Oxford Industries Inc (NYSE:OXM) stock rallies 21.90% (As on September 11, 11:21:29 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second quarter earnings despite facing headwinds from increased tariffs. The company’s gross margin was 61.7% on an adjusted basis, down from 63.3% in the same quarter last year, but still better than management had anticipated. The decrease was primarily due to approximately $9 million in increased costs from additional tariffs implemented in fiscal 2025. The company’s largest brand, Tommy Bahama, saw sales decline 6.6% to $229 million, while Lilly Pulitzer sales decreased 1.5% to $90.3 million. Johnny Was experienced a 9.7% drop to $45.4 million. The company’s Emerging Brands segment was the bright spot, with sales increasing 17% to $38.5 million. The Company had $7 million of cash and cash equivalents versus $18 million of cash and cash equivalents at the end of the second quarter of fiscal 2024.
OXM in the second quarter of FY 25 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.18. The company had reported the adjusted revenue decline of 4 percent to $403.1 million in the second quarter of FY 25, missing the analysts’ estimates for revenue of $406.14 million. Full-price direct-to-consumer (DTC) sales decreased 4% to $292 million versus the second quarter of fiscal 2024. Full-price retail sales of $143 million were 6% lower than the prior-year period. E-commerce sales of $150 million were 2% lower than the prior-year period. Wholesale sales of $61 million were 6% lower than the second quarter of fiscal 2024. Outlet sales of $20 million were 4% lower than the prior-year period. Food and beverage sales of $29 million were comparable to the prior-year period. nventory increased $27 million, or 19%, on a LIFO basis and $29 million, or 13%, on a FIFO basis compared to the end of the second quarter of fiscal 2024.
Moreover, gross margin was 61.4% on a GAAP basis, compared to 63.1% in the second quarter of fiscal 2024. On an adjusted basis, gross margin was 61.7% compared to 63.3% in the second quarter of fiscal 2024. The decreased gross margin was primarily due to approximately $9 million of increased cost of goods sold from additional tariffs implemented in Fiscal 2025, net of mitigation efforts. This decrease was partially offset by (1) improved gross margin during promotional events at Tommy Bahama, (2) a change in sales mix with full-price retail and e-commerce sales representing a higher proportion of net sales at Lilly Pulitzer and Johnny Was and (3) a change in sales mix with wholesale sales representing a lower proportion of net sales. On an adjusted basis, operating income decreased to $28 million, or 7.0% of net sales, compared to $57 million, or 13.5% of net sales, in the second quarter of fiscal 2024.
Oxford maintained its full-year outlook, projecting revenue between $1.475 billion and $1.515 billion and adjusted earnings per share of $2.80 to $3.20. The company estimates it has mitigated roughly half of its $80 million tariff exposure through actions including accelerating product receipts and shifting sourcing. Management noted encouraging signs for the current quarter, with total company comparable store sales running “modestly positive in the low single-digit range” in the third quarter to date, reflecting “strong connections with our core customers and the development of new and compelling product.”
Additionally, the company’s board declared a quarterly dividend of $0.69 per share, payable on October 31, 2025.