By Kelly Cloonan

Oxford Industries lowered its sales outlook for the year as it warned consumers could continue to tighten their spending in the face of economic and geopolitical headwinds.

The apparel company said conflicts around the world, higher energy prices and uncertainty around trade policy have pressured discretionary spending lately. Oxford's sales trends softened through April, and the deceleration continued through May and into early June, Chief Executive Tom Chubb said during a call with analysts.

"The consumer backdrop remains unsettled," Chubb said. "While some hard data may suggest consumers have the ability to spend, the soft data and what we are seeing continue to point to consumers that [are] more cautious, selective and highly discerning."

Chubb said he expects economic pressures will continue to weigh on consumer sentiment this year.

Oxford also warned it will take time for corrective actions at Lilly Pulitzer to gain traction after the brand's weaker-than-expected results in the latest quarter. Some of the brand's core issues, like messaging and marketing, can be fixed quickly, while others related to merchandising will depend on the product development cycle, Chubb said.

"We have work to do," he said. "We want to be clear that Lilly Pulitzer's performance was below our expectations and below where we are confident it can be."

The stock slid 11%, to $38.50, in after-hours trading Wednesday. Through the market close shares are up 27% year to date.

Oxford lowered the midpoint of its sales forecast for the fiscal year, and guided for a range of $1.48 billion to $1.51 billion, compared with $1.48 billion to $1.53 billion previously. The company raised the bottom of its adjusted earnings per share range, however, projecting $2.30 to $2.70, from a prior range of $2.10 to $2.70.

For the current quarter, Oxford forecasts sales of $380 million to $400 million and adjusted earnings per share of $1.20 to $1.40. Analysts expect sales of $413.9 million and adjusted per-share earnings of $1.46, according to FactSet.

The updated guidance comes after the company had a lower profit in its latest quarter as tariff costs dragged on its bottom line.

Fiscal first-quarter profit fell to $15 million, or $1 a share, from $26.2 million, or $1.70 a share, a year earlier.

Profit in the latest quarter was dented by additional tariff costs of $11 million compared to the year-ago period, as well as a $4 million higher LIFO accounting charge, the company said.

Adjusted earnings per share were $1.39, compared with estimates of $1.29 a share, according to analysts polled by FactSet.

Sales ticked down 0.4% to $391.4 million, compared with analyst estimates of $391.8 million.

Sales at Tommy Bahama, the company's biggest brand, rose 3.9% but were offset by declines at Lilly Pulitzer and Johnny Was. Sales at the company's emerging brands also increased.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 10, 2026 19:12 ET (23:12 GMT)

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