What Oxford Industries, Inc. told the SEC could break it.

Oxford imports nearly all its apparel, so it is heavily exposed to U.S. tariffs — it paid $95 million of duties and tariffs in Fiscal 2025 (up from $60M), with the average duty/tariff rate rising to ~30% of imported value (from ~19%) and ~$30M of incremental COGS from FY2025 tariffs compressing gross margin; it also faces UFLPA/Xinjiang forced-labor withhold-release orders and potential anti-dumping/countervailing duties.

“We paid total duties and tariffs of $95 million on products imported into the United States directly by us in Fiscal 2025, compared to $60 million in Fiscal 2024, representing a significant year-over-year increase. The average duty and tariff rate on those products was approximately 30% of the value of the imported product in Fiscal 2025, compared to approximately 19% in Fiscal 2024.”

Oxford's production costs are exposed to fluctuating raw-material prices — cotton, dyes, chemicals and oil-related commodities — and it has historically not used futures contracts to hedge commodity prices; it has experienced cotton and other raw-material cost increases, and employment costs (~42% of consolidated SG&A) are rising across its retail, restaurant, distribution and supplier base.

“In recent years, we have experienced fluctuations in the costs of raw materials, including cotton, that impacted our production costs, and we may experience further price increases for raw materials in future years.”

Oxford's manufacturing operations remain concentrated in Asia — in Fiscal 2025 China was 29% of products purchased (down from ~40%), Vietnam 24% and Indonesia 10% — and even cotton used in products manufactured outside China largely originates from Chinese fabric mills; this concentration exposes it to China-specific tariff, forced-labor and supply-disruption risk despite ongoing sourcing diversification.

“our manufacturing operations remain concentrated in Asia, cotton is among the principal raw materials used in many of our goods and even the cotton used in our products manufactured outside of China largely originates from Chinese fabric mills.”

Oxford's Johnny Was brand is a concentrated problem area — approximately 90% of its products are sourced from China and subject to elevated import tariffs, and due to its product assortment and supply-chain dependencies it has been unable to diversify sourcing as fast as Oxford's other segments; combined with leadership changes, underperforming-store closures and declining net sales, these constitute impairment triggering events for the brand.

“Approximately 90 % of Johnny Was products are sourced from China and are subject to elevated import tariffs. Due to the nature of its product assortment and supply chain dependencies, the brand has been unable to diversify sourcing to other countries as rapidly as our other operating segments.”