Oxford Industries Faces Financial Pressures Amid Inventory Concerns and Brand Performance Challenges

Analyst Paul Lejuez from Citi maintained a Sell rating on Oxford Industries and keeping the price target at $44.00.

Paul Lejuez has given his Sell rating due to a combination of factors impacting Oxford Industries. Despite the company’s second-quarter earnings per share (EPS) exceeding expectations, the performance of key brands like Tommy Bahama was below management’s expectations, indicating potential challenges in maintaining growth momentum. Additionally, while management reaffirmed their fiscal 2025 sales and EPS guidance, the third-quarter EPS guidance suggests a loss that is worse than consensus estimates, highlighting ongoing financial pressures.
Inventory levels remain a concern, with a significant year-over-year increase, partly due to early stockpiling to avoid tariffs. This elevated inventory poses a risk if sales do not meet expectations, potentially leading to further financial strain. Moreover, while there is some improvement in sales trends, the overall operating margin has declined, and the company faces a challenging market environment. These factors contribute to the cautious outlook and the decision to rate the stock as a Sell.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OXM in relation to earlier this year.