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Oxford Industries (NYSE:OXM) shares slid after the bell on Thursday as the company offered a soft Q1 earnings forecast.
The Atlanta-based apparel manufacturer reported a 28% jump in net sales from Q4 2021 to $382M in Q4 2022, edging out analyst expectations. Meanwhile, adjusted EPS increased to $2.28 as compared to $1.68 in Q4 2021 and coming in $0.16 better than the Street consensus.
“Fiscal 2022 was highlighted by robust organic growth in all brands and all channels of distribution with sales in Tommy Bahama, our largest brand, up 22%, Lilly Pulitzer up 13% and the Emerging Brands Group up 29%,” CEO Tom Chubb commented. “Our plan for fiscal 2023 is to capitalize on the momentum we’ve built across our portfolio of brands to drive double digit top- and bottom-line growth. We are excited about our plans for 2023 and believe continued consumer interest in elegant casualwear, moving to warmer climates and travel are all macro trends that play to our strengths.”
Guidance for fiscal 2023 reflected the expectation of full-year revenues between $1.62B and $1.66 and adjusted EPS of $11.50 to $11.90. Analysts had anticipated $1.61B and $11.91, respectively.
Sales growth is expected to start Q1 strong, with revenue projected between $405M and $425M against a $399.4M consensus. However, the bottom line is due to remain under pressure with an adjusted EPS forecast between $3.60 and $3.80 well short of the $4.06 consensus.
Inventory levels also ended the year at a significantly higher level than that which they entered the year. The metric surged to $220.14M from $117.71Mat the close of fiscal 2021.
Shares of Oxford Industries (OXM) slumped 8.13% shortly after the earnings announcement.