Oxford Industries Plunges into Red: Sales Dip as Saks Bankruptcy and Economic Headwinds Bite

It turned out to be a rough end to the year for Oxford Industries, the owner of brands like Tommy Bahama and Lilly Pulitzer, as they reported a loss of $9.7 million, or 48 cents a share, in the fourth quarter of 2025. This is down from a profit of $20.3 million, or $1.14 a share, in the prior year. Sales also dipped, decreasing by 4% to $374.5 million, compared to $390.5 million the previous year.

The company's financial situation was affected by several factors, including the Saks Global bankruptcy, consumer caution during the holiday season, and a highly promotional environment. CEO Tom Chubb noted that sales began to show improvements in 2026, highlighting the momentum of Tommy Bahama in late January, which helped the company hit the midpoint of its guidance.

Sales at Tommy Bahama fell 4% to $229.2 million, while Lilly Pulitzer posted a 1% dip to $73.5 million. Johnny Was, the newest brand in Oxford's portfolio, saw a 20% decrease to $37.9 million. On the other hand, the company’s emerging brands division, which includes Southern Tide, Duck Head, and Beaufort Bonnet Co., showed a 7% growth to $34 million.

Sales at the company’s physical stores and e-commerce sites were down 3% for the year, and sales in the wholesale channel dropped 5%. Chubb mentioned that comparable sales, led by mid-single-digit positive comps at Tommy Bahama, improved and turned positive for the total company in late January.

While Lilly Pulitzer faces challenges in the first quarter of 2026, attributed to colder weather on the Eastern seaboard, including Florida and the Southeast, which are its most important markets, Tommy Bahama has maintained positive growth. Johnny Was is also experiencing declines, while the emerging brands continue to outperform with double-digit sales.

Chubb expressed optimism about the improved performance in the spring season, better aligning product offerings with customer demand. The company is implementing a new state-of-the-art distribution center in Lyons, Georgia, and is investing in technology, data, analytics, and artificial intelligence.

Oxford Industries has modified its sourcing strategy. Early in 2025, approximately 40% of its apparel and related products were sourced from producers located in China. Through actions taken during the year, that figure declined to slightly less than 30% of product purchases in fiscal year 2025, and the annualized run rate entering fiscal year 2026 has been reduced to approximately 15%.

These actions have increased the company's flexibility and better positioned it to navigate market uncertainty.

For the first quarter of 2026, the company projects net sales between $385 million and $395 million, and earnings per share between $1.13 and $1.23. For the full fiscal year, Oxford expects sales in the range of $1.48 billion to $1.53 billion, compared to $1.48 billion in fiscal year 2025. Earnings per share are expected to be between $1.83 and $2.43, compared to the loss of $1.86 posted in fiscal year 2024.

The company is cautiously optimistic, hoping to capitalize on improvements and adapt to changing market conditions.