Tommy Bahama Owner Oxford Stock Falls on Warning of Sales Slowdown, Tariffs

Oxford Industries (OXM) warned of slowing sales, giving worse-than-expected guidance that sent shares of the owner of Tommy Bahama and other clothing brands sinking.

The company sees fiscal 2025 adjusted earnings per share (EPS) of $4.60 to $5.00, while the Visible Alpha forecast was for $6.92. 

CEO Tom Chubb explained that after a strong close to 2024, “trends moderated in January as there was less of a reason to shop, a pattern we’ve witnessed for the past several quarters, as well as a deterioration in consumer sentiment that also weighed on demand.” Chubb added that those trends “accelerated into February,” and believes they “are likely an indicator of what we can expect in the first half of fiscal 2025.”

In addition, CFO Scott Grassmyer told analysts on the conference call that the company anticipates full-year gross margin will decline 50 to 100 basis points (bps), “primarily driven by the impact of tariffs and the expectation of lower proportion of full-priced direct-to-consumer sales,” according to a transcript provided by AlphaSense.

Q4 Results Top Estimates

The news offset solid fourth-quarter results. Oxford reported adjusted EPS of $1.37 on revenue that declined 3% year-over-year to $390.5 million. Visible Alpha consensus estimates were for $1.27 and $383.9 million, respectively.

Tommy Bahama sales dropped 3% to $237.6 million, they were down 6% to $74.0 million for Lilly Pulitzer, and they slid 9% to $47.4 million for Johnny Was. 

Even with the declines, Chubb said Oxford was pleased with the performance, calling it a “successful holiday season.”

Shares, which dropped 4% Friday morning, have lost nearly half their value in the past year.