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    OXM
    Earnings call· Apr 2026(Q1 FY26)

    OXFORD INDUSTRIES Q1 FY26 earnings call OXM

    Jun 10, 2026 Source

    Executive summary

    Oxford Industries Q1 FY26 — Strong Gross Margin and Tommy Bahama Performance Offset Lilly Pulitzer Weakness

    Oxford Industries delivered better-than-expected Q1 FY26 earnings, driven by strong gross margin performance and solid results from Tommy Bahama and emerging brands. However, the quarter was challenged by significant underperformance at Lilly Pulitzer and continued wholesale pressure at Johnny Was, leading to a slight consolidated sales decline. The company is taking a more measured view for the balance of the year, narrowing its sales outlook while tightening EPS guidance due to lower tariff rates and expense management.

    Highlights

    5

    • Q1 FY26 earnings were better than anticipated, primarily due to stronger than expected gross margin performance.

    • Tommy Bahama delivered solid results with total sales increasing year-over-year, driven by mid-single-digit comps in DTC channels.

    • Emerging brands continued momentum with sales growth in the low double digits.

    • Johnny Was gross margin increased due to tighter inventory buying, reduced promotions, and improved gross margin return on investment.

    • Cash flows from operations provided $8 million in Q1 FY26, compared to cash flows used in operations of $4 million in Q1 FY25.

    Concerns

    5

    • Adjusted gross margin contracted 90 basis points to 63.4% due to an $11 million (280 basis points) increase in tariff costs.

    • Lilly Pulitzer sales were below expectations, with significant declines in the e-commerce channel and low teen negative comps.

    • Johnny Was sales declined due to a significant decrease in the wholesale channel and mid-single-digit negative comps in DTC.

    • Consolidated net sales were $391 million, a slight decrease from $393 million in Q1 FY25, and total company comparable sales decreased 2%.

    • Full-year sales outlook narrowed by lowering the top end of the range due to softening trends in April, May, and early June.

    Guidance & targets

    20
    CategoryTargetConfidence
    Full-year Net Sales
    $1.475 billion to $1.505 billion
    high materiality
    Medium
    Full-year Adjusted EPS
    $2.30 to $2.70
    high materiality
    Medium
    Q2 FY26 Sales
    $380 million to $400 million
    medium materiality
    Medium
    Q2 FY26 Adjusted EPS
    $1.20 and $1.40
    medium materiality
    Medium
    Full-year Capital Expenditures
    approximately $60 million
    medium materiality
    High
    Full-year Gross Margin
    approximate 100 basis point increase
    high materiality
    Medium
    Gross Margin Improvement
    100 to 200 basis points
    medium materiality
    Medium
    Full-year SG&A Growth
    low single-digit range
    low materiality
    Medium
    Full-year Royalties and Other Income
    approximately $2 million
    low materiality
    Medium
    Full-year Effective Tax Rate
    28%
    low materiality
    Medium
    Q2 FY26 SG&A Growth
    low single digit range
    low materiality
    Medium
    Q2 FY26 Royalty Income
    approximately $5 million
    low materiality
    Medium
    Q2 FY26 Interest Expense
    $2 million
    low materiality
    Medium
    Q2 FY26 Effective Tax Rate
    approximately 29%
    low materiality
    Medium
    Full-year Total Company Comparable Sales
    slightly negative to slightly positive
    high materiality
    Medium
    Q2 FY26 Total Company Comparable Sales
    low single digit negative to flat range
    medium materiality
    Medium
    Full-year Food and Beverage Sales Growth
    high single digit increase
    low materiality
    Medium
    Full-year Direct-to-Consumer Sales Growth
    low single digit decrease in increases to flat sales
    medium materiality
    Medium
    Full-year Wholesale Sales Growth
    mid-single-digit decrease
    medium materiality
    Medium
    Current Tariff Rate
    10 percent
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Tommy Bahama
    Solid results driven by DTC channels, particularly strong performance in women's fashion business. Benefited from better assortment balance, improved key item execution, and relaxed warm weather lifestyle positioning. Wholesale sales declined.
    DTC comps: mid-single-digit increaseWomen's DTC business: up 7.5%E-commerce orders with dual-gender items: 30% (up from 25% last year)
    		increased year-over-year———
    Lilly Pulitzer
    Performance below expectations due to merchandising and execution issues, including gaps in entry price points and over-reliance on vintage prints and novelty items. Team is focused on correcting issues, with product development changes taking longer to implement.
    Overall comps: low teen negativeE-commerce channel: significant declines
    		decreased———
    Johnny Was
    Turnaround plan on track with focus on profitability. Gross margin improved due to tighter inventory buying and reduced promotions. Wholesale sales pressured by specialty store declines and off-price retailers. DTC business becoming healthier. Five underperforming stores closed.
    Wholesale channel: significant decreaseDTC comps: mid-single-digit negative
    		decreased——gross margin increased
    Emerging Brands
    Continued momentum and strong growth, particularly in Beaufort Bonnet Company and Duck Head. Focused on disciplined building through storytelling and growing distribution.
    		increasedlow double digits——
    Food and Beverage
    Driven primarily by non-comp locations.
    		increased14%——

    Operational metrics

    24
    Consolidated Net Sales
    $391 millionvs $393 million in Q1 FY25
    Q1 FY26

    Above the midpoint of guidance range of $385 million to $395 million.

    Total Company Comparable Sales
    -2%decreased
    Q1 FY26

    Decline in retail comp sales offset by sales from non-comp stores.

    Wholesale Sales Growth
    -5%compared to prior year period
    Q1 FY26

    Better than original forecast.

    Adjusted Gross Margin
    63.4%contracted 90 basis points
    Q1 FY26

    Driven by approximately $11 million of increased COGS from additional tariffs. Partially offset by updated sourcing, pricing strategies, lower freight costs, and higher DTC sales mix.

    Tariff Cost Increase
    $11 millionyear-over-year increase
    Q1 FY26

    Capitalized into inventory sold during the first quarter.

    Adjusted SG&A Expenses
    $209 millionincreased 1% vs $206 million last year
    Q1 FY26
    Adjusted EBITDA
    $45 millionvs $54 million in prior year
    Q1 FY26
    Adjusted Depreciation Amortization
    flatcompared to prior year
    Q1 FY26
    Interest Expense
    $2 millionhigher than prior year
    Q1 FY26
    Effective Tax Rate
    25.4%higher than prior year
    Q1 FY26
    Adjusted EPS
    $1.39
    Q1 FY26

    Ended with $1.39 of adjusted EPS.

    Inventory (LIFO basis)
    decreased $15 milliondecreased 9% vs Q1 FY25
    Q1 FY26 end

    Despite $9 million of additional tariff costs capitalized into inventory.

    Inventory (FIFO basis)
    decreased $3 milliondecreased 1% vs Q1 FY25
    Q1 FY26 end

    Despite $9 million of additional tariff costs capitalized into inventory.

    Additional Tariff Costs Capitalized into Inventory
    $9 millionvs $3 million at end of Q1 FY25
    Q1 FY26

    Impacted inventory balance.

    Long-term Debt
    $143 millionvs $118 million at Q1 FY25 end and $116 million at FY25 end
    Q1 FY26 end

    Increased due to $11 million in dividends and capital expenditures.

    Cash Flows from Operations
    $8 millionvs cash flows used of $4 million in Q1 FY25
    Q1 FY26

    Lower earnings offset by positive changes in working capital.

    Capital Expenditures
    $23 million
    Q1 FY26
    Dividends Paid
    $11 million
    Q1 FY26

    Contributed to increase in long-term debt balance.

    Tariffs Paid (Invalidated)
    $40 million
    FY25

    Ultimately invalidated by Supreme Court ruling in February.

    Tariffs Paid (Invalidated)
    $5 million
    Q1 FY26

    Ultimately invalidated by Supreme Court ruling in February.

    Tariff Refunds Received (Phase 1)
    $25 million
    Q1 FY26

    Received for Phase 1 claims. Refund process for Phase 2 and unfiled claims not yet established.

    Lilly Pulitzer High-End Dress Price
    over $700
    Q1 FY26

    Example of too much 'novelty' and high price point in the assortment.

    Gas Price to Offset Tax Return Benefit
    $4.50
    current

    Analyst observation on consumer spending sensitivity.

    Average Gas Price
    $3.75
    current

    Management's assessment of current gas prices and their impact on the economy.

    Industry KPIs

    11
    MetricValueDetails
    Effective tax rate25.4%%
    Inventory positiondecreased $15 million (LIFO) / $3 million (FIFO)USD
    Revenue by channel—
    Gross margin bridge-90 bpsbps
    Revenue by geography—
    Operating margin sg a11.6%%
    Store fleet door investment5stores
    Share buyback capital return$11 millionUSD
    Tariff cost exposure recovery$11 millionUSD
    Wholesale order book directioncautious
    Franchise product cycle performance—

    Risks & headwinds

    6
    Consumers are more cautious, selective, and highly discerning in discretionary spending.Near-term to balance of the year

    Sales trends softened through April, May, and early June, leading to narrowed full-year sales outlook.

    Mitigation: Focus on product relevance, brand connection, differentiated products, and brands that create emotional connection. Making near-term adjustments to capitalize on brand attributes.

    Merchandising and execution issues at Lilly Pulitzer, including gaps in entry price points, over-reliance on vintage prints, and too much novelty.Q1 FY26, with product development fixes taking longer.

    Significant declines in e-commerce, low teen negative comps.

    Mitigation: Correcting messaging and marketing quickly; product development adjustments will flow through later summer deliveries and resort collections.

    Significant decrease in the wholesale channel, particularly for Johnny Was due to greater exposure to declining specialty stores.Ongoing

    Johnny Was wholesale sales significantly decreased; total company wholesale sales decreased 5% in Q1 FY26.

    Mitigation: Johnny Was focusing on improving profitability and reinforcing fundamentals, reassessing and rationalizing store base.

    Tariffs remain a major topic and source of uncertainty, despite a Supreme Court ruling invalidating some past tariffs.Ongoing

    Absorbed $11 million (55 cents/share) year-over-year increase in tariff costs in Q1 FY26.

    Mitigation: Assuming current lower tariff rate of 10% for the remainder of the year. Shifts in sourcing and pricing architecture strategies. Pursuing tariff refunds for invalidated tariffs.

    Initial costs and complexity during the ramp-up of the new Lyons-Georgia Distribution Center.During transition period (summer 2026)

    Costs associated with the transition impacted adjusted SG&A expenses.

    Mitigation: Phased transition of brands; expected to be a meaningful competitive advantage over time.

    Consumers navigating macroeconomic and geopolitical pressures, including conflicts, higher energy prices, and uncertainty around trade policy.Ongoing

    Impacts consumer sentiment and discretionary spending.

    Mitigation: Focus on brand strength, differentiation, and agile response to market conditions.

    Q&A highlights

    8

    How much of the recent sales deceleration is due to the Father's Day calendar shift versus genuine demand softness?

    Management indicated that the Q2 comp guidance of flat to low single-digit negative accounts for the Father's Day shift, and they expect to land within that range. They believe they will pick up sales through Father's Day, and the current tracking is fine, though not as strong as before the shift.

    “I think when we get past Father's Day, we'll be more be in that zone of flat to low single digit negative, I believe is where we'll land. I think we're going to pick up a bit, you know, through Father's Day. And right now we're tracking fine.”

    asked by Ashley Owens · answered by Thomas Chubb

    2 min read5 chapters

    Detailed Narrative

    01

    Consumer Caution and Discretionary Spending

    Management noted that while some hard data suggests consumers have the ability to spend, soft data points to a more cautious, selective, and discerning consumer. This environment emphasizes product relevance and brand connection, where differentiated products and brands creating emotional connections perform best. This trend led to a softening of sales through April, May, and early June, prompting a more measured view for the balance of the year.

    02

    Lilly Pulitzer Turnaround Efforts

    Lilly Pulitzer's Q1 performance was below expectations, particularly in e-commerce, attributed to merchandising and execution issues including gaps in entry price points and allocation opportunities. The team is focused on correcting these issues, with messaging and marketing changes being implemented quickly, while product development adjustments will take longer to flow through the assortment, impacting later summer deliveries and resort collections.

    03

    Johnny Was Turnaround Progress

    Johnny Was is on track with its turnaround plan, focusing on improving profitability and reinforcing fundamentals. Gross margin increased significantly in Q1 due to tighter inventory buying, reduced promotions, and improved gross margin return on investment. While wholesale sales remain pressured, the direct-to-consumer business is becoming healthier, and the brand is reassessing and rationalizing its store base, closing five underperforming locations in Q1.

    04

    Lyons-Georgia Distribution Center Transition

    The new Lyons-Georgia Distribution Center is a key operational foundation initiative. The transition is ongoing, with four brands already moved over and the remaining brands expected to transition by late July/early August. While initial costs and complexity are expected during the ramp-up, the company anticipates Lyons to become a significant competitive advantage, especially as direct-to-consumer demand grows.

    05

    Tariff Impact and Refunds

    The company absorbed an $11 million (55 cents per share) year-over-year increase in tariff costs in Q1 FY26. However, following a Supreme Court ruling, approximately $40 million of tariffs paid in FY25 and an additional $5 million in Q1 FY26 were invalidated. The company has received $25 million in Phase 1 refunds and is preparing for Phase 2 claims, with proceeds expected to be used for debt repayment.

    AI-generated summary of the company’s earnings call. Not investment advice.