Oxford Industries, Inc. (OXM) reported a third‑quarter 2025 loss of $4.28 per share on a GAAP basis and an adjusted loss of $0.92 per share, driven largely by a $61 million non‑cash impairment charge related to the Johnny Was brand. Net sales for the quarter were $307 million, essentially flat year‑over‑year against $308 million in the same period a year earlier, underscoring the company’s struggle to maintain top‑line momentum amid a highly promotional retail environment.
The $61 million impairment, primarily for goodwill and intangible assets, was the main catalyst for the loss. Excluding the one‑time charge, the company’s operating performance was closer to breakeven, but a 200‑basis‑point contraction in adjusted gross margin to 61% reflected higher cost of goods sold from U.S. tariff exposure and a shift toward more discounted inventory. The company’s adjusted earnings per share beat consensus estimates by $0.04, a 4% improvement, thanks to disciplined cost management and a stronger direct‑to‑consumer mix that offset the weakness in wholesale sales.
Oxford Industries lowered its full‑year 2025 outlook, now forecasting net sales of $1.47 billion to $1.49 billion, down from the prior $1.50 billion to $1.52 billion range. GAAP loss per share guidance was revised to $1.52 to $1.32, while adjusted EPS guidance fell to $2.20 to $2.40 from the previous $6.68. The company estimates a net tariff cost of $25 million to $30 million, or roughly $1.25 to $1.50 per share, highlighting the ongoing impact of U.S. tariff policy on its supply chain.
Segment analysis shows that direct‑to‑consumer channels grew 2% in comparable sales, with e‑commerce up 5% and food‑and‑beverage up 3%, indicating resilience in the company’s core retail strategy. Wholesale sales, however, declined 11%, reflecting the broader industry shift toward online shopping and the pressure of promotional pricing. Management is realigning its supply chain and adjusting inventory to reduce tariff exposure, a move that should help stabilize costs in the next quarter.
CEO Tom Chubb said the company is “focusing on improving profitability” and that “product assortment gaps, especially in the sweater category, were a direct result of earlier decisions to reduce exposure to China amid tariff uncertainty.” He added that the “highly promotional marketplace forced deeper discounts to maintain consumer interest.” Investors responded positively to the earnings beat, noting the company’s ability to control costs and maintain a stronger DTC mix despite the broader headwinds.
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