Oxford Industries, Inc. Q4 FY2025 earnings call

• Fourth quarter net sales and adjusted earnings per share at midpoint of guidance ranges excluding Sachs Global bankruptcy charges. • Actions to strengthen business helped improving trends late in fourth quarter despite uneven consumer backdrop. • Completed new state-of-the-art distribution center in Lyons, starting to receive initial inventory shipments. • Diversified sourcing, reducing China sourcing from ~40% in fiscal 2025 to ~15% in fiscal 2026. • Brands have specific priorities for fiscal 2026: Tommy Bahama to build on momentum, sharpen merchandising, etc.; Lilly Pulitzer to unlock sustainable profitability; Johnny Was to execute revitalization plan; emerging brands to accelerate growth.

Consolidated net sales in fiscal 2025 decreased 3% to $1.48 billion. Adjusted gross margin contracted 190 basis points to 61.3%. Adjusted EBITDA was $107 million, or 7.2% EBITDA margin. By brand, Tommy Bahama and Johnny Woods had negative comps, Lilly Pulitzer had positive low single-digit comp, and emerging brands had low double-digit sales growth. Tommy Bahama mid-single-digit positive comps led total company to positive in late January. Lilly Pulitzer first quarter comps ran below plan due to colder weather. Johnny Was comps negative but improving. Emerging brands group had double-digit comps.

• Full year 2026 net sales expected between $1.475 billion and $1.53 billion, approximately flat to up 4% from 2025. • Total comp approximately flat to positive 3% with non-comp locations. • Distribution channel: mid-single-digit increases in brick and mortar and retail, low double-digit in food and beverage, wholesale to contract mid-single digit. • Gross margin: assuming tariff rates consistent with fiscal 2025, IEPA-related tariff headwinds of $50 million in 2026, outside tariffs expect modest gross margin expansion to ~62%. • SG&A to grow low single-digit. • 2026 adjusted EPS expected between $2.10 and $2.70. • First quarter 2026 sales expected 385 to 395 million, adjusted EPS between $1.20 and $1.30. • Capital expenditures ~$65 million, expect to pay down significant debt and maintain dividend at $0.70 per share.

• Uncertain consumer environment. • Potential pressure from Iran conflict and higher oil prices weighing on consumer spending, freight, and raw material costs. • Tariff-related uncertainties, not incorporating benefit from recent court decisions or refunds of previously paid tariffs. • Ramp-up costs of new Lyons DC including operating two facilities and not yet achieving targeted inventory levels.

Q: Ashley Owens asked about driving momentum in Tommy Bahama and margin implications of channel mix shifts.

A: Tommy Bahama momentum due to right product in right depth, best sellers like M Fielder Polo, Boracay Pant. Channel mix shifts help gross margin with DTC growing and wholesale pulling back.

Q: Dana Telsey asked about wholesale channel and Florida performance.

A: Rooting for SACs, winners in wholesale likely Macy's, Bloomingdale's, Dillard's, Nordstrom; Florida improving but West driving results.

Q: Janine Stitcher asked about debt paydown and Johnny Was marketing/merchandising.

A: Hope to pay down $30 - $40 million debt, Johnny Was marketing with elevated storytelling, product with right silhouettes, price points.

Q: Mauricio Serna asked about guidance reconciliation and Lilly Pulitzer.

A: Guidance acceleration due to weather, Lilly Pulitzer impacted by cold weather, expecting improvement as weather normalizes.

Q: Joseph Cesella asked about inventory planning porting and Lions facility.

A: Inventory planning porting across company, Lions facility helps with East Coast replenishment, reducing inventory buffer.

Q: Tracy Cogan asked about traffic/conversion metrics and pricing architecture.

A: Average order value growth is key, pricing architecture with granular analytics to optimize price points.