The company behind clothing brand Tommy Bahama wasn't looking so sunny: Oxford Industries Inc. (OXM) was down Thursday, Dec. 13, after third-quarter earnings missed estimates and its fourth-quarter outlook was below forecasts.
The company saw shares sink 6% to around $70.35 on Thursday.
Third-quarter revenue dropped to $233.7 million from $236 million in the same quarter last year, while adjusted earnings per share were 14 cents, down from 17 cents in 2017's third quarter, and below Wall Street expectations.
Net income rose to $1.9 million from $1.1 million the same time last year.
For the fourth quarter, Oxford forecast net sales will hit around $297 million to $307 million with adjusted earnings per share reaching between 96 cents to $1.11. Analysts had been calling for profit of $1.31 a share on revenue of $315.1 million.
While defending the results by noting that the third quarter is Oxford's "smallest volume quarter due to seasonality," CEO Thomas C. Chubb III contended that the company's strong e-commerce sales and other sales directly to consumers -- which saw a comparable-store sales increase of 7% -- were offset by "pruning" in Oxford's wholesale distribution process.
Part of the blame also fell on the Lanier Apparel brand that saw sales fall by nearly a third from the same time last year.
Chubb did praise the performance of the company's Lilly Pulitzer brand, however, which saw an uptick in sales of around 15% over the same time last year.
"As we sit here today, we have more than half the fourth quarter still ahead of us," said Chubb. "That includes very important holiday selling, resort selling and early spring deliveries of wholesale."