Executive Summary

Q4 2025 net sales were $390.5M and GAAP diluted EPS was $1.13; adjusted EPS was $1.37, both near the top of guidance ranges, driven by strong holiday performance but offset by January/February demand weakness .
Full-year FY2024 net sales were $1.5166B (-3% YoY) and GAAP EPS was $5.87; adjusted EPS was $6.68, with gross margin contracting on higher promotional mix and SG&A rising with store growth and the Lyons, GA DC project .
FY2025 guidance introduces headwinds: net sales $1.49–$1.53B, GAAP EPS $4.21–$4.61, adjusted EPS $4.60–$5.00, reflecting a normalized ~25% tax rate and a $9–$10M tariff impact; Q1 2025 net sales $375–$395M and adjusted EPS $1.70–$1.90 .
Management highlighted strong holiday sell-through in premium/newness (e.g., Indigo Palms denim, luxe sweaters) but noted consumer hesitancy outside key events; comps: December +2%, January -3%, early FY2025 February -9% .
Capital return and capacity: dividend raised to $0.69 (+3%); $50M buyback completed (842k shares at $59.38) and new $100M authorization; capex ~$125M in FY2025 as Lyons DC completes in Q4 2025 .

What Went Well and What Went Wrong

What Went Well
- “We are pleased to be reporting fourth quarter net sales and adjusted EPS that are both near the top of our guidance ranges,” driven by a strong holiday season and new/innovative product sell-through (Indigo Palms, Marlin Luxe pullover, Lilly Reserve) .
- December comps +2% and marquee items raised AOV and margins (e.g., luxe sweaters at $178/$158), evidencing willingness to spend when there’s a reason to shop .
- Emerging Brands improved gross margin via better inventory positions; adjusted royalty income stable; interest expense fell YoY on lower average debt .
What Went Wrong
- Demand moderated in January and deteriorated into February (comps -9%), with consumer hesitancy outside major events pressuring top-line and margin mix .
- Gross margin contracted (Q4 adjusted 60.8% vs 61.7% LY) as promotional/clearance events took higher mix, compressing profitability despite DTC mix benefits .
- SG&A deleveraged (Q4 adjusted $216.0M vs $214.0M LY) amid investments (30 net new stores in FY2024, DC relocation costs), and wholesale specialty channel remained challenged .

Financial Results

Headline Metrics: Sequential (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2025
Net Sales ($USD Millions)	$419.9	$308.0	$390.5
GAAP Diluted EPS ($)	$2.57	$(0.25)	$1.13
Adjusted EPS ($)	$2.77	$(0.11)	$1.37
Gross Margin (%) GAAP	63.1%	63.1%	60.6%
Gross Margin (%) Adjusted	63.3%	63.0%	60.8%
Operating Income ($USD Millions) GAAP	$52.5	$(6.2)	$20.3
Operating Income ($USD Millions) Adjusted	$56.8	$(3.2)	$25.3
SG&A ($USD Millions) GAAP	$216.9	$204.7	$220.2
SG&A ($USD Millions) Adjusted	$213.2	$201.3	$216.0

Year-over-Year: Q4 Segment Net Sales

Segment	Q4 FY2024 ($M)	Q4 FY2023 ($M)	YoY %
Tommy Bahama	$237.6	$243.8	(3%)
Lilly Pulitzer	$74.0	$78.4	(6%)
Johnny Was	$47.4	$52.2	(9%)
Emerging Brands	$31.6	$30.1	5%
Other	$(0.1)	$(0.1)	NM
Total Company	$390.5	$404.4	(3%)

DTC and Channel KPIs (Q4, FY context)

KPI	Q4 FY2024	Q4 YoY	FY2024	FY YoY
Full-price Retail Sales ($M)	$136	(1%)	$524	(2%)
E-commerce Sales ($M)	$145	(1%)	$519	(4%)
Outlet Sales	Flat	Flat	$75M	+3%
Food & Beverage Sales	(7%)	(7%)	+1%	+1%
Wholesale Sales ($M)	$61	(13%)	$281	(10%)

Store Count (End of Q4)

Brand	FY2023 End Q4	FY2024 End Q4
Tommy Bahama – Full-price	102	106
Tommy Bahama – Marlin Bars (F&B)	22	24
Tommy Bahama – Outlet	34	36
Lilly Pulitzer – Full-price	60	64
Johnny Was – Full-price	72	77
Johnny Was – Outlet	3	3
Southern Tide – Full-price	19	30
TBBC – Full-price	3	5
Total Oxford	315	345

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($B)	FY2025	—	$1.49–$1.53	New
GAAP EPS ($)	FY2025	—	$4.21–$4.61	New
Adjusted EPS ($)	FY2025	—	$4.60–$5.00	New
Effective Tax Rate (%)	FY2025	—	~25% (normalized)	New
Tariff Impact ($M)	FY2025	—	$9–$10 (≈$0.45–$0.50/sh)	New
Interest Expense ($M)	FY2025	—	~$7 (≈$0.20–$0.25/sh)	New
Capex ($M)	FY2025	—	~$125 (down from $134 FY2024)	New
Net Sales ($M)	Q1 2025	—	$375–$395	New
GAAP EPS ($)	Q1 2025	—	$1.61–$1.81	New
Adjusted EPS ($)	Q1 2025	—	$1.70–$1.90	New
Interest Expense ($M)	Q1 2025	—	~$2	New
Dividend/Share ($)	Next Payment	$0.67 (Dec 2024)	$0.69 (Mar 2025)	Raised
FY2024 GAAP EPS ($)	FY2024	$6.28–$6.58 (Sep 2024)	$5.78–$5.98 (Dec 2024)	Lowered
FY2024 Adjusted EPS ($)	FY2024	$7.00–$7.30 (Sep 2024)	$6.50–$6.70 (Dec 2024)	Lowered
Q4 2024 Adjusted EPS ($)	Q4 2024	$1.18–$1.38 (Dec 2024)	Actual $1.37	In-line/Top end

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2025)	Trend
AI/Technology & Omnichannel	Continued investments in e-comm, omnichannel, data, cybersecurity, automation incl. AI; DC relocation to Lyons to cut costs	Completing Lyons DC in Q4 2025; website upgrades (Tommy Bahama, Lilly, Southern Tide, TBBC); ongoing investments in data/AI	Execution progressing; near-term expense; long-term capacity
Tariffs/Macro	Built 15–20bps freight headwind; Red Sea disruptions; cautious comps lowered	Explicit $9–$10M tariff headwind in FY2025 with mitigation (sourcing shifts, vendor sharing, pricing)	Headwinds intensifying; mitigation by spring 2026
Product Performance	Plan to drive newness (Indigo Palms; Lilly flash sale) to spur demand	Strong holiday sell-through of Indigo Palms, luxe sweaters; Lilly Disney capsule; December comps +2%	Newness effective during events; core styles muted
Regional Trends	Florida normalization; specialty wholesale weak; Marlin Bars resilient	January down; February -9% comps; Easter shift; Lilly strongest brand; wholesale cautious but floors strong	Near-term softness; expect event-driven spikes
SG&A/Cost Discipline	SG&A rising with store/DC investments; target reductions; Johnny Was DC move saves ~$4M/year	SG&A to grow low–mid single digits in FY2025; focus on marketing efficiency, vendor negotiations, selective openings	Cost actions ongoing; leverage constrained by comps
Wholesale Dynamics	Specialty stores challenged; majors stronger; bookings cautious	Floor performance strong; bookings still cautious; aim to rebuild Johnny Was wholesale	Stabilizing at majors; risk at specialty

Management Commentary

“We are pleased to be reporting fourth quarter net sales and adjusted EPS that are both near the top of our guidance ranges… The performance of these higher price point products is strong evidence that when there is reason to shop, our customers are choosing to spend with our brands.” — Tom Chubb, CEO .
“We believe the challenging trends experienced in January that accelerated into February are likely an indicator of what we can expect in the first half of fiscal 2025… In the times between these major selling periods, we expect the consumer to be more hesitant to shop.” .
“Our mitigation steps [for tariffs]… include receipt of inventory ahead of effective dates, sourcing shifts, sharing tariffs with vendors… merchandising shifts… and select price increases. We expect to be able to materially mitigate… by the spring of 2026.” — Scott Grassmyer, CFO/COO .
“We plan to open approximately 20 new stores, including 4 new Marlin Bars… and we have already purchased $50 million worth of stock during the first part of this fiscal year.” — Tom Chubb .

Q&A Highlights

Comps and brand mix: Lilly is currently the strongest; comps improved post-election with brands moving from double-digit negative to low single-digit negative; Easter timing shifted to April (expect improvement) .
Wholesale outlook: Caution from partners, but strong performance on majors’ floors; rebuilding Johnny Was wholesale with focus on product and store-level merchandising; cautious inventory buys in 2H .
Tariffs: FY2025 includes $9–$10M unmitigated impact (guidance assumes some mitigation later in year); full mitigation targeted by spring 2026; uncertainty on tariff scope by country .
SG&A control: Initiatives across marketing efficiency, vendor negotiations, selective hiring; SG&A growth tied to new stores; leverage constrained by negative comps .
Conversion improvements: Better associate product knowledge, assortment tweaks, and website upgrades to streamline checkout .

Estimates Context

Metric	Q4 2025 Consensus	Q4 2025 Actual	Surprise
Revenue ($USD)	$383.9M*	$390.5M	+$6.6M (Beat)
Primary EPS ($)	$1.27*	$1.37	+$0.10 (Beat)
EBITDA ($USD)	$41.2M*	$39.3M*	-$1.9M (Miss)

Values retrieved from S&P Global.*
Notes: Primary EPS “actual” aligns with adjusted EPS reported in the release; consensus shows a modest beat on revenue and adjusted EPS; EBITDA slightly below consensus .

Key Takeaways for Investors

Holiday-driven strength but event-dependent demand: Expect sales spikes around Easter/Mother’s/Father’s/summer holidays; softer in-between periods; trading setups around event calendars may be effective .
Near-term margin pressure from tariffs and promotional mix: FY2025 includes ~$0.85–$1.00/share headwind (tariffs, higher interest, normalized tax), with mitigation building through 2026 .
Mix shift toward DTC and newness: New product innovation (Indigo Palms, luxe sweaters, Lilly capsules) is outperforming; core styles muted—position inventory and marketing toward “newness” themes .
SG&A leverage depends on comps: With ~20 planned openings and Lyons DC ramp, SG&A will grow low–mid single digits; leverage requires comps stabilization—monitor intra-quarter trends .
Capital return and balance sheet remain supportive: Dividend increased to $0.69; $50M buyback executed and new $100M authorization—signals confidence in long-term value despite FY2025 earnings reset .
Wholesale specialty exposure is a risk; majors stronger: Floor performance is strong at majors, but specialty cautious; Johnny Was wholesale rebuild a potential upside lever .
Actionable: Into Q1 2025, guidance embeds lower gross margin and deleverage—expect continued promotional cadence; potential long entry on event-driven comps beats and tariff clarity; medium-term upside from DC completion and mitigation by spring 2026 .

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