Why Oxford Industries Stock Plummeted by 21% Today
Key Points
It posted a quarterly earnings report that disappointed investors.
Its top-line dipped marginally, and its adjusted net loss deepened, compared to the year-ago period.
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It didn't seem as if many stock investors wanted to try Oxford Industries (NYSE: OXM) on for size on Thursday. The company's shares took a real hit that day, falling by more than 21%, on a dispiriting quarterly earnings report.
Slumps in key fundamentals
Oxford published its third-quarter figures just after market close Wednesday. The retail clothing conglomerate -- which owns the Tommy Bahama brand, among others -- booked net sales of just over $307 million for the period. That figure was down marginally on a year-over-year basis.
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On the bottom line Oxford's net loss not according to generally accepted accounting practices (GAAP) deepened to almost $14 million ($0.92 per share) from third quarter 2024's shortfall of $1.7 million.
Oxford's net loss came in slightly narrower than the consensus analyst estimate of $0.96 per share. The company missed on the top line, however, as the collective pudnit expectation was for nearly $309 million.
The company was dragged down by a more than 4% decline in sales (to $154 million) at Tommy Bahama, its top revenue-generating brand. Its Johnny Was brand also saw a drop, although both Lilly Pulitzer and the company's collection of emerging brands posted year-over-year gains.
Guiding for less
While that trailing performance wasn't awful, it probably didn't deserve that aggressive investor sell-off on Thursday. What was more of a concern to investors was the future, and that's where Oxford really fell short.
Management reduced its guidance for the entirety of 2025, cutting its net sales projection to $1.47 billion to $1.49 billion; previously, it forecast around $1.52 billion for the metric. It also took the chop to per-share, non-GAAP (adjusted) profitability, which is now expected to land between $2.20 and $2.40. The preceding guidance was well higher at $2.80 to $3.20.
Again, none of this is a flashing red light to abandon Oxford shares, in my view. At the same time, I don't see anything with this company that would compel me to buy the stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Oxford Industries. The Motley Fool has a disclosure policy.
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