What Happened?
Shares of fashion conglomerate Oxford Industries (NYSE:OXM) fell 11.6% in the morning session after the company reported weak first-quarter 2025 results, as it dropped its full-year sales and earnings per share forecast.
Taking a closer look at the quarter, revenue fell 1.3% year-on-year, with a big drop in sales at Johnny Was and a smaller dip at Tommy Bahama, which together erased gains at Lilly Pulitzer. Margins took a hit, too, due to a rise in shipping costs, deeper discounts to clear old inventory, and a greater share of lower-margin wholesale sales. Higher costs from running more stores pushed expenses up, crimping operating margin. As a result, EPS fell compared to the previous year. The company lowered its full-year forecast, expecting sales to shrink slightly, hurt by rising tariffs.
Overall, it was a weak quarter, with falling margins, declining sales, and lowered guidance all pointing to a tougher road ahead.
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What The Market Is Telling Us
Oxford Industries’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Oxford Industries and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 12.1% after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration pushed tariffs on all Chinese imports to well above 100%. Hopes had been lifted by chatter of constructive negotiations aimed at easing and eventually removing U.S. trade tariffs.
But the news confirmed fears of a prolonged trade fight, increasing uncertainty about the direction of economic policy. This left investors grappling with the dual threat of slower growth and higher inflation, both of which could linger if the standoff continues.
Oxford Industries is down 43.6% since the beginning of the year, and at $44.28 per share, it is trading 58.4% below its 52-week high of $106.50 from July 2024. Investors who bought $1,000 worth of Oxford Industries’s shares 5 years ago would now be looking at an investment worth $962.39.
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