OXFORD INDUSTRIES INC Q1 FY2025 earnings call

• Consumer is cautious on discretionary spending, but brands focus on evoking happiness.
• Lilly Pulitzer had double-digit growth with positive comps in e-commerce and retail, strong print assortment and newness.
• Tommy Bahama opened two new Marlin bars, expecting retail uplift.
• Supply chain realignment due to tariffs is challenging but working towards diversifying away from China.
• Johnny Was is focusing on improving profitability through brand creative, merchandising, etc.
• New fulfillment center in South Georgia on track for completion by end of fiscal year.

For the first quarter of fiscal 2025, lower sales at Tommy Bahama and Johnny Was were partially offset by a low double-digit sales increase at Lilly Pulitzer. Salsa Cef saw growth due to product strategy and emerging brands. Consolidated net sales were $393 million, down from $398 million in Q1 2024. Adjusted gross margin contracted 110 basis points to 64.3% due to increased freight, markdowns, and sales mix changes. Adjusted operating profit was $39 million, down from $57 million in the prior year.

• Full-year net sales expected between $1.475 billion and $1.515 billion, a decline of 3% to slightly negative vs fiscal 2024.
• Total company comp sales decline in low to mid single-digit, with Lilly Pulitzer and emerging brands growing offsetting declines in Tommy Bahama and Johnny Was.
• Gross margin expected to contract approximately 200 basis points for the year, including $40 million in additional tariff costs.
• Adjusted EPS expected between $2.80 and $3.20 for 2025.

• Tariffs impacting consumer sentiment and making planning difficult.
• Supply chain realignment presenting short-term challenges and financial ramifications.
• Margin dilution from promotional spending and tariff-related cost increases.

Q: Discuss learnings from Lilly Pulitzer's strength and how to sustain momentum.

A: Focus on core 20% of customers, stay true to DNA but relevant.

Q: Elaborate on pricing plans for other brands besides Tommy Bahama.

A: Tommy Bahama spring 2026 AUR up <3%, but other brands' pricing plans for 2026 too early to predict.

Q: Talk about wholesale growth and expectations.

A: Wholesale up 4%, tracking to expectations, with department stores performing well.

Q: Color on newness at Tommy and confidence in Johnny Was guide.

A: Newness working at Tommy, Johnny Was plan impacts 2026 and beyond, not expecting big rebound in 2025.

Q: Tariff impact and mitigation strategies.

A: $40M gross tariff impact, mitigation efforts ongoing but spring/summer seasons can't be changed, expecting full mitigation by spring 2026.

Q: Comps trend and restaurant business drivers.

A: Comps improved sequentially, April strongest; restaurant comp down 1%, close to flat, ticket sizes ticking up.