Shares of Oxford Industries (OXM) tumbled 12.46% in pre-market trading on Friday following a downgrade from KeyBanc and the company's weaker-than-expected outlook for fiscal 2025. The owner of Tommy Bahama and Lilly Pulitzer brands is grappling with cautious consumer spending and the impact of new tariffs on goods made in China.

KeyBanc downgraded Oxford Industries from Overweight to Sector Weight, citing concerns about future demand. This move came after the company reported its fourth-quarter results and provided guidance that fell short of Wall Street expectations. Oxford Industries forecast first-quarter sales of $375 million to $395 million and full-year revenue between $1.49 billion and $1.53 billion, both below analyst estimates.

The company's outlook was further dampened by the anticipated impact of new tariffs on Chinese goods. Oxford Industries expects an unmitigated tariff impact of around $9 million to $10 million, or about $0.45 to $0.50 per share, on goods made in China for fiscal 2025. While the company has taken steps to mitigate these effects, including pulling forward orders and sourcing shifts, it doesn't expect to fully offset the impact until spring 2026.

CEO Tom Chubb noted a moderation in demand as the company moved into January, attributing it to a pattern of consumers retreating when there isn't a clear reason to spend, combined with deteriorating consumer sentiment. The company reported that while December comparable sales were up 2%, January saw a 3% decline, followed by a more significant 9% drop in February. This trend of softening demand has raised concerns about the company's near-term performance and ability to navigate the challenging retail environment.