Oxford Industries Slides 6.6% After-Hours on Weak Q2 Revenue View

Oxford Industries (OXM) shares fell about 6.6% in extended trading Wednesday after the apparel company issued a second-quarter revenue and earnings forecast that fell short of the prior year's pace.

The company, which owns Tommy Bahama, Lilly Pulitzer, and Southern Tide, reported fiscal first-quarter results that showed stable gross margins but a slowdown in top-line growth. Revenue for the quarter ended May 3 came in at $316.5 million, down from $327.1 million a year earlier. Adjusted earnings per share landed at $0.62, compared with $0.72 in the same period last year.

Gross margin held at 63.5%, roughly flat with the prior year, suggesting the company maintained pricing discipline even as sales slipped. Operating income fell to $17.5 million from $22.5 million, a drop the company attributed to higher selling and administrative costs.

For the current quarter, Oxford forecast revenue between $410 million and $425 million, with adjusted EPS in a range of $2.00 to $2.25. That compares with $430.5 million in revenue and $2.42 in adjusted EPS a year ago. The midpoint of the guidance implies a roughly 3% revenue decline and a 12% drop in earnings per share.

The company's full-year outlook also came in below expectations. Oxford now sees fiscal 2025 revenue of $1.47 billion to $1.50 billion, with adjusted EPS of $4.50 to $4.80. The prior year delivered $1.51 billion in revenue and $5.15 in adjusted EPS.

Management pointed to cautious consumer spending and a shift in seasonal demand patterns as factors weighing on the near-term outlook. The Tommy Bahama brand, which accounts for roughly half of total revenue, saw same-store sales decline in the quarter, though direct-to-consumer channels held up better than wholesale.

Lilly Pulitzer posted a modest same-store sales gain, driven by spring collection demand and a new store opening. Southern Tide, the smallest of the three brands, saw revenue decline as the company pulled back on promotional activity.

Oxford ended the quarter with $14.5 million in cash and $250 million drawn on its revolving credit facility. The company maintained its quarterly dividend of $0.68 per share.

The stock had already been under pressure this year, down about 20% before Wednesday's after-hours move. The guidance cut adds to concerns that the apparel sector's post-pandemic spending bump has fully faded, with consumers rotating spending toward experiences and away from discretionary goods.

Oxford's fiscal year ends in January. The company reports second-quarter results in early September.