-- Earnings Exceed Second Quarter Guidance, Excluding Restructuring Charges and Other Unusual Items --

-- Affirms Guidance for Full Year --

ATLANTA, Sept. 9 /PRNewswire-FirstCall/ -- Oxford Industries, Inc. (NYSE: OXM) today announced financial results for its fiscal 2008 second quarter ended August 2, 2008. Consolidated net sales were $230.5 million in the second quarter compared to $244.6 million in the same period of the prior year, which was the three months ended August 3, 2007. Excluding the charges for restructuring and other unusual items discussed below, earnings per diluted share were $0.43, exceeding the Company's previously issued guidance range of $0.31 to $0.36 per diluted share.

During the quarter, the Company continued to advance its strategic plan by deciding to exit or restructure certain underperforming businesses and licensing agreements within its legacy businesses Lanier Clothes and Oxford Apparel. As a result, the Company noted that its earnings included the impact of restructuring charges of $0.38 per diluted share in the second quarter of fiscal 2008. These charges consisted of inventory disposal costs, impairment of assets, payments related to license termination and severance costs associated with the parts of the legacy businesses the Company is exiting or restructuring. Results also included a $0.04 per diluted share net gain from other unusual items associated with the resolution of a contingent liability and the sale of a trademark, partially offset by an increase in the Company's bad debt expense due to certain customers' bankruptcy filings.

Of the restructuring charges and unusual items, $0.16 per diluted share was non-cash impairment charges. These restructuring charges and unusual items reduced diluted net earnings per diluted share to $0.09 for the second quarter compared to $0.49 in the same period of the prior year. For reference, a table reconciling GAAP net earnings to adjusted net earnings for the second quarter and full year is included in this release.

J. Hicks Lanier, Chairman and CEO of Oxford Industries, Inc., commented, 'We are pleased with our results for the second quarter, which were particularly gratifying given the difficult tenor of the retail environment. We believe that the actions we've taken will result in leaner and more focused legacy businesses. As we rationalize these businesses, we are extracting significant working capital and improving our return on investment.' Mr. Lanier concluded, 'A key component of our long-term strategy centers on the growth and development of the Tommy Bahama and Ben Sherman brands. We are confident that the strength of these brands can support an expanded direct to consumer business, a broader international reach and an expanded mix of products. We will continue to invest our capital in our best opportunities for growth and profitability to drive value to our shareholders.'

Tommy Bahama reported net sales of $112.0 million for the second quarter of fiscal 2008 compared to $114.4 million in the same period of the prior year. The slight sales decrease was due to pressure from the difficult retail environment. Tommy Bahama's operating income for the second quarter of fiscal 2008 was $18.1 million compared to $20.9 million in the same period of the prior year. The decrease in operating income was primarily due to higher selling, general and administrative expenses associated with operating additional retail stores and the lower sales. At the end of the second quarter, Tommy Bahama operated 78 retail stores compared to 69 on August 3, 2007.

Ben Sherman reported net sales of $32.5 million for the second quarter of fiscal 2008 compared to $36.5 million in the same period of the prior year. The reduction in sales was primarily due to the continued repositioning of the brand into better tiers of wholesale distribution in the United Kingdom and reduced off-price sales in the United States compared to the same period of the prior year. The decline was partially offset by increased sales at our retail stores and increased sales in markets outside of the United Kingdom and the United States. Ben Sherman reported an operating loss of $2.0 million in the second quarter of fiscal 2008 compared to an operating loss of $1.5 million in the same period of the prior year primarily due to the sales decline.

Net sales for Lanier Clothes were $28.2 million in the second quarter of fiscal 2008 compared to $31.6 million reported in the same period of the prior year due primarily to continued weak demand in the tailored clothing market. Lanier Clothes reported an operating loss of $11.4 million in the second quarter of fiscal 2008 compared to a $2.2 million operating loss in the same period of the prior year. The increase in the operating loss was due to $9.2 million of restructuring charges.

Oxford Apparel reported net sales of $58.0 million for the second quarter of fiscal 2008 compared to $61.0 million in the same period of the prior year. The decrease in net sales was driven by the Company's strategy to focus on key product categories and exit underperforming lines of business. Operating income for Oxford Apparel was $3.7 million for the second quarter of fiscal 2008 compared to $3.1 million in the same period of the prior year. The increase was primarily due to lower selling, general and administrative expenses. The current period also includes $1.6 million of restructuring charges and the favorable impact of $1.2 million of unusual items.

The Corporate and Other operating loss decreased to $0.5 million for the second quarter of fiscal 2008 from $3.8 million in the same period of the prior year. The decrease was due primarily to the impact of LIFO accounting adjustments, which included the reversal of $1.9 million of restructuring charges, as well as lower corporate selling, general and administrative expenses.

Consolidated gross margins for the second quarter of fiscal 2008 were 41.9% compared to 42.1% in the same period of the prior year. The slight decrease in gross margins was primarily due to the restructuring charges in Lanier Clothes and Oxford Apparel partially offset by the increased proportion of Tommy Bahama and Ben Sherman sales, which generally have higher gross margins than Lanier Clothes and Oxford Apparel. Gross margins for both Tommy Bahama and Ben Sherman improved compared to the prior year.

Selling, general and administrative expenses, or SG&A, for the second quarter of fiscal 2008 were $89.0 million or 38.6% of net sales compared to $89.0 million or 36.4% of net sales in the same period of the prior year. Restructuring charges in Lanier Clothes and increased expenses associated with the operation of additional retail stores were offset by reductions in employment and other costs and the resolution of a contingent liability. The increase in SG&A as a percentage of net sales was due to the reduction in net sales described above.

Amortization of intangible assets increased to $4.1 million for the second quarter of fiscal 2008 from $1.3 million in the same period of the prior year. The increase was primarily due to the impairment charges associated with Lanier Clothes and Oxford Apparel as described above.

Royalties and other operating income for the second quarter of fiscal 2008 increased 13.6% to $4.4 million from $3.8 million in the same period of the prior year primarily due to the sale of a trademark by Oxford Apparel, which is included in the unusual items described above.

For the first six months of fiscal 2008, consolidated net sales decreased to $503.5 million from $537.0 million in the same period of the prior year, which was the six month period ended August 3, 2007. Excluding the $0.34 per diluted share of restructuring charges and other unusual items, diluted earnings per share in the first six months of fiscal 2008 decreased to $1.03 from $1.44 in the same period of the prior year. Including the restructuring charges, in the first six months of fiscal 2008, earnings per diluted share were $0.69.

The Company also noted that on August 15, 2008 it entered into a revolving credit facility providing for borrowings of up to $175 million, which replaced the Company's prior $280 million credit facility.