Oxford Industries Stock Drops to Two-Year Low Following Disappointing Q2 Results

By Zoey Ramirez Sep 13, 2024

Shares in clothing retailer Oxford Industries slump to a two-year low after worse-than-expected Q2 results and reduced annual guidance.

Shares of clothing retailer Oxford Industries (OXM) have sunk to their lowest point in over two years following a disappointing second-quarter report. The retailer, which owns the Tommy Bahama, Lilly Pulitzer, and Johnny Was brands, released earnings per share (EPS) of $2.57 and reported a slight 0.1% decline in year-over-year revenue to $419.9 million. The results fell short of the projections of analysts surveyed by Visible Alpha.

Among the individual brands, sales at Johnny Was and Tommy Bahama fell 3.4% and 0.1% respectively, while sales at Lilly Pulitzer increased marginally by 0.4%. Meanwhile, turnover in the company's emerging brands category escalated 4.3% to $32.9 million.

CEO Tom Chubb attributed the downturn to a challenging consumer environment characterized by declining sentiment and a growing preference for promotions and sales. The company has consequently lowered its net sales forecast for fiscal 2024 from a range of $1.59 billion - $1.63 billion to $1.51 billion - $1.54 billion and cut its adjusted EPS outlook from $8.60 - $9.00 to $7.00 - $7.30. Following these announcements, Oxford Industries shares have fallen by nearly 20% year-to-date, trading 2.4% lower at $81.66 in late-morning trading Thursday.

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