Oxford Industries 2026 Q1 Earnings Misses Targets as Net Income Declines 31.8%

Oxford Industries (OXM) reported its fiscal 2026 Q1 earnings on Jun 12th, 2025. The company's financial performance was below expectations, with revenue and net income both showing declines compared to the previous year. Guidance for fiscal 2025 anticipates lower sales and adjusted EPS, reflecting challenging market conditions. The company projects net sales between $1.475 billion and $1.515 billion, and an adjusted EPS between $2.80 and $3.20, down from the prior year's figures. Gross margins are expected to contract, driven by additional tariff costs.

Revenue
Oxford Industries reported a 1.3% decrease in total revenue for 2026 Q1, amounting to $392.86 million, down from $398.18 million in 2025 Q1. The Tommy Bahama segment contributed $216.18 million, while Lilly Pulitzer generated $99.04 million. Johnny Was reported revenue of $43.47 million, and Emerging Brands accounted for $34.25 million. The Corporate and Other segment showed a loss of $77,000.

Earnings/Net Income
Oxford Industries' EPS fell by 30.1% to $1.72 in 2026 Q1, compared to $2.46 in 2025 Q1. Net income also declined to $26.18 million, a 31.8% decrease from the $38.37 million reported in 2025 Q1. The EPS figures indicate a challenging quarter for the company.

Price Action
The stock price of Oxford Industries has dropped 5.90% during the latest trading day, plummeted 20.83% during the most recent full trading week, and has decreased 26.05% month-to-date.

Post-Earnings Price Action Review
The strategy of buying OXM when revenues miss and holding for 30 days yielded poor performance. This approach resulted in a negative compound annual growth rate (CAGR) of -1.79% and an excess return of -98.52%, culminating in an overall return of -8.60%. The strategy significantly underperformed the benchmark and experienced a high maximum drawdown of -65.01%, indicating substantial risk. The strategy's Sharpe ratio was -0.04, suggesting unfavorable risk-adjusted returns. This reflects a challenging environment for investors employing this strategy, with significant financial risks involved.

CEO Commentary
Thomas Caldecot Chubb, Chairman and CEO, commented on the solid performance in Q1 2025 amid challenging market conditions, noting that while consumer spending remains, sentiment is cautious. He emphasized the importance of innovative products and strong promotions, stating, "Our experience during the quarter was similar...the consumer responds most strongly to new innovative and differentiated product." Chubb highlighted the ongoing tariff challenges that complicate business planning and supply chain alignment, but expressed confidence in adapting, saying, "Our ability to adapt is unchanged." He underscored a focus on delivering happiness through customer engagement and brand positioning, reinforcing their long-term vision despite current difficulties.

Guidance
For fiscal 2025, Oxford Industries expects net sales between $1.475 billion and $1.515 billion, reflecting a low to mid-single-digit comp sales decline. The adjusted EPS is projected to be between $2.80 and $3.20, down from $6.68 in the prior year. Gross margins are anticipated to contract approximately 200 basis points, driven by $40 million in additional tariff costs. Capital expenditures are expected to total around $120 million, primarily for a new distribution center and new store openings, while SG&A expenses are projected to grow in the mid-single-digit range due to ongoing investments.

Additional News
Recent developments at Oxford Industries include strategic efforts to diversify its supply chain away from China, aiming to be substantially out of China by the second half of 2026. The company's new state-of-the-art fulfillment center in South Georgia is progressing well and is expected to be completed by the end of the fiscal year, providing a competitive advantage in the Southeastern United States. Additionally, Oxford Industries is focusing on enhancing its brand experience, with new Tommy Bahama Marlin Bars being opened in strategic locations to boost retail business and customer engagement.