Oxford Industries: Owner Of Tommy Bahama Reports Mixed Q2 Earnings; Slashes Outlook

Oxford Industries Inc OXM reported second-quarter FY23 sales growth of 16% year-on-year to $420.32 million, missing the analyst consensus of $424.27 million.

Net sales from Tommy Bahama increased 1% Y/Y, Lilly Pulitzer rose 3%, and Emerging Brands gained 6%.

Full-price direct-to-consumer (DTC) sales grew 13% compared to Q2 FY22. Food and beverage sales increased 8%, and Wholesale sales climbed 9% versus Q2 FY22.

Gross margin for the quarter was flat at 63.9%. The operating margin compressed from 20.7% to 16.1%, and operating income for the quarter fell 10.2% against Q2 FY22 to $67.7 million.

The company held $7.8 million in cash and equivalents as of July 29, 2023. Cash flow from operations for six months totaled $153 million.

Adjusted EPS of $3.45 beat the analyst consensus of $3.40.

The company's cash dividend of $0.65 per share is payable on October 27, 2023, to shareholders of record on October 13, 2023.

Outlook: Oxford lowered FY23 sales outlook to $1.57 billion - $1.60 billion (prior $1.59 billion - $1.63 billion) versus the consensus of $1.6 billion.

The company lowered the FY23 adjusted EPS forecast to $10.30 - $10.60 (prior $10.80 - $11.20) versus the consensus of $10.78.

For Q3, the company expects net sales of $320 million - $335 million versus the consensus of $352.44 million.

Q3 adjusted EPS of $0.90 - $1.10 versus the consensus of $1.48.

Price Action: OXM shares closed lower by 0.35% at $100.99 on Thursday.