ATLANTA - Oxford Industries Inc . (NYSE:OXM) reported second-quarter earnings and revenue that fell short of analyst expectations, while also issuing weaker-than-expected guidance, sending shares down 7% in after-hours trading.
The apparel company, which owns brands like Tommy Bahama and Lilly Pulitzer, posted adjusted earnings per share of $2.77, missing the analyst consensus of $3.04. Revenue came in at $420 million, below estimates of $440 million and flat compared to the same quarter last year.
Oxford Industries lowered its full-year outlook, now expecting fiscal 2024 adjusted earnings per share between $7.00 and $7.30, well below the $8.66 analysts were projecting. The company forecasts revenue of $1.51 billion to $1.54 billion, also missing the $1.61 billion consensus estimate.
"Consumer sentiment in the second quarter continued to decline from levels earlier in the year reaching an eight month low in July," said CEO Tom Chubb (NYSE:CB). "The decline led to market conditions that were weaker than expected with more consumers looking for deals and promotions."
Gross margin contracted to 63.1% from 63.9% a year ago, primarily due to more promotional activity. Operating income fell 22% to $52.5 million.
For the third quarter, Oxford Industries expects revenue between $310 million and $325 million, below last year's $327 million. The company projects adjusted EPS of $0.00 to $0.20, a steep drop from $1.01 in Q3 2023.
Despite the challenging environment, Oxford Industries said it repaid its outstanding debt balance at the end of Q2 and continues to invest in growth initiatives. The company maintained its quarterly dividend of $0.67 per share.
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