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ATLANTA - Oxford Industries, Inc. (NYSE:OXM) saw its shares surge 14% after the lifestyle brand portfolio company reported better-than-expected second quarter earnings despite facing headwinds from increased tariffs.
The owner of Tommy Bahama, Lilly Pulitzer, and Johnny Was reported adjusted earnings per share of $1.26 for the second quarter ended August 2, 2025, exceeding analyst expectations of $1.18. However, revenue fell 4% YoY to $403.1 million, slightly below the consensus estimate of $406.14 million and within the company’s guidance range.
The company’s gross margin was 61.7% on an adjusted basis, down from 63.3% in the same quarter last year, but still better than management had anticipated. The decrease was primarily due to approximately $9 million in increased costs from additional tariffs implemented in fiscal 2025.
"Our teams executed well in a dynamic trade and tariff environment, delivering sales within our guidance range and an adjusted EPS above our guidance range for the second quarter driven by better-than-expected gross margins," said Tom Chubb, Chairman and CEO.
The company’s largest brand, Tommy Bahama, saw sales decline 6.6% to $229 million, while Lilly Pulitzer sales decreased 1.5% to $90.3 million. Johnny Was experienced a 9.7% drop to $45.4 million. The company’s Emerging Brands segment was the bright spot, with sales increasing 17% to $38.5 million.
Oxford maintained its full-year outlook, projecting revenue between $1.475 billion and $1.515 billion and adjusted earnings per share of $2.80 to $3.20. The company estimates it has mitigated roughly half of its $80 million tariff exposure through actions including accelerating product receipts and shifting sourcing.
Management noted encouraging signs for the current quarter, with total company comparable store sales running "modestly positive in the low single-digit range" in the third quarter to date, reflecting "strong connections with our core customers and the development of new and compelling product."
The company’s board declared a quarterly dividend of $0.69 per share, payable on October 31, 2025.
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