Reported results
- Consolidated net sales were $394.4 million in Q2 fiscal 2026 compared to $403.1 million in Q2 fiscal 2025, a decrease of 2.2%
- GAAP earnings per diluted share were $3.25 in Q2 fiscal 2026 compared to $1.12 in Q2 fiscal 2025, reflecting a $2.07 tariff related refund impact
- Adjusted EPS on a non-GAAP basis were $1.34 in Q2 fiscal 2026 compared to $1.26 in Q2 fiscal 2025
- Gross margin was 73.8% in Q2 fiscal 2026 compared to 61.4% in Q2 fiscal 2025, primarily due to $42 million of tariff refund claims recognized as a reduction of cost of goods sold
- On an adjusted non-GAAP basis, gross margin was 63.1% in Q2 fiscal 2026 compared to 61.7% in Q2 fiscal 2025
- Operating income on a GAAP basis was $68.8 million, or 17.4% of net sales, in Q2 fiscal 2026 compared to $25.4 million, or 6.3% of net sales, in Q2 fiscal 2025
Guidance
- For fiscal 2026 ending January 30, 2027, net sales are expected to be in a range of $1.430 billion to $1.470 billion compared to net sales of $1.478 billion in fiscal 2025
- GAAP earnings per share for fiscal 2026 are expected to be between $3.07 and $3.47, which includes $2.07 of tariff refund receivables and related interest
- Adjusted non-GAAP EPS for fiscal 2026 are expected to be between $1.60 and $2.00 compared to fiscal 2025 adjusted EPS of $2.11
- For Q3 fiscal 2026, net sales are expected to be between $280 million and $300 million compared to net sales of $307 million in Q3 fiscal 2025
- GAAP loss per share for Q3 fiscal 2026 is expected to be between $1.47 and $1.27 compared to a net loss per share of $4.28 in Q3 fiscal 2025
- Adjusted non-GAAP loss per share for Q3 fiscal 2026 is expected to be in a range of $1.40 to $1.20 compared to a net loss per share of $0.92 in Q3 fiscal 2025
Notes
The company revised its fiscal 2026 guidance downward during this earnings release. GAAP results are significantly impacted by tariff refunds of $42 million ($2.07 per share) recognized in Q2. Tommy Bahama segment achieved low-single-digit comparable sales gain, while Lilly Pulitzer declined 5.6% and Johnny Was declined 8.8%. The company is implementing increased promotional activity at Lilly Pulitzer and conducting a broader enterprise review to enhance long-term earnings power. Q3 fiscal 2025 results included noncash impairment charges of $61 million primarily associated with Johnny Was.
Price and volatility reaction
The stock moved -15.7% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -14.4 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 36.63 | 2026-09-03 |
| Close after release | 30.87 | 2026-09-04 |
| Realised move | -15.7% | close to close |
| 30d ATM IV change | -14.4 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.