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The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto contained in this report and the consolidated financial statements, notes to consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Fiscal 2025 Form 10-K. OVERVIEW Business Overview We are a leading branded apparel company that designs, sources, markets and distributes products bearing the trademarks of our portfolio of lifestyle brands: Tommy Bahama, Lilly Pulitzer, Johnny Was, Southern Tide, TBBC, Duck Head and Jack Rogers. Our business strategy is to drive excellence across a portfolio of lifestyle brands that create sustained, profitable growth. We consider lifestyle brands to be those brands that have a clearly defined and targeted point of view inspired by an appealing lifestyle or attitude. Furthermore, we believe lifestyle brands that create an emotional connection can command greater loyalty and higher price points and create licensing opportunities. We believe the attraction of a lifestyle brand depends on creating compelling product, effectively communicating the respective lifestyle brand message and distributing products to consumers where and when they want them. We believe the principal competitive factors in the apparel industry are the reputation, value, and image of brand names; design of differentiated, innovative or otherwise compelling product; consumer preference; price; quality; marketing; product fulfillment capabilities; and customer service. Our ability to compete successfully in the apparel industry is dependent on our proficiency in foreseeing changes and trends in fashion and consumer preference and presenting appealing products for consumers. Our design-led, commercially informed lifestyle brand operations strive to provide exciting, differentiated fashion products each season as well as certain core products that consumers expect from us. During Fiscal 2025, 82% of our consolidated net sales were through our direct to consumer channels of distribution, which consist of our brand specific full-price retail stores, e-commerce websites and outlets, as well as our Tommy Bahama food and beverage operations. The remaining 18% of our net sales was generated through our wholesale distribution channels, which complement our direct to consumer operations and provide access to a larger base of consumers. Our wholesale operations consist of sales of products bearing the trademarks of our lifestyle brands to various specialty stores, better department stores, Signature Stores, multi-branded e-commerce retailers and other retailers. For additional information about our business and our operating segments, see Part I, Item 1. Business of our Fiscal 2025 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 2025 Form 10-K. Industry Overview We operate in a highly competitive apparel market. No single apparel firm or small group of apparel firms dominates the apparel industry, and our competitors vary by operating segment and distribution channel. The apparel industry is cyclical and highly dependent on the overall level and focus of discretionary consumer spending, which changes as consumer preferences and regional, domestic, and international economic conditions evolve. In recent years, consumers have allocated a smaller portion of discretionary spending to certain product categories, including apparel, while increasing spending on services and other goods. Further, negative economic conditions often have a longer and more pronounced impact on the apparel industry than on other industries, due in part to the discretionary nature of apparel purchases. This competitive and evolving environment requires brands and retailers to approach their operations, including with respect to marketing, merchandising, advertising, and fulfillment, differently than they have historically and may result in increased operating costs and ongoing investments to generate growth or maintain existing sales levels. The expanding use of digital platforms, data analytics, and artificial intelligence-enabled tools across the industry has raised consumer expectations for personalization, convenience, transparency, and speed, while intensifying competition across channels. These competitive pressures have been further exacerbated by a challenging macroeconomic and geopolitical environment. Significant uncertainty related to U.S. tariffs on imported goods, and broader uncertainty around U.S. trade 19 Table of Contents and tax policy, inflationary pressures, including recent significant increases in energy prices, and elevated interest rates have weighed on consumer confidence and discretionary spending. Geopolitical tensions, including the U.S.-Iran conflict, as well as other hostilities in the Middle East, and the ongoing war in Ukraine, have added to global uncertainty and have influenced, and may continue to influence, energy markets, transportation costs, and broader supply chain dynamics. Taken together, these conditions have increased volatility and reduced visibility across the global retail and consumer environment. In response to the uncertain macroenvironment conditions, promotional activity across the industry has increased as retailers seek to offset traffic volatility and stimulate demand, further intensifying price competition. These factors have created a complex and challenging retail environment that impacts our businesses and financial results and exacerbated certain inherent challenges within the apparel industry, 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 materially affect our businesses. 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. Tariffs On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). During Fiscal 2025 and the First Quarter of Fiscal 2026, we paid approximately $40 million and $5 million, respectively, of IEEPA tariffs before the Supreme Court decision. We also recorded $30 million and $12 million of additional cost of goods sold relating to these tariffs during Fiscal 2025 and the First Quarter of Fiscal 2026, respectively. During the First Quarter of Fiscal 2026, we filed for refunds of previously paid tariffs assessed under IEEPA in an aggregate amount of approximately $25 million under Phase I of the refund process established by the CBP. We expect to file refund claims for the remaining amount of tariffs paid when a formal process is established. The financial impact of the Supreme Court ruling as of May 2, 2026 was uncertain as it was unclear to what extent duties would be refunded by the CBP, the status of our filed claims, or if it was probable that we would collect related paid amounts. As such, we did not record any adjustments to our financial statements during the First Quarter of Fiscal 2026. Subsequent to the end of the First Quarter of Fiscal 2026, we began to receive refunds of filed claims and received approximately $5 million through the date of the filing of this report. We are working with the CBP and are continuing to evaluate the impact of these developments on our business and financial statements. We continue to take steps to manage tariff-related cost pressures; however, these actions may not fully offset increased costs in future periods. Effective February 24, 2026, the U.S. administration imposed new, temporary tariffs on imports from all countries under section 122 of the Trade Act of 1974 and could take action to invoke other laws to collect additional tariffs. In May 2026, the U.S. Court of International Trade issued a ruling finding these section 122 tariffs unlawful, although this ruling is currently subject to an administrative stay while it is appealed by the government. There remains substantial uncertainty regarding the impacts of these events on existing tariffs, the scope and duration of any newly announced tariffs, and the possibility of further additional or modified tariffs or retaliatory actions. 20 Table of Contents KEY PERFORMANCE INDICATORS We consider a variety of performance and financial measures in assessing our business, and the key performance indicators used to measure our results are summarized below. Comparable Sales We often disclose comparable sales in order to provide additional information regarding changes in our results of operations between periods. Our disclosures of comparable sales include net sales from our full-price retail stores and e-commerce sites. We believe that the inclusion of both full-price retail stores and e-commerce sites in the comparable sales disclosures is a more meaningful way of reporting our comparable sales results, given similar inventory planning, allocation and return policies, as well as our cross-channel marketing and other initiatives for the direct to consumer channels. For our comparable sales disclosures, we exclude (1) outlet store sales as those clearance sales are used primarily to liquidate end of season inventory, which may vary significantly depending on the level of end of season inventory on hand and generally occur at lower gross margins than our non-clearance direct to consumer sales, and (2) food and beverage sales, as we do not currently believe that the inclusion of food and beverage sales in our comparable sales disclosures is meaningful in assessing our total company operations. Comparable sales information reflects net sales, including shipping and handling revenues, if any, associated with product sales. For purposes of our disclosures, comparable sales consists of sales through e-commerce sites and any physical full-price retail store that was 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 plan 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. Definitions and calculations of comparable sales differ among retail companies, and therefore comparable sales metrics disclosed by us may not be comparable to the metrics disclosed by other companies. Gross Profit and Gross Margin Gross profit represents net sales less cost of goods sold. Gross profit as a percentage of net sales is referred to as gross margin. Cost of goods sold primarily represents the cost of merchandise sold, including the cost of duties and inbound freight from suppliers. Our gross profit is variable in nature and generally follows changes in net sales. We believe that gross profit and gross margin are useful measures because they allow management, analysts, investors and others to evaluate the profit we generate from our sales, before operating and other expenses and income. Segment EBITDA Segment earnings before interest, taxes, depreciation and amortization ("EBITDA") is the measure we use to assess the profitability of our operating segments. Segment EBITDA is calculated as net sales less cost of goods sold and total SG&A of the operating segment, and it excludes amounts reflected in Corporate EBITDA, income tax expense (benefit), interest expense, net, depreciation and amortization and other infrequent operating charges (impairments of goodwill, intangible assets and equity method investments). Segment EBITDA as a percentage of segment net sales is referred to as segment EBITDA margin. We believe that segment EBITDA is a useful measure because it allows management, analysts, investors, and other interested parties to evaluate the profitability of our business operations before the effects of certain net expenses that directly arise from our capital investment decisions (depreciation and amortization), financing decisions (interest), tax 21 Table of Contents strategies (income taxes), and infrequent operating charges (impairments of goodwill, intangible assets and equity method investments). Net Earnings and EBITDA We believe that net earnings and EBITDA, along with the adjusted measure of EBITDA ("Adjusted EBITDA"), are useful measures of operating performance. Net earnings represents our profitability after the effects of all operating and other expenses and income. EBITDA helps us, analysts, investors, and other interested parties assess the underlying profitability of our operations before the effects of certain net expenses that directly arise from our capital investment decisions (depreciation and amortization), financing decisions (interest), and tax strategies (income taxes). Adjusted EBITDA eliminates certain infrequent operating charges (impairments of goodwill, intangible assets and equity method investments), if any, that we do not believe are reflective of our ongoing business performance. This adjusted measure helps us, analysts, investors, and other interested parties evaluate our operating performance on a comparable basis from period-to-period so that we can better understand the ongoing factors and trends affecting our business operations. We use EBITDA, or Adjusted EBITDA, if applicable, to forecast our performance, evaluate our actual results against our forecasts and compare our results to others in the industries that we serve. See “Non-GAAP Financial Measures” below for a reconciliation of EBITDA to net earnings, the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Key Operating Results: The following table sets forth our consolidated operating results (in thousands, except per share amounts) for the First Quarter of Fiscal 2026 compared to the First Quarter of Fiscal 2025: First Quarter Fiscal 2026 Fiscal 2025 Net sales $ 391,402 $ 392,861 Gross profit $ 243,883 $ 252,286 Gross margin 62.3 % 64.2 % Net earnings $ 14,988 $ 26,181 EBITDA $ 38,743 $ 53,169 Net earnings per diluted share $ 1.00 $ 1.70 Weighted average shares outstanding - diluted 15,005 15,404 Net earnings per diluted share were $1.00 in the First Quarter of Fiscal 2026 compared to net earnings per diluted share of $1.70 in the First Quarter of Fiscal 2025 reflecting (1) lower gross margin primarily from $11 million of increased cost of goods sold from additional tariffs enacted in Fiscal 2025, (2) increased SG&A, (3) decreased net sales, (4) decreased royalties and other operating income, (5) increased interest expense and (6) a higher effective tax rate. 22 Table of Contents DIRECT TO CONSUMER LOCATIONS The table below provides information about the number of direct to consumer locations for our brands as of the dates specified. The figures below include our permanent locations and exclude any pop-up or temporary store locations which have an initial lease term of 12 months or less. May 2, 2026 January 31, 2026 May 3, 2025 February 1, 2025 Tommy Bahama full-price retail stores 102 102 103 106 Tommy Bahama retail-food and beverage locations 28 28 26 24 Tommy Bahama outlets 38 37 36 36 Total Tommy Bahama locations 168 167 165 166 Lilly Pulitzer full-price retail stores 69 67 65 64 Johnny Was full-price retail stores 70 75 77 77 Johnny Was outlets 3 3 3 3 Total Johnny Was locations 73 78 80 80 Southern Tide full-price retail stores 33 34 35 30 TBBC full-price retail stores 8 9 8 5 Total Oxford direct to consumer locations 351 355 353 345 We regularly evaluate our direct-to-consumer locations and may close, relocate, remodel or convert stores to optimize our store footprint and support the long-term performance of our brands. In light of current macroeconomic conditions, we have recently increased our scrutiny of new, extended and underperforming brick-and-mortar opportunities. During the First Quarter of Fiscal 2026, we realigned our store fleet by converting the Johnny Was full-price retail store on King Street in Charleston, South Carolina, and the Southern Tide full-price retail store in Boca Raton, Florida, into Lilly Pulitzer full-price retail stores, closing four additional Johnny Was full-price retail locations and closing one TBBC store location. RESULTS OF OPERATIONS FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025 The discussion and tables below compare our statements of operations for the First Quarter of Fiscal 2026 to the First Quarter of Fiscal 2025. 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. The following table sets forth the specified line items in our unaudited condensed consolidated statements of operations both in dollars (in thousands) and as a percentage of net sales as well as the dollar change and the percentage change as compared to the same period of the prior year. The table also includes net earnings per diluted share and diluted 23 Table of Contents weighted average shares outstanding (in thousands), as well as the change and the percentage change for each of these items as compared to the same period of the prior year. First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ 391,402 100.0 % $ 392,861 100.0 % $ (1,459) (0.4) % Cost of goods sold 147,519 37.7 % 140,575 35.8 % 6,944 4.9 % Gross profit $ 243,883 62.3 % $ 252,286 64.2 % $ (8,403) (3.3) % SG&A 210,888 53.9 % 205,745 52.4 % 5,143 2.5 % Depreciation and amortization 16,380 4.2 % 16,963 4.3 % (583) (3.4) % Total Operating expenses 227,268 58.1 % 222,708 56.7 % $ 4,560 2.0 % Royalties and other operating income 5,748 1.5 % 6,628 1.7 % (880) (13.3) % Operating income $ 22,363 5.7 % $ 36,206 9.2 % $ (13,843) (38.2) % Interest expense, net 2,282 0.6 % 1,726 0.4 % 556 32.2 % Earnings before income taxes $ 20,081 5.1 % $ 34,480 8.8 % $ (14,399) (41.8) % Income taxes 5,093 1.3 % 8,299 2.1 % (3,206) (38.6) % Net earnings $ 14,988 3.8 % $ 26,181 6.7 % $ (11,193) (42.8) % Net earnings per diluted share $ 1.00 $ 1.70 $ (0.70) (41.2) % Weighted average shares outstanding - diluted 15,005 15,404 (399) (2.6) % The following table presents the proportion of our consolidated net sales by distribution channel for each period presented. We have calculated all percentages below on actual data, and percentages may not add to 100 due to rounding. First Quarter Fiscal 2026 Fiscal 2025 Retail 39% 39% E-commerce 29% 29% Food and beverage 10% 9% Wholesale 22% 23% Total 100% 100% Net Sales First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Tommy Bahama $ 224,636 $ 216,175 $ 8,461 3.9 % Lilly Pulitzer 90,373 99,042 (8,669) (8.8) % Johnny Was 37,850 43,473 (5,623) (12.9) % Emerging Brands 38,624 34,248 4,376 12.8 % Corporate and Other (81) (77) (4) NM % Consolidated net sales $ 391,402 $ 392,861 $ (1,459) (0.4) % Consolidated net sales were $391 million in the First Quarter of Fiscal 2026 compared to net sales of $393 million in the First Quarter of Fiscal 2025. The decrease in net sales included decreased sales in Lilly Pulitzer and Johnny Was. These decreases were partially offset by increased sales in Tommy Bahama and Emerging Brands. The changes in net sales by distribution channel consisted of the following: •a decrease in wholesale sales of $4 million, or 5%, including (1) a $4 million decrease in Johnny Was and (2) a $2 million decrease in Tommy Bahama. These decreases were partially offset by a $1 million increase 24 Table of Contents in Emerging Brands. Lilly Pulitzer wholesale sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025; •a decrease in e-commerce sales of $2 million, or 2%, including a $7 million decrease in Lilly Pulitzer. This decrease was partially offset by (1) a $3 million increase in Tommy Bahama and (2) a $3 million increase in Emerging Brands. Johnny Was e-commerce sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025; •an increase in food and beverage sales of $5 million, or 14%; •full-price retail sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025, including a $3 million increase in Tommy Bahama. This increase was offset by (1) a $2 million decrease in Johnny Was and (2) a $1 million decrease in Lilly Pulitzer; and •outlet sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025. Tommy Bahama: Tommy Bahama net sales increased $8 million, or 4%, in the First Quarter of Fiscal 2026, with an increase in (1) food and beverage sales of $5 million, or 14%, (2) e-commerce sales of $3 million, or 7%, and (3) full-price retail sales of $3 million, or 3%. These increases were partially offset by a decrease in wholesale sales of $2 million, or 4%. Outlet sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025. The following table presents the proportion of net sales by distribution channel for Tommy Bahama for each period presented: First Quarter Fiscal 2026 Fiscal 2025 Retail 44% 45% E-commerce 20% 19% Food & beverage 17% 16% Wholesale 19% 20% Total 100% 100% Lilly Pulitzer: Lilly Pulitzer net sales decreased $9 million, or 9%, in the First Quarter of Fiscal 2026, with a decrease in (1) e-commerce sales of $7 million, or 17%, and (2) retail sales of $1 million, or 4%. Wholesale sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025. The following table presents the proportion of net sales by distribution channel for Lilly Pulitzer for each period presented: First Quarter Fiscal 2026 Fiscal 2025 Retail 37% 35% E-commerce 38% 42% Wholesale 25% 23% Total 100% 100% 25 Table of Contents Johnny Was: Johnny Was net sales decreased $6 million, or 13%, in the First Quarter of Fiscal 2026, with a decrease in (1) wholesale sales of $4 million, or 34% and (2) full-price retail sales of $2 million, or 11%. E-commerce and outlet sales in the First Quarter of Fiscal 2026 were comparable to the First Quarter of Fiscal 2025. The following table presents the proportion of net sales by distribution channel for Johnny Was for each period presented: First Quarter Fiscal 2026 Fiscal 2025 Retail 38% 37% E-commerce 43% 38% Wholesale 19% 25% Total 100% 100% Emerging Brands: Emerging Brands net sales increased $4 million, or 13%, in the First Quarter of Fiscal 2026 including increases in TBBC, Duck Head, and Jack Rogers. By distribution channel, the increase in net sales in Emerging Brands included increases in (1) e-commerce sales of $3 million, or 21% and (2) wholesale sales of $1 million, or 10%. The following table presents the proportion of net sales by distribution channel for Emerging Brands for each period presented: First Quarter Fiscal 2026 Fiscal 2025 Retail 17% 19% E-commerce 41% 38% Wholesale 42% 43% Total 100% 100% Corporate and Other: Corporate and Other net sales primarily consist of the elimination of any sales between operating segments. Gross Profit The tables below present gross profit by reportable segment and Corporate and Other and in total for the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025, 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. First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Tommy Bahama $ 147,529 $ 139,725 $ 7,804 5.6 % Lilly Pulitzer 55,283 64,929 (9,646) (14.9) % Johnny Was 24,882 28,118 (3,236) (11.5) % Emerging Brands 20,707 20,314 393 1.9 % Corporate and Other (4,518) (800) (3,718) NM % Consolidated gross profit $ 243,883 $ 252,286 $ (8,403) (3.3) % 26 Table of Contents First Quarter Fiscal 2026 Fiscal 2025 Tommy Bahama 65.7% 64.6% Lilly Pulitzer 61.2% 65.6% Johnny Was 65.7% 64.7% Emerging Brands 53.6% 59.3% Corporate and Other NM% NM% Consolidated gross margin 62.3% 64.2% The decreased gross profit of 3% was primarily due to decreased consolidated gross margin. The decreased gross margin was primarily due to (1) approximately $11 million of increased cost of goods sold from additional tariffs implemented starting in Fiscal 2025 and (2) a $4 million higher LIFO accounting charge in the First Quarter of Fiscal 2026 compared to the First Quarter of Fiscal 2025. These decreases were partially offset by (1) updated assortment, sourcing and pricing strategies across our portfolio, (2) lower freight costs to customers due to improved carrier rates from contract renegotiations and (3) a change in sales mix with wholesale sales representing a lower proportion of net sales. Tommy Bahama: The higher gross margin for Tommy Bahama was primarily due to (1) updated assortment, sourcing and pricing strategies, (2) a shift in the timing of loyalty card promotions that led to a shift in promotional sales from the First Quarter of Fiscal 2026 to the Second Quarter of Fiscal 2026, (3) decreased freight costs to customers due to improved carrier rates from contract renegotiations and (4) a change in sales mix with wholesale sales representing a lower proportion of net sales. These increases were partially offset by increased cost of goods sold from additional tariffs implemented starting in Fiscal 2025. Lilly Pulitzer: The lower gross margin for Lilly Pulitzer was primarily due to (1) increased cost of goods sold from additional tariffs implemented starting in Fiscal 2025, (2) a change in sales mix with e-commerce flash sales representing a higher proportion of net sales and (3) a change in sales mix with off-price wholesale sales representing a higher proportion of net sales. These decreases were partially offset by (1) updated assortment, sourcing and pricing strategies and (2) decreased freight costs to customers due to improved carrier rates from contract renegotiations. Johnny Was: The higher gross margin for Johnny Was was primarily due to (1) a revised promotional strategy to have fewer promotional events than in previous periods, (2) updated assortment, sourcing and pricing strategies, (3) decreased freight costs to customers due to improved carrier rates from contract renegotiations and (4) a change in sales mix with wholesale sales representing a lower proportion of net sales. These increases were partially offset by increased cost of goods sold from additional tariffs implemented starting in Fiscal 2025. Emerging Brands: The lower gross margin for Emerging Brands was primarily due to (1) increased cost of goods sold from additional tariffs implemented starting in Fiscal 2025 and (2) higher markdowns during promotional and clearance events. These decreases were partially offset by (1) updated assortment, sourcing and pricing strategies, (2) decreased freight costs to customers due to improved carrier rates from contract renegotiations and (3) a change in sales mix with e-commerce sales representing a higher proportion of net sales. Corporate and Other: The gross profit in Corporate and Other primarily reflects the impact of LIFO accounting adjustments that resulted in a $4 million higher charge in the First Quarter of Fiscal 2026 than the First Quarter of Fiscal 2025. 27 Table of Contents SG&A First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change SG&A 210,888 205,745 $ 5,143 2.5 % SG&A (as a % of net sales) 53.9 % 52.4 % SG&A was $211 million in the First Quarter of Fiscal 2026 compared to $206 million in the First Quarter of Fiscal 2025, with approximately $1 million, or 28%, of the increase due to new brick and mortar retail and food and beverage locations. The 2% increase in total SG&A in the First Quarter of Fiscal 2026 included the following, which, where applicable, includes the SG&A of the new brick and mortar locations: •$2 million increase in employment costs driven primarily by new brick and mortar retail locations; •$2 million increase in variable and distribution costs primarily due to increased variable costs resulting from increased Tommy Bahama sales, distribution related expenses associated with moving operations between our Lyons, Georgia distribution centers and temporarily operating two distribution centers during the transition to the newly constructed facility; •$1 million increase in consulting and professional services related costs; and •$1 million increase in software related costs. These increases were partially offset by: •$1 million decrease in advertising related costs. Depreciation and Amortization First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Depreciation and amortization $ 16,380 $ 16,963 $ (583) (3.4) % Depreciation and amortization (as a % of net sales) 4.2 % 4.3 % The lower depreciation and amortization expense was primarily driven by a $1 million decrease in amortization of intangible assets. Royalties and other operating income First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Royalties and other operating income $ 5,748 $ 6,628 $ (880) (13.3) % 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 2026 was primarily due to decreased royalty income in Tommy Bahama reflecting reduced sales by our licensing partners impacted by higher tariffs. 28 Table of Contents Operating income First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Operating income $ 22,363 $ 36,206 $ (13,843) (38.2) % Operating income (as a % of net sales) 5.7 % 9.2 % Operating income was $22 million in the First Quarter of Fiscal 2026 compared to operating income of $36 million in First Quarter of Fiscal 2025. The decreased operating results were primarily due to (1) lower gross margin primarily from $11 million of increased cost of goods sold from additional tariffs enacted in Fiscal 2025, (2) increased SG&A, (3) decreased net sales and (4) decreased royalties and other operating income. Interest expense, net First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Interest expense, net 2,282 1,726 $ 556 32.2 % The increased interest expense, net in the First Quarter of Fiscal 2026 was primarily due to a higher average outstanding debt balance during the First Quarter of Fiscal 2026 than the First Quarter of Fiscal 2025. Income tax First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Income tax expense 5,093 8,299 $ (3,206) (38.6) % Effective tax rate 25.4 % 24.1 % Our effective tax rate will vary from period to period from a typical annual effective tax rate of approximately 25% based on various factors including, but not limited to, the geographic mix of earnings, enacted tax legislation, state and local taxes, tax audit findings and settlements, and the interaction of various global tax strategies. For the First Quarter of Fiscal 2026, our effective tax rate of 25.4% included 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 return-to-provision adjustments partially offset by additional interest expense on uncertain tax positions and a valuation allowance on certain deferred tax assets related to the wind-down of a foreign subsidiary. For the First Quarter of Fiscal 2025, our effective tax rate of 24.1% included 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. 29 Table of Contents Net earnings First Quarter Fiscal 2026 Fiscal 2025 Net sales $ 391,402 $ 392,861 Operating income $ 22,363 $ 36,206 Net earnings $ 14,988 $ 26,181 Net earnings per diluted share $ 1.00 $ 1.70 Weighted average shares outstanding - diluted 15,005 15,404 Net earnings per diluted share were $1.00 in the First Quarter of Fiscal 2026 compared to $1.70 in the First Quarter of Fiscal 2025 reflecting (1) lower gross margin primarily from $11 million of increased cost of goods sold from additional tariffs enacted in Fiscal 2025, (2) increased SG&A, (3) decreased net sales, (4) decreased royalties and other operating income, (5) increased interest expense and (6) a higher effective tax rate. EBITDA First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Tommy Bahama Segment EBITDA $ 40,118 $ 38,324 $ 1,794 4.7 % Lilly Pulitzer Segment EBITDA 15,007 23,052 (8,045) (34.9) % Johnny Was Segment EBITDA (1,209) (29) (1,180) NM% Emerging Brands Segment EBITDA 2,976 2,851 125 4.4 % Corporate and Other EBITDA (18,149) (11,029) (7,120) NM% EBITDA $ 38,743 $ 53,169 $ (14,426) (27.1) % EBITDA as a % of net sales 9.9 % 13.5 % EBITDA was $39 million in the First Quarter of Fiscal 2026 compared to $53 million in the First Quarter of Fiscal 2025. The decreased EBITDA was primarily due to lower segment EBITDA in Lilly Pulitzer, Corporate and Other and Johnny Was. These decreases were partially offset by increases in Tommy Bahama and Emerging Brands. Changes in segment EBITDA by reportable segment and Corporate and Other are discussed below. Tommy Bahama: First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ 224,636 $ 216,175 $ 8,461 3.9 % Gross profit $ 147,529 $ 139,725 $ 7,804 5.6 % Gross margin 65.7 % 64.6 % Segment EBITDA $ 40,118 $ 38,324 $ 1,794 4.7 % Segment EBITDA as % of net sales 17.9 % 17.7 % The increased segment EBITDA for Tommy Bahama was due to (1) increased net sales and (2) higher gross margin. These increases were partially offset by increased SG&A. The increased SG&A was primarily due to (1) $2 million associated with new brick and mortar retail and food and beverage locations, (2) a $2 million increase in occupancy costs and (3) a $1 million increase in variable and distribution costs resulting from increased net sales. 30 Table of Contents Lilly Pulitzer: First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ 90,373 $ 99,042 $ (8,669) (8.8) % Gross profit $ 55,283 $ 64,929 $ (9,646) (14.9) % Gross margin 61.2 % 65.6 % Segment EBITDA $ 15,007 $ 23,052 $ (8,045) (34.9) % Segment EBITDA as % of net sales 16.6 % 23.3 % The decreased segment EBITDA for Lilly Pulitzer was 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 a $1 million decrease in variable and distribution costs resulting from decreased net sales. Johnny Was: First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ 37,850 $ 43,473 $ (5,623) (12.9)% Gross profit $ 24,882 $ 28,118 $ (3,236) (11.5) % Gross margin 65.7% 64.7% Segment EBITDA $ (1,209) $ (29) $ (1,180) NM Segment EBITDA as % of net sales (3.2%) (0.1%) The decreased segment EBITDA for Johnny Was was primarily due to decreased net sales. This decrease was partially offset by (1) higher gross margin and (2) decreased SG&A. The decreased SG&A was primarily due to (1) a $1 million decrease in advertising costs and (2) a $1 million decrease in employment costs. Emerging Brands: First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ 38,624 $ 34,248 $ 4,376 12.8 % Gross profit $ 20,707 $ 20,314 $ 393 1.9% Gross margin 53.6% 59.3% Segment EBITDA $ 2,976 $ 2,851 $ 125 4.4 % Segment EBITDA as % of net sales 7.7% 8.3% The increased segment EBITDA for Emerging Brands 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 a $1 million increase in variable and distribution costs primarily driven by increased net sales. Corporate and Other: First Quarter Fiscal 2026 Fiscal 2025 $ Change % Change Net sales $ (81) $ (77) $ (4) NM% Gross profit $ (4,518) $ (800) $ (3,718) NM% Corporate EBITDA $ (18,149) $ (11,029) $ (7,120) NM% The decreased segment EBITDA for Corporate and Other was primarily due to (1) a higher LIFO accounting charge and (2) increased SG&A. The increased SG&A was primarily due to (1) a $2 million increase in employment costs primarily driven by increased incentive compensation, (2) a $1 million increase in software related costs and (3) a $1 million increase in consulting and professional services related costs. 31 Table of Contents Non-GAAP Financial Measures The following table sets forth reconciliations of net earnings to EBITDA. EBITDA is calculated as net sales less cost of goods sold and total SG&A, and it excludes income tax expense (benefit), interest expense, net and depreciation and amortization. Adjusted EBITDA is EBITDA less other infrequent operating charges (impairments of goodwill, intangible assets and equity method investments). We believe that the presentation of EBITDA and Adjusted EBITDA, when impairments of goodwill, intangible assets and equity method investments are incurred, neither of which are GAAP financial measures, provides meaningful supplemental information to both management and investors that is indicative of our core operations when considered together with the corresponding GAAP financial measures and the reconciliations to those measures. We believe that EBITDA is a useful measure of operating performance because it helps us, analysts, investors, and other interested parties assess the underlying profitability of our operations before the effects of certain net expenses that directly arise from our capital investment decisions (depreciation, amortization), financing decisions (interest) and tax strategies (income taxes). EBITDA and Adjusted EBITDA help us, analysts, investors, and other interested parties evaluate our operating performance on a comparable basis from period-to-period so that we can better understand the ongoing factors and trends affecting our business operations. We also use EBITDA, and Adjusted EBITDA when applicable, to forecast our performance, evaluate our actual results against our forecasts and compare our results to others in the industries that we serve. We do not, nor do we suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The table below showing consolidated totals reconciles GAAP net earnings to EBITDA: First Quarter Fiscal 2026 Fiscal 2025 GAAP net earnings $ 14,988 $ 26,181 Depreciation and amortization 16,380 16,963 Interest expense, net 2,282 1,726 Income tax expense $ 5,093 $ 8,299 EBITDA 38,743 53,169 FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Our primary source of revenue and cash flow is through our design, sourcing, marketing and distribution of branded apparel products bearing the trademarks of our Tommy Bahama, Lilly Pulitzer, Johnny Was, Southern Tide, TBBC, Duck Head and Jack Rogers lifestyle brands. We primarily distribute our products to our customers via direct to consumer channels of distribution, but we also distribute our products via wholesale channels of distribution. Our primary uses of cash flow include the purchase of our branded apparel products from third party suppliers located outside of the United States, as well as operating expenses, including employee compensation and benefits, operating lease commitments and other occupancy-related costs, marketing and advertising costs, information technology costs, variable expenses, distribution costs, other general and administrative expenses and the periodic payment of interest. Additionally, we use our cash to fund capital expenditures and other investing activities, dividends, share repurchases and repayment of indebtedness, if any. In the ordinary course of business, we maintain certain levels of inventory, extend credit to our wholesale customers and pay our operating expenses. Thus, we require a certain amount of ongoing working capital to operate our business. Our need for working capital is typically seasonal with the greatest working capital requirements to support our larger spring, summer and holiday direct to consumer seasons. Our capital needs depend on many factors including the results of our operations and cash flows, anticipated growth rates, the need to finance inventory levels and the success of our various products. 32 Table of Contents Cash Flow Activity The following table sets forth the net cash flows for the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025 (in thousands): First Quarter Fiscal 2026 Fiscal 2025 Cash provided by (used in) operating activities $ 7,902 $ (3,942) Cash used in investing activities (22,771) (23,455) Cash provided by financing activities 16,107 25,959 Net change in cash and cash equivalents $ 1,238 $ (1,438) Changes in cash flows in the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025 related to operating activities, investing activities and financing activities are discussed below. Operating Activities: In the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025, operating activities provided $8 million and used $4 million of cash, respectively. The cash flow from operating activities for each period primarily consisted of net earnings for the relevant period adjusted, as applicable, for non-cash activities including impairment charges, depreciation, amortization of intangible assets, amortization of deferred financing costs, equity-based compensation and other non-cash items as well as the net impact of changes in deferred income taxes and operating assets and liabilities. In the First Quarter of Fiscal 2026, the net change in operating assets and liabilities from the end of Fiscal 2025 decreased cash provided by operating activities, was primarily due to: •an increase in receivables, due to the seasonality of our business resulting in a higher proportion of wholesale sales occurring early in our fiscal year, as well as the timing of sales and cash receipts; •a decrease in current liabilities due primarily to decreased accrued compensation driven by the timing of payments; and •an increase in both prepaid expenses and other current assets and other balance sheet changes due primarily to increases in prepaid software costs and software as a service ("SaaS") configuration costs. These decreases in cash provided by operating activities were partially offset by: •a decrease in inventories, due to the seasonality of our business, with inventory balances decreasing early in the fiscal year due to a higher proportion of sales typically occurring early in our fiscal year. Our inventories at May 2, 2026 included $9 million of costs capitalized into inventory related to the U.S. tariffs implemented in Fiscal 2025; and •a decrease in income tax receivables. In the First Quarter of Fiscal 2025, the net change in operating assets and liabilities from the end of Fiscal 2024 decreased cash provided by operating activities primarily due to: •an increase in receivables, due to the seasonality of our business resulting in a higher proportion of wholesale sales occurring early in our fiscal year, as well as an increase in tenant improvement allowance receivables and the timing of sales and cash receipts; •an increase in prepaid expenses and other current assets and other balance sheet changes due primarily to increases in prepaid software costs and SaaS configuration costs; and •a decrease in current liabilities due primarily to decreased accounts payable driven by the timing of inventory purchases 33 Table of Contents These decreases in cash provided by operating activities were partially offset by: •a decrease in inventories, due to the seasonality of our business, with inventory balances decreasing early in the fiscal year due to a higher proportion of sales typically occurring early in our fiscal year. This decrease was partially offset by the acceleration of inventory purchases to minimize the impact of tariff increases implemented in the First Quarter of Fiscal 2025; and •a decrease in income tax receivables. Investing Activities: In both the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025, investing activities used $23 million of cash. On an ongoing basis, our cash flow used in investing activities primarily consists of our capital expenditures, which totaled $23 million in both the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025. Financing Activities: In the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025, financing activities provided $16 million and $26 million of cash, respectively. In the First Quarter of Fiscal 2026, net cash proceeds from debt were $26 million as our long-term debt increased due to capital expenditures of $23 million and dividends of $11 million collectively exceeding cash flow from operations. In the First Quarter of Fiscal 2025, net cash proceeds from debt were $87 million as our long-term debt increased due to share repurchases of $51 million, capital expenditures of $23 million and dividends of $10 million collectively exceeding cash flow from operations. Liquidity and Capital Resources We have a long history of generating sufficient cash flows from operations to satisfy our cash requirements for our ongoing capital expenditure needs as well as payment of dividends and repayment of our debt. Thus, we believe our anticipated future cash flows from operating activities will provide (1) sufficient cash over both the short and long term to satisfy our ongoing operating cash requirements, (2) funds to complete our multi-year project to build a new distribution center in Lyons, Georgia to enhance the direct to consumer throughput capabilities of our brands, (3) funds to continue to invest in our businesses, including direct to consumer initiatives and information technology projects, (4) additional cash flow to repay debt that may be outstanding and (5) sufficient cash for other strategic initiatives such as acquisitions and share repurchases. To the extent cash flow needs, for acquisitions or otherwise, in the future exceed cash flow provided by our operations, we will have access, subject to its terms, to our $325 million U.S. Revolving Credit Agreement to provide funding for operating activities, capital expenditures and acquisitions, if any, and any other investing or financing activities. The U.S. Revolving Credit Agreement matures in March 2028. We issue standby letters of credit under the U.S. Revolving Credit Agreement. Outstanding letters of credit under the U.S. Revolving Credit Agreement reduce the amount of borrowings available to us when issued and, as of May 2, 2026, January 31, 2026, and May 3, 2025, totaled $5 million, $5 million and $5 million, respectively. As of May 2, 2026, January 31, 2026 and May 3, 2025 we had $143 million, $116 million and $118 million, respectively, of borrowings outstanding and $177 million, $203 million and $203 million, respectively, in unused availability under the U.S. Revolving Credit Agreement. Our cash, short-term investments and debt levels in future periods may not be comparable to historical amounts as we continue to assess, and possibly make changes to, our capital structure, including borrowings from additional credit facilities, sales of debt or equity securities or the repurchase of shares of our stock in the future. Changes in our capital structure, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. 34 Table of Contents Compliance with Covenants The U.S. Revolving Credit Agreement is subject to a number of affirmative covenants regarding the delivery of financial information, compliance with law, maintenance of property, insurance requirements and conduct of business. Also, the U.S. Revolving Credit Agreement is subject to certain negative covenants or other restrictions including, among other things, limitations on our ability to (1) incur debt, (2) guaranty certain obligations, (3) incur liens, (4) pay dividends to shareholders, (5) repurchase shares of our common stock, (6) make investments, (7) sell assets or stock of subsidiaries, (8) acquire assets or businesses, (9) merge or consolidate with other companies or (10) prepay, retire, repurchase or redeem debt. Additionally, the U.S. Revolving Credit Agreement contains a financial covenant that applies only if excess availability under the agreement for three consecutive business days is less than the greater of (1) $23.5 million or (2) 10% of availability. In such case, our fixed charge coverage ratio as defined in the U.S. Revolving Credit Agreement must not be less than 1.0 to 1.0 for the immediately preceding 12 fiscal months for which financial statements have been delivered. This financial covenant continues to apply until we have maintained excess availability under the U.S. Revolving Credit Agreement of more than the greater of (1) $23.5 million or (2) 10% of availability for 30 consecutive days. We believe that the affirmative covenants, negative covenants, financial covenants and other restrictions under the U.S. Revolving Credit Agreement are customary for those included in similar facilities entered into at the time we amended the U.S. Revolving Credit Agreement. During the First Quarter of Fiscal 2026 and as of May 2, 2026, no financial covenant testing was required pursuant to the U.S. Revolving Credit Agreement, as the minimum availability threshold was met at all times. As of May 2, 2026, we were compliant with all applicable covenants related to the U.S. Revolving Credit Agreement. Operating Lease Commitments: Refer to Note 4 in our unaudited condensed consolidated financial statements included in this report for additional information about our operating lease commitments as of May 2, 2026. Dividends: On June 9, 2026, our Board of Directors approved a cash dividend of $0.70 per share payable on July 31, 2026 to shareholders of record as of the close of business on July 17, 2026. Although we have paid dividends each quarter since we became a public company in July 1960, we may discontinue or modify dividend payments at any time if we determine that other uses of our capital, including payment of outstanding debt, funding of acquisitions, funding of capital expenditures or repurchases of outstanding shares, may be in our best interest; if our expectations of future cash flows and future cash needs outweigh the ability to pay a dividend; or if the terms of our credit facility, other debt instruments or applicable law limit our ability to pay dividends. We may borrow to fund dividends or repurchase shares in the short term subject to the terms and conditions of our credit facility, other debt instruments and applicable law. All cash flow from operations will not be paid out as dividends. Share Repurchases: On March 24, 2025, our Board of Directors authorized us to spend up to $100 million to repurchase shares of our stock. This authorization superseded and replaced all previous authorizations to repurchase shares of our stock and has no automatic expiration. During the First Quarter of Fiscal 2026, we repurchased no shares of our common stock. During the First Quarter of Fiscal 2025, we repurchased a total of 842,007 shares in open market repurchases at an average price of $59.38 for $50 million under a previous December 10, 2024, Board of Directors authorization to repurchase up to $100 million shares of our stock. As of May 2, 2026, $95 million remained under the March 24, 2025, Board of Directors' authorization. Capital Expenditures: Capital expenditures of $23 million for the First Quarter of Fiscal 2026 were comparable to the $23 million in the First Quarter of Fiscal 2025. Our capital expenditures in both the First Quarter of Fiscal 2026 and First Quarter of Fiscal 2025 related primarily to (1) the multi-year project to build a new distribution center in Lyons, Georgia to invest in a modern and more efficient distribution center for our brands and (2) the opening of food and beverage and retail store locations. 35 Table of Contents Capital expenditures do not include SaaS implementation expenditures that were $3 million and $11 million for the First Quarter of Fiscal 2026 and the First Quarter of Fiscal 2025, respectively. SaaS implementation costs on the condensed consolidated balance sheets as of May 2, 2026, January 31, 2026 and May 3, 2025 totaled $34 million, $33 million and $34 million and are included in prepaid expenses and other current assets and other assets in the condensed consolidated balance sheets. Changes in current and noncurrent SaaS implementation assets are included in prepaid expenses and other current assets and other balance sheet changes, respectively, in the condensed consolidated statements of cash flows. Other Liquidity Items: Our contractual obligations as of May 2, 2026, except for the increased debt outstanding, as discussed above, have not changed materially from the contractual obligations outstanding at January 31, 2026, as disclosed in our Fiscal 2025 Form 10-K. We have not entered into agreements which meet the SEC’s definition of an off balance sheet financing arrangement, other than operating leases, and have made no financial commitments or guarantees with respect to any unconsolidated subsidiaries or special purpose entities. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP in a consistent manner. The preparation of these financial statements requires the selection and application of accounting policies. Further, the application of GAAP requires us to make estimates and judgments about future events that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience, current trends and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe it is possible that other professionals, applying reasonable judgment to the same set of facts and circumstances, could develop and support a range of alternative estimated amounts. We believe that we have appropriately applied our critical accounting policies. However, in the event that inappropriate assumptions or methods were used relating to the critical accounting policies, our consolidated statements of operations could be materially misstated. Our critical accounting policies and estimates are discussed in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2025 Form 10-K. During the First Quarter of Fiscal 2026, there have not been any significant changes to our critical accounting policies and estimates. A detailed summary of significant accounting policies is included in Note 1 to our consolidated financial statements contained in our Fiscal 2025 Form 10-K. SEASONAL ASPECTS OF OUR BUSINESS Each of our operating segments is impacted by seasonality as the demand by specific product or style, as well as by distribution channel, may vary significantly depending on the time of year. As a result, our quarterly operating results and working capital requirements fluctuate significantly from quarter to quarter. Typically, the demand for products for our larger brands is higher in the spring, summer and holiday seasons and lower in the fall season (the third quarter of our fiscal year). Thus, our third quarter historically has had the lowest net sales and net earnings compared to other quarters. Further, the impact of certain unusual or non-recurring items, economic conditions, our e-commerce flash clearance sales, wholesale product shipments, weather, acquisitions or other factors affecting our operations may vary from one year to the next. Therefore, due to the potential impact of these items, we do not believe that net sales or operating income in the First Quarter of Fiscal 2026 is indicative of the expected proportion of amounts by quarter for future periods.