OXFORD INDUSTRIES INC

Previous wording

For additional information about our business and our operating segments, see Part I, Item 1. Business of our Fiscal 2024 Form 10-K. Important factors relating to certain risks which could impact our business are described in Part I. Item 1A. Risk Factors of our Fiscal 2024 Form 10-K.

Current wording

For additional information about our business and our operating segments, see Part I, Item 1. Business of our Fiscal 2024 Form 10-K. Important factors relating to certain risks which could impact our business are described in Part I. Item 1A. Risk Factors of our Fiscal 2024 Form 10-K, as updated by Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the First Quarter of Fiscal 2025.

Previous wording

This competitive and evolving environment requires that brands and retailers approach their operations, including marketing and advertising, very differently than they have historically and may result in increased operating costs and investments to generate growth or even maintain existing sales levels. The competition and evolution within the industry present significant risks that have been compounded in the current macroenvironment as a result of developments in U.S. trade regulations following the implementation of a broad range of tariffs in First Quarter of Fiscal 2025 as well as geopolitical issues. Other issues, including the availability and cost of credit and elevated interest rates for prolonged periods, have also heightened concern in the current environment. The future geopolitical landscape remains particularly uncertain and any changes in international trade relations, legislation and regulations, including those related to importation and tariffs, taxation, economic and monetary policies, or heightened diplomatic tensions or political and civil unrest, among other potential impacts, could adversely impact the global economy and our operating results. These factors, when combined with heightened promotional activity in our industry, create a complex and challenging retail environment, which has impacted and will continue to impact our businesses and financial results during Fiscal 2025 and has exacerbated some of the inherent challenges to our operations and may continue to do so in the future. There remains significant uncertainty in the macroeconomic environment, and the impact of these and other factors could have a major effect on our businesses.

Current wording

This competitive and evolving environment requires that brands and retailers approach their operations, including marketing and advertising, very differently than they have historically and may result in increased operating costs and investments to generate growth or even maintain existing sales levels. The competition and evolution within the industry present significant risks that have been compounded in the current macroenvironment as a result of developments in U.S. trade regulations and geopolitical issues. Other issues, including the availability and cost of credit and elevated interest rates for prolonged periods, have also heightened concern in the current environment. The future geopolitical landscape remains particularly uncertain and any changes in international trade relations, legislation and regulations, including those related to importation and tariffs, taxation, economic and monetary policies, or heightened diplomatic tensions or political and civil unrest, among other potential impacts, could adversely impact the global economy and our operating results. These factors, when combined with heightened promotional activity in our industry, create a complex and challenging retail environment, which has impacted and will continue to impact our businesses and financial results during Fiscal 2025 and has exacerbated some of the inherent challenges to our operations and may continue to do so in the future. There remains significant uncertainty in the macroeconomic environment, and the impact of these and other factors could have a major effect on our businesses.

Previous wording

In addition, compounding some of the uncertainty and challenges in the current macroeconomic environment, in April 2025, the U.S. government announced broad-based, reciprocal tariffs on foreign imports. The reciprocal tariffs impact substantially all of the countries from which we import products, although at varying rates. Although the implementation of some of the announced tariffs has been temporarily paused, we continue to evaluate the impact of these tariffs on our businesses and, as previously disclosed, have been proactively taking steps to mitigate our tariff exposure regardless of the outcome of the U.S. government’s trade negotiations. These mitigation efforts include an acceleration in our ongoing efforts to decentralize our product sourcing, accelerating production and shipments into the U.S. during the period of delayed application of the reciprocal tariffs, negotiations with our vendors and potential price increases. The duration and scope of the tariffs are difficult to predict, along with the extent to which we will be able to offset the impact, and there could be a material negative impact on our results of operations depending on the outcome of the government’s trade negotiations.

Current wording

In addition, compounding the uncertainty and challenges in the current macroeconomic environment, since the start of Fiscal 2025, the U.S. government has announced broad-based, reciprocal tariffs on foreign imports, with the potential for further increases or revisions. The reciprocal tariffs, which in some cases are compounded by newly implemented “penalty” or “secondary” tariffs on a country-by-country basis, impact substantially all of the countries from which we import products, although at varying rates. These announcements, along with the potential for future changes, has created significant uncertainty in the global trade environment. As previously disclosed, we have been proactively taking steps to mitigate our tariff exposure regardless of the outcome of the U.S. government’s trade decisions. These mitigation efforts include an acceleration in our ongoing efforts to decentralize our product sourcing, coordinating production and shipments into the U.S. during potential periods of delayed application of newly implemented or increased tariffs, negotiations with our vendors and potential price increases. The duration and scope of the tariffs are difficult to predict, along with the extent to which we will be able to offset the impact, and there could be a material negative impact on our results of operations depending on the outcome of the government’s trade decisions.

Previous wording

We believe our lifestyle brands have true competitive advantages, and we continue to invest in our brands’ direct to consumer initiatives and distribution capabilities while further leveraging technology to serve our consumers when and where they want to be served. We continue to believe that our lifestyle brands, with their strong emotional connections with consumers, are well suited to succeed and thrive in the long term while managing the various challenges facing our industry in the current environment. At the same time, we remain cautious in light of extrinsic factors and are proactively taking measures to reassess and realign our operating expenses to drive long-term operating margin expansion across our businesses.

Current wording

We believe our lifestyle brands have true competitive advantages, and we continue to invest in our brands’ direct to consumer initiatives and distribution capabilities while further leveraging technology to serve our consumers when and where they want to be served. We continue to believe that our lifestyle brands, with their strong emotional connections with consumers, are well suited to succeed and thrive in the long term while managing the various challenges facing our industry in the current environment. At the same time, we remain cautious in light of extrinsic factors and are proactively working with outside advisors and taking measures to reassess and realign our operating expenses to drive long-term operating margin expansion across our businesses.

Previous wording

The following table sets forth our consolidated operating results (in thousands, except per share amounts) for the First Quarter of Fiscal 2025 compared to the First Quarter of Fiscal 2024:

Current wording

The following table sets forth our consolidated operating results (in thousands, except per share amounts) for the First Half of Fiscal 2025 compared to the First Half of Fiscal 2024:

Previous wording

Net earnings per diluted share were $1.70 in the First Quarter of Fiscal 2025 compared to $2.42 in the First Quarter of Fiscal 2024 reflecting (1) decreased net sales, (2) increased SG&A, (3) lower gross margin, (4) increased interest expense and (5) decreased royalties and other operating income. These decreases were partially offset by a lower effective tax rate and reduction in weighted average shares outstanding due repurchases made pursuant to our share repurchase program, which commenced in the First Quarter of Fiscal 2025.

Current wording

Net earnings per diluted share was $2.83 in the First Half of Fiscal 2025 compared to $4.99 in the First Half of Fiscal 2024 reflecting (1) decreased net sales, (2) increased SG&A, (3) lower gross margin, (4) increased interest expense, (5) decreased royalties and other operating income and (6) a higher effective tax rate. These decreases were partially offset by a reduction in weighted average shares outstanding due to share repurchases made in the First Half of Fiscal 2025. Net earnings and gross margin in the First Half of Fiscal 2025 were impacted by approximately $10 million of increased cost of goods sold from additional tariffs enacted in Fiscal 2025, net of mitigation efforts.

Previous wording

For purposes of our disclosures, comparable sales consists of sales through e-commerce sites and any physical full-price retail stores that were owned and open as of the beginning of the prior fiscal year and which did not have during the relevant periods, and is not within the current fiscal year scheduled to have, (1) a remodel or other event which would result in a closure for an extended period of time (which we define as a period of two weeks or longer), (2) a greater than 15% change in the size of the retail space due to expansion, reduction or relocation to a new retail space or (3) a relocation to a new space that is significantly different from the prior retail space (including relocations to accommodate an adjacent Tommy Bahama food and beverage concept). For those stores which are excluded based on the preceding sentence, the stores continue to be excluded from comparable sales until the criteria for a new store is met subsequent to the remodel, relocation, or other event. A full-price retail store that is remodeled will generally continue to be included in our comparable sales metrics as a store is not typically closed for longer than a two-week period during a remodel; however, a full-price retail store that is relocated generally will not be included in our comparable sales metrics until that store has been open in the relocated space for the entirety of the prior fiscal year because the size or other characteristics of the store typically change significantly from the prior location. Any stores that were closed during the prior fiscal year or current fiscal year, or which we expect to close or vacate in the current fiscal year, as well as any pop-up or temporary store locations, are excluded from our comparable sales metrics.

Current wording

For purposes of our disclosures, comparable sales consists of sales through e-commerce sites and any physical full-price retail stores that were owned and open as of the beginning of the prior fiscal year and which did not have during the relevant periods, and is not within the current fiscal year scheduled to have, (1) a remodel or other event which would result in a closure for an extended period of time (which we define as a period of two weeks or longer), (2) a greater than 15% change in the size of the retail space due to expansion, reduction or relocation to a new retail space or (3) a relocation to a new space that is significantly different from the prior retail space (including relocations to accommodate an adjacent Tommy Bahama food & beverage concept). For those stores which are excluded based on the preceding sentence, the stores continue to be excluded from comparable sales until the criteria for a new store is met subsequent to the remodel, relocation, or other event. A full-price retail store that is remodeled will generally continue to be included in our comparable sales metrics as a store is not typically closed for longer than a two-week period during a remodel; however, a full-price retail store that is relocated generally will not be included in our comparable sales metrics until that store has been open in the relocated space for the entirety of the prior fiscal year because the size or other characteristics of the store typically change significantly from the prior location. Any stores that were closed during the prior fiscal year or current fiscal year, or which we expect to close or vacate in the current fiscal year, as well as any pop-up or temporary store locations, are excluded from our comparable sales metrics.

Previous wording

The discussion and tables below compare our statements of operations for the First Quarter of Fiscal 2025 to the First Quarter of Fiscal 2024. Each dollar and percentage change provided reflects the change between these fiscal periods unless indicated otherwise. Each dollar and share amount included in the tables is in thousands except for per share amounts. We have calculated all percentages based on actual data, and percentage columns in tables may not add due to rounding. Individual line items of our consolidated statements of operations, including gross profit, may not be directly comparable to those of our competitors, as classification of certain expenses may vary by company.

Current wording

The discussion and tables below compare our statements of operations for the Second Quarter of Fiscal 2025 to the Second Quarter of Fiscal 2024. Each dollar and percentage change provided reflects the change between these fiscal periods unless indicated otherwise. Each dollar and share amount included in the tables is in thousands except for per share amounts. We have calculated all percentages based on actual data, and percentage columns in tables may not add due to rounding. Individual line items of our consolidated statements of operations, including gross profit, may not be directly comparable to those of our competitors, as classification of certain expenses may vary by company.

Previous wording

•a decrease in e-commerce sales of $6 million, or 5%, including (1) a $5 million decrease in Tommy Bahama and (2) a $4 million decrease in Johnny Was. These decreases were partially offset by (1) a $1 million increase in Lilly Pulitzer and (2) a $1 million increase in Emerging Brands;

Current wording

•a decrease in e-commerce sales of $3 million, or 2%, including (1) a $6 million decrease in Tommy Bahama and (2) a $2 million decrease in Johnny Was. These decreases were partially offset by (1) a $3 million increase in Lilly Pulitzer and (2) a $1 million increase in Emerging Brands;

Previous wording

The tables below present gross profit by reportable segment and Corporate and Other and in total for the First Quarter of Fiscal 2025 and the First Quarter of Fiscal 2024, as well as the dollar change and percentage change between those two periods, and gross margin by reportable segment and Corporate and Other and in total. Our gross profit and gross margin, which is calculated as gross profit divided by net sales, may not be directly comparable to those of our competitors, as the statement of operations classification of certain expenses may vary by company.

Current wording

The tables below present gross profit by reportable segment and Corporate and Other and in total for the Second Quarter of Fiscal 2025 and the Second Quarter of Fiscal 2024, as well as the dollar change and percentage change between those two periods, and gross margin by reportable segment and Corporate and Other and in total. Our gross profit and gross margin, which is calculated as gross profit divided by net sales, may not be directly comparable to those of our competitors, as the statement of operations classification of certain expenses may vary by company.

Previous wording

The lower gross margin for Tommy Bahama was primarily due to (1) an increase in freight expenses to e-commerce customers, (2) full-price retail and e-commerce sales representing a lower proportion of net sales with more sales occurring during promotional and clearance events, including loyalty award cards, Flip Side, end of season clearance events and the semi-annual Friends & Family event and (3) a change in sales mix with wholesale sales representing a higher proportion of net sales.

Current wording

The lower gross margin for Tommy Bahama was primarily due to increased cost of goods sold from additional tariffs implemented in Fiscal 2025. This decrease was partially offset by (1) improved gross margin during promotional events, including loyalty award cards, Flip Side and end of season clearance events, (2) a change in sales mix with a lower proportion of net sales occurring during end of season clearance events and (3) a change in sales mix with wholesale sales representing a lower proportion of net sales.

Previous wording

The lower gross margin for Johnny Was was primarily due to (1) higher markdowns during promotional and clearance events, (2) increased cost of goods sold resulting from the U.S. tariffs implemented in March 2025 and (3) a change in sales mix with wholesale sales representing a higher proportion of net sales. These decreases were partially offset by full-price retail and e-commerce sales representing a higher proportion of net sales with fewer sales occurring during promotional and clearance events. In the First Quarter of Fiscal 2025, Johnny Was revised its promotional strategy to have fewer promotional events than in previous periods.

Current wording

The lower gross margin for Johnny Was was primarily due to increased cost of goods sold from additional tariffs implemented in Fiscal 2025. This decrease was partially offset by a change in sales mix with full-price retail and e-commerce sales representing a higher proportion of net sales resulting from fewer sales occurring during promotional and clearance events.

Previous wording

SG&A was $223 million in the First Quarter of Fiscal 2025 compared to $213 million in the First Quarter of Fiscal 2024, with approximately $6 million, or 59%, of the increase due to increases in employment costs, occupancy costs and depreciation expense due to the increase in brick and mortar retail locations. The 5% increase in total SG&A in the First Quarter of Fiscal 2025 included the following, each of which includes the SG&A of the new brick and mortar locations:

Current wording

SG&A was $226 million in the Second Quarter of Fiscal 2025 compared to $217 million in the Second Quarter of Fiscal 2024, with approximately $4 million, or 51%, of the expenses that increased during the Second Quarter of Fiscal 2025 due to increases in employment costs, occupancy costs and depreciation expense attributable to the increase in brick and mortar retail locations. The 4% increase in total SG&A in the Second Quarter of Fiscal 2025 included the following, which, where applicable, includes the SG&A of the new brick and mortar locations:

Previous wording

•$3 million increase in software subscription and consulting costs associated with IT projects;

Current wording

•$3 million increase in software subscription and consulting related costs;

Previous wording

Royalties and other operating income typically consists primarily of income received from third parties from the licensing of our brands. The decreased royalties and other operating income in the First Quarter of Fiscal 2025 was primarily due to decreased royalty income in Tommy Bahama reflecting the lower sales of our licensing partners.

Current wording

Royalties and other operating income typically consists primarily of income received from third parties from the licensing of our brands. The decreased royalties and other operating income in the Second Quarter of Fiscal 2025 was primarily due to decreased royalty income in Tommy Bahama reflecting the lower sales of our licensing partners.

Previous wording

Operating income was $36 million in the First Quarter of Fiscal 2025 compared to $52 million in the First Quarter of Fiscal 2024. The decreased operating income included lower operating results in Tommy Bahama, Johnny Was, Emerging

Current wording

Operating income was $25 million in the Second Quarter of Fiscal 2025 compared to $53 million in the Second Quarter of Fiscal 2024. The decreased operating income included lower operating results in Tommy Bahama, Corporate and Other, Lilly Pulitzer and Johnny Was. Changes in operating income (loss) by reportable segment and Corporate and Other are discussed below.

Previous wording

The decreased operating income for Tommy Bahama was due to (1) decreased net sales, (2) increased SG&A and (3) lower gross margin. The increased SG&A was primarily due to (1) $3 million of higher SG&A associated with new retail store and Marlin Bar locations with retail and food & beverage operations, including related employment costs, occupancy costs, administrative expenses and depreciation expense and (2) $2 million of increased advertising expenses.

Current wording

The decreased operating income for Tommy Bahama was due to (1) decreased net sales, (2) lower gross margin and (3) increased SG&A. The increased SG&A was primarily due to $2 million of higher SG&A associated with new retail store and Marlin Bar locations with retail and food & beverage operations, including related employment costs, occupancy costs, administrative expenses and depreciation expense.

Previous wording

The decreased operating results for Johnny Was was primarily due to (1) decreased net sales and (2) lower gross margin. These decreases were partially offset by decreased SG&A. The decreased SG&A was primarily due to (1) $1 million of decreased advertising expenses, (2) $1 million of decreased variable and distribution costs and (3) $1 million of decreased amortization of intangible assets. These decreases were partially offset by $1 million of increased employment costs.

Current wording

The decreased operating results for Johnny Was were primarily due to (1) decreased net sales and (2) lower gross margin. These decreases were partially offset by decreased SG&A. The decreased SG&A was primarily due to (1) $1 million of decreased advertising costs, (2) $1 million of decreased amortization of intangible assets and (3) the absence of $1 million in Johnny Was Distribution Center costs incurred in the Second Quarter of Fiscal 2024.

Previous wording

The increased interest expense in the First Quarter of Fiscal 2025 was primarily due to a higher average outstanding debt balance during the First Quarter of Fiscal 2025 than the First Quarter of Fiscal 2024.

Current wording

The increased interest expense in the Second Quarter of Fiscal 2025 was primarily due to a higher average outstanding debt balance during the Second Quarter of Fiscal 2025 than the Second Quarter of Fiscal 2024.

Previous wording

FIRST QUARTER OF FISCAL 2025 COMPARED TO FIRST QUARTER OF FISCAL 2024

Current wording

FIRST HALF OF FISCAL 2025 COMPARED TO FIRST HALF OF FISCAL 2024

Previous wording

Consolidated net sales were $393 million in the First Quarter of Fiscal 2025 compared to net sales of $398 million in the First Quarter of Fiscal 2024. The decrease in net sales included decreased sales in Tommy Bahama and Johnny Was. These decreases were partially offset by increased sales in Lilly Pulitzer and Emerging Brands.

Current wording

Consolidated net sales were $796 million in the First Half of Fiscal 2025 compared to net sales of $818 million in the First Half of Fiscal 2024. The decrease in net sales included decreased sales in Tommy Bahama and Johnny Was. These decreases were partially offset by increased sales in Lilly Pulitzer and Emerging Brands.

Previous wording

•a decrease in full-price retail sales of $2 million, or 1%, including (1) a $5 million decrease in Tommy Bahama and (2) a $3 million decrease in Johnny Was. These decreases were partially offset by (1) a $3 million increase in Lilly Pulitzer and (2) a $2 million increase in Emerging Brands;

Current wording

•a decrease in full-price retail sales of $11 million, or 4%, including (1) an $11 million decrease in Tommy Bahama and (2) a $5 million decrease in Johnny Was. These decreases were partially offset by (1) a $4 million increase in Emerging Brands and (2) a $1 million increase in Lilly Pulitzer;

Previous wording

•a decrease in food & beverage sales of $1 million, or 3%;

Current wording

•a decrease in food & beverage sales of $1 million, or 1%;

Previous wording

Tommy Bahama net sales decreased $9 million, or 4%, in the First Quarter of Fiscal 2025, with a decrease in (1) e-commerce sales of $5 million, or 10%, (2) full-price retail sales of $5 million, or 5%, and (3) food & beverage sales of $1 million, or 3%. These decreases were partially offset by an increase in wholesale sales of $1 million, or 2%. The following table presents the proportion of net sales by distribution channel for Tommy Bahama for each period presented:

Current wording

Tommy Bahama net sales decreased $26 million, or 5%, in the First Half of Fiscal 2025, with a decrease in (1) full-price retail sales of $11 million, or 6%, (2) e-commerce sales of $11 million, or 9%, (3) wholesale sales of $3 million, or 3%, and (4) food & beverage sales of $1 million, or 1%. The following table presents the proportion of net sales by distribution channel for Tommy Bahama for each period presented:

Previous wording

Lilly Pulitzer net sales increased $11 million, or 12%, in the First Quarter of Fiscal 2025, with an increase in each channel of distribution. The increase in net sales in Lilly Pulitzer included increases in (1) wholesale sales of $6 million, or 33%, that included increased sales to both off-priced wholesale customers and full-priced department stores, (2) retail sales of $3 million, or 11%, and (3) e-commerce sales of $1 million, or 4%. The following table presents the proportion of net sales by distribution channel for Lilly Pulitzer for each period presented:

Current wording

Lilly Pulitzer net sales increased $9 million, or 5%, in the First Half of Fiscal 2025, with an increase in each channel of distribution. The increase in net sales in Lilly Pulitzer included increases in (1) e-commerce sales of $4 million, or 5%, (2) wholesale sales of $3 million, or 10%, and (3) retail sales of $1 million, or 2%. The following table presents the proportion of net sales by distribution channel for Lilly Pulitzer for each period presented:

Previous wording

Johnny Was net sales decreased $8 million, or 15%, in the First Quarter of Fiscal 2025, with a decrease in (1) e-commerce sales of $4 million, or 19%, (2) retail sales of $3 million, or 16%, and (3) wholesale sales of $1 million, or 7%. The following table presents the proportion of net sales by distribution channel for Johnny Was for each period presented:

Current wording

Johnny Was net sales decreased $13 million, or 12%, in the First Half of Fiscal 2025, with a decrease in (1) e-commerce sales of $6 million, or 13%, (2) retail sales of $5 million, or 14%, (3) wholesale sales of $1 million, or 5%, and (4) outlet sales of $1 million, or 29%. The following table presents the proportion of net sales by distribution channel for Johnny Was for each period presented:

Previous wording

Emerging Brands net sales increased $1 million, or 4% in the First Quarter of Fiscal 2025. Increases included increased sales in Southern Tide, TBBC and Duck Head partially offset by decreased sales in Jack Rogers. By distribution channel, the increase in net sales in Emerging Brands included increases in (1) retail sales of $2 million, or 37%, as we opened new retail locations and (2) e-commerce sales of $1 million, or 9%. These increases were partially offset by a decrease in wholesale sales of $2 million, or 10%. The following table presents the proportion of net sales by distribution channel for Emerging Brands for each period presented:

Current wording

Emerging Brands net sales increased $7 million, or 10% in the First Half of Fiscal 2025. Increases included increased sales in Southern Tide, TBBC and Duck Head partially offset by decreased sales in Jack Rogers. By distribution channel, the increase in net sales in Emerging Brands included increases in (1) retail sales of $4 million, or 36%, as we opened new retail locations and (2) e-commerce sales of $3 million, or 9%. The following table presents the proportion of net sales by distribution channel for Emerging Brands for each period presented:

Previous wording

The decreased gross profit of 2% was primarily due to (1) the 1% decrease in net sales and (2) decreased consolidated gross margin. The decreased gross margin was primarily due to (1) increased freight expenses to e-commerce customers at Tommy Bahama, (2) increased markdowns during clearance events at Lilly Pulitzer and Johnny Was and (3) a change in sales mix with wholesale sales, including off-priced wholesale sales, representing a higher proportion of net sales. We also incurred $1 million of additional charges in cost of goods sold in the First Quarter of Fiscal 2025 resulting from the U.S. tariffs on imported goods implemented in the First Quarter of Fiscal 2025. These decreases were partially offset by a $2 million lower LIFO accounting charge in the First Quarter of Fiscal 2025 compared to the First Quarter of Fiscal 2024.

Current wording

The decreased gross profit of 4% was primarily due to (1) the 3% decrease in net sales and (2) lower consolidated gross margin. The decreased gross margin was primarily due to approximately $10 million of increased cost of goods sold from additional tariffs enacted 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 $1 million lower LIFO accounting charge in the First Half of Fiscal 2025 compared to the First Half of Fiscal 2024.

Previous wording

The gross profit in Corporate and Other primarily reflects the impact of LIFO accounting adjustments that resulted in a $2 million lower charge in the First Quarter of Fiscal 2025 compared to the First Quarter of Fiscal 2024. The LIFO accounting impact in Corporate and Other in each period includes the net impact of (1) a charge in Corporate and Other when inventory that had been marked down in an operating segment in a prior period was ultimately sold, (2) a credit in Corporate and Other when inventory had been marked down in an operating segment in the current period, but had not been sold as of period end and (3) the change in the LIFO reserve, if any.

Current wording

The gross profit in Corporate and Other primarily reflects the impact of LIFO accounting adjustments that resulted in a $1 million lower charge in the First Half of Fiscal 2025 compared to the First Half of Fiscal 2024. The LIFO accounting impact in Corporate and Other in each period includes the net impact of (1) a charge in Corporate and Other when inventory that had been marked down in an operating segment in a prior period was ultimately sold, (2) a credit in Corporate and Other when inventory had been marked down in an operating segment in the current period, but had not been sold as of period end and (3) the change in the LIFO reserve, if any.

Previous wording

•an increase in wholesale sales of $4 million, or 4%, including (1) a $6 million increase in Lilly Pulitzer and (2) a $1 million increase in Tommy Bahama. These increases were partially offset by (1) a $2 million decrease in Emerging Brands and (2) a $1 million decrease in Johnny Was.

Current wording

These increases were partially offset by:

Previous wording

•$1 million increase in advertising costs.

Current wording

•$2 million decrease in advertising costs;

Previous wording

The increased operating income for Lilly Pulitzer was primarily due to increased net sales. This increase was partially offset by (1) increased SG&A and (2) lower gross margin. The increased SG&A was primarily due to (1) $2 million of increased software subscription and consulting expenses and (2) $1 million of increased variable and distribution costs primarily driven by higher sales. These increases were partially offset by $1 million of decreased advertising expenses.

Current wording

The decreased operating income for Lilly Pulitzer was primarily due to (1) lower gross margin and (2) increased SG&A. These decreases were partially offset by increased net sales. The increased SG&A was primarily due to (1) $3 million of increased software subscription and consulting expenses, (2) $1 million of increased variable and distribution costs primarily driven by higher sales and (3) $1 million of higher SG&A associated with new retail store locations, including related employment costs, occupancy costs, administrative expenses and depreciation expense. These increases were partially offset by $2 million of decreased advertising costs.

Previous wording

The decreased operating income for Emerging Brands was primarily due to increased SG&A. This decrease was partially offset by (1) increased net sales and (2) higher gross margin. The increased SG&A was primarily due to new retail store operations, including related employment costs, occupancy costs, administrative expenses and depreciation expense.

Current wording

The decreased operating income for Emerging Brands was primarily due to (1) increased SG&A and (2) lower gross margin. These decreases were partially offset by increased net sales. The increased SG&A was primarily due to new retail store operations, including related employment costs, occupancy costs, administrative expenses and depreciation expense.

Previous wording

The lower operating results in Corporate and Other were primarily a result of increased SG&A. This decrease was partially offset by a $2 million lower LIFO accounting charge in the First Quarter of Fiscal 2025 relative to the First Quarter of Fiscal 2024. The increased SG&A was primarily due to increased employment costs.

Current wording

The lower operating results in Corporate and Other were primarily a result of increased SG&A. This decrease was partially offset by a $1 million lower LIFO accounting charge in the First Half of Fiscal 2025 relative to the First Half of Fiscal 2024. The increased SG&A was primarily due to (1) $4 million of increased employment costs primarily driven by increased incentive compensation, (2) $2 million of increased professional and consulting costs and (3) $1 million of increased costs associated with the project to build a new distribution center in Lyons, Georgia.

Previous wording

For the First Quarter of Fiscal 2025, our effective tax rate was 24.1%, which primarily reflects the benefit derived from a reduction in income tax expense as a result of the receipt of interest from a U.S. federal income tax receivable and the remeasurement of deferred tax balances due to changes in state tax rates partially offset by a net increase to uncertain tax positions during the quarter.

Current wording

For the First Half of Fiscal 2025, our effective tax rate was 26.5%, which primarily reflects the unfavorable net discrete tax expense for shortfalls in stock-based compensation vesting during the First Half of Fiscal 2025 and a net increase in uncertain tax positions. These unfavorable factors were partially offset by the benefit derived from a reduction in income tax expense as a result of the receipt of interest from a U.S. federal income tax receivable and the remeasurement of deferred tax balances due to changes in state tax rates. On July 4, 2025, OB3 was enacted, reinstating bonus depreciation and accelerating the deduction for research and experimentation expenses previously capitalized and amortized under the Tax Cuts and Jobs Act of 2017 (“TCJA”). In the First Half of Fiscal 2025, we reflected the changes to certain timing differences in the current period that did not have a material net impact on income tax expense.

Previous wording

Net earnings per diluted share was $1.70 in the First Quarter of Fiscal 2025 compared to $2.42 in the First Quarter of Fiscal 2024 reflecting (1) decreased net sales, (2) increased SG&A, (3) lower gross margin, (4) increased interest expense and (5) decreased royalties and other operating income. These decreases were partially offset by a lower effective tax rate and reduction in weighted average shares outstanding due repurchases made pursuant to our share repurchase program, which commenced in the First Quarter of Fiscal 2025.

Current wording

Net earnings per diluted share was $2.83 in the First Half of Fiscal 2025 compared to $4.99 in the First Half of Fiscal 2024 reflecting (1) decreased net sales, (2) increased SG&A, (3) lower gross margin, (4) increased interest expense, (5) decreased royalties and other operating income and (6) a higher effective tax rate. These decreases were partially offset by a reduction in weighted average shares outstanding due to share repurchases made in the First Half of Fiscal 2025. Net earnings and gross margin in the First Half of Fiscal 2025 were impacted by approximately $10 million of increased cost of goods sold from additional tariffs enacted in Fiscal 2025, net of mitigation efforts.

Previous wording

Cash and cash equivalents were $8 million as of May 3, 2025, compared to $8 million as of May 4, 2024.

Current wording

Cash and cash equivalents were $7 million as of August 2, 2025, compared to $18 million as of August 3, 2024. We aim to maintain a cash balance in our operations on an ongoing basis that ranges from $5 million to $10 million with any excess cash generally used to repay amounts outstanding under our U.S. Revolving Credit Agreement. The higher cash and cash equivalents as of August 3, 2024 was primarily due to excess cash resulting from the repayment of our long-term debt balance during the Second Quarter of Fiscal 2024.

Previous wording

The increased receivables, net as of May 3, 2025, was primarily due to (1) increased trade receivables resulting from the timing of sales and cash receipts and (2) increased tenant improvement allowance receivables due from landlords resulting from store openings during Fiscal 2024 and Fiscal 2025.

Current wording

The increased receivables, net as of August 2, 2025, was primarily due to increased tenant improvement allowance receivables due from landlords resulting from recent store openings.

Previous wording

Inventories, net, included a $85 million and $84 million LIFO reserve as of May 3, 2025, and May 4, 2024, respectively. Inventories increased in all operating segments with the exception of Johnny Was due primarily to impacts associated with the U.S. tariffs that were implemented in First Quarter of Fiscal 2025 including (1) accelerated purchases of inventory that were implemented to try and minimize the impact of potential, pending tariff increases and (2) increased costs capitalized into inventory after the implementation of the tariffs. At the end of the First Quarter of Fiscal 2025, our inventory balances included an additional $3 million of costs associated with the increased tariffs implemented in the First Quarter of Fiscal 2025. We believe our strategy to accelerate the purchase of inventory during the First Quarter of Fiscal 2025 was appropriate to support our future anticipated sales plans.

Current wording

Inventories, net, included an $85 million and $84 million LIFO reserve as of August 2, 2025, and August 3, 2024, respectively. Inventories increased in all reportable segments with the exception of Johnny Was due primarily to impacts associated with the U.S. tariffs that were implemented in the First Half of Fiscal 2025 including (1) accelerated purchases of inventory that were implemented to try and minimize the impact of potential, pending tariff increases and (2) increased costs capitalized into inventory after the implementation of the tariffs. As of August 2, 2025, our inventory balances included an additional $5 million of costs associated with the increased tariffs implemented in the First Half of Fiscal 2025.

Previous wording

The increased prepaid expenses and other current assets as of May 3, 2025, was primarily due to increases in prepaid software costs.

Current wording

The increased prepaid expenses and other current assets as of August 2, 2025, was primarily due to increases in prepaid software costs and prepaid taxes.