Item 1. Business. - ------------------
BUSINESS AND PRODUCTS
Introduction and Background Oxford Industries, Inc. (the "Company") was incorporated under the laws of the State of Georgia as Oxford Manufacturing Company, Inc. on April 27, 1960. In 1967, its name was changed to Oxford Industries, Inc. Its principal office is in Atlanta, Georgia.
The Company's primary business, which comprises a single industry segment, is the design, manufacture, marketing and sale of consumer apparel products in the popular to better price ranges. Substantially all of the Company's distribution facilities, offices and customers are located in the United States. Company-owned manufacturing facilities are located in the southeastern United States, Mexico, the Caribbean, Central America and Asia.
The Company is in a single line of business with two classes of similar products, menswear and womenswear. The table below sets forth, for each of the last three fiscal years, the percentage of net sales attributable to each such class of similar products:
Fiscal Year Ended:
May 29, May 30, May 31, 1998 1997 1996 ------- ------- ------- Menswear 77% 77% 78% Womenswear 23 23 22 ------ ------- ------- 100% 100% 100% ====== ======= =======
Menswear Primary menswear products sold include men's suits, vests, dress slacks and golfwear and men's and boys' sportswear, sportscoats, dress shirts, woven and knitted sport shirts, sweaters, slacks, shorts and jeans.
Womenswear Primary womenswear products sold include women's sportswear, dresses, suits, sweaters, shirts, blouses, t-shirts, sweatshirts, vests, jackets, skirts, shorts and pants. Sportswear products are marketed as coordinates, which include wardrobe items in styles and colors designed to be worn together and/or as separates.
DISTRIBUTION
The Company's customers include national and regional chain stores, mail order and catalog firms, discount stores, department stores and chain and independent specialty stores.
Customer Distribution Analysis
May 29, May 30, May 31, 1998 1997 1996 Total Sales % Total Sales % Total Sales % Customers Customers Customers --------- ------- --------- ------- --------- ------- Top 50 50 91.67% 50 92.70% 50 92.37% All Other 4,187 8.33% 2,895 7.30% 3,146 7.63% ----- ----- ----- ------ ----- ------ Total 4,237 100% 2,945 100% 3,196 100%
Several product lines are designed and manufactured in anticipation of orders for sale to department and specialty stores and certain specialty chain and mail order customers. The Company must make commitments for fabric and production in connection with these lines. In the case of imports, these commitments can be up to several months prior to the receipt of firm orders from customers. These lines include both popular and better price merchandise sold under brand and designer names or customers' private labels.
The Company works closely with many customers to develop large-volume product programs prior to commencement of production, enabling the Company to take advantage of relative efficiencies in planning, raw materials purchasing and utilization of production facilities. Products sold under these programs are in the popular price range and usually carry the customers' trademarks, although the Company offers some branded and designer programs for this customer market.
The Company employs a sales force consisting of salaried and commissioned sales employees and independent commissioned sales representatives. Apparel sales offices and showrooms are maintained by the Company in Atlanta, New York and Dallas. Other showrooms are maintained by independent commissioned sales representatives. A majority of the Company's business is conducted by direct contacts between the Company's salaried executives and buyers and other executives of the Company's customers.
MANUFACTURING, RAW MATERIALS AND SOURCES OF SUPPLY
Manufacturing and Raw Materials Apparel products are manufactured from cotton, linen, wool, silk, other natural fibers, synthetics and blends of these materials. Materials used by the Company in its manufacturing operations are purchased from numerous domestic and foreign textile mills and converters in the form of woven or knitted finished fabrics. Buttons, zippers, thread and other trim items are purchased from both domestic and foreign suppliers. The Company's manufacturing facilities perform cutting, sewing and related operations to produce finished apparel products from these materials. At the end of the 1998 fiscal year, domestic production for the Company accounted for approximately 20% of the Company's business, of which approximately 10% came from the Company's United States manufacturing facilities, and approximately 10% came from United States contractors.
The Company also purchases fabric and places it with domestic and foreign independent contractors for production of goods conforming to the Company's patterns, specifications and quality standards. The Company also performs independent contracting services for other companies to ensure maximum utilization of its production facilities.
The Company imports finished apparel products meeting its quality standards from suppliers in the Caribbean, Central America, the Far East and other areas. Imported goods are generally manufactured according to designs and specifications furnished or approved in advance of production by the Company. In order to place orders and monitor production, the Company maintains buying offices in Hong Kong and Singapore. The Company also retains unaffiliated buying agents in several other countries.
The Company also uses its own facilities in Mexico, the Dominican Republic, Costa Rica, Honduras, and the Philippines. Except for the Philippines, these facilities generally assemble apparel products from components made primarily in the United States.
Sources of Supply The Company regards its domestic and foreign sources of raw materials, finished goods and outside production as adequate and is not dependent on any single source or contractor. No single supplier or contractor accounts for a material portion of the Company's purchases or business. Alternative competitive sources are available, and the Company does not anticipate significant difficulty in meeting its supply and outside production requirements. There are occasions, however, where the Company is unable to take customer orders on short notice because of the minimum lead time required to produce a garment that is acceptable to the customer in regards to cost, quantity, quality and service.
The Company's import business could be adversely affected by currency exchange fluctuations, changes in United States import duties and trade restraints, political unrest in exporting countries, and other factors normally associated with imports. The Company believes it has diminished potential risks in its import business by placing import programs with suppliers in many different countries. The Company continues to expand assembly operations in Mexico to take greater advantage of incentives implicit in United States trade policy.
TRADEMARKS, LICENSES AND PATENTS
Trademarks Principal menswear trademarks owned by the Company are "Lanier Clothes" for men's suits and sportcoats, "Oxford Shirtings" for men's shirts, "Travelers Worsted" for mens suits, "Everpress" for men's slacks; "928" for young men's suited separates, and "Ely Cattleman" and "Plains" for men's western wear.
The Company licenses its trademark "Merona" to the Target Stores and Mervyn's divisions of the Dayton Hudson Corporation. The license agreement calls for these divisions to pay minimum royalties and additional royalties for sales above certain levels. The minimum royalties due in the future have been reduced by actual royalties paid in preceding years. Target Stores has exercised its option to purchase the trademark in 1999.
Although the Company is not dependent on any single trademark, it believes its trademarks in the aggregate are of significant value to its business.
If an attractive opportunity were to present itself, the Company would seriously consider the acquisition of significant brands and related businesses.
Licenses The Company also has the right to use trademarks under license and design agreements with the trademarks' owners. Principal menswear trademarks the Company has the right to use are "Polo/Ralph Lauren" for Boys, including boy's shirts, suits, shorts, sweat suits, woven and knitted sportswear, pants, sweaters, outerwear, jackets, denim jeans and caps; "Robert Stock" for men's suits, sport coats and dress slacks; "Oscar de la Renta" for men's suits, sport coats, vests, and dress slacks; "Tommy Hilfiger" for men's dress shirts and golf apparel; "Nautica" for men's tailored suits, sport coats and dress slacks and "Geoffrey Beene" for men's tailored suits, sport coats, vests and dress slacks.
The above mentioned license and design agreements will expire at various dates through 2002. Many of the Company's licensing agreements are eligible for renewal to extend the licenses through various dates from 1998 through 2006. In March 1998, The Company announced that its polo/Ralph Lauren for Boys licenses which expire on May 31, 1999 will not be renewed. The Polo/Ralph Lauren business accounts for approximately 11% of the Company's sales and 11% of operating profits.
Although the Company is not dependent on any single license and design agreement, it believes its license and design agreements in the aggregate are of significant value to its business.
Patents The Company owns several patents covering apparel manufacturing processes and devices, but competitive processes and devices are available to others, and these are not material to the Company's business.
SEASONAL ASPECTS OF BUSINESS AND ORDER BACKLOG
Seasonal Aspects of Business The Company's business is generally divided among four retail selling seasons: Spring, Summer, Fall and Holiday. Seasonal factors can cause some variance in production and sales levels among fiscal quarters in any fiscal year, but the Company does not regard its overall business as highly seasonal.
Order Backlog A large portion of sales are booked in advance of each season, and it is therefore normal for the Company to maintain a significant order backlog. As of May 29, 1998 and May 30, 1997, the Company had booked orders amounting to approximately $179,709,000 and $193,950,000, respectively, all of which will be shipped within six months after each such date. These numbers represent only store orders on hand and do not include private- label contract balances. The Company is experiencing a greater percentage of at-once EDI "Quick response" programs with large retailers. Replenishment shipments under these programs generally possess such an abbreviated order life as to exclude them from the order backlog completely. The Company does not believe that this backlog information is indicative of sales to be expected for the following year, because order backlog at the end of May primarily represents only Fall season business.
WORKING CAPITAL
Working capital needs are affected primarily by inventory levels, outstanding receivables and trade payables. The Company had available for its use committed lines of credit with several lenders aggregating $52,000,000 at May 29, 1998. These lines of credit are used by the Company to cover fluctuations in working capital needs. The Company had $44,000,000 outstanding under these lines of credit at the end of the 1998 fiscal year, and $40,000,000 outstanding at the end of the 1997 fiscal year. In addition, at the end of fiscal 1998, the Company had $215,500,000 in uncommitted lines of credit, of which $127,500,000 was reserved for the issuance of letters of credit. At May 29, 1998, $7,500,000 was outstanding under these lines of credit. At the end of fiscal 1997 the Company had $186,000,000 in uncommitted lines of credit, of which $98,000,000 was reserved for the issuance of letters of credit. At May 30, 1997 $4,000,000 was outstanding under these uncommitted lines of credit. The total amount of letters of credit outstanding totaled approximately $96,157,000 at the end of fiscal 1998, and approximately $67,400,000 at the end of fiscal 1997. The Company had cash of $10,069,000 and $3,313,000 at the end of the 1998 and 1997 fiscal years. The average interest rate on all short-term borrowings for the 1998 fiscal year was 5.9%. The Company anticipates continued use and availability of short-term borrowings as working capital needs may require.
Inventory levels are affected by order backlog and anticipated sales. It is general practice of the Company to offer payment terms of net 30 to the majority of its customers, from date of shipment.
The Company believes that its working capital requirements and financing resources are comparable with those of other major, financially sound apparel manufacturers.
MAJOR CUSTOMERS
The Company's ten largest customers accounted for approximately 70% of the Company's net sales in fiscal 1998 and approximately 72% in fiscal 1997. JCPenney Company, Inc. accounted for 15% and 21% of net sales in the 1998 and 1997 fiscal years, respectively. Lands' End, Inc. accounted for 12% and 10% of net sales in the 1998 and 1997 fiscal years, respectively. The Company believes that its relationships with all of its major customers, including JCPenney Company, Inc., and Lands' End, Inc., are excellent.
COMPETITION
The Company's products are sold in a highly competitive domestic market in which numerous domestic and foreign manufacturers compete. No single manufacturer or small group of manufacturers dominates the apparel industry. The Company believes it is a major apparel manufacturing and marketing company, but there are other apparel firms with greater sales and financial resources.
Competition within the apparel industry is based upon styling, marketing, price, quality, customer service and, with respect to branded and designer product lines, consumer recognition and preference. The Company believes it competes effectively with other members of its industry with regard to all of these factors. Successful competition in styling and marketing is related to the Company's ability to foresee changes and trends in fashion and consumer preference and to present appealing product programs to its customers. Successful competition in price, quality and customer service is related to its ability to maintain efficiency in production, sourcing and distribution.
Growth in apparel imports and direct importing by retailers present competitive risks to domestic apparel manufacturing operations. The United States has implemented restrictive quotas on the importation of many classifications of textiles and textile products from certain countries and has adopted restrictive regulations governing textile and apparel imports. Through December of 1994, these restraints were permitted pursuant to the Multi-Fiber Arrangement (MFA), an international textile trade agreement to which the United States was a party. During the Uruguay Round of the General Agreement of Tariffs and Trade, the United States and other countries negotiated a successor agreement to the MFA known as the Agreement on Textiles and Clothing (ATC). The ATC became effective on January 1, 1995.
The ATC requires that importing countries gradually phase out approximately half of the restrictive quotas on the importation of textiles and apparel products that were in place on December 31, 1994 over a ten year period. The remaining quotas are to be eliminated on January 1, 2005. However, the ATC allows importing countries such as the United States significant discretion in determining when during the ten year period quotas on particular products from particular countries will be eliminated. The United States has announced a plan that will keep quotas on the products deemed most sensitive to import competition in place until the later stages of the ten-year period. In addition, the ATC permits importing countries, under certain conditions, to impose new quotas on the importation of textile and apparel products during the ten-year phase out period. Thus, the extent to which the ATC will liberalize trade in textile and apparel products over the next seven years is unclear. Reduced restrictions on the importation of textiles and textile products could increase competitive import pressure on the company's remaining domestic manufacturing operations, but could also positively affect its sourcing activities in some countries.
Congress is considering legislation this session that would extend quota and duty-free treatment to apparel products imported from certain Caribbean countries. If enacted this legislation could enhance the competitive position of certain of the Company's Caribbean plants and sourcing activities.
Congress is also considering legislation that would grant preferential treatment to certain apparel products from certain sub-Saharan African nations. At present, the requirements that apparel products will have to meet to qualify for preferential treatment under this legislation have not been settled. Thus, the impact that this legislation will have, if adopted, is not clear at this time.
Another source of competition is the increasing use of buying offices by certain of the Company's customers and other retailers. These buying offices permit the retailer to source directly from (primarily) foreign manufacturers, by-passing intermediate apparel manufacturing companies. The Company is unable to quantify the effect of this trend on its sales and profits but believes that the use of buying offices adversely affects both. The Company believes that the relative price advantage to retailers of direct sourcing is offset to an extent by the Company's ownership of or long term relationships with foreign facilities and by services provided to its customers such as delivery flexibility and manufacturing expertise.
EMPLOYEES
As of May 29, 1998, the Company employed 8,802 persons, approximately 80% of whom were hourly and incentive paid production workers. The Company believes its employee relations are excellent.
Item 2.
Item 2. Properties. - --------------------
At May 29, 1998 the Company operated a total of 20 production plants. Domestic plants, of which nine plants are owned and one plant is leased, are located in Alabama, Georgia, Mississippi and South Carolina. Foreign plants, of which four are owned and six are leased, are located in Mexico, the Dominican Republic, Costa Rica, Honduras, and the Philippines. In addition the Company is starting production in two new leased facilities in Mexico and Honduras. Subsequent to the end of the fiscal year the Company announced that is would be closing its factory in Camden, South Carolina.
The Company also maintains separate warehousing and distribution facilities (in addition to space allocated for these purposes in or adjacent to manufacturing plants) in Arizona, Georgia, Mississippi, Tennessee and South Carolina.
Certain of the manufacturing, warehousing and distribution facilities deemed owned by the Company are held pursuant to long-term capital leases or lease purchase agreements, some of which have been entered into by the Company in connection with industrial revenue bond financing arrangements. Under this type of financing, the facilities are subject to trust indentures or security agreements securing the interests of the bondholders. See Notes C and D in the Notes to Consolidated Financial Statements forming a part of the financial statements included under Item 8 of this Report.
General offices are maintained in a facility owned by the Company in Atlanta, Georgia. The Company leases sales, purchasing and administrative offices in Atlanta, Dallas, Hong Kong, New York, Singapore, Bangladesh, the Philippines and Indonesia.
The Company owns substantially all of its machinery and equipment. Current facilities are adequately covered by insurance, generally well maintained and provide adequate production capacity for current and anticipated future operations.
Item 3.
Item 3. Legal Proceedings. - --------------------------- Not applicable.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders. - -------------------------------------------------------------
Not applicable.
Item 4A. Executive Officers of the Registrant. - ----------------------------------------------- Name Age Office Held - --------------------- --- ------------------------- J. Hicks Lanier 58 Chairman of the Board, President and Chief Executive Officer
Ben B. Blount, Jr 59 Executive Vice President -- Finance, Planning and Development and Chief Financial Officer
L. Wayne Brantley 56 Group Vice President
R. Larry Johnson 59 Group Vice President
Knowlton J. O'Reilly 58 Group Vice President
Robert C. Skinner, Jr. 44 Group Vice President
Messrs. J. Hicks Lanier, Ben B. Blount, Jr. and Knowlton J. O'Reilly are also directors of the Company. The Board of Directors of the Company elects executive officers annually.
Mr. J. Hicks Lanier has served as President of the Company since 1977. In 1981 he was elected as Chairman of the Board.
Mr. Ben B. Blount, Jr. was Executive Vice President -- Planning and Development from 1986 - 1995. Mr. Blount was President of Kayser Roth Apparel, an apparel manufacturer and marketer, from 1982 to 1986. Prior to 1982 he was Group Vice President of the Company. In 1995 he was elected to serve in his present position as Executive Vice President of Finance, Planning and Administration and Chief Financial Officer.
Mr. Knowlton J. O'Reilly has served as Group Vice President of the Company since 1978.
Messrs. L. Wayne Brantley, R. Larry Johnson and Robert C. Skinner have served as Group Vice Presidents of the Company since 1997.
PART II ------- Item 5.
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters - ------------------------------------------------------------
Incorporated by reference to the table presented under the heading "Common Stock Information" on page 30 of the Company's 1998 Annual Report to Stockholders (Exhibit 13 hereto). On August 17, 1998, there were 718 holders of record of the Company's common stock. Subsequent to year-end through August 17, 1998, the Company repurchased 200,000 shares of its common stock. Item 6.
Item 6. Selected Financial Data. - ---------------------------------
Incorporated by reference to page 18 of the Company's 1998 Annual Report to Stockholders (Exhibit 13 hereto). Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. - ----------------------------------------------------------
Incorporated by reference to page 19 through 21 of the Company's 1998 Annual Report to Stockholders (Exhibit 13 hereto). 8. Financial Statements and Supplementary Data. - -----------------------------------------------------
Financial statements, including selected quarterly financial data, are incorporated by reference to pages 22 through 30 of the Company's 1998 Annual Report to Stockholders (Exhibit 13 hereto).
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. - ---------------------------------------------------------
Not applicable.
PART III --------
Item 10.
Item 10. Directors and Executive Officers of the Registrant. - -------------------------------------------------------------
Information required by this item covering directors of the Company is incorporated by reference to the information presented under the heading "Election of Directors - Directors and Nominees" in the Company's Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days after May 29, 1998. Information required by this item covering executive officers of the Company is set forth under Item 4A of this Report.
Item 11.
Item 11. Executive Compensation. - ---------------------------------
Incorporated by reference to the information presented under the heading "Executive Compensation and Other Information" in the Company's Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days after May 29, 1998.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management. - -------------------------------------------------------------
Incorporated by reference to the information presented under the heading "Beneficial Ownership of Common Stock" in the Company's Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days after May 29, 1998.
Item 13.
Item 13. Certain Relationships and Related Transactions. - ---------------------------------------------------------
Incorporated by reference to the information presented under the heading "Executive Compensation and Other Information - Compensation Committee Interlocks and Insider Participation" in the Company's Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days after May 29, 1998.
PART IV -------
Item 14.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K. - -----------------------------------------------------------------
(a) 1. Financial Statements --------------------
Included on pages 18 through 31 of the 1998 Annual Report to Stockholders (Exhibit 13 hereto) and incorporated by reference in this Form 10-K:
Report of Independent Public Accountants.
Consolidated Balance Sheets at May 29, 1998 and May 30, 1997
Consolidated Statements of Earnings for years ended May 29, 1998, May 30, 1997 and May 31, 1996.
Consolidated Statements of Stockholders' Equity for years ended May 29, 1998, May 30, 1997 and May 31, 1996.
Consolidated Statements of Cash Flows for years ended May 29, 1998, May 30, 1997 and May 31, 1996.
Notes to Consolidated Financial Statements for years ended May 29, 1998, May 30, 1997 and May 31, 1996.
2. Financial Statement Schedules -----------------------------
Included herein:
Report of Independent Public Accountants on Financial Statement Schedule.
Schedule II - Valuation and Qualifying Accounts.
3. Exhibits --------
3(a) Articles of Incorporation of the Company. Incorporated by reference to Exhibit 3(a) to the Company's Form 10-Q for the fiscal quarter ended August 29, 1997.
3(b) Bylaws of the Company. Incorporated by reference to Exhibit 3(b) to the Company's Form 10-K for fiscal year ended June 3, 1994.
10(a) 1997 Stock Option Plan. Incorporated by reference to Exhibit A, "1997 Stock Option Plan", to the Company's Proxy Statement dated August 29, 1997.
10(b) 1997 Restricted Stock Plan. Incorporated by reference to Exhibit B, "1997 Restricted Stock Plan", to the Company's Proxy Statement dated August 29, 1997.
10(c) 1984 Stock Option Plan. Incorporated by reference to Exhibit 10(c) to the Company's Form 10-Q for the fiscal quarter ended December 1, 1995.
10(e) Summary of Executive Medical Reimbursement Plan. Incorporated by reference to Exhibit 10(e) to the Company's Form 10-K for the fiscal year ended June 3, 1994.
10(f) Management Incentive Bonus Program, as amended through June 1, 1991. Incorporated by reference to Exhibit 10(f) to the Company's Form 10-K for the fiscal year ended May 31, 1996.
10(h) 1992 Stock Option Plan. Incorporated by reference to Exhibit 10(h) to the Company's Form 10-Q for the fiscal quarter ended August 30, 1996.
10(i) Note Agreement between the Company and SunTrust Bank dated February 25, 1998 covering the Company's long-term note due August 23, 1999. Incorporated by reference to Exhibit 10(i) to the Company's Form 10-Q for the fiscal quarter ended February 27, 1998.
13 1998 Annual Report to Stockholders (furnished for the information of the Commission and not deemed "filed" or part of this Form 10-K except for those portions expressly incorporated herein by reference).
23 Consent of Arthur Andersen LLP
24 Powers of Attorney.
27 Financial Data Schedule.
The Company agrees to file upon request of the Securities and Exchange Commission a copy of all agreements evidencing long-term debt of the Company and its subsidiaries omitted from this report pursuant to Item 601(b)(4)(iii) of Regulation S-K.
Shareholders may obtain copies of Exhibits without charge upon written request to the Corporate Secretary, Oxford Industries, Inc., 222 Piedmont Avenue, N.E., Atlanta, Georgia 30308.
(b) No reports on Form 8-K were filed during the last quarter of the period covered by this report.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Oxford Industries, Inc.
/s/Thomas Caldecot Chubb III ---------------------------- J. Hicks Lanier* Chairman and President
Date: August 24, 1998 --------------- Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Company in the capacities and on the dates indicated.
Signature Capacity Date - -------------------------- ----------------- ---------
/s/Thomas Caldecot Chubb,III 08/24/98 - -------------------------- President, Chief -------- J. Hicks Lanier* Executive Officer and Director
/s/Ben B. Blount Jr. Executive 08/24/98 - -------------------------- Vice President, -------- Ben B. Blount Jr. Chief Financial Officer and Director
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- Cecil D. Conlee*
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- Thomas Gallagher*
*by power of attorney
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- J. Reese Lanier*
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- Knowlton J. O'Reilly*
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- Clarence B. Rogers, Jr.*
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- Robert E. Shaw*
/s/Thomas Caldecot Chubb,III Director 08/24/98 - -------------------------- -------- E. Jenner Wood*
*by power of attorney
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE
To Oxford Industries, Inc.:
We have audited, in accordance with generally accepted auditing standards, the consolidated financial statements included in Oxford Industries, Inc.'s 1998 Annual Report to Stockholders incorporated by reference in this Form 10-K, and have issued our report thereon, dated July 10, 1998. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule listed in Item 14(a)2 is the responsibility of the Company's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, fairly states in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Atlanta, Georgia July 10, 1998