Oxford Industries narrows full-year sales guidance

US apparel group Oxford Industries, Inc. has announced its financial results for the first quarter of fiscal year 2026 ended May 2, 2026, revealing consolidated net sales in line with company expectations but a decline in profitability due to macroeconomic pressures and incremental tariff costs.

Consolidated net sales in the first quarter of fiscal 2026 decreased slightly to 391 million dollars compared to 393 million dollars in the first quarter of fiscal 2025. Earnings per share (EPS) on a GAAP basis was 1 dollars compared to 1.70 dollars in the first quarter of fiscal 2025. On an adjusted basis, EPS was 1.39 dollars compared to 1.82 dollars in the prior year period. Both GAAP and adjusted EPS in the first quarter of fiscal 2026 included 11 million dollars, or 0.55 dollars per share, of incremental tariff costs compared to the first quarter of fiscal 2025.

Tom Chubb, chairman and chief executive officer of Oxford Industries, commented: “We delivered net sales in line with our expectations, led by mid-single-digit positive comps at Tommy Bahama, and adjusted EPS above our guidance range, fueled by better-than-expected gross margins. Our overall performance also reflects softer than expected results at Lilly Pulitzer and a challenging environment marked by weak consumer sentiment and higher energy prices.”

Segmental sales performance breakdown

Full-price direct-to-consumer (D2C) sales decreased 1 percent to 247 million dollars versus the first quarter of fiscal 2025. Within this channel, full-price retail sales reached 135 million dollars, which was comparable to the prior year period. E-commerce sales fell by 2 percent to 111 million dollars compared to the first quarter of fiscal 2025.

Outlet sales of 19 million dollars were comparable to the prior year period, while wholesale sales decreased by 5 percent to 88 million dollars compared to the first quarter of fiscal 2025.

Gross margin for the first quarter contracted to 62.3 percent compared to 64.2 percent in the first quarter of fiscal 2025. Operating income on a GAAP basis was 22 million dollars, or 5.7 percent of net sales, compared to 36 million dollars, or 9.2 percent of net sales, in the first quarter of fiscal 2025. On an adjusted basis, operating income was 30 million dollars, or 7.7 percent of net sales, compared to 39 million dollars, or 9.8 percent of net sales, in the prior year period.

Retailer narrows full year sales guidance

The board of directors declared a quarterly cash dividend of 0.70 dollars per share, payable on July 31, 2026 to shareholders of record as of the close of business on July 17, 2026. Oxford Industries has paid dividends every quarter since it became publicly owned in 1960.

For the second quarter of fiscal 2026, the company expects net sales to be between 380 million dollars and 400 million dollars compared to net sales of 403 million dollars in the second quarter of fiscal 2025. GAAP EPS is expected to be between 1.13 dollars and 1.33 dollars, while adjusted EPS is forecast in a range of 1.20 dollars to 1.40 dollars.

For the full fiscal year 2026, Oxford Industries is narrowing its full year sales outlook by lowering the high end of the previous range, while tightening its adjusted EPS guidance by raising the low end. The company now expects full year net sales in a range of 1.48 billion dollars to 1.51 billion dollars, compared to net sales of 1.48 billion dollars in fiscal 2025. Full year GAAP earnings per share are expected to be between 1.70 dollars and 2.10 dollars, while adjusted EPS is anticipated to be between 2.30 dollars and 2.70 dollars.