Oxford Industries Inc. ($OXM) Stock: Faces Sales Challenges Amid Market Pressures

TLDR

Q1 net sales dropped slightly to $393 million from $398 million last year. E-commerce and brick-and-mortar sales declined; wholesale sales rose 4%. Adjusted EPS came in at $1.82, matching analyst estimates. Gross margin contracted by 110 basis points to 64.3%. Oxford progresses on shifting supply chains away from China.

Oxford Industries Inc. (NYSE: OXM) closed at $50.03 on June 11, 2025, falling 8.60% during the day and another 9.59% pre-market to $45.25.

Oxford Industries, Inc. (OXM)

The company posted first-quarter fiscal 2025 results that aligned with expectations but revealed persistent challenges across several sales channels. Consolidated net sales slipped to $393 million from $398 million in the same quarter of 2024.

Brick-and-mortar sales dropped 1% with a negative 5% comparable sales figure, while e-commerce sales declined by 5%. However, wholesale sales provided some relief, increasing 4% compared to the prior year.

Oxford Industries, $OXM, Q1-25. Results:
🔴 -10% Post-Market 🚨

📊 Adj. EPS: $1.82 🟢
💰 Revenue: $393M 🟢
📈 Net Income: $26M
🔎 Despite headwinds from new tariffs and a slight revenue dip, Lilly Pulitzer posted double-digit growth, and gross margins remained strong above 64%. pic.twitter.com/yJ5Vyx3gFH

— EarningsTime (@Earnings_Time) June 11, 2025

Margins Suffer Despite Controlled Costs

Oxford’s adjusted gross margin narrowed by 110 basis points to 64.3%. The decline was attributed to higher freight expenses and markdowns designed to maintain competitiveness. Adjusted selling, general, and administrative (SG&A) expenses increased by 5% to $221 million, straining profitability. As a result, adjusted operating profit reached $39 million with an operating margin of 9.8%.

Inventory levels rose by $18 million, or 12%, on a Last-In-First-Out (LIFO) basis, reflecting seasonal stocking and new product introductions. Long-term debt stood at $118 million, and operating cash flow used totaled $4 million. Oxford repurchased $51 million worth of shares and spent $23 million on capital expenditures during the quarter.

Brand Performance Shows Mixed Signals

The Lilly Pulitzer brand delivered strong results, with double-digit growth across both e-commerce and retail channels. Higher average order sizes and improved profitability buoyed this performance. Conversely, the Johnny Was brand faced mid-teens sales declines, with improvement efforts expected to bear fruit only by 2026.

Oxford opened two new Tommy Bahama Marlin Bars, aimed at boosting retail business and customer engagement.

Strategic Moves to Enhance Competitiveness

Oxford continues to shift its supply chain away from China, planning to complete the transition by the second half of 2026. Its new fulfillment center in South Georgia remains on track for completion this fiscal year, promising improved efficiency in the Southeastern U.S. region.

Outlook Remains Cautious

For fiscal 2025, Oxford forecasts net sales between $1.475 billion and $1.515 billion and adjusted EPS ranging from $2.80 to $3.20. Second-quarter sales are projected at $395 million to $415 million with adjusted EPS between $1.05 and $1.25. Capital expenditures for the year are expected to reach approximately $120 million.

Oxford Industries shares have lost about 30.5% year-to-date compared to the S&P 500’s 2.7% gain, reflecting investor caution amid uncertain consumer sentiment and trade policy risks.

 

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