MW Maker of Tommy Bahama says consumer caution is affecting 'fundamentally everything we sell'

By Bill Peters

CEO says that current trade policy 'has come with less notice and more fluidity than with past changes'

Oxford Industries Inc. - the company that owns the Tommy Bahama and Lilly Pulitzer beach- and resort-wear lines - slashed its full-year profit outlook on Wednesday, sending shares lower in after-hours trade, as U.S. tariffs "significantly" complicate business.

Shares of Oxford $(OXM)$ were down 10.3% after the close on Wednesday.

"The so-called hard data indicates that the consumer still has the ability to spend money," Chief Executive Tom Chubb said on the company's earings call.

"However," he said, "the soft data, particularly consumer sentiment surveys, as well as reports on discretionary spending, indicate a consumer that is much more cautious when it comes to spending on discretionary items, which includes fundamentally everything we sell."

Oxford said it expects adjusted earnings per share of $2.80 to $3.20 for its full fiscal year, which ends on Jan. 31. That's down from a forecast given in March for $4.60 to $5.

The company said it expects sales of $1.475 billion to $1.515 billion for the period. That compared with its prior forecast for $1.49 billion to $1.53 billion given in March.

Chubb said that over the first quarter, gains in Lully Pulitzer had helped, as its current selection - helped by multicolor prints and sportswear - resonates with its wealthier and more dedicated consumers. But in Oxford's earnings release, he cited "uncertain tariff and trade dynamics that are significantly impacting our industry and operating landscape."

For the first quarter overall, sales slipped 1.3% to $392.9 million, above Wall Street's estimates. The company reported adjusted earnings of $1.82, in line with estimates.

As the U.S. and China try to come to an agreement on trade, retailers, along with clothing and sneaker makers, have either tried to move production out of China over the years or have emphasized the flexibility of their manufacturing across multiple nations. Economists have worried that tariffs - President Donald Trump's main weapon to renegotiate trade deals and other concessions - will raise prices for consumers, amid more than three years of subdued demand for discretionary items like clothing.

Chubb, during the call, said that by the second half of 2026, the company plans to be "substantially out of China."

He said that the company began sourcing its clothing internationally more than 50 years ago. Over that time, he said, there had been major changes to trade policy, such as NAFTA and China's inclusion in the World Trade Organization.

"The only difference this time is that the policy change has come with less notice and more fluidity than with past changes," he said.

-Bill Peters

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June 11, 2025 17:45 ET (21:45 GMT)

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