ATLANTA - Oxford Industries, Inc. (NYSE:OXM) reported a decline in first-quarter earnings and revenue, missing analyst estimates and causing its shares to drop by 8%. The apparel company, known for its brands such as Tommy Bahama and Lilly Pulitzer, posted an adjusted earnings per share (EPS) of $2.42, falling short of the consensus estimate of $2.69. Revenue also came in lower at $398.18 million compared to the anticipated $405.64 million.
The company's results reflect a 5% decrease in consolidated net sales from the same quarter last year, which stood at $420 million. Oxford Industries' GAAP EPS also saw a significant drop from $3.64 in the first quarter of fiscal 2023 to $2.42 in the current fiscal year. Adjusted EPS similarly decreased from $3.78 to $2.66 year-over-year (YoY).
Tom Chubb (NYSE:CB), Chairman and CEO of Oxford Industries, acknowledged the challenging economic climate, stating, "Our strong brands and excellent team focused on executing our strategy allowed us to deliver sales and adjusted EPS within our guidance ranges for the first quarter despite continued macroeconomic headwinds and lower levels of consumer sentiment." He also noted a sequential improvement in comparable sales trends, which are positive in the second quarter to date.
However, the company has revised its full-year outlook due to the volatile market and the recent drop in consumer sentiment. Oxford Industries now expects fiscal 2024 net sales to range between $1.59 billion and $1.63 billion, with GAAP EPS forecasted to be between $7.99 and $8.39. This is notably lower than the adjusted EPS of $10.15 reported for fiscal 2023 and below the analyst consensus of $9.47 for FY2025.
For the second quarter of fiscal 2024, the company anticipates net sales to be between $430 million and $450 million, with GAAP EPS expected to range from $2.82 to $3.02. This is compared to a GAAP EPS of $3.22 in the second quarter of fiscal 2023. Adjusted EPS is projected to be between $2.95 and $3.15, below the adjusted EPS of $3.45 from the same quarter last year.
Despite the near-term challenges, Chubb remains optimistic about the company's ability to generate top-line growth across all brands and channels, as well as positive comps for the full year. "We expect a strong 2024 from a cash flow perspective and will continue investing in the future of our business," he added.
The market's reaction to the earnings miss and lowered guidance was swift, with the stock price falling 8% as investors adjusted their expectations in light of the company's conservative outlook for the remainder of the year.
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