Shares in Tommy Bahama-parent Oxford Industries Inc (NYSE:OXM) owner of the Tommy Bahama brand, saw its shares fall 4.2%, to $96.75, on missed quarterly financial expectations and downgraded full-year guidance.
The maker of ‘Hawaiian’ shirts for middle-aged men generated $420 million of revenue in its second quarter and reported adjusted earnings of $3.45 per share, versus analyst forecasts of $424.27 million and $3.45 respectively.
OXM meanwhile cautioned over ‘more cautious’ spending amongst customers and noted the negative impact of the Maui wildfires.
Chief executive Tom Chubb described the environment for the Tommy Bahama, Lilly Pulitzer and Johnny Was brands as "choppy".
“We are pleased to have delivered second-quarter results that are up significantly on a multi-year basis and within our forecasted range given the choppy operating environment,” Chubb said.
“We have recently seen consumers become a bit more cautious with their discretionary spending due to challenging macroeconomic conditions. We are also feeling the impacts of wildfires on Maui due to Oxford’s significant presence on the island.”
For those reasons, Oxford tempered its fiscal 2023 guidance. For the year ending February 3, 2024, the company now projects net sales in a range of $1.57 billion to $1.6 billion, down from a range of $1.59 billion to $1.63 billion a quarter ago.
Adjusted EPS is expected to be between $10.30 and $10.60, down from between $10.80 and $11.20.