Oxford Industries (OXM) Q2 2026 earnings summary

Executive summary

• Q2 FY2025 net sales were $403 million, down 4% year-over-year, with adjusted EPS of $1.26, exceeding guidance despite tariff and promotional pressures.

• Operating income fell 52% to $25 million, and net earnings dropped 59% to $16.7 million, reflecting lower sales, higher SG&A, and increased tariffs.

• Lilly Pulitzer posted positive direct-to-consumer comp sales, while Tommy Bahama and Johnny Was faced declines but are implementing corrective actions.

• Emerging Brands Group delivered solid revenue growth from new stores and positive comp sales.

• Tariff mitigation and disciplined inventory management helped offset some margin pressures.

Financial highlights

• Q2 FY2025 consolidated net sales were $403 million, down from $420 million in Q2 FY2024, near the midpoint of guidance.

• Adjusted gross margin contracted to 61.7% (GAAP 61.4%), mainly due to $9 million in increased tariff-related costs.

• Adjusted SG&A rose to $224 million, driven by higher employment, occupancy, and depreciation costs from new stores.

• Adjusted operating profit was $28 million (7% margin), down from $57 million (13.5% margin) last year.

• Adjusted EPS was $1.26 for the quarter.

Outlook and guidance

• FY2025 net sales expected between $1.475 billion and $1.515 billion, near flat versus FY2024.

• Adjusted EPS guidance for FY2025 is $2.80–$3.20, down from $6.68 last year.

• Gross margin expected to contract by ~200 bps for the year, mainly due to tariffs.

• Q3 sales expected at $295 million–$310 million, with an adjusted loss per share of $1.05 to $0.85.

• Management remains cautious due to macroeconomic uncertainty, ongoing tariff risks, and heightened promotional activity.