Shares of Oxford Industries Inc. (OXM) declined 5.9% after hours on Thursday as the company adjusted its sales and profit forecast for the remainder of the fiscal year. The owner of well-known apparel brands such as Tommy Bahama and Lilly Pulitzer cited a “more cautious macroeconomic environment” and the impact of wildfires in Maui as contributing factors.
Revised Sales and Profit Outlook
Executives now anticipate full-year sales to range between $1.57 billion and $1.6 billion, compared to the previous estimate of $1.59 billion to $1.63 billion announced in June. Additionally, adjusted earnings per share guidance has been adjusted to a range of $10.30 to $10.60, down from the initial forecast of $10.80 to $11.20.
Wildfires in Maui and Brick-and-Mortar Locations
Oxford Industries attributes the revised guidance not only to the cautious macroeconomic environment but also to the detrimental impact of wildfires in Maui. With six brick-and-mortar locations in Maui, including two food and beverage establishments, the company has been significantly affected by the natural disaster.
Second Quarter Performance
In the second quarter, Oxford Industries reported a net income of $51.4 million, equivalent to $3.22 per share. This is compared to $56.6 million, or $3.49 per share, in the same quarter of the previous year. However, adjusted earnings per share came in at $3.45, which surpassed analysts’ expectations.
CEO Acknowledges Cautious Consumer Sentiment
Chief Executive Tom Chubb acknowledged that consumers have become more reserved in their discretionary spending due to challenging macroeconomic conditions.
Overall, Oxford Industries Inc. is taking a more conservative approach in response to the current economic climate and recent natural disasters, which have impacted their sales and profit outlook for the fiscal year.