Oxford Industries, Inc.

Consolidated net sales were $394 million in Q2 fiscal 2026, down from $403 million in Q2 fiscal 2025. Company comparable sales were down 1%, with retail sales down 3% and e-commerce flat. Adjusted gross margin was 63.1%, up 140 basis points year over year, and adjusted EBITDA was $45 million versus $43 million last year. Adjusted EPS was $1.34. For the first half, cash flow from operations was $97 million, including $29 million of tariff refunds, and long-term debt fell to $73 million from $143 million at the end of Q1. For full-year fiscal 2026, Oxford now expects sales of $1.43 billion to $1.47 billion, down 3% to relatively flat versus $1.478 billion in fiscal 2025; low-single-digit negative total company comps; adjusted EPS of $1.60 to $2 versus $2.11 last year; approximately 50 basis points of gross margin improvement excluding tariff refund effects; SG&A growth in the low single-digit range; interest expense of $6 million; and capital expenditures of about $60 million. For Q3, management guided to sales of $280 million to $300 million, gross margin up about 100 basis points, and adjusted loss per share of between $1.40 and $1.20.

Tom Chubb said Q2 was within expectations and highlighted Tommy Bahama’s steady performance, positive comps in Florida, and continued strength in women’s business. He was candid that Lilly Pulitzer is the main problem area, saying the assortment moved too far away from entry price points and that meaningful assortment changes will not fully show up until spring 2027 because of product lead times. He also framed the company-wide review as a multi-year effort to simplify the business, improve efficiency, and allocate resources more effectively to lift margins and returns.

Scott Grassmyer emphasized that the quarter benefited from higher IMUs, a better mix, and tariff refunds, while adjusted SG&A was nearly flat at $210 million versus $209 million last year. He said the company recorded a $42 million reduction to cost of goods sold from tariffs previously paid and received substantially all of that amount in the quarter or shortly thereafter. He also noted inventory was down on a FIFO basis, long-term debt dropped to $73 million, operating cash flow reached $97 million in the first half, and capital spending for 2026 is expected to be about $60 million versus $108 million in 2025.

Analysts focused on Tommy Bahama’s Florida turnaround, Lilly Pulitzer’s recovery timeline, and how gross margin can still rise despite higher promotions. Management said Tommy’s women’s business is growing well and that Florida’s move back to positive comps was a meaningful positive for the brand. On Lilly, they said the issue is primarily price architecture and assortment, with spring 2027 being the first season where they can materially reshape the line; they also said some fourth-quarter upside could come from easier comparisons and refreshed product, but the brand will remain promotional in the meantime. On gross margin, Scott said higher IMUs and a lower wholesale mix should more than offset the expected promotional cadence.