Oxford Industries lifts guidance, cuts debt in Q2

Oxford Industries (NYSE: OXM ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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Access the full call at Summary Oxford Industries reported Q2 fiscal 2026 results with adjusted EPS growth and a low single-digit comparable sales gain.

Tommy Bahama showed positive sales growth, particularly in Florida, offsetting declines in other brands like Lilly Pulitzer and Johnny Was.

Lilly Pulitzer faced assortment and marketing challenges, leading to a revised outlook below previous expectations, with a focus on Spring 2027 for substantial improvements.

Johnny Was improved profitability through better inventory management and reduced promotions.

The company reduced its debt significantly, ending Q2 with long-term debt of $73 million, down from $143 million in Q1.

Oxford Industries revised its full-year sales guidance to $1.43 billion - $1.47 billion, indicating a 3% decline to flat compared to fiscal 2025.

Management emphasized maintaining a strong balance sheet and cash generation, with reduced capital expenditures planned.

Strategic initiatives include maximizing the new Lyons, Georgia distribution center and optimizing store fleet by converting some stores to more profitable brands.

Full Transcript OPERATOR (Operator) Greetings and welcome to the Oxford Industries second quarter fiscal year 2026 earnings conference call.

At this time all participants are in a listen-only mode.

A brief question-and-answer session will follow the formal presentation.

If anyone should require operator assistance, please press Star zero on your telephone keypad.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Brian Smith.

Please go ahead.

Brian Smith, Controller Thank you and good afternoon.

Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws.

Forward-looking statements are not guarantees and actual results may differ materially from those expressed or implied in the forward-looking statements.

Important factors that could cause actual results of operations or financial condition to differ are discussed in our press release issued earlier today and in documents filed by us with the SEC, including the risk factors contained in our Form 10-K.

We undertake no duty to update any forward-looking statements.

During this call we will be discussing certain non-GAAP financial measures.

You can find a reconciliation of non-GAAP to GAAP financial measures in our press release issued earlier today which is posted under our Investor Relations tab at our website at oxfordinc.com.

And now I'd like to introduce today's call participants.

With me today are Tom Chubb, Chairman and CEO, and Scott Grassmeier, CFO and COO.

Thank you for your attention and I'll turn the call over to Tom Chubb.

Tom Chubb — Chairman, CEO & President Member, Board of Directors Thank you, Brian.

Good afternoon and thank you for joining us.

I'm pleased to be here today to discuss our second quarter results, the performance of our brands and our outlook for the balance of fiscal 2026.

Overall second quarter results were within our expectations, highlighted by year-over-year adjusted earnings per share growth and a low single digit comparable sales gain.

At Tommy Bahama, we also delivered meaningful adjusted gross margin expansion, despite a higher level of promotional activity, reflecting the progress our teams have made on assortment, sourcing and pricing across the portfolio.

The strong cash flow we generated enabled us to make meaningful progress reducing debt in the second quarter.

Refunds of previously paid tariffs contributed to that reduction.