Oxford Industries (OXM) Q2 2027 earnings summary

Executive summary

• Net sales for Q2 were $394 million, down 2% year-over-year, with adjusted EPS up 6.1% to $1.34 and GAAP EPS at $3.25, reflecting a $2.07 per share benefit from $42 million in tariff refunds; Tommy Bahama delivered positive comps, offsetting declines at other brands.

• Gross margin improved to 73.8% (GAAP) from 61.4% due to tariff refunds, with adjusted gross margin at 63.1%; strong cash flow enabled significant debt reduction.

• Net earnings rose 193% to $49 million, with adjusted net earnings up 7% to $20 million.

Financial highlights

• Q2 net sales: $394 million (down 2% year-over-year), near the high end of guidance.

• Adjusted gross margin: 63.1% (up 140 bps); GAAP gross margin: 73.8% (up from 61.4%).

• Adjusted EBITDA: $45 million (11.4% margin); GAAP EBITDA: $86 million (21.8% margin).

• Adjusted EPS: $1.34; GAAP EPS: $3.25.

• Inventory decreased 12% year-over-year (LIFO); long-term debt fell to $73 million from $143 million sequentially.

Outlook and guidance

• Full-year sales expected between $1.43 billion and $1.47 billion, a 3% decline to flat versus last year.

• Adjusted EPS guidance revised to $1.60–$2.00, down from $2.11 last year.

• Company expects low single-digit negative comps for the year, with Tommy Bahama slightly positive.

• Gross margin expected to improve by ~50 basis points for the year, with 100 basis points expansion in Q3 and Q4.

• CapEx for the year projected at $60 million, down from $108 million last year.