Oxford Industries' (OXM) fiscal 2025 results are expected to be weighed down by the "ongoing choppiness" in the broader macroeconomic environment, KeyBanc Capital Markets said in a note e-mailed Friday.

The owner of Tommy Bahama, Lilly Pulitzer and other clothing brands said late Thursday it expects fiscal 2025 adjusted earnings of $4.60 to $5 per share. The consensus among five analysts polled by FactSet is for $5.09. The guidance includes a negative impact of $0.45 to $0.50 from additional tariffs imposed recently, the company said in a statement. Full-year net sales are expected between $1.49 billion and $1.53 billion, while the FactSet-polled estimate is for $1.51 billion.

Gross margin is seen decreasing by 50 to 100 basis points in the year mainly due to the impact of tariffs and a projected reduced share of full-priced direct-to-consumer sales, Chief Financial Officer Scott Grassmyer said on an earnings conference call, according to a FactSet transcript. The company's gross margins compressed year over year in both the fiscal fourth quarter and 2024 year.

KeyBanc downgraded its rating on the Oxford Industries stock to sector weight from overweight, citing the outlook for "further softness" and margin compression this year. The shares were down 5.5% in Friday late-afternoon trade. The stock has lost about 25% in value so far this year.

Earlier in the week, the White House announced 25% tariffs on imported passenger vehicles and certain auto parts, while Bloomberg News reported that the Trump administration may impose duties on copper imports in the coming weeks. President Donald Trump is expected to announce reciprocal tariffs next week.

"Execution has been challenging due to consumer distractions and weather-related events, and we believe ongoing choppiness in the broader macro will continue to serve as an obstacle for results this year," KeyBanc analysts Ashley Owens and Chris Brazeau said in a note to clients. "We await signs of stabilization to grow constructive."

The company reported adjusted EPS of $1.37 for the quarter ended Feb. 1, down from $1.90 a year earlier, but above five analysts' mean estimate of $1.27. Net sales fell 3.4% to $390.5 million, topping the $384 million expectation. "Our operating groups had strong holiday seasons and performed well during the fourth quarter, despite pullback in consumer spending in January," Grassmyer told analysts.

For the ongoing quarter, adjusted EPS is projected at $1.70 to $1.90. The consensus is for $1.98. Net sales are projected between $375 million and $395 million versus analysts' $384.9 million view. The "challenging" trends seen in the first two months of the year likely indicate what's to come in the first half of fiscal 2025, Chief Executive Tom Chubb said in a statement.

"We do think that current trends are not specific to (Oxford Industries) and believe that the company is working behind the scenes to 'control the controllables,' but further top- and bottom-line pressure due to tariffs and broader consumer uncertainty/pullback are likely to overshadow other fundamentals in the (near term)," KeyBanc said. The brokerage said it's encouraged by the company's initiatives to counter tariff risk and opportunities, according to the note.