Oxford Industries, Inc., parent of the Tommy Bahama, Lilly Pulitzer and Johnny Was brands, reported a wider loss due in part to increased inventory reserves in the fourth quarter as sales slid 3.8 percent. The company said sales and adjusted earnings were in line with guidance excluding charges associated with the bankruptcy of Saks Global.

Consolidated net sales in the fourth quarter of fiscal 2025 were $374 million compared to $391 million in the fourth quarter of fiscal 2024. Diluted loss per share on a GAAP basis was 48 cents, which includes 24 cents per share of charges related to an increased LIFO reserve, compared to earnings per share (EPS) of $1.13 in the fourth quarter of fiscal 2024. On an adjusted basis, loss per share was 9 cents compared to EPS of $1.37 in the fourth quarter of fiscal 2024. For the fourth quarter of fiscal 2025, loss per share on both a GAAP and adjusted basis includes a 19 cents charge related to the Saks Global bankruptcy.

Consolidated net sales for the full fiscal year 2025 decreased 3 percent to $1.48 billion compared to $1.52 billion in fiscal 2024. Loss per share was $1.86 compared to EPS of $5.87 in fiscal 2024. Fiscal 2025 results included noncash impairment charges totaling $61 million, or $3.02 per share primarily associated with the Johnny Was trademark. On an adjusted basis, EPS was $2.11 in fiscal 2025 compared to $6.68 in fiscal 2024.

Tom Chubb, chairman and CEO, commented, “Momentum in our largest business, Tommy Bahama, improved as the quarter progressed, with trends strengthening beginning in late January. This momentum helped us deliver fourth quarter net sales and adjusted earnings per share within our guidance ranges, excluding charges associated with the bankruptcy of Saks Global, against the backdrop of an uneven consumer environment. While traffic and conversion trends were pressured across much of our portfolio during the holiday season, and higher tariffs increased our costs, the strategic actions we took to strengthen our supply chain and diversify our sourcing allowed us to protect our strong gross margins. We also adjusted our merchandise assortments to better match customer expectations, important actions that helped return overall comparable sales to positive territory as fiscal 2025 concluded.”

Chubb concluded, “Fiscal 2026 is off to a good start, with the improving top-line momentum driven by mid single digit positive comps at Tommy Bahama starting in late January continuing first quarter to-date during the start of our important resort and early spring seasons. We expect this momentum, together with the actions we took in fiscal 2025, to support improved earnings in fiscal 2026. While uncertainty persists across the consumer and macroeconomic environment, including tariffs and the conflicts in the Middle East, we are entering the year with a stronger operational foundation. Our investments in technology and infrastructure, including our recently opened Lyons, Georgia distribution center, support that foundation and are expected to provide meaningful financial and strategic benefits over time. As always, we remain focused on disciplined execution, with an emphasis on improving profitability and strengthening our brands for the long term. We are proud of the teams across our organization that make this all possible.”

Emerging brands include Southern Tide, TBBC, Duck Head and Jack Rogers.

For the full fiscal year 2025, consolidated net sales of $1.48 billion decreased 3 percent compared to sales of $1.52 billion in the prior year. Fourth quarter consolidated net sales decreased 4 percent over the prior year to $374 million. The net sales decrease includes the following in each channel of distribution:

  • Full-price DTC sales of $1.0 billion decreased 3 percent for the year. For the fourth quarter of fiscal 2025, full-price DTC sales of $268 million decreased 5 percent versus the prior-year period.
    • Full-price retail sales of $509 million decreased 3 percent for the year. For the fourth quarter, full-price retail sales of $130 million decreased 4 percent;
    • E-commerce sales of $506 million decreased 3 percent for the year. For the fourth quarter, e-commerce sales of $137 million decreased 6 percent;
  • Food and beverage sales of $121 million grew 4 percent for the year. For the fourth quarter, food and beverage sales of $34 million increased 15 percent. The increases for the full year and the fourth quarter were driven by new locations.
  • Outlet sales of $74 million decreased 2 percent for the year. For the fourth quarter, outlet sales of $18 million decreased 2 percent.
  • Wholesale sales of $268 million decreased 5 percent for the year. For the fourth quarter, wholesale sales of $55 million decreased 10 percent.

Gross margin was 60.7 percent compared to 62.9 percent in the prior year. For the fourth quarter of fiscal 2025, gross margin was 56.8 percent compared to 60.6 percent. The decreased gross margin for the full fiscal year was primarily due to (1) approximately $30 million of increased cost of goods sold, or approximately 200 basis points, from additional tariffs enacted in fiscal 2025, (2) a change in sales mix with a higher proportion of net sales occurring during promotional and clearance events at Tommy Bahama and Lilly Pulitzer and (3) a $5 million higher LIFO accounting charge in fiscal 2025 compared to fiscal 2024. These decreases were partially offset by (1) lower freight costs to customers due to improved carrier rates from contract renegotiations and (2) a change in sales mix with wholesale sales representing a lower proportion of net sales. On an adjusted basis, gross margin was 61.3 percent compared to 63.2 percent in the prior year. For the fourth quarter of fiscal 2025, adjusted gross margin was 58.0 percent compared to 60.8 percent.

SG&A was $818 million for the full fiscal year 2025 compared to $787 million in the prior year. For the fourth quarter, SG&A was $207 million compared to $203 million in the prior year. For the full fiscal year, approximately $15 million, or 47 percent, of the increase was due to the increase in bricks and mortar retail locations with a net of 10 additional locations added during fiscal 2025. There were additional increases in (1) software subscription related costs, (2) occupancy costs, (3) consulting and professional services and (4) credit losses primarily due to the Saks Global bankruptcy. These increases were partially offset by decreases in (1) advertising costs and (2) samples, supplies and travel costs. On an adjusted basis, SG&A was $815 million compared to $784 million in the prior year. For the fourth quarter, adjusted SG&A was $206 million compared to $201 million in the prior year.
Royalties and other operating income decreased $4 million to $16 million for the full year primarily due to decreased royalty income in Tommy Bahama reflecting the lower sales of licensing partners.

Full-year net loss was $28 million in fiscal 2025, compared to net earnings of $93 million in the prior year. For the fourth quarter of fiscal 2025, net loss was $7 million compared to net earnings of $18 million in the prior year.

Full-year EBITDA was $36 million in fiscal 2025, compared to $187 million in the prior year. On an adjusted basis, full-year EBITDA was $107 million compared to $193 million in the prior year. For the fourth quarter of fiscal 2025, adjusted EBITDA was $8 million compared to $38 million in the prior year, while adjusted EBITDA was $14 million in fiscal 2025 and $40 million in the prior year.

As a result of interim impairment assessments performed in the third quarter of fiscal 2025, the company recognized noncash impairment charges totaling $61 million, primarily related to the Johnny Was trademark.

Interest expense increased to $7 million from $2 million in the prior year period primarily due to higher average outstanding debt during fiscal 2025 than the prior year.

The effective tax rate for fiscal 2025 was 27 percent compared to 20 percent in the prior year. The effective tax rate for the fourth quarter of fiscal 2025 was 27 percent compared to 8 percent for the fourth quarter of fiscal 2024. The effective tax rates for both the full year and fourth quarter of fiscal 2025 were higher than a typical effective tax rate of 25 percent and included certain unfavorable discrete items that are not expected to recur in future periods.

Balance Sheet and Liquidity

Inventory decreased $2 million, or 1 percent, on a LIFO basis and increased $6 million, or 2 percent, on a FIFO basis compared to the end of fiscal 2024 primarily due to slight inventory increases in all operating segments, with the exception of Johnny Was. The increase on a FIFO basis was driven primarily by increased tariffs. As of January 31, 2026, the company had $11 million of additional costs capitalized into inventory related to the U.S. tariffs implemented in Fiscal 2025.

During fiscal 2025, cash flow from operations was $120 million compared to $194 million in fiscal 2024. The decrease in cash flow from operations reflects the result of lower net earnings and working capital needs.

Borrowings outstanding increased to $116 million at the end of fiscal 2025 as lower earnings, capital expenditures, share repurchases, dividends and working capital needs exceeded cash flows from operations. At the end of fiscal 2025, the company had $8 million of cash and cash equivalents versus $9 million of cash and cash equivalents at the end of fiscal 2024.

Capital expenditures of $108 million in fiscal 2025 decreased from $134 million in fiscal 2024. The decrease in fiscal 2025 was primarily due to the opening of fewer new retail stores and Tommy Bahama Marlin Bars in fiscal 2025 than in fiscal 2024. We also spent $54 million of capital expenditures related to the new distribution center in Lyons, Georgia in fiscal 2025 compared to $69 million in fiscal 2024. Approximately $20 million of spending originally expected in fiscal 2025 to complete the Lyons, Georgia project is now expected to occur in fiscal 2026.

Dividend

On March 23, 2026, the Board of Directors declared a quarterly cash dividend of 70 cents per share, or a 1 percent increase above the previous dividend payment. The dividend is payable on May 1, 2026 to shareholders of record as of the close of business on April 17, 2026. The company has paid dividends every quarter since it became publicly owned in 1960.

Outlook

The company initiated sales and EPS guidance for fiscal 2026. The company expects net sales in a range of $1.475 billion to $1.530 billion compared to net sales of $1.478 billion in fiscal 2025. In fiscal 2026, GAAP EPS is expected to be between $1.83 and $2.43 compared to fiscal 2025 GAAP loss per share of $1.86. Adjusted EPS is expected to be between $2.10 and $2.70, compared to fiscal 2025 adjusted EPS of $2.11. The fiscal 2026 guidance also includes:

  • An approximate $20 million, or $1.00 per share impact of higher tariffs resulting from the annualized impact of the International Emergency Economic Powers Act (“IEEPA”) tariffs enacted in April 2025;
  • $5 million of primarily increased depreciation related expenses, or approximately 25 cents per share impact, related to the new Lyons, Georgia distribution center;
  • A higher adjusted effective tax rate of approximately 28 percent compared to 24 percent in 2025, or $2 million of additional tax expense, or a 15 cents per share impact; and
  • $1 million, or 5 cents per share impact from higher interest expense with increases from higher average debt levels in the first half of the year partially offset by decreases from lower average debt levels in the second half of the year.

For the first quarter of fiscal 2026, the company expects net sales to be between $385 million and $395 million compared to net sales of $393 million in the first quarter of fiscal 2025. GAAP EPS is expected to be in a range of $1.13 to $1.23 in the first quarter compared to GAAP EPS of $1.70 in the first quarter of fiscal 2025. Adjusted EPS is expected to be between $1.20 and $1.30 compared to adjusted EPS of $1.82 in the first quarter of fiscal 2025. The first quarter fiscal 2026 guidance also includes:

  • An approximate $12 million, or $60 cents per share impact of higher tariffs resulting from the annualized impact of the IEEPA tariffs enacted in April 2025;
  • $1 million of primarily increased depreciation related expenses, or approximately 5 cents per share impact, related to the new Lyons, Georgia distribution center;
  • $1 million, or 5 cents per share impact from higher interest expense; and
  • A higher adjusted effective tax rate of approximately 25 percent compared to 24 percent in 2025.

Capital expenditures in fiscal 2026 are expected to be approximately $65 million, including approximately $20 million to complete the new Lyons, Georgia facility, compared to $108 million in fiscal 2025. The decrease is due to reductions in expenditures related to the completion of the new distribution center in Lyons, Georgia in the first quarter of fiscal 2026 along with fewer new store openings.