Oxford Industries, Inc.

Welcome to Oxford Industries Incorporated second quarter fiscal 2025 earnings conference call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero or your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Brian Smith. Thank you. You may begin.

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 a 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 the Investor Relations tab of 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 Grassmeyer, CFO and COO. Thank you for your attention, and now I'd like to turn the call over to Tom Chubb.

Good afternoon, and thank you for joining us today. As we continue through fiscal 2025, the second quarter brought complex but clarifying developments in the story we began sharing with you last quarter. While the macro environment remains pressured, marked by higher tariffs, elevated promotional activity across the industry, and cautious consumer behavior, our team has navigated these challenges with discipline and focus, delivering net sales and adjusted EPS within and above our guidance ranges, respectively. Though down from the prior year, These results reflect our ability to adapt to dynamic market conditions while staying true to who we are as a company and maintaining the strength of our brands and margin profile. Looking at our recent performance by brand, Lilly Pelletser continued its deep connection with its course and consumer in the second quarter and posted positive direct-to-consumer total comparable sales, building on the strong engagement we saw in the first quarter. A key contributor to this momentum in the second quarter was delivering exciting innovation in our casual product, including the linen sea spray jacket that sold out in all colors and extending our offering of elevated everyday product. including polished shorts, silk tops, and new stretch twill pants that all performed extremely well. Continuing the theme of engaging the brand's most loyal customers, early in the third quarter, Lilly Pulitzer launched the highly anticipated Lilly's Vintage Vault, which debuted Lilly's Zoo, a reproduction of a beloved archival print from 1974 in its original colorway. This limited edition capsule is the first in a series exploring Lilly's hand-painted print legacy as the brand embarks on a new celebration of its treasured heritage, drawing in Lilly loyalists and new customers alike. While still early, the initial response to the vintage vault has exceeded expectations and affirms the power of heritage storytelling and brand authenticity, cornerstones of Lilly Pelletier's enduring success. Turning to Tommy Bahama, while our second quarter results did not meet our goals for the brand, we are energized by the work underway to improve performance. As always, our teams have leaned in, spending time in the field, listening to our customers, and digging into the data to understand what's driving the softness. What we've learned is encouraging because it's actionable. We've identified that some spring and early summery deliveries missed the mark in several areas, most notably in color assortment and completeness of the line, which led to gaps in the offering that are especially relevant to our customer in Florida. where performance continues to be below our expectations. By contrast, we saw better results in the West, where the assortment resonated more effectively with the regional aesthetic. These insights galvanized our team, and we quickly implemented improvements for late summer deliveries to ensure the products available to our customers are more thoughtfully curated and locally relevant. Tommy Bahama is a brand with exceptional consumer loyalty and a deeply resonant lifestyle message. With the right adjustments, we are confident we can re-accelerate performance and re-engage our customer in a more meaningful way in the second half and beyond. A great example of what's working is the recent launch of the Boracay Island Chino. This updated pant which builds on the incredible equity we've established in the original Boracay collection, comes with a higher price point of $158, but that hasn't flowed down demand in the slightest. We have experienced very high sell-throughs across our own direct-to-consumer channels and also with our wholesale partners who have increased recent orders based on early success. We knew going in that the Boracay guest is incredibly loyal once they find a fit they love, and this product has tapped directly into that loyalty. It delivers the comfort, versatility, and polish that defines the Tommy Bahama lifestyle, and it does so in a way that's clearly resonating with existing and new customers. We will launch new versions of this pant including a five pocket version and shorts in our upcoming seasons to capitalize on this momentum. Turning to Johnny Was, we continue to face headwinds and the business remain challenged in the second quarter. While the numbers are not where we want them to be, we remain confident in the potential of Johnny Was and are taking further action. Working closely with both internal teams and external partners, we have developed and are in the early stages of implementing a comprehensive plan to improve Johnny Was performance. We see meaningful opportunity to enhance the merchandising strategy, elevate brand storytelling and marketing, and refine our approach to customer segmentation and pricing. Our goal is to reestablish momentum in this beautiful differentiated brand, ensure it contributes meaningfully to Oxford's portfolio. To that end, we believe that the best days for Johnny Wise still lie ahead. I also want to take a moment to acknowledge the performance of our emerging brands group, which delivered solid revenue growth both from new stores and positive comp store sales in what remains a highly challenging environment. These brands, Southern Tide, the Beaufort Bonnet Company, Duckhead and Jack Rogers, are still in the early stages of their development within our portfolio and yet continue to demonstrate strong customer appeal and brand momentum. The growth we're seeing reinforces our belief that there are significant growth opportunities ahead and we are excited about the opportunity to build these brands into even more meaningful contributors in the years to come. Switching gears to our tariff mitigation plans and capital projects, we said last quarter that we would continue to control what we can, and we have. Our teams have made significant progress mitigating tariff exposure through continued supply chain shifts and facilitating the early delivery of products to avoid tariff increases, and our gross margins, though under some pressure versus last year, reflect that discipline. We've also taken steps to safeguard profitability by enhancing inventory management and maintaining pricing integrity, even in a more promotional retail environment. At the same time, we remain committed to completing the long-term investments we have underway that will serve us well beyond this fiscal year. Our Lions Georgia Distribution Center is on schedule and continues to receive the necessary capital to bring it fully online sometime late in fiscal 2025 or early fiscal 2026. We also remain on track to deliver three new Marlin Bar openings and a net increase of approximately 15 full-price stores across our portfolio by year-end. While the environment remains dynamic, I'm encouraged by what we're seeing early in the third quarter. Scott will provide more details on our financial results and outlook for the remainder of the year. Total company comp sales quarter to date are modestly positive in the low single digit range, a clear signal that the work our teams are doing to refine the assortments, improve storytelling, and reconnect with our consumers is beginning to pay off. These are the kind of results that come from listening closely, adjusting thoughtfully, and executing with discipline. There is no doubt that this is a challenging period for our industry. but we believe that our portfolio of differentiated lifestyle-driven brands led by our exceptional teams is uniquely positioned to weather the volatility. As we move into the second half, we are doubling down on the brand equity we've built, keeping our eyes on the long-term horizon while managing short-term headwinds with resolve. We remain confident that our continued focus on execution brand authenticity, and customer happiness will allow us to emerge from this cycle stronger with even deeper connections to our customers. And now I'll hand it over to Scott for more details on our second quarter results as well as our expectations for the balance of the year. Scott?