Oxford Industries (OXM) investor relations material

Executive summary

• Net sales for Q1 FY26 were $391 million, nearly flat year-over-year, with declines in Lilly Pulitzer and Johnny Was offset by growth in Tommy Bahama and Emerging Brands.

• Earnings exceeded some forecasts due to stronger gross margin management, but net earnings fell 43% to $15 million, with diluted EPS dropping to $1.00 from $1.70, impacted by higher tariffs, SG&A, and interest expense.

• Tommy Bahama led with strong direct-to-consumer and food & beverage growth, while Emerging Brands posted robust gains; Lilly Pulitzer and Johnny Was underperformed.

• The consumer environment remains unsettled, with cautious discretionary spending influenced by macroeconomic, geopolitical, and energy price pressures.

• Strategic merchandising and marketing initiatives are underway to enhance long-term brand performance.

Financial highlights

• Consolidated net sales were $391 million, down 0.4% year-over-year, but above the midpoint of guidance.

• Gross margin declined to 62.3% from 64.2% due to $11 million in incremental tariff costs and a $4 million higher LIFO charge; adjusted gross margin was 63.4%.

• Adjusted EBITDA was $45 million (11.6% margin), down from $54 million (13.7%) last year; GAAP EBITDA was $39 million (9.9% margin).

• Adjusted EPS was $1.39, while GAAP EPS was $1.00, both down year-over-year.

• SG&A expenses rose to $211 million, mainly due to new locations and higher software/consulting costs.

Outlook and guidance

• Full-year net sales expected between $1.475 billion and $1.505 billion, flat to up 2% year-over-year.

• Full-year adjusted EPS guidance tightened to $2.30–$2.70, up from $2.11 last year; GAAP EPS guidance raised to $1.70–$2.10.

• Second quarter sales expected between $380 million and $400 million, with adjusted EPS of $1.20–$1.40.

• Gross margins projected to improve 100–200 basis points in Q2–Q4, with an overall 100 basis point increase for the year.

• Capital expenditures for FY26 projected at $60 million, down from $108 million in FY25.