The Inflation and Hurricanes Hurt the Results of Oxford Industries, a Tommy Bahama Parent company

The Key Takeaways

• Oxford Industries reported a surprise loss, and revenues declined because of inflation as well as the effects of two hurricanes.
• Sales at the company's Tommy Bahama, Lilly Pulitzer, and Johnny Was brands all fell.
• Oxford cut the guidance it gives for its entire year.

Oxford Industries’ (OXM), the parent company of Tommy Bahama and Johnny Was, reported a surprise loss on Wednesday and cut their outlook due to hurricanes.

Oxford’s adjusted third-quarter loss was $0.11 per share. VisibleAlpha surveyed analysts and they expected an adjusted profit per share of $0.09. Also below expectations, revenue dropped nearly 6% over the past year to $308.0 millions. 

Tommy Bahama sales fell 5.2%, to 161.3 million dollars. Lilly Pulitzer’s dropped 8.5%, to $69.8 millions. Johnny Was saw a 6.1% drop to 46.1 million dollars. Sales of emerging brands fell 1%, to $30.9million.

CEO Attributes Results To Inflation, 'Distractions From the US Elections'

Tom Chubb, the Chief Executive Officer of Tom Chubb & Co. “cumulative effects of several years of high inflation combined with distractions from the U.S. elections and other world events, led to less frequent and more tentative consumer spending behavior.”

In addition, Chubb noted that Hurricanes Helene and Milton negatively impacted sales in the Southeast U.S., the company's "most significant and important market." Chubb stated that these storms cost the company an estimated $4,000,000 in sales. This resulted in a profit drop of $0.14 per share. 

Oxford has revised its estimate for full-year revenue to between $1.50bn and $1.52bn, down significantly from earlier estimates of $1.51bn to $1.54bn. The company expects a profit adjusted to between $6.50 and $6.70 per common share. This is down from the earlier estimate of $1.51 billion to $1.54 billion.

Oxford Industries’ shares have fallen more than 20% in the last year.

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