second quarter of fiscal 2026
Filed Sep 3, 2026Oxford reported second-quarter fiscal 2026 net sales of $394 million and adjusted EPS of $1.34, while lowering fiscal 2026 sales and adjusted EPS guidance amid Lilly Pulitzer softness and macro-economic consumer pressure.
Adjusted EPS increased to $1.34 from $1.26 and adjusted operating income rose to $29 million from $28 million, but consolidated net sales declined 2.2%, three of four operating groups declined, and the company lowered fiscal 2026 sales and adjusted EPS guidance.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Second-quarter fiscal 2026 GAAP diluted EPS | $1.13 - 1.23 | $3.25 | above |
| Second-quarter fiscal 2026 adjusted diluted EPS | $1.20 -1.40 | $1.34 | in line |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated net sales, second quarter fiscal 2026GAAP | $394.4 million | – | (2.2)% |
| Gross profit, second quarter fiscal 2026GAAP | $291.1 million | – | 17.6% |
| Gross margin, second quarter fiscal 2026GAAP | 73.8% | – | – |
| Adjusted gross profit, second quarter fiscal 2026non-GAAP | $249.0 million | – | 0.2% |
| Adjusted gross margin, second quarter fiscal 2026non-GAAP | 63.1% | – | – |
| SG&A, second quarter fiscal 2026GAAP | $212.3 million | – | 1.6% |
| Adjusted SG&A, second quarter fiscal 2026non-GAAP | $210.0 million | – | 0.5% |
| Operating income, second quarter fiscal 2026GAAP | $68.8 million | – | 170.8% |
| Operating margin, second quarter fiscal 2026GAAP | 17.4% | – | – |
| Adjusted operating income, second quarter fiscal 2026non-GAAP | $29.3 million | – | 3.6% |
| Adjusted operating margin, second quarter fiscal 2026non-GAAP | 7.4% | – | – |
| Net earnings, second quarter fiscal 2026GAAP | $49.0 million | – | 193.4% |
| Adjusted net earnings, second quarter fiscal 2026non-GAAP | $20.2 million | – | 7.1% |
| Diluted EPS, second quarter fiscal 2026GAAP | $3.25 | – | 190.7% |
| Adjusted diluted EPS, second quarter fiscal 2026non-GAAP | $1.34 | – | 6.1% |
| Interest expense, net, second quarter fiscal 2026GAAP | $1.5 million | – | (3.8)% |
| Effective tax rate, second quarter fiscal 2026GAAP | 27.3% | – | – |
| Consolidated net sales, first half fiscal 2026GAAP | $785.8 million | – | (1.3)% |
| Operating income, first half fiscal 2026GAAP | $91.2 million | – | 48.0% |
| Adjusted operating income, first half fiscal 2026non-GAAP | $59.6 million | – | (10.9)% |
| Net earnings, first half fiscal 2026GAAP | $64.0 million | – | 49.2% |
| Adjusted net earnings, first half fiscal 2026non-GAAP | $41.0 million | – | (12.3)% |
| Diluted EPS, first half fiscal 2026GAAP | $4.25 | – | 50.5% |
| Adjusted diluted EPS, first half fiscal 2026non-GAAP | $2.73 | – | (11.5)% |
| Cash provided by operating activities, first half fiscal 2026GAAP | $97 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Tommy BahamaThe company cited a low-single-digit comparable sales gain at Tommy Bahama. Full-price retail sales were 2% lower, e-commerce sales were comparable, food and beverage sales were 11% higher, and outlet sales were comparable. | $230.9 million | – | 0.8% |
| Lilly PulitzerThe company attributed softness primarily to addressable product and marketing challenges in a fashion merchandising business and plans increased promotional activity in the coming months to spur demand and prevent the build up of slow moving inventory. | $85.2 million | – | (5.6)% |
| Johnny WasNet sales declined 8.8%; adjusted segment EBITDA was $1.4 million compared to $(1.3) million. | $41.4 million | – | (8.8)% |
| Emerging BrandsNet sales declined 3.7%; adjusted segment EBITDA was $1.0 million compared to $4.0 million. | $37.1 million | – | (3.7)% |
| Corporate and OtherCorporate EBITDA was $(6.2) million compared to $(12.8) million. | $(0.3) million | – | NM |
fiscal 2026 ending January 30, 2027, and third quarter of fiscal 2026 outlook
- RevenueFiscal 2026 net sales: $1.430 billion to $1.470 billion; third-quarter fiscal 2026 net sales: $280 million to $300 million
- Tax rateFiscal 2026: between 27% and 28%; third quarter: approximately 24%
- NoteFiscal 2026 GAAP earnings per share: $3.07 to $3.47, including $2.07 of tariff refund receivables and related interest
- NoteFiscal 2026 adjusted EPS: $1.60 to $2.00
- NoteThird-quarter fiscal 2026 GAAP loss per share: $1.47 to $1.27
- NoteThird-quarter fiscal 2026 adjusted loss per share: $1.40 to $1.20
- NoteFiscal 2026 interest expense: $6 million, including $1 million in the third quarter of fiscal 2026
- NoteFiscal 2026 capital expenditures: approximately $60 million
Capital returns
- The Board of Directors declared a quarterly cash dividend of $0.70 per share.
- The dividend is payable on October 30, 2026, to shareholders of record as of the close of business on October 16, 2026.
- Cash dividends paid during the first half of fiscal 2026 were $21,545 (in thousands).
- Repurchase of common stock during the first half of fiscal 2026 was —, compared to $(55,202) (in thousands) in the first half of fiscal 2025.
What drove it
- The company recognized $42 million of tariff refund claims as a reduction of cost of goods sold, contributing to GAAP gross margin of 73.8%.
- Excluding tariff refunds and LIFO accounting, adjusted gross margin increased to 63.1% from 61.7%, reflecting updated assortment, sourcing and pricing strategies resulting in higher initial mark-ups and lower off-price wholesale mix.
- Wholesale sales were $52 million, down 14%, primarily driven by lower off-price sales.
- Food and beverage sales were $32 million, up 11%, primarily driven by new locations opened in fiscal 2025; comparable store sales were flat.
- Royalties and other operating income increased to $7 million from $3 million, reflecting normalized licensing-partner sales and $1 million of interest received related to tariff refunds.
- SG&A increased to $212 million from $209 million, primarily due to new retail and food and beverage locations, software and consulting costs, and the Lyons, Georgia distribution center transition.
Concerns
- Consolidated net sales declined 2.2%, with sales declines at Lilly Pulitzer, Johnny Was and Emerging Brands.
- The company stated that Lilly Pulitzer softness is primarily attributable to addressable product and marketing challenges in a fashion merchandising business.
- Higher promotional activity at Tommy Bahama, Lilly Pulitzer and Emerging Brands partially offset gross-margin benefits.
- The company cited ongoing macro-economic consumer pressure as a reason for lowering fiscal 2026 guidance.
- Adjusted first-half operating income declined 10.9% to $59.6 million and adjusted diluted EPS declined 11.5% to $2.73.
What to watch
- Execution of increased promotional activity at Lilly Pulitzer and its effect on demand, inventory and margin.
- Whether Tommy Bahama maintains its low-single-digit comparable sales gain.
- The impact of lower off-price wholesale sales on revenue and sales mix.
- Progress on the enterprise review intended to enhance long-term earnings power with less dependence on historical top-line growth rates.
- Receipt of remaining tariff refunds and the company’s ability to mitigate current and potential future tariffs.
- Fiscal 2026 capital expenditures of approximately $60 million following completion of the Lyons, Georgia distribution center.
Balance sheet and cash flow
- Cash and cash equivalents were $9,020 (in thousands) as of August 1, 2026, compared to $6,877 (in thousands) as of August 2, 2025.
- Long-term debt was $73,245 (in thousands) as of August 1, 2026, compared to $81,375 (in thousands) as of August 2, 2025.
- Borrowings outstanding decreased to $73 million at the end of the second quarter of fiscal 2026 from $143 million at the end of the first quarter of fiscal 2026 and $116 million at the end of fiscal 2025.
- Inventories, net were $147,141 (in thousands) as of August 1, 2026, compared to $166,670 (in thousands) as of August 2, 2025.
- Inventory decreased $20 million, or 12%, on a LIFO basis and decreased $9 million, or 4%, on a FIFO basis compared to the end of the second quarter of fiscal 2025.
- Cash provided by operating activities was $97,300 (in thousands) in the first half of fiscal 2026, compared to $79,549 (in thousands) in the first half of fiscal 2025.
- Purchases of property and equipment were $(31,536) (in thousands) in the first half of fiscal 2026, compared to $(54,604) (in thousands) in the first half of fiscal 2025.
- Cash flow from operations exceeded capital expenditures of $32 million and dividend payments of $22 million during the first half of fiscal 2026.
Analysis
Oxford delivered a mixed second quarter. Consolidated net sales declined 2.2% to $394.4 million, but adjusted diluted EPS increased 6.1% to $1.34 and adjusted operating income increased 3.6% to $29.3 million. Reported results were substantially lifted by tariff-related items: the company recognized $42 million of tariff refund claims as a reduction of cost of goods sold and $1 million of related interest. This drove GAAP gross margin to 73.8%, GAAP operating income to $68.8 million and GAAP diluted EPS to $3.25.
Underlying margin performance improved but remained sensitive to mix. Adjusted gross margin rose to 63.1% from 61.7%, supported by higher initial mark-ups from assortment, sourcing and pricing actions and lower off-price wholesale mix. These benefits were partly offset by a greater proportion of sales during promotional events across Tommy Bahama, Lilly Pulitzer and Emerging Brands. SG&A increased 1.6% to $212.3 million, while adjusted SG&A increased 0.5% to $210.0 million, reflecting investment in locations, software and consulting, and costs associated with the Lyons distribution center transition.
Tommy Bahama was the only operating group with sales growth, rising 0.8% to $230.9 million, aided by a low-single-digit comparable sales gain. Food and beverage sales rose 11% to $32 million due primarily to locations opened in fiscal 2025. Lilly Pulitzer sales fell 5.6% to $85.2 million, Johnny Was declined 8.8% to $41.4 million, and Emerging Brands declined 3.7% to $37.1 million. The company identified product and marketing challenges at Lilly Pulitzer and plans additional promotional activity to stimulate demand and limit slow-moving inventory.
Cash generation and debt reduction were material positives. First-half cash provided by operating activities rose to $97 million from $80 million, while borrowings outstanding fell to $73 million at the end of the second quarter from $143 million at the end of the first quarter. Inventory decreased $20 million, or 12%, on a LIFO basis year over year. The company continued its dividend, declaring $0.70 per share, while no common-stock repurchases were reported in the first half of fiscal 2026.
Management revised fiscal 2026 guidance lower, now forecasting net sales of $1.430 billion to $1.470 billion and adjusted EPS of $1.60 to $2.00. The third-quarter outlook calls for net sales of $280 million to $300 million and an adjusted loss per share of $1.40 to $1.20. The revised guide reflects internal portfolio headwinds and macro-economic consumer pressure, even as the company expects lower fiscal 2026 capital expenditures of approximately $60 million following the completion of the Lyons distribution center and fewer planned store openings.
Management, verbatim
Our second quarter results were in-line with our expectations, highlighted by year-over-year adjusted earnings per share growth and a low-single-digit comparable sales gain at Tommy Bahama. This performance contributed to strong cash flow generation in the first half of the year, which along with tariff refunds received to-date, we used to significantly reduce debt.
Tom Chubb, Chairman and CEO
Tommy Bahama’s positive momentum is being offset by softness in other parts of our portfolio, particularly Lilly Pulitzer which we believe is primarily attributable to addressable product and marketing challenges in a fashion merchandising business.
Tom Chubb, Chairman and CEO
The combination of these internal headwinds and ongoing macro-economic consumer pressure has led us to lower our guidance for fiscal 2026.
Tom Chubb, Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter consolidated net sales, gross profit, gross margin, SG&A, operating income, net earnings and EPS were not reported on their respective second-quarter line items.
- Free cash flow was not reported as a labeled metric.
- Fiscal 2026 gross-margin guidance was not provided.
- Fiscal 2026 operating-expense guidance was not provided.
- Cash balance compared with the end of the first quarter of fiscal 2026 was not provided.
- A prior full-year fiscal 2026 revenue or EPS outlook was not provided in the supplied previous-outlook format; only second-quarter EPS guidance issued on June 10, 2026 was included in the filing.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.