Oxford Industries stock slides over 10% on dampened full-year forecast (NYSE:OXM)

JHVEPhoto/iStock Editorial via Getty Images

Oxford Industries (NYSE:OXM) shares slid sharply in Wednesday’s extended trading after slashing earnings guidance.

For the first quarter, the company notched $3.78 in adjusted earnings per share on $420M in net sales, the latter figure reflecting a 19% jump from the prior year quarter. Both figures edged analyst expectations set at $3.75 and $419.10M, respectively. Gross margin expanded 130 basis points year over year, but inventories jumped 32% from the prior year quarter.

“Our strong brands, exceptional products, aspirational messaging and balanced mix of direct retail, ecommerce and wholesale allowed us to deliver solid results for the first quarter of 2023,” CEO Tom Chubb said. “While the year started strong, as the quarter progressed, we did see macroeconomic pressures drive the consumer to become more cautious in her discretionary spending and a high level of promotional activity within the marketplace. In light of these factors, we are moderating our growth forecast for the year.”

The company now expects net sales in a range of $1.59B to $1.63B, down from a prior guide of $1.62B to $1.66B in revenue projected in previous forecasts. The consensus expectation for revenue stood at $1.64B ahead of the print. Adjusted EPS is expected to be between $10.80 and $11.20, trimmed from a prior forecast of $11.50 to $11.90 and below the consensus expectation of $11.76.

For the second quarter of fiscal 2023, the Company expects net sales to be between $415M and $435M and between $3.30 and $3.50 in adjusted EPS. Consensus estimates for revenue and EPS stood at $440.60M and $4.12, respectively, for the second quarter.

The soft forecasts overshadowed the earnings beat, sending shares of the Tommy Bahama-parent down 11.86% after the announcement.