What occurred

Shares of Oxford Industries (OXM -12.72%) had been shifting decrease at present after the attire firm, which owns manufacturers like Tommy Bahama and Lilly Pulitzer, posted disappointing steerage in its fourth-quarter earnings report.

As of two:44 p.m. ET, the inventory was down 12.1%.

So what

The headline numbers for the attire firm had been strong however marked a deceleration from earlier within the yr, excluding its acquisition of Johnny Was final September.

General, income within the quarter jumped 28% to $382.5 million, which topped estimates at $378.7 million. Excluding Johnny Was, income elevated 11% within the quarter.

Income from Tommy Bahama, its largest model, was up 9% to $229.6 million.

Profitability within the quarter was additionally sturdy, as adjusted gross margin rose from 61.3% to 61.5%, and the corporate posted adjusted earnings per share of $2.28, up from $1.68 within the quarter a yr in the past and higher than estimates at $2.14.

CEO Tom Chubb mentioned in a press launch:

Our technique of making aspirational existence by way of compelling product collections, inspiring promoting marketing campaign, and uplifting procuring experiences is resonating with clients throughout our highly effective portfolio of main manufacturers. Fiscal 2022 was highlighted by sturdy natural progress in all manufacturers and all channels of distribution.

The corporate additionally elevated its quarterly dividend by 18% to $0.65 per share.

Now what

The steerage for the primary quarter appeared to be the one blemish within the report, but it surely was sufficient to trigger the inventory to unload, as most retailers have supplied cautious steerage for 2023. 

For the primary quarter, it expects income of $405 million to $425 million, up 18% on the midpoint from 2022, and it expects adjusted earnings per share of $3.60 to $3.80, which compares to $3.50 within the quarter a yr in the past. Nonetheless, that was beneath estimates at $4.10, implying some margin compression within the first quarter. 

For the total yr, the corporate expects income of $1.62 billion to $1.66 billion, up 16% from $1.41 billion, and it referred to as for adjusted EPS of $11.50 to $11.90, up from $10.88 and in comparison with the consensus at $11.82.

Based mostly on that steerage, the inventory is now buying and selling at a price-to-earnings ratio of lower than 9, making it appear to be purchase after at present’s decline.