$OXM

Oxford Industries Issues Weak Sales Outlook as Fiscal First-Quarter Results Decline

Oxford Industries (OXM) shares fell early Thursday after the clothing company provided a fiscal second-quarter sales outlook below analyst estimates, while its results declined year over year in the prior three-month period.The owner of Tommy Bahama and Lilly Pulitzer clothing brands anticipates sales to come in between $380 million and $400 million for the current quarter, it said late Wednesday. Adjusted earnings are pegged at $1.20 to $1.40 per share. The current consensus on FactSet is for sales of $407.8 million and non-GAAP EPS of $1.40.The stock dropped 6.6% in the most recent premarket activity."The positive momentum we saw to start the year decelerated a bit at the end of the first quarter and continued into the second quarter," Chief Financial Officer Scott Grassmyer said during an earnings call, according to a FactSet transcript. "For the second quarter, we now expect our total company comp to be in the low-single-digit negative to flat range."For the quarter ended May 2, Oxford's adjusted EPS declined to $1.39 from $1.82 last year, but came in ahead of the Street's view for $1.29. Sales edged down 0.4% to $391.4 million, just shy of the average analyst estimate of $391.8 million."We delivered net sales in line with our expectations, led by mid-single-digit positive comps at Tommy Bahama, and adjusted EPS above our guidance range, fueled by better-than-expected gross margins," Chief Executive Tom Chubb said in the earnings release. "Our overall performance also reflects softer than expected results at Lilly Pulitzer and a challenging environment marked by weak consumer sentiment and higher energy prices."Sales from Tommy Bahama increased to $224.6 million from $216.2 million in the prior-year quarter, while Lilly Pulitzer decreased 8.8% to $90.4 million. Revenue from emerging brands advanced 13% to $38.6 million, while Johnny Was logged a 13% drop in sales.For fiscal 2026, Oxford now expects adjusted EPS to be in between $2.30 and $2.70, reflecting a higher bottom end versus the previous guidance of $2.10. Sales are forecast to be in a range of $1.48 billion to $1.51 billion, reflecting a lower top end compared with prior projections of $1.53 billion. The Street is looking for non-GAAP EPS of $2.46 and sales of $1.5 billion for the fiscal year."As we look to the remainder of the year, we expect macroeconomic pressures to continue weighing on consumer sentiment, and we are allowing time for our corrective actions at Lilly Pulitzer to gain traction," according to Chubb. "In light of these factors and recent comparable sales trends, we are narrowing our full-year sales guidance range."The company's outlook points to a meaningful second-half improvement for the Lilly Pulitzer and Johnny Was brands, despite expectations for macro pressures to persist, Truist Securities said in a note."We remain more cautious without further visibility into these topline improvements (especially in a volatile macro)," the brokerage added.