Oxford Industries Inc. missed profit estimates in the third quarter and cut its outlook for the year, citing weakness at Ben Sherman.
Net earnings increased 85.3 percent to $3 million, or 18 cents a share, from $1.6 million, or 10 cents, a year ago. Excluding special charges, earnings rose to 19 cents a share, but fell 2 cents shy of the 21 cents analysts projected.
Sales for the three months ended Oct. 27 advanced 6.5 percent to $181.4 million from $170.3 million.
Investors sent shares of the firm down 12.9 percent to $46 in afterhours trading today.
J. Hicks Lanier, chairman and chief executive officer, said the Tommy Bahama and Lilly Pulitzer brands continued to see gains, while Ben Sherman’s business turned in a “disappointing performance.”
Hurricane Sandy also delayed the opening of the Tommy Bahama store and restaurant in New York and disrupted 24 of the company’s stores, impacting the current quarter.
“While we have moderated our near-term guidance as a result of these factors, we remain confident and well-positioned for growth,” Lanier said. “We will continue to make significant strategic investments in Tommy Bahama and Lilly Pulitzer, each an outstanding brand, and are moving quickly to address the issues with Ben Sherman’s performance.”
The company now expects adjusted earnings of $2.60 to $2.70 per share this year, down from the $2.85 to $2.95 it projected in August.