Tommy Bahama Owner Oxford Stock Pops on Strong Profit, Positive Q3 Same-Store Sales

Shares of Oxford Industries (OXM) jumped more than 20% Thursday, a day after the apparel retailer beat profit forecasts and gave a positive outlook about current-quarter sales as it moved to offset new U.S. tariffs.

The company behind Tommy Bahama, Lilly Pulitzer, and Johnny Was brands reported second-quarter adjusted earnings per share of $1.26, while analysts surveyed by Visible Alpha were looking for $1.18. Sales fell 4% year-over-year to $403.1 million, short of estimates. 

CEO Tom Chubb said the strong profit was the result of steps Oxford took to “quickly to diversify our sourcing as well as to pull some inventory receipts forward and calibrate pricing with care to help partially offset the impact on product costs from the incremental tariffs and evolving trade environment that has emerged this year.”

The results were boosted by the company’s Emerging Brands, which had a sales increase of 17% to $38.5 million. Sales declined at its three biggest brands, Tommy Bahama (-6.6%), Lilly Pulitzer (-1.5%), and Johnny Was (-9.7%).

However, Chubb noted that the company was “encouraged by positive comparable store sales performance third quarter to-date,” which he called “modestly positive in the low single-digit range.” 

Oxford explained that “absent proactive mitigation efforts,” it would face $80 million in tariff costs this year. Still, it affirmed its sales and adjusted EPS guidance. 

Despite today’s sharp gains, Oxford Industries shares have lost more than a third of their value this year.