Oxford Industries (OXM) Q1 FY26 earnings call: guidance and Q&A

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

Are there any shifts in wholesale order behavior (trimming buys, pushing deliveries) given elevated gas prices and weak consumer sentiment?

Wholesale partners remain cautious, and while no drastic changes are observed, the opportunity for increases might be limited. Management noted that wholesale performance has been "pretty strong" year-to-date, but retailers are also trying to sort out the impact of the Father's Day shift versus underlying consumer trends.

“You know, they're still being cautious and we still think we'll be down, but we're not seeing a drastic change. But I think everybody is, you know, given the environment is being a bit cautious.”

asked by Ashley Owens · answered by Unknown Speaker

What drove Tommy Bahama's improvement (men's/women's, categories)? What caused Lilly Pulitzer's downtick (region, channel, customer, product, promotions), and what is the timeline for its fix?

Tommy Bahama's strength was driven by core men's products and particularly strong women's DTC business (up 7.5%), with 30% of e-commerce orders being dual-gender. Lilly Pulitzer's issues stemmed from being under-inventoried in opening price points, over-reliance on vintage prints, and too much "novelty" in the assortment. Messaging and marketing can be quickly adjusted, but product development changes will take longer, impacting resort collections.

“the women's DTC business was up, I think about 7 1⁄2% for the quarter, which is quite strong, and it was driven by what we would consider the fashion business, part of the business or a couple of categories within fashion.”

asked by Dana Telsey · answered by Thomas Chubb

What sourcing shifts contributed to gross margin, how sustainable are they, and what are the promotional assumptions for each brand in the guidance?

Sourcing shifts and price increases on newness, especially at Tommy Bahama, contributed to gross margin. The 10% tariff rate assumption is key. Lilly Pulitzer will be more promotional than planned, Tommy Bahama will maintain a normal cadence, and Johnny Was will be less promotional due to inventory discipline.

“Lilly will probably be a little more promotional than we planned at the beginning of the year, just kind of given the start. Tommy, pretty much the normal cadence at Tommy. So I think overall we won't be, I don't think our overall total company promotional cadence will be drastically different, probably a little bit more, Lily. quite a bit less at Johnny Wise.”

asked by Janine Hoffman Stichter · answered by Unknown Speaker

Has the company seen any consumer pushback on price increases, and are there plans for further ticket increases?

No direct pushback, but unit sales were slightly down, while Average Order Value (AOV) and Average Unit Retail (AUR) increased. Management is scrutinizing this to ensure pricing remains in line with consumer willingness to pay and market peers.

“There hasn't really been any direct pushback to it, but if you look at our numbers, we're, you know, we're selling less units. You know, the AOV's going up, the AUR's going up, so people are selling are paying the price, but the total number of units that we sold during the quarter were, was down a bit.”

asked by Janine Hoffman Stichter · answered by Thomas Chubb

What are the comp expectations for Tommy Bahama for Q2 and the rest of the year? When can Johnny Was expect an inflection to positive sales growth?

Tommy Bahama is expected to have positive comps for the rest of the year, slightly lower than Q1's mid-single digits. Johnny Was is expected to see positive comps in the second half of the year, driven by improved product assortment and discipline, after a tough but more disciplined first half.

“Yes, Tommy, we think we can have positive comps the rest of the year. Our model has a little bit lower than the mid-2040s. single just slightly lower than the first quarter... But Johnny was, we think we can start having positive comps in the second half.”

asked by Mauricio Serna Vega · answered by Unknown Speaker

What is the primary use of proceeds from tariff refunds?

The primary use of tariff refund proceeds will be debt repayment.

“That debt repayment. Pay down debt. Yes, yes. And our debt, you know, some of that is seasonal, and we expect second quarter, you know, debt to come down. And then if we get the tariff refunds, then we'll come down even more significantly.”

asked by Mauricio Serna Vega · answered by Unknown Speaker

Can you provide color on Tommy Bahama's regional performance and how the new DC has impacted operations?

Tommy Bahama's West Coast/Western US performance has been strong this year, which is a positive shift after lagging in previous years. The new Lyons-Georgia DC has moved four brands over since late February, with the remaining brands transitioning by late July/early August. The company is in a startup phase, working out kinks and gradually moving more operations to the DC, which is expected to be a long-term asset.

“from a geographic standpoint for Tommy, it's really a west coast or western part of the country versus Eastern issue. And the West has been strong this year, which is really good to see.”

asked by Joseph Savillo · answered by Thomas Chubb