Shares of Oxford Industries (NASDAQ: OXM) jumped more than 26% on Thursday after the apparel retailer reported second-quarter results that exceeded analysts’ earnings expectations, despite facing headwinds from tariffs and declining sales in its core brands.
Oxford’s shares surged 26.06% to an intraday high of $50.78. At the time of writing, the stock was trading at $49.39.
The company, which owns Tommy Bahama, Lilly Pulitzer, and Johnny Was, reported adjusted earnings per share of $1.26, ahead of the $1.18 per share expected by analysts.
Net income came in at $16.7 million, or $1.12 per share, compared with $40.6 million, or $2.57 per share, in the same period last year.
Revenue fell 4% year-over-year to $403.1 million, missing Wall Street’s forecast of $406.1 million and down from $420 million a year earlier.
Despite the revenue shortfall, Oxford’s proactive measures to mitigate tariffs and manage costs helped the company deliver stronger-than-anticipated profitability.
Tariff pressures and mitigation strategies
Oxford warned that tariffs could weigh heavily on its bottom line this year, projecting $80 million in additional tariff costs.
However, the company emphasized that it is taking steps to soften the blow, expecting to offset roughly half of those costs through a combination of strategies.
The retailer said it is diversifying supply chain sourcing, adjusting pricing, and pulling forward some inventory receipts to better navigate the shifting trade environment.
CEO Tom Chubb credited these moves for the company’s ability to post solid earnings despite a challenging backdrop.
“We quickly diversified our sourcing as well as pulled some inventory receipts forward and calibrated pricing with care to help partially offset the impact on product costs from the incremental tariffs and evolving trade environment that has emerged this year,” Chubb said in a statement.
Oxford also reaffirmed its fiscal 2025 guidance, projecting sales in the range of $1.475 billion to $1.515 billion, broadly in line with the consensus estimate of $1.493 billion.
Brand performance and outlook
Oxford’s performance in the quarter reflected uneven results across its portfolio.
Its Emerging Brands segment posted strong growth, with sales rising 17% to $38.5 million.
By contrast, its three largest brands reported declines: Tommy Bahama sales fell 6.6%, Lilly Pulitzer slipped 1.5%, and Johnny Was declined 9.7%.
Looking ahead, Chubb said the company is encouraged by improving momentum early in the third quarter, noting that comparable store sales have been “modestly positive in the low single-digit range” to date.
Despite Thursday’s sharp rally, Oxford shares remain down more than 37% to date, reflecting investor caution about the challenges posed by tariffs, shifting consumer demand, and competitive pressures in the retail sector.
Still, the company’s ability to beat profit forecasts and outline clear strategies for mitigating trade-related costs offered reassurance to markets.
By delivering stronger earnings, reaffirming guidance, and highlighting resilience in parts of its portfolio, Oxford signaled that it is prepared to navigate a difficult operating environment while seeking to protect shareholder value.
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