Oxford Industries (OXM) saw its shares plummet 21.51% in intraday trading following the release of its third-quarter financial results, which included a significant net loss and impairment charges. The stock's sharp decline reflects investor concerns over the company's revised outlook and operational challenges.
The apparel company reported a Q3 net loss of $63 million, a 16-fold increase from the previous year, driven by $61 million in noncash impairment charges related to its Johnny Was brand. While Q3 revenue of $307 million slightly beat estimates, the company slashed its full-year adjusted EPS guidance to $2.20-$2.40, down from the previous range of $2.80-$3.20. CEO Tom Chubb cited a "highly promotional retail environment" and "choosier consumers" as key factors impacting performance.
Oxford Industries also highlighted challenges such as tariff-related product gaps and softer holiday season sales. The combination of these factors led to a significant loss of investor confidence, resulting in the stock's steep decline.
Comments