Oxford Industries(US:OXM)2025-09-10 20:08Financial Performance - Consolidated net sales for Q2 fiscal 2025 were $403 million, a decrease of 4.0% from $420 million in Q2 fiscal 2024[2][5] - GAAP EPS for Q2 fiscal 2025 was $1.12, down from $2.57 in Q2 fiscal 2024; adjusted EPS was $1.26 compared to $2.77 in the prior year[2][5] - Gross margin on a GAAP basis was 61.4%, down from 63.1% in Q2 fiscal 2024, primarily due to $9 million in increased costs from tariffs[5] - Operating income for Q2 Fiscal 2025 was $25,411, a decline of 51.6% compared to $52,510 in Q2 Fiscal 2024[29] - Net earnings for the first half of Fiscal 2025 were $42,873, representing a 45.5% decrease from $79,015 in the first half of Fiscal 2024[31] - Net earnings decreased by 58.9% to $16.7 million in Q2 2025, and by 45.7% to $42.9 million in the first half[34] - Net earnings per diluted share dropped by 56.5% to $1.12 in Q2 2025, and by 43.4% to $2.83 in the first half[34] Sales and Revenue Projections - The company expects net sales for fiscal 2025 to be between $1.475 billion and $1.515 billion, compared to $1.52 billion in fiscal 2024[11] - For Q3 fiscal 2025, net sales are projected to be between $295 million and $310 million, compared to $308 million in Q3 fiscal 2024[13] - Consolidated net sales decreased by 4.0% to $403.1 million in Q2 2025, and by 2.7% to $796.0 million in the first half compared to the previous year[34] Expenses and Costs - The company anticipates a net tariff impact of approximately $25 million to $35 million for fiscal 2025, translating to about $1.25 to $1.75 per share[12] - SG&A expenses increased by 4.0% to $225.6 million in Q2 2025, representing 56.0% of net sales[34] - Interest expense for fiscal 2025 is expected to be around $7 million, with an effective tax rate projected at approximately 26% to 27%[14] Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.69 per share, payable on October 31, 2025[10] - Dividends declared per share increased to $0.69 in Q2 Fiscal 2025, compared to $0.67 in Q2 Fiscal 2024[29] Store Performance and Expansion - The total number of Tommy Bahama full-price retail stores increased from 102 at the end of Q1 Fiscal 2024 to 103 at the end of Q2 Fiscal 2025[37] - The company plans to maintain 165 Tommy Bahama total locations by the end of Fiscal 2025, with a slight increase in outlet stores from 36 to 38[37] - Lilly Pulitzer full-price retail stores increased from 60 at the end of Q1 Fiscal 2024 to 66 at the end of Q2 Fiscal 2025[37] - Johnny Was full-price retail stores decreased from 77 at the end of Q1 Fiscal 2025 to 75 at the end of Q2 Fiscal 2025[37] - Southern Tide full-price retail stores increased from 20 at the end of Q1 Fiscal 2024 to 36 at the end of Q2 Fiscal 2025[37] Brand Performance - Tommy Bahama's net sales decreased by 6.6% to $229.0 million in Q2 2025 compared to $245.1 million in Q2 2024[33] - Lilly Pulitzer's net sales showed a slight decline of 1.5% to $90.3 million in Q2 2025, while first half sales increased by 5.1% to $189.3 million[33] - Johnny Was experienced a significant drop in net sales by 9.7% to $45.4 million in Q2 2025, with a 12.4% decline in first half sales to $88.9 million[33] - Emerging Brands reported a 17.0% increase in net sales to $38.5 million in Q2 2025, and a 10.4% increase to $72.8 million in the first half[33] Operational Challenges - The company faced challenges including financial difficulties for business partners and cybersecurity risks, which may impact operations[23] - The company is undergoing a transition of Johnny Was distribution center operations, which includes costs related to employee bonuses and severance agreements[36]