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Key Takeaways
- Tommy Bahama parent Oxford Industries missed second-quarter profit and sales estimates and slashed its outlook amid a “challenging consumer environment.”
- CEO Tom Chubb said market conditions were weaker than expected.
- Shares of Oxford Industries tumbled to a more than two-year low.
Shares of Oxford Industries (OXM) sank to their lowest level in more than two years after the clothing retailer posted worse-than-expected results and slashed its guidance as it faced what Chief Executive Officer (CEO) Tom Chubb called a “challenging consumer environment.”
The owner of the Tommy Bahama, Lilly Pulitzer, and Johnny Was brands reported second-quarter earnings per share (EPS) of $2.57, with revenue slipping 0.1% year-over-year to $419.9 million. Both were shy of consensus estimates of analysts polled by Visible Alpha.
Sales dropped 3.4% at Johnny Was to $50.3 million, and 0.1% at Tommy Bahama to $245.1 million. They rose 0.4% at Lilly Pulitzer to $91.7 million, while the company’s emerging brands category added 4.3% to $32.9 million.
CEO Notes Shoppers Are Seeking Deals
Chubb said consumer sentiment “continued to decline from levels earlier in the year, reaching an eight-month low in July,” and that market conditions were weaker than expected as more shoppers were “looking for deals and promotions.”
The company now sees fiscal 2024 net sales in the range of $1.51 billion to $1.54 billion, down from the previous forecast of $1.59 billion to $1.63 billion. It anticipates adjusted EPS of $7.00 to $7.30 versus the earlier $8.60 to $9.00.
Oxford Industries shares were 2.4% lower at $81.66 in late-morning trading Thursday and are down nearly 20% year-to-date.