Bill McColl
2 min read
In This Article:
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Oxford Industries reduced its fiscal 2025 profit and sales forecasts on falling consumer sentiment and the impact of tariffs.
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The owner of the Tommy Bahama, Johnny Was, and Lilly Pulitzer brands sees new tariffs adding $40 million in expenses this year.
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Oxford Industries beat revenue estimates in the first quarter.
Shares of Oxford Industries (OXM) dropped 10% Thursday, a day after the apparel firm behind Tommy Bahama and other brands slashed its guidance as it warned about consumer spending and the effect of tariffs.
On the call with analysts, CEO Thomas Chubb III said that "soft data, particularly consumer sentiment surveys as well as reports on discretionary spending, indicate a consumer that is much more cautious when it comes to spending on discretionary items, which includes fundamentally everything we sell," according to an AlphaSense transcript.
Chubb explained that the Trump administration's tariff policy is raising prices, adding to the pullback in consumer demand. In addition, he said that "the rapid evolution of the tariff policy is making it exceptionally difficult to plan and forecast the business," and it will require the company "to significantly realign our supply chain."
Oxford reduced its full-year adjusted earnings per share (EPS) guidance to $2.80 to $3.20 from its earlier estimate of $4.60 to $5.00, as it sees the duties driving up fiscal 2025 costs by $40 million, or $2.00 per share on an after-tax basis. It anticipates sales of $1.475 billion to $1.515 billion, compared to the previous outlook of $1.49 billion to $1.53 billion.
Oxford's first-quarter revenue of $392.9 million topped Visible Alpha estimates, and adjusted EPS of $1.82 matched them.
Sales at Tommy Bahama fell 4% to $216.2 million, and they tumbled 15% to $43.5 million at Johnny Was. However, sales jumped 12% to $99.0 million at Lilly Pulitzer.
Oxford Industries shares are down about 45% in 2025.
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