GAAP earnings per share (EPS) declined to $1 from $1.7 a year earlier, while adjusted EPS fell to $1.39 from $1.82. The company said both GAAP and adjusted EPS were impacted by approximately $11 million, or $0.55 per share, in incremental tariff-related costs compared to Q1 FY25.
Oxford Industries has reported Q1 net sales of $391 million, broadly flat YoY, while adjusted EPS declined to $1.39 due to $11 million in additional tariff costs.
Tommy Bahama delivered growth, but Lilly Pulitzer and Johnny Was sales weakened.
The company narrowed its FY26 sales outlook to $1.475-1.505 billion while maintaining confidence that lower tariffs.
Tom Chubb, chairman and CEO of Oxford Industries, said net sales were in line with expectations, supported by mid-single-digit comparable sales growth at Tommy Bahama and stronger-than-expected gross margins. However, performance at Lilly Pulitzer was softer than anticipated amid a challenging consumer environment marked by weak sentiment and higher energy costs.
By brand, Tommy Bahama revenue increased 3.9 per cent YoY to $224.6 million, while Lilly Pulitzer sales fell 8.8 per cent to $90.4 million and Johnny Was revenue declined 12.9 per cent to $37.9 million. Emerging Brands delivered the strongest growth, with sales rising 12.8 per cent to $38.6 million, Oxford said in a press release.
Operating income declines amid margin pressure
Direct-to-consumer (DTC) full-price sales decreased 1 per cent to $247 million, while e-commerce revenue fell 2 per cent to $111 million. Wholesale sales declined 5 per cent to $88 million.
The gross margin contracted to 62.3 per cent from 64.2 per cent in the prior-year quarter, mainly due to higher tariff costs and increased LIFO accounting charges. Adjusted gross margin stood at 63.4 per cent, down from 64.3 per cent a year earlier.
Selling, general and administrative (SG&A) expenses increased to $211 million from $206 million, reflecting investments in new retail and food and beverage locations, higher software and consulting expenses, and costs linked to the transition of the company’s Lyons, Georgia, distribution centre.
The operating income on a GAAP basis declined to $22 million, or 5.7 per cent of net sales, from $36 million, or 9.2 per cent of net sales, in Q1 FY25. Adjusted operating income fell to $30 million from $39 million.
Q2 sales expected below prior-year level
Looking ahead, Oxford Industries narrowed its fiscal 2026 sales outlook by lowering the upper end of its guidance range. The company now expects net sales between $1.475 billion and $1.505 billion, compared with fiscal 2025 sales of $1.478 billion. Adjusted EPS is projected between $2.30 and $2.70, while GAAP EPS is expected in the range of $1.7 to $2.1.
For the second quarter (Q2) of fiscal 2026 (FY26), the company forecasts net sales of $380 million to $400 million, compared with $403 million in the prior-year quarter, and adjusted EPS between $1.2 and $1.4.
Chubb said the company expects macroeconomic pressures to continue affecting consumer spending in the near term, while corrective measures at Lilly Pulitzer are expected to take time to gain momentum. He added that lower tariff rates, disciplined expense management and inventory controls should help offset the impact of a softer sales outlook on profitability.
Fibre2Fashion News Desk (SG)
