy. The death
     benefit is non-taxable income.

    (4)     Purchase accounting
     adjustments reflect the impact of
     the write-up of inventory at
     acquisition related to the
     December 2010 acquisition of the
     Lilly Pulitzer brand and
     operations. These charges were
     included in cost of goods sold in
     the Lilly Pulitzer operating
     group results of operations.

RECONCILIATION OF EARNINGS FROM CONTINUING OPERATIONS PER DILUTED SHARE PRESENTED IN ACCORDANCE WITH GAAP TO EARNINGS FROM CONTINUING OPERATIONS PER DILUTED SHARE, AS ADJUSTED (UNAUDITED)

Set forth below is the reconciliation of reported or reportable earnings from continuing operations per diluted share for certain historical and future periods, each presented in accordance with GAAP, to the earnings per diluted share, as adjusted, for each respective period. The Company believes that investors often look at ongoing operations as a measure of assessing performance and as a basis for comparing past results against future results. Therefore, the Company believes that presenting its earnings per diluted share, as adjusted, provides useful information to investors because this allows investors to make decisions based on ongoing operations. The Company uses the earnings per diluted share, as adjusted, to discuss its business with investment institutions, its board of directors and others. Further, the Company believes that presenting earnings per diluted share, as adjusted, provides useful information to investors because this allows investors to compare the Company’s results for the periods presented to other periods. Note that columns may not add due to rounding.


                                                             Fourth             Fourth             Fourth              Full             Full                 Full

                                                             Quarter           Quarter             Quarter             Year             Year                 Year

                                                           Fiscal 2012       Fiscal 2012         Fiscal 2011        Fiscal 2012     Fiscal 2012          Fiscal 2011

                                                             Actual          Guidance (1)          Actual             Actual        Guidance (1)            Actual
                                                             ------          -----------           ------             ------        -----------             ------

    Earnings from continuing operations per diluted share:

    GAAP basis                                                         $0.32       $0.62 - $0.72             $0.43            $1.89       $2.19 - $2.29             $1.77

    LIFO accounting adjustment (2)                                     $0.17                   -             $0.23            $0.15              ($0.02)            $0.23

    Purchase accounting adjustments (3)                                    -                   -                 -                -                   -             $0.04

    Life insurance death benefit gain (4)                                  -                   -            ($0.07)               -                   -            ($0.07)

    Change in fair value of contingent consideration (5)               $0.17               $0.02             $0.02            $0.23                                 $0.09

                                                                                                                                                  $0.09

    Loss on repurchase of senior secured notes (6)                         -                   -                 -            $0.34                                 $0.35

                                                                                                                                                  $0.34

    As adjusted                                                        $0.65       $0.64 - $0.74             $0.61            $2.61       $2.60 - $2.70             $2.41

                       First Quarter            First Quarter        Full Year               Full Year

                        Fiscal 2013              Fiscal 2012        Fiscal 2013             Fiscal 2012

                        Guidance (7)                Actual          Guidance (7)              Actual
                        -----------                 ------          -----------               ------

    Earnings from
     continuing
     operations per
     diluted share:

    GAAP basis                    $0.72 - $0.82               $1.09           $3.00 - $3.15             $1.89

    LIFO accounting
     adjustment (2)                           -               $0.01                       -             $0.15

    Change in fair
     value of
     contingent
     consideration (5)                        -               $0.02                                     $0.23

                                                                                          -

    Loss on repurchase
     of senior secured
     notes (6)                                -                   -                                     $0.34

                                                                                          -

    As adjusted                   $0.72 - $0.82               $1.12           $3.00 - $3.15             $2.61

    (1)     Guidance as issued on December 4, 2012.

    (2)     LIFO accounting adjustment reflects the impact, net of income taxes, on earnings from
     continuing operations per diluted share resulting from LIFO accounting adjustments in each
     period. No estimate for future LIFO accounting adjustments are reflected in the guidance for any
     period presented.

    (3)     Purchase accounting adjustments reflect the impact, net of income taxes, on earnings from
     continuing operations per diluted share resulting from the inventory write-up costs, which are
     included in cost of goods sold in Lilly Pulitzer. The inventory write-up costs reflect the
     purchase accounting adjustments resulting from the write-up of inventory at acquisition related
     to the December 2010 acquisition of the Lilly Pulitzer brand and operations.

    (4)     Life insurance death benefit gain reflects the impact on earnings from continuing
     operations per diluted share from the proceeds received related to a corporate-owned life
     insurance policy less the cash surrender value of the policy. The death benefit is non-taxable
     income.

    (5)     Change in fair value of contingent consideration reflects the impact, net of income
     taxes, on earnings from continuing operations per diluted share resulting from the change in
     fair value of contingent consideration pursuant to the earnout agreement with the sellers of the
     Lilly Pulitzer brand and operations. The periodic assessment of fair value is based on
     assumptions regarding the probability of the payment of all or part of the contingent
     consideration, cash flows of the Lilly Pulitzer operations and discount rates, among other
     factors. The change in fair value of contingent consideration is recorded quarterly with the
     passage of time as the payment date of the contingent consideration approaches and additional
     amounts are also recognized as an increase or decrease in the expense as a result of the
     periodic assessment of fair value. A change in assumptions could result in a material change to
     the fair value of the contingent consideration.

    (6)   Loss on repurchase of senior notes reflects the impact, net of income taxes, on earnings
     from continuing operations per diluted share resulting from the loss attributable to the
     repurchase or redemption of our senior secured notes.

    (7)   Guidance as issued on April 2, 2013.

SOURCE Oxford Industries, Inc.


Source: PR Newswire