Oxford Industries, Inc.

Greetings and welcome to the Oxford Industries first quarter fiscal year 2026 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow a 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 of Oxford Industries. Please go ahead.

Thank you and good afternoon. Before we begin, I would like to remind participants that certain statements made on today's call 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 at our website at OxfordInc.com. And 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 I'd like to turn the call over to Tom Chubb.

Thank you, Brian. Good afternoon, and thank you for joining us. I'm pleased to be here today to discuss our first quarter results, the progress we are making across the portfolio, and our outlook for the balance of the year. Overall, sales in the first quarter were in line with our expectations and earnings were better than we anticipated, primarily due to stronger than expected gross margin. That gross margin performance reflects meaningful work done by our teams over the past year to respond to tariff pressure, including updates to our sourcing strategies, refinements to our pricing architecture, improved freight rates through vendor negotiations, and the benefit from a higher mix of direct-to-consumer sales. Importantly, we achieved this margin performance while absorbing an $11 million, or 55 cents a share, year-over-year increase in tariff costs during the quarter. Absent that increase, both gross margin and earnings would have improved over the prior year. Looking across the portfolio, the first quarter included several important positive takeaways. Tommy Bahama, our largest brand, performed well, led by healthy direct-to-consumer results, and our emerging brands continued to generate strong growth, particularly in the Beaufort Bonnet Company and Duckhead. However, these positive results were not consistent across the portfolio. Johnny Wise is progressing through its turnaround plan, and we are encouraged by the progress on gross margin and direct-to-consumer performance, even as wholesale remains pressure. Lilly Pelletier was below our expectations while lapping a strong prior year first-year quarter, and its softness weighed on our overall results. The consumer backdrop remains unsettled. consumers continued to navigate macroeconomic and geopolitical pressures, including conflicts around the world, higher energy prices, uncertainty around trade policy and tariffs, and pressured sentiment around discretionary spending. As we have discussed in recent quarters, while some hard data may suggest consumers have the ability to spend, the soft data and what we are seeing continue to point to consumers that is more cautious, selective, and highly discerning. In this type of environment, product relevance and brand connection are especially important. Consumer response is strongest to differentiated products and brands that create an emotional connection. That is where our portfolio is advantaged. Our brands are built around lifestyle, optimism, and experiences, and our job is to stay focused on the product, storytelling, and service that bring those brands to life for our consumers. Tommy Bahama delivered the strongest performance in the quarter. Our direct-to-consumer business count positive in the mid-single-digit range with encouraging results in retail and e-commerce and and continued contribution from food and beverage. More broadly, the brand benefited from a better assortment balance, improved key item execution, and the enduring appeal of its relaxed warm weather lifestyle positioning. We are pleased with the execution at Tommy Bahama. The brand continues to occupy a unique position in the market with a lifestyle proposition that extends beyond any one product category or channel. Its advantage comes from the combination of compelling product, clear storytelling, strong customer engagement, and distinctive experiences across retail, digital, and hospitality. That combination continues to support our confidence in Tommy Bahama's long-term opportunity even in an uncertain near-term environment. At Lilly-Pellitzer, first quarter results were below our expectations and we have work to do. Lilly-Pellitzer remains a distinctive and beloved brand with a highly engaged customer and a very clear point of view. But the business did not execute to its potential in the first quarter. Sales were pressured, particularly in e-commerce, and we believe that pressure reflected, in part, some merchandising and execution issues, including gaps in certain entry price points and allocation opportunities. We want to be clear that Lilly-Pellitzer's performance was below our expectations and below where we are confident it can be. The brand has tremendous equity with its customer, but in the first quarter, we did not bring together product, pricing, allocation, and messaging. That is on us, and the team is focused on correcting these issues. Keep in mind, this is the same highly talented Lilly team that has consistently delivered strong results, and we are very confident in their ability to address these issues. The good news is that we have identified what we believe are the core issues, and we believe they are addressable. Some can be corrected relatively quickly, like messaging and marketing, while others related to merchandising can only move as fast as the product development lifecycle and will accordingly take more time. We are focused on addressing these issues and reestablishing Willie Pulitzer's positive trajectory and unlocking its long-term growth potential. The brand is strong, and we believe the team has the talent, experience, and urgency to restore the level of performance we expect. Turning to Johnny was, we believe the brand is on track with its turnaround plan As we have discussed previously, our focus has been primarily on improving profitability and reinforcing the fundamentals. During the first quarter, gross margin increased as the team made significant progress buying inventory tighter, reducing promotional activity, and improving gross margin return on investment. In terms of top line results, Sales were most under pressure in the wholesale, where Johnny was has had the greater exposure than our other brands to specialty stores, a market that has declined meaningfully in recent years. Sales were also lower to off-priced retailers due to healthier inventory levels and to Saks Global, which has been impacted by its bankruptcy process. Historically, Neiman Marcus and sites have been very important venues for Johnny Woz. Importantly, performance in the direct-to-consumer business was much more in line with our expectations, and we believe that side of the business is becoming healthier. We are focused on bringing greater cohesion to the design process, refining the assortment, improving marketing effectiveness, and driving better execution across retail, e-commerce, and wholesale. With the new management team in place, we have also become more aggressive in reassessing and rationalizing our store base, closing five underperforming locations in the first quarter. We will continue to assess retail performance and opportunity on a market-by-market basis and location-by-location and close underperforming stores where appropriate to ensure that our footprint is aligned with the brand's long-term potential. Turnarounds do not happen overnight, and there's still a lot of work to do, but we believe Johnny Was has meaningful long-term potential. Our objective is to build a stronger, more disciplined, and more profitable business that better reflects the strength and resonance of the brand. Our emerging brands also contribute positively with notable strength, particularly in the Beaufort Bonick Company and Duck Head businesses. These brands continue to bring energy and growth potential to the portfolio, and we remain focused on building them in a disciplined way through stronger storytelling and growing distribution. Across the enterprise, we are also continuing to strengthen the operational foundation of the company. Our new Lions Georgia Distribution Center is an important part of that work. As we have said before, we do not expect the ramp up to be without initial costs or complexity, particularly while we are transitioning between facilities. But over time, we believe Lions will be a meaningful competitive advantage particularly as direct-to-consumer demand continues to gain share across our portfolio. Stepping back from the individual brands, we were pleased with the way we started the fiscal year. At the same time, sales trends softened as we moved through April, and that deceleration continued into May and early June. Some of that reflects the broader consumer environment and the increased caution we are seeing in discretionary spending, along with the shift in timing of the important Father's Day holiday. Continued softness at Lilly Pulitzer is also an important factor, particularly given that some of the product and merchandising improvements we are making will take some time to fully flow through the assortment. Given these trends, we believe it's appropriate to take a more measured view of the upside sales opportunity for the balance of the year. As a result, we are narrowing our full year sales outlook by lowering the top end of the range. We believe this is a prudent approach based on what we are seeing in the business and the broader environment today. At the same time, we are tightening our EPS guidance range for the remainder of the year by raising the low end of our previous range due to the impact of the current lower tariff rates flowing through for the balance of the year, combined with focused expense and inventory management. Tariffs remain a major topic and source of uncertainty. Scott will provide more detail on the updated assumptions embedded in our outlook. From an operating standpoint, our priorities remain unchanged. Optimize sourcing, manage pricing thoughtfully, protect gross margin where we can, and avoid actions that would undermine the long-term health of our brands. Periods like this can push companies to become defensive and overly short-term. We are not going to do that. Our brands exist to bring happiness, optimism, and a sense of possibility to our customers. That is a real source of differentiation, and we believe the near-term adjustments we are making in the current environment will capitalize on each brand's unique attributes and position us to deliver long-term value to our shareholders. As always, I want to thank our teams across Oxford. Their resilience, creativity, and commitment to our customers are the foundation of everything we do. With that, I'll turn the call over to Scott for more detailed commentary on our financial performance and outlook.