Net profit for the quarter dropped to $15 million, or $1 a share, down significantly from the $26.2 million reported during the same period last year. Beyond the impact of tariffs, the company absorbed a $4 million increase in LIFO accounting charges. Despite these headwinds, adjusted earnings per share reached $1.39, narrowly exceeding the $1.29 consensus estimate from analysts polled by FactSet.

Revenue remained largely flat at $391.4 million. While Tommy Bahama maintained growth with a 3.9% increase in sales, these gains were neutralized by performance lapses at the Lilly Pulitzer and Johnny Was labels. CEO Tom Chubb attributed the results to a difficult macroeconomic environment, citing elevated energy costs and fragile consumer confidence as persistent obstacles. The company is currently recalibrating its strategy for Lilly Pulitzer while maintaining a cautious outlook for the remainder of the fiscal year, narrowing its annual sales forecast to a range of $1.48 billion to $1.51 billion.