Oxford Industries Q2 Earnings Call Highlights

Oxford Industries NYSE: OXM reported second-quarter fiscal 2026 results that were within its expectations, as improved gross margin and adjusted earnings per share growth helped offset sales pressure across parts of its portfolio. The company also lowered its full-year sales and adjusted earnings outlook, citing continued weakness at Lilly Pulitzer and a cautious consumer environment.

Chairman and CEO Tom Chubb said Tommy Bahama delivered low-single-digit comparable sales growth during the quarter, including a return to positive comparable sales in Florida, a major market that had posted softer results in recent periods. The company also reported significant profitability improvement at Johnny Was, while Lilly Pulitzer continued to face product assortment and marketing challenges.

Second-Quarter Sales, Margins and Earnings Oxford reported second-quarter net sales of $394 million, compared with $403 million in the prior-year period. The result was near the high end of the company’s guidance range of $380 million to $400 million. Total company comparable sales declined 1%, reflecting a 3% decline in retail comparable sales and flat e-commerce comparable sales. Food and beverage sales increased 11%, primarily due to non-comparable locations, while wholesale sales fell 14%. Chief Financial Officer and Chief Operating Officer Scott Grassmyer said the wholesale decline was primarily attributable to lower sales of residual inventory through off-price channels.

Sales growth at Tommy Bahama partly offset declines at other businesses. Lilly Pulitzer and Johnny Was each recorded mid-single-digit negative comparable sales, along with lower off-price wholesale sales. Emerging Brands sales declined mainly because of lower wholesale sales. Adjusted gross margin expanded 140 basis points year over year to 63.1%. Grassmyer attributed the improvement primarily to assortment, sourcing and pricing strategies that increased initial markups, as well as a sales mix shift that reduced off-price wholesale’s share of revenue. A greater share of direct-to-consumer sales occurring during promotional events at Tommy Bahama, Lilly Pulitzer and Emerging Brands partially offset those gains.

Adjusted selling, general and administrative expense increased slightly to $210 million from $209 million a year earlier. The increase reflected new retail and food-and-beverage locations, software and consulting costs, and expenses related to transitioning operations at Oxford’s Lyons, Georgia, distribution center. The company partially offset those costs with lower incentive compensation and reduced discretionary spending, including travel. Adjusted EBITDA rose to $45 million, or 11.4% of sales, from ...