Question · Q2 2026
Joseph Vincent Civello followed up on price increases, asking about the potential magnitude and implementation strategy for spring, including product and brand specificity. He also inquired about the performance of Lilly Pulitzer's direct-to-consumer business compared to its wholesale channel.
Answer
Chairman and CEO Tom Chubb indicated that price increases would remain conservative while tariff uncertainty persists, with spring increases slightly higher than fall/resort. CFO and COO Scott Grassmyer added that fall wholesale prices were already set without increases, but spring would see increases across both direct-to-consumer and wholesale channels, aiming to recover gross margin dollars. Mr. Chubb clarified that price increases are year-over-year, not cumulative. For Lilly Pulitzer, Mr. Chubb noted that specialty accounts tend to be cautious in tough times, leading to conservative purchasing, while performance in major accounts has been good despite their conservative forward buys.