Oxford Industries (OXM) Announces Acquisition of Johnny Was and Raises Guidance

News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.

Oxford Industries, Inc. (NYSE: OXM) announced today that it has completed the acquisition of Johnny Was, a California-based brand of modern bohemian style and affordable luxury, for $270 million.

Tom Chubb, President and CEO of Oxford, said, “Since 1987, Johnny Was has been inspired by a signature free-spirited aesthetic that embraces a quintessential California lifestyle. With his beautifully crafted clothes and unique accessories, Johnny Was continues to transcend fashion trends. Rob Trauber and the Johnny Was team have done a spectacular job of leveraging his brand point of view and exceptional, differentiated product to build Johnny Was into a powerful, omnichannel brand with an incredibly loyal customer base. Adding the Johnny Was brand to Oxford’s portfolio further diversifies our business across fashion perspectives, price points, seasons and geographies. We are delighted to partner with the brand’s strong leadership team to drive the business forward and welcome them to the Oxford family.

Rob Trauber, CEO of Johnny Was, added: “We are delighted to join Oxford and its incredible portfolio of lifestyle brands. We believe Oxford is the perfect home for Johnny Was as our missions are aligned and they have a proven track record of successfully partnering with brand leadership to optimize long-term brand investment, performance and management. term to fuel growth. I am extremely grateful to the dedicated team at Johnny Was for helping the brand achieve incredible milestones and look forward to continuing our success together as we work with Oxford in the future. I would also like to express my gratitude to the founders of Johnny Was and Endeavor Capital for their strong partnership over the past seven years.

The company is also raising its guidance for the third quarter and full fiscal year of fiscal 2022. Third-quarter sales are now expected to be between $295 million and $310 million, with adjusted EPS of 1.10 to 1.30. dollar. Approximately 2/3 of the increase in EPS forecast is due to expected results from Johnny Was, with a slightly higher proportion of the increase in sales being due to the acquisition of Johnny Was. The remainder of the forecast increase is due to the strong quarter-to-date performance of our full-price direct-to-consumer channels and the success of last week’s Lilly Pulitzer e-commerce flash sale. For the full year, the company forecasts sales of $1.375 billion to $1.405 billion, with adjusted EPS of $10.25 and $10.60. These amounts exclude the impact of non-cash purchase accounting adjustments required under GAAP as well as one-time discrete transaction and integration costs. The impact of these elements could be significant, particularly for the 2022 financial year.

For more information on today’s announcement, Oxford has posted a presentation on its Investor Relations website, investor.oxfordinc.com.

The transaction was financed primarily with available cash, with the remaining approximately $100 million financed by borrowings under Oxford’s revolving credit facility. The Company expects to repay all borrowings within one year of the transaction. Under the purchase agreement, the purchase price is subject to an adjustment based on net working capital at closing.

King & Spalding, Kilpatrick Townsend & Stockton and Smith, Gambrell & Russell acted as Oxford’s legal advisers. Financial | Raymond James served as financial advisor and Buchalter served as legal advisor to Johnny Was on the transaction.

Comments are closed.