Oxford: Owner of Tommy Bahama, Lilly Pulitzer and Johnny Was Reports Second Quarter Results

ATLANTA, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its second quarter of fiscal 2026 ended August 1, 2026.

Consolidated net sales in the second quarter of fiscal 2026 were $394 million compared to $403 million in the second quarter of fiscal 2025. EPS on a GAAP basis was $3.25 compared to $1.12 in the second quarter of fiscal 2025, with the current year period reflecting a $2.07 tariff related refund impact recognized during the quarter. On an adjusted basis, EPS was $1.34 compared to $1.26 in the second quarter of fiscal 2025.

Tom Chubb, Chairman and CEO, commented, “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.”

Mr. Chubb concluded, “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. The combination of these internal headwinds and ongoing macro-economic consumer pressure has led us to lower our guidance for fiscal 2026. We have initiated actions to position the business for profitable growth next year, including increasing our promotional activity at Lilly Pulitzer in the coming months to spur demand and prevent the build up of slow moving inventory. We’ve also implemented a broader review across the enterprise to identify opportunities aimed at enhancing our long-term earnings power that is less dependent on historical top-line growth rates.”

Second Quarter of Fiscal 2026 versus Fiscal 2025

Net Sales by Operating GroupSecond Quarter($ in millions)20262025% ChangeTommy Bahama$230.9$229.00.8%Lilly Pulitzer85.290.3(5.6%)Johnny Was41.445.4(8.8%)Emerging Brands37.138.5(3.7%)Other(0.3)(0.1)NMTotal Company$394.4$403.1(2.2%)

• Consolidated net sales were $394 million compared to $403 million in the second quarter of fiscal 2025.
  • Full-price direct-to-consumer (DTC) sales decreased 1% to $289 million versus the second quarter of fiscal 2025.
    • Full-price retail sales of $139 million were 2% lower than the prior-year period.
    • E-commerce sales of $150 million were comparable to the prior-year period.
  • Food and beverage sales of $32 million were 11% higher than the prior-year period driven primarily by new locations opened in fiscal 2025. Comparable store sales were flat.
  • Outlet sales of $20 million were comparable to the prior-year period.
  • Wholesale sales of $52 million were 14% lower than the second quarter of fiscal 2025 driven primarily by lower off-price sales.
• Gross margin was 73.8%, compared to 61.4% in the second quarter of fiscal 2025. The increased gross margin was primarily due to (1) the favorable impact of recognizing $42 million of tariff refund claims as a reduction of cost of goods sold, (2) updated assortment, sourcing and pricing strategies resulting in higher initial mark-ups, (3) a change in sales mix with off-price wholesale sales representing a lower proportion of net sales and (4) a $1 million lower LIFO accounting charge in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025. These factors were partially offset by a change in sales mix with a higher proportion of net sales occurring during promotional events at Tommy Bahama, Lilly Pulitzer and Emerging Brands. On an adjusted basis, which excludes the impact of tariff refunds and LIFO accounting, gross margin was 63.1% compared to 61.7% in the second quarter of fiscal 2025.
• SG&A was $212 million compared to $209 million, impacted primarily by costs related to new brick and mortar retail locations and food and beverage locations, increases in software and consulting costs and costs associated with the transition of our Lyons, Georgia distribution center operations. On an adjusted basis, SG&A was $210 million compared to $209 million in the prior-year period.
• Royalties and other operating income increased to $7 million from $3 million in the second quarter of fiscal 2025 primarily reflecting the normalization of sales by our licensing partners that were impacted by the implementation of tariffs in Fiscal 2025 and $1 million of interest received related to tariff refunds.
• Operating income on a GAAP basis was $69 million, or 17.4% of net sales, compared to $25 million, or 6.3% of net sales, in the second quarter of fiscal 2025. On an adjusted basis, operating income was $29 million, or 7.4% of net sales, compared to $28 million, or 7.0% of net sales, in the second quarter of fiscal 2025.
• Interest expense of $1 million in the second quarter of fiscal 2026 was comparable to the second quarter of fiscal 2025.
• For both the second quarter of fiscal 2026 and second quarter of fiscal 2025, our effective tax rate of 27.3% and 30.1%, respectively, primarily reflects the unfavorable net discrete tax expense for shortfalls in stock-based compensation vesting during each respective quarter.
  
  

Balance Sheet and Liquidity

Inventory as of the end of the second quarter of fiscal 2026 decreased $20 million, or 12%, on a LIFO basis compared to the end of the second quarter of fiscal 2025 primarily as a result of an increase in the LIFO reserve and decreases in Emerging Brands, Lilly Pulitzer and Johnny Was. On a FIFO basis, inventory decreased $9 million, or 4%, compared to the end of the second quarter of fiscal 2025.

During the first half of fiscal 2026, cash provided by operations was $97 million compared to $80 million in the first half of fiscal 2025.

Borrowings outstanding decreased to $73 million at the end of the second quarter of fiscal 2026 compared to $143 million at the end of the first quarter of fiscal 2026, $81 million at the end of the second quarter of fiscal 2025 and $116 million at the end of fiscal 2025. During the first half of fiscal 2026, cash flow from operations exceeded capital expenditures of $32 million, primarily associated with the opening of new brick and mortar locations and the distribution center in Lyons, Georgia and dividend payments of $22 million.

Dividend

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. The Company has paid dividends every quarter since it became publicly owned in 1960.

Outlook

For fiscal 2026 ending January 30, 2027, the Company has revised its sales and EPS guidance. The Company now expects net sales in a range of $1.430 billion to $1.470 billion as compared to net sales of $1.478 billion in fiscal 2025. In fiscal 2026, the Company now expects GAAP earnings per share to be between $3.07 and $3.47, which includes $2.07 of tariff refund receivables and related interest, compared to fiscal 2025 GAAP net loss per share of $1.86, which included noncash impairment charges primarily associated with Johnny Was totaling $61 million, or $3.05 per share. Adjusted EPS is now expected to be between $1.60 and $2.00, compared to fiscal 2025 adjusted EPS of $2.11.

For the third quarter of fiscal 2026, the Company expects net sales to be between $280 million and $300 million compared to net sales of $307 million in the third quarter of fiscal 2025. GAAP loss per share is expected to be between $1.47 and $1.27 in the third quarter of fiscal 2026 compared to a net loss per share of $4.28 in the third quarter of fiscal 2025, which included noncash impairment charges primarily associated with Johnny Was totaling $61 million, or $3.05 per share. Adjusted loss per share is expected to be in a range of $1.40 to $1.20 compared to a net loss per share of $0.92 in the third quarter of fiscal 2025.

The Company anticipates interest expense of $6 million in fiscal 2026, including $1 million in the third quarter of fiscal 2026. The Company’s effective tax rate is expected to be between 27% and 28% for the full year of fiscal 2026 and approximately 24% for the third quarter.

Capital expenditures in fiscal 2026, including the $32 million in the first half of fiscal 2026, are expected to be approximately $60 million compared to $108 million in fiscal 2025. The planned year-over-year decrease relates to fewer new store openings expected in fiscal 2026 and the completion of the new distribution center in Lyons, Georgia.

Conference Call

The Company will hold a conference call with senior management to discuss its financial results at 4:30 p.m. ET today. A live web cast of the conference call will be available on the Company’s website at www.oxfordinc.com. A replay of the call will be available through September 17, 2026, by dialing (412) 317-6671 access code 13762170.

About Oxford

Oxford Industries, Inc., a leader in the apparel industry, owns and markets the distinctive Tommy Bahama®, Lilly Pulitzer®, Johnny Was®, Southern Tide®, The Beaufort Bonnet Company®, Duck Head® and Jack Rogers® lifestyle brands. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM. For more information, please visit Oxford's website at www.oxfordinc.com.

Basis of Presentation

All per share information is presented on a diluted basis.

Non-GAAP Financial Information

The Company reports its consolidated financial statements in accordance with generally accepted accounting principles (GAAP). To supplement these consolidated financial results, management believes that a presentation and discussion of certain financial measures on an adjusted basis, which exclude certain non-operating or discrete gains, charges or other items, may provide a more meaningful basis on which investors may compare the Company’s ongoing results of operations between periods. These measures include EBITDA, adjusted EBITDA (when applicable), adjusted segment EBITDA, adjusted net earnings (loss), adjusted net earnings (loss) per share, adjusted gross profit, adjusted gross margin, adjusted SG&A, and adjusted operating income, among others.

Management uses these non-GAAP financial measures in making financial, operational, and planning decisions to evaluate the Company’s ongoing performance. Management also uses these adjusted financial measures to discuss its business with investment and other financial institutions, its board of directors and others. Reconciliations of these adjusted measures to the most directly comparable financial measures calculated in accordance with GAAP are presented in tables included at the end of this release.

Safe Harbor

This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. We intend for all forward-looking statements contained herein, in our press releases or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Such statements are subject to a number of risks, uncertainties and assumptions including, without limitation:

• changes in the trade policies of the United States and those of other nations, including risks of potential future changes or worsening trade tensions between the United States and other countries and the impact of uncertainties surrounding U.S. trade policy on consumer sentiment, inflation and financial markets;
• our ability to mitigate current and potential future tariffs imposed and receive remaining tariff refunds;
• demand for our products, which may be impacted by macroeconomic factors that may impact consumer discretionary spending and pricing levels for apparel and related products, many of which may be impacted by inflationary pressures, tariffs, interest rates, the stability of the banking industry or general economic uncertainty, and the effectiveness of measures to mitigate the impact of these factors;
• risks relating to our product sourcing efforts, including our ability to identify alternative countries to source and produce our products and to successfully implement changes in our supply chain;
• our ability to accurately forecast consumer demand and effectively manage inventory levels, including the risk of increased promotional activity and margin pressure or, conversely, lost sales as a result of inaccurate forecasts;
• possible changes in governmental monetary and fiscal policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures or other factors;
• competitive conditions and/or evolving consumer shopping patterns, particularly in a highly promotional retail environment, including those related to shifts in technology;
• global supply chain constraints that have affected, and could continue to affect, transit, and other costs, including those related to disruptions of land or sea transportation routes or distribution or shipping channels;
• the impact of inflationary pressures on labor costs, including wages, healthcare and other benefit-related costs;
• costs of products as well as the raw materials used in those products, as well as our ability to pass along price increases to consumers;
• energy costs, including rising fuel prices and their impact on the costs of raw materials and our distribution and logistics operations;
• our ability to respond to rapidly changing consumer expectations;
• unseasonal or extreme weather conditions or natural disasters;
• financial difficulties for our business partners, including suppliers, vendors, wholesale customers, licensees, logistics providers and landlords, that may impact their ability to meet their obligations to us and/or continue our business relationship to the same degree as they have historically;
• hiring of, retention of and disciplined execution by key management and other critical personnel, as well as the effective transition of executive level responsibilities;
• the execution of key strategic initiatives to drive operating performance across our enterprise;
• cybersecurity breaches and ransomware attacks, as well as our and our third party vendors’ ability to properly collect, use, manage and secure business, consumer and employee data and maintain continuity of our information technology systems;
• inability or failure to successfully and effectively implement new information technology systems and supporting controls, including artificial intelligence-enabled tools, and risks associated with third-party service providers and interconnected systems;
• the effectiveness of our advertising initiatives in defining, launching and communicating brand-relevant customer experiences;
• the level of our indebtedness, including the risks associated with heightened interest rates on the debt and the potential impact on our ability to operate and expand our business;
• the timing of shipments requested by our wholesale customers;
• fluctuations and volatility in global financial and/or real estate markets;
• our ability to identify and secure suitable locations for new retail store and food and beverage openings, as well as to successfully negotiate acceptable terms for the early exit or restructuring of leases for underperforming locations;
• the timing and cost of retail store and food and beverage location openings and remodels, technology implementations and other capital expenditures, including those related to enhancing artificial intelligence capabilities;
• the timing, cost and successful implementation of changes to our distribution network, including the possibility that we may not realize the anticipated benefits of our new state-of-the-art distribution center in Lyons, Georgia;
• the effectiveness of recent, focused efforts to reassess and realign our operating costs in light of revenue trends, including potential disruptions to our operations as a result of these efforts;
• expected outcomes of pending or potential litigation and regulatory actions;
• consumer, employee and regulatory focus on sustainability issues and practices, including failures by our suppliers to adhere to our vendor code of conduct;
• the regulation or prohibition of goods sourced, or containing raw materials or components, from certain regions and our ability to evidence compliance;
• access to capital and/or credit markets;
• factors that could affect our consolidated effective tax rate;
• the risk of impairment to goodwill and other intangible assets such as the impairment charges incurred in our Johnny Was and Jack Rogers reporting units during the third quarter of fiscal 2025; and
• geopolitical risks, including the U.S.-Iran conflict as well as other hostilities in the Middle East, ongoing challenges between the United States and China and those related to the ongoing war in Ukraine.
  
  

Forward-looking statements reflect our expectations at the time such forward-looking statements are made, based on information available at such time, and are not guarantees of performance.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, these expectations could prove inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability to control or predict. Should one or more of these risks or uncertainties, or other risks or uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Important factors relating to these risks and uncertainties include, but are not limited to, those described in Part I. Item 1A. Risk Factors contained in our Fiscal 2025 Form 10-K, and those described from time to time in our future reports filed with the SEC. We caution that one should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We disclaim any intention, obligation or duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact:Brian SmithE-mail:[email protected]

Oxford Industries, Inc.Consolidated Balance Sheets(in thousands, except par amounts)(unaudited) August 1,August 2,  2026  2025 ASSETS  Current Assets  Cash and cash equivalents$9,020 $6,877 Receivables, net 61,906  67,762 Tariff receivable 12,811  — Inventories, net 147,141  166,670 Prepaid expenses and other current assets 50,728  52,740 Total Current Assets$281,606 $294,049 Property and equipment, net 334,980  297,593 Intangible assets, net 185,798  253,340 Goodwill 25,592  27,407 Operating lease assets 389,883  377,190 Other assets, net 66,689  65,619 Deferred income taxes 14,707  9,198 Total Assets$1,299,255 $1,324,396    LIABILITIES AND SHAREHOLDERS’ EQUITY  Current Liabilities  Accounts payable$83,752 $95,625 Accrued compensation 27,361  29,340 Current portion of operating lease liabilities 59,701  63,521 Accrued expenses and other liabilities 68,918  59,752 Total Current Liabilities$239,732 $248,238 Long-term debt 73,245  81,375 Non-current portion of operating lease liabilities 391,140  368,482 Other non-current liabilities 30,662  29,188 Shareholders’ Equity  Common stock, $1.00 par value per share 14,978  14,867 Additional paid-in capital 213,305  197,643 Retained earnings 338,329  387,620 Accumulated other comprehensive loss (2,136) (3,017)Total Shareholders’ Equity$564,476 $597,113 Total Liabilities and Shareholders’ Equity$1,299,255 $1,324,396 

Oxford Industries, Inc.Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Second Quarter First Half Fiscal 2026Fiscal 2025 Fiscal 2026Fiscal 2025Net sales$394,376$403,143 $785,778$796,004Cost of goods sold 103,247 155,518  250,766 296,093Gross profit$291,129$247,625 $535,012$499,911Operating expenses     SG&A 212,270 208,996  423,158 414,740Depreciation and amortization 17,198 16,585  33,578 33,549Total operating expenses$229,468$225,581 $456,736$448,289Royalties and other operating income 7,155 3,367  12,903 9,995Operating income$68,816$25,411 $91,179$61,617Interest expense, net 1,489 1,548  3,771 3,274Earnings before income taxes$67,327$23,863 $87,408$58,343Income tax expense 18,360 7,171  23,453 15,470Net earnings$48,967$16,692 $63,955$42,873      Net earnings per share:     Basic$3.28$1.12 $4.29$2.85Diluted$3.25$1.12 $4.25$2.83Weighted average shares outstanding:     Basic 14,939 14,875  14,916 15,049Diluted 15,078 14,944  15,042 15,175Dividends declared per share$0.70$0.69 $1.40$1.38

Oxford Industries, Inc.Consolidated Statements of Cash Flows(in thousands)(unaudited) First Half Fiscal 2026Fiscal 2025Cash Flows From Operating Activities:  Net earnings$63,955 $42,873 Adjustments to reconcile net earnings to cash flows from operating activities:  Depreciation 29,965  28,687 Amortization of intangible assets 3,613  4,862 Impairment of property and equipment 2,126  — Equity compensation expense 7,797  8,259 Amortization of deferred financing costs 193  193 Deferred income taxes 19,395  11,220 Changes in operating assets and liabilities, net of acquisitions and dispositions:  Receivables, net (5,245) 4,621 Inventories, net 17,970  990 Income tax receivable 3,455  4,923 Prepaid expenses and other current assets (4,665) (14,055)Current liabilities (35,532) 1,610 Other balance sheet changes (5,727) (14,634)Cash provided by operating activities$97,300 $79,549 Cash Flows From Investing Activities:  Acquisitions, net of cash acquired —  (28)Purchases of property and equipment (31,536) (54,604)Other investing activities 66  (13)Cash used in investing activities$(31,470)$(54,645)Cash Flows From Financing Activities:  Repayment of revolving credit arrangements (271,705) (232,208)Proceeds from revolving credit arrangements 228,507  282,479 Repurchase of common stock —  (55,202)Proceeds from issuance of common stock 830  977 Repurchase of equity awards for employee tax withholding liabilities (920) (2,251)Cash dividends paid (21,545) (21,258)Other financing activities —  (260)Cash used in financing activities$(64,833)$(27,723)Net change in cash and cash equivalents 997  (2,819)Effect of foreign currency translation on cash and cash equivalents (106) 226 Cash and cash equivalents at the beginning of year 8,129  9,470 Cash and cash equivalents at the end of period$9,020 $6,877 

Oxford Industries, Inc.Reconciliations of Certain Non-GAAP Financial Information(in millions, except per share amounts)(unaudited) Second QuarterFirst HalfAS REPORTEDFiscal 2026Fiscal 2025% ChangeFiscal 2026Fiscal 2025% ChangeTommy Bahama      Net sales$230.9 $229.0 0.8%$455.6 $445.2 2.3%Gross profit$162.4 $139.0 16.9%$309.9 $278.7 11.2%Gross margin 70.3% 60.7%  68.0% 62.6% Segment EBITDA$51.3 $34.3 49.4%$91.4 $72.6 25.8%Segment EBITDA margin 22.2% 15.0%  20.1% 16.3% Lilly Pulitzer      Net sales$85.2 $90.3 (5.6)%$175.6 $189.3 (7.3)%Gross profit$66.5 $59.0 12.7%$121.8 $123.9 (1.7)%Gross margin 78.0% 65.4%  69.4% 65.5% Segment EBITDA$25.0 $17.8 40.4%$40.0 $40.8 (2.1)%Segment EBITDA margin 29.3% 19.7%  22.8% 21.6% Johnny Was      Net sales$41.4 $45.4 (8.8)%$79.3 $88.9 (10.8)%Gross profit$36.1 $28.1 28.3%$61.0 $56.3 8.4%Gross margin 87.2% 62.0%  76.9% 63.3% Segment EBITDA$9.4 $(1.3)830.8%$8.1 $(1.3)722.2%Segment EBITDA margin 22.6% (2.8)%  10.3% (1.5)% Emerging Brands      Net sales$37.1 $38.5 (3.7)%$75.7 $72.8 4.0%Gross profit$25.9 $22.8 13.7%$46.6 $43.1 8.2%Gross margin 69.9% 59.1%  61.6% 59.2% Segment EBITDA$6.6 $4.0 64.5%$9.6 $6.9 39.5%Segment EBITDA margin 17.8% 10.4%  12.6% 9.4% Corporate and Other      Net sales$(0.3)$(0.1)NM$(0.3)$(0.2)NMGross profit (loss)$0.2 $(1.2)NM$(4.3)$(2.0)NMCorporate EBITDA$(6.2)$(12.8)NM$(24.3)$(23.9)NMConsolidated      Net sales$394.4 $403.1 (2.2)%$785.8 $796.0 (1.3)%Gross profit$291.1 $247.6 17.6%$535.0 $499.9 7.0%Gross margin 73.8% 61.4%  68.1% 62.8% SG&A$212.3 $209.0 1.6%$423.2 $414.7 2.0%SG&A as % of net sales 53.8% 51.8%  53.9% 52.1% Depreciation and amortization$17.2 $16.6 3.7%$33.6 $33.5 0.1%Depreciation and amortization as % of net sales 4.4% 4.1%  4.3% 4.2% Operating income$68.8 $25.4 170.8%$91.2 $61.6 48.0%Operating margin 17.4% 6.3%  11.6% 7.7% Earnings before income taxes$67.3 $23.9 182.1%$87.4 $58.3 49.8%Net earnings$49.0 $16.7 193.4%$64.0 $42.9 49.2%Net earnings per diluted share$3.25 $1.12 190.7%$4.25 $2.83 50.5%Weighted average shares outstanding - diluted 15.1  14.9 0.9% 15.0  15.2 (0.9)%

The following table presents a reconciliation from segment EBITDA to net earnings (in millions):

 Second QuarterFirst Half Fiscal 2026Fiscal 2025% ChangeFiscal 2026Fiscal 2025% ChangeSegment EBITDA      Tommy Bahama$51.3 $34.3 49.4%$91.4 $72.6 25.8%Lilly Pulitzer$25.0 $17.8 40.4%$40.0 $40.8 (2.1)%Johnny Was$9.4 $(1.3)830.8%$8.1 $(1.3)722.2%Emerging Brands$6.6 $4.0 64.5%$9.6 $6.9 39.5%Corporate and Other$(6.2)$(12.8)NM$(24.3)$(23.9)NM%EBITDA(1)$86.0 $42.0 104.8%$124.8 $95.2 31.1%Depreciation and amortization$17.2 $16.6 3.7%$33.6 $33.5 0.1%Consolidated operating income(1)$68.8 $25.4 170.8%$91.2 $61.6 48.0%Interest expense, net$1.5 $1.5 (3.8)%$3.8 $3.3 15.2%Earnings before income taxes(1)$67.3 $23.9 182.1%$87.4 $58.3 49.8%Income taxes$18.4 $7.2 156.0%$23.5 $15.5 51.6%Net earnings(1)$49.0 $16.7 193.4%$64.0 $42.9 49.2%

The table below summarizes adjustments made to the as reported figures shown above (in millions):

 Second QuarterFirst HalfADJUSTMENTSFiscal 2026Fiscal 2025Fiscal 2026Fiscal 2025LIFO adjustments(2)$(0.4)$0.9 $3.9 $1.4 Amortization of Johnny Was intangible assets(3)$1.4 $1.9 $2.7 $3.9 Lyons Distribution Center movement costs(4)$0.3 $0.0 $0.8 $0.0 Merchandising strategic initiatives(5)$1.0 $0.0 $1.8 $0.0 Store closure impairment charges(6)$1.0 $0.0 $1.8 $0.0 Tariff refunds(7)$(41.7)$0.0 $(41.7)$0.0 Tariff refunds interest(8)$(1.0)$0.0 $(1.0)$0.0 Impact of income taxes(9)$10.7 $(0.7)$8.7 $(1.3)Adjustment to net earnings(1)$(28.8)$2.1 $(22.9)$3.9 

The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the consolidated statements of operations (in millions):

 Second QuarterFirst Half Fiscal 2026Fiscal 2025Fiscal 2026Fiscal 2025Cost of goods sold (as reported)$103.2 $155.5$250.8 $296.1LIFO adjustments(2)$(0.4)$0.9$3.9 $1.4Tariff refunds(7)$(41.7)$—$(41.7)$—     SG&A (as reported)$212.3 $209.0$423.2 $414.7Lyons Distribution Center movement costs(4)$0.3 $—$0.8 $—Merchandising strategic initiatives(5)$1.0 $—$1.8 $—Store closure impairment charges(6)$1.0 $—$1.8 $—     Depreciation and amortization (as reported)$17.2 $16.6$33.6 $33.5Amortization of Johnny Was intangible assets(3)$1.4 $1.9$2.7 $3.9     Royalties and other income (as reported)$7.2 $3.4$12.9 $10.0Tariff refunds interest(8)$(1.0)$—$(1.0)$—     Consolidated operating income (as reported)$68.8 $25.4$91.2 $61.6

 Second QuarterFirst HalfAS ADJUSTEDFiscal 2026Fiscal 2025% ChangeFiscal 2026Fiscal 2025% ChangeTommy Bahama      Net sales$230.9 $229.0 0.8%$455.6 $445.2 2.3%Gross profit(7)$146.8 $139.0 5.6%$294.3 $278.7 5.6%Gross margin(7) 63.6% 60.7%  64.6% 62.6% Segment EBITDA(5)(7)$36.5 $34.3 6.4%$77.0 $72.6 6.0%Segment EBITDA margin(5)(7) 15.8% 15.0%  16.9% 16.3% Lilly Pulitzer      Net sales$85.2 $90.3 (5.6)%$175.6 $189.3 (7.3)%Gross profit(7)$54.9 $59.0 (6.9)%$110.2 $123.9 (11.1)%Gross margin(7) 64.5% 65.4%   62.8% 65.5%  Segment EBITDA(7)$13.4 $17.8 (24.6)%$28.4 $40.8 (30.4)%Segment EBITDA margin(7) 15.7% 19.7%  16.2% 21.6% Johnny Was      Net sales$41.4 $45.4 (8.8)%$79.3 $88.9 (10.8)%Gross profit(7)$28.1 $28.1 (0.3)%$52.9 $56.3 (5.9)%Gross margin(7) 67.7% 62.0%  66.8% 63.3% Segment EBITDA(3)(6)(7)$1.4 $(1.3)209.6%$0.5 $(1.3)137.7%Segment EBITDA margin(3)(6)(7) 3.4% (2.8)%  0.6% (1.5)% Emerging Brands      Net sales$37.1 $38.5 (3.7)%$75.7 $72.8 4.0%Gross profit(7)$19.4 $22.8 (14.8)%$40.1 $43.1  Gross margin(7) 52.4% 59.1%   53.0% 59.2%(6.9)%
Segment EBITDA(6)(7)$1.0 $4.0 (74.5)%$4.5 $6.9 (34.1)%Segment EBITDA margin(6)(7) 2.8% 10.4%  6.0% 9.4% Corporate and Other       Net sales$(0.3)$(0.1)NM$(0.3)$(0.2)NM
Gross profit (loss)(2)$(0.2)$(0.3)NM$(0.4)$(0.6)NM
Corporate EBITDA(2)(4)(8)$(7.3)$(11.9)NM$(20.0)$(22.5)NM
Consolidated      Net sales$394.4 $403.1 (2.2)%$785.8 $796.0 (1.3)%Gross profit$249.0 $248.6 0.2%$497.2 $501.3 (0.8)%Gross margin 63.1% 61.7%  63.3% 63.0% SG&A$210.0 $209.0 0.5%$418.7 $414.7 0.9%SG&A as % of net sales 53.2% 51.8%  53.3% 52.1% Depreciation and amortization$15.8 $14.7 8.1%$30.9 $29.7 3.9%Depreciation and amortization as % of net sales 4.0% 3.6%  3.9% 3.7% Operating income$29.3 $28.3 3.6%$59.6 $66.9 (10.9)%Operating margin 7.4% 7.0%  7.6% 8.4% Earnings before income taxes$27.8 $26.7 4.0%$55.8 $63.6 (12.3)%Net earnings$20.2 $18.8 7.1%$41.0 $46.8 (12.3)%Net earnings per diluted share$1.34 $1.26 6.1%$2.73 $3.08 (11.5)%

  Second Quarter Second Quarter Second Quarter First Half First Half  Fiscal 2026 Fiscal 2026 Fiscal 2025 Fiscal 2026 Fiscal 2025  Actual Guidance(10) Actual Actual ActualNet earnings per diluted share:          GAAP basis$3.25$1.13 - 1.23$1.12$4.25$2.83LIFO adjustments(2)(11) (0.02) 0.00 0.05 0.19 0.07Amortization of Johnny Was intangible assets(3)(11) 0.07 0.07 0.10 0.13 0.19Lyons distribution center movement costs(4)(11) 0.01 0.00 0.00 0.04 0.00Merchandising strategic initiatives(5)(11) 0.05 0.00 0.00 0.09 0.00Store closure impairment charges(6)(11) 0.05 0.00 0.00 0.09 0.00Tariff received(7)(11) (2.02) 0.00 0.00 (2.02) 0.00Tariff received interest(8)(11) (0.05) 0.00 0.00 (0.05) 0.00As adjusted(1)$1.34$1.20 -1.40$1.26$2.73$3.08             Third Quarter Third Quarter        Fiscal 2026 Fiscal 2025        Guidance(12) Actual      Net earnings per diluted share:          GAAP basis$(1.47) - (1.27)$(4.28)      LIFO adjustments(13) 0.00 0.11      Amortization of Johnny Was intangible assets(3)(11) 0.07 0.10      Johnny Was impairment charges(14)(11) 0.00 2.86      Johnny Was organizational realignment initiatives(15)(11) 0.00 0.10      Emerging Brands impairment charges(16)(11) 0.00 0.20      As adjusted(1)$(1.40) - (1.20)$(0.92)                   Fiscal 2026 Fiscal 2025        Guidance(12) Actual      Net earnings (loss) per diluted share:          GAAP basis$3.07 - 3.47$(1.86)      LIFO adjustments(13) 0.22 0.42      Amortization of Johnny Was intangible assets(3)(11) 0.27 0.38      Lyons distribution center movement costs(4)(11) 0.01 0.00      Merchandising strategic initiatives(5)(11) 0.05 0.00      Store closure impairment charges(6)(11) 0.05 0.00      Johnny Was impairment charges(14)(11) 0.00 2.82      Johnny Was organizational realignment initiatives(15)(11) 0.00 0.15      Emerging Brands impairment charges(16)(11) 0.00 0.20      Tariff refunds(7)(11) (2.02) 0.00      Tariff refunds interest(8)(11) (0.05) 0.00      As adjusted(1)$1.60 - 2.00$2.11      

(1) Amounts in columns may not add due to rounding.(2) LIFO adjustments represents the impact of LIFO accounting adjustments. These adjustments are included in cost of goods sold in Corporate and Other.(3) Amortization of Johnny Was intangible assets represents the amortization related to intangible assets acquired as part of the Johnny Was acquisition. These charges are included in depreciation and amortization in Johnny Was.(4) Lyons distribution center relocation costs relate to one-time, non-recurring costs to move inventory between distribution facilities in Lyons, Georgia. These charges are included in SG&A in Corporate and Other.(5) Merchandising strategic initiatives relate to one-time, non-recurring costs, incurred to assess and strategically align our merchandising operations across the Company. These charges are included in SG&A in Tommy Bahama and Corporate and Other.(6) Store closure impairment charges relate to charges incurred to close retail stores. These charges are included in SG&A in Johnny Was and Emerging Brands.(7) Represents refunds received from the U.S. government for tariffs paid in previous periods. These adjustments are included in cost of goods sold in each reportable segment.(8) Represents interest received from the U.S. government related to tariffs paid in previous periods. These adjustments are included in royalties and other operating income in Corporate and Other.(9) Impact of income taxes represents the estimated tax impact of the above adjustments based on the estimated applicable tax rate on current year earnings.(10) Guidance as issued on June 10, 2026.(11) Adjustments shown net of income taxes.(12) Guidance as issued on September 3, 2026.(13) No estimate for LIFO accounting adjustments is reflected in the guidance for any future periods.(14) Johnny Was impairment charges represent the impairment of the Johnny Was intangible asset balances. These charges were included in impairment of goodwill and intangible assets in Johnny Was.(15) Johnny Was organizational realignment initiatives include severance costs, consulting fees and store closure related costs. These charges are included in SG&A and depreciation and amortization in Johnny Was.(16) Emerging Brands impairment charges represent the impairment of the Jack Rogers goodwill and intangible asset balances. These charges were included in impairment of goodwill and intangible assets in Emerging Brands.

 Direct to Consumer Location Count End of Q1End of Q2End of Q3End of Q4Fiscal 2025    Tommy Bahama    Full-price retail store103103104102Retail-food and beverage26262828Outlet36383837Total Tommy Bahama165167170167Lilly Pulitzer full-price retail store65666667Johnny Was    Full-price retail store77757575Outlet3333Total Johnny Was80787878Emerging Brands    Southern Tide full-price retail store35363534TBBC full-price retail store8999Total Oxford353356358355     Fiscal 2026    Tommy Bahama    Full-price retail store102104  Retail-food and beverage2829  Outlet3838  Total Tommy Bahama168171  Lilly Pulitzer full-price retail store6970  Johnny Was    Full-price retail store7070  Outlet33  Total Johnny Was7373  Emerging Brands    Southern Tide full-price retail store3331  TBBC full-price retail store88  Total Oxford351353