The Oxford stock of Tommy Bahama owner falls on warnings of sales slowdown and tariffs

Takeaways

• Oxford Industries, owner of Tommy Bahama and Tommy Bahama, has warned that consumers are cutting their spending back and that new tariffs may impact results.
• The company missed its forecasts for full-year profits.
• Tom Chubb, CEO of Tom Chubb, said that the decline in consumer sentiment affected demand.

Oxford Industries (OXM), the owner of Tommy Bahama, and other clothing brands, warned of a slowing in sales. The company’s shares plunged after it gave a worse-than expected guidance.

Visible Alpha’s forecast for fiscal 2025 is $6.92, while the company expects adjusted earnings per Share (EPS) between $4.60 and $5.00. 

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."

The transcript provided by AlphaSense shows that CFO Scott Grassmyer also told analysts in the conference call the company expects its gross margin for the entire year to decrease by 50-100 basis points. This decline is “primarily driven” by the impact on tariffs and the expected lower proportion of full priced direct-to-consumer purchases.

Q4 Results Top Estimates

The news was a good counterpoint to the solid fourth quarter results. Oxford reported adjusted earnings per share of $1.37, on revenue that fell 3% year-overyear to $390.5 millions. Visible Alpha consensus was for $1.27 per share and $383.9 millions respectively.

Sales of Lilly Pulitzer fell 6%, while Johnny Was’s sales fell 9%, to $47.3 million. Tommy Bahama’s sales were down 3% at $237.6 millions. 

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

In the last year, shares have lost almost half their value.