Oxford Industries, Inc. (OXM) reported its second-quarter financial results after Wednesday’s closing bell, revealing a mixed bag of news. While the company saw growth in outlet sales and promotional events, overall sales and earnings fell short of analysts’ expectations. This downturn can be attributed to a weakening consumer sentiment, a trend that has been impacting businesses across the retail sector.
Oxford Industries reported quarterly earnings of $2.77 per share, missing the analyst consensus estimate of $3.00 by 7.67%. Quarterly sales also missed the mark, coming in at $419.886 million compared to the anticipated $438.176 million, representing a 4.17% shortfall. This figure also represents a slight decrease from the same period last year.
Despite the overall decline, Oxford Industries did see some positive developments. Full-price direct-to-consumer (DTC) sales increased by 1% to $305 million compared to the second quarter of fiscal 2023. Full-price retail sales of $152 million also saw a 1% increase over the previous year. E-commerce sales of $153 million remained relatively steady compared to the previous year. Outlet sales experienced a 4% increase, reaching $21 million, while food and beverage sales stayed consistent at $29 million. However, wholesale sales took a hit, declining by 5% to $65 million compared to the second quarter of fiscal 2023.
Oxford Industries’ CEO, Tom Chubb, attributed the company’s performance to the softening consumer landscape. He stated, “Consumer sentiment in the second quarter continued to decline from levels earlier in the year, reaching an eight-month low in July. The decline led to market conditions that were weaker than expected, with more consumers looking for deals and promotions as evidenced by increased sales in our outlet locations and during promotional events.” Despite the challenging environment, Chubb emphasized the company’s focus on delivering compelling products and experiences to customers.
Looking ahead, Oxford Industries has lowered its third-quarter guidance to earnings of between 0 cents and 20 cents per share and net sales in a range of $310 million to $325 million. The company’s full-year outlook has also been adjusted, with projected earnings of between $7.00 and $7.30 per share and net sales in a range of $1.51 billion to $1.54 billion.
In reaction to the news, Oxford Industries shares experienced a significant decline, falling by 7.68% after-hours, reaching $77.20 at the time of publication on Wednesday. The company’s performance serves as a further indication of the current economic climate and its impact on consumer spending, highlighting the challenges facing the retail sector.
