- Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Oxford Industries Inc OXM with a price target of $125.00.
- The analyst said Oxford's customers are in a good place as they are still traveling and spending.
- Its higher-end customers have proven to be somewhat insulated from the more challenging macro conditions as the company continues to grow its topline, acquire new customers, and retain existing ones, the analyst added.
- The company noted that late October and early November were a bit slow, but then business bounced back over the Thanksgiving weekend.
- This trend compares to one year ago when consumers shopped early, given low inventory levels and concerns over shipping delays, Telsey added.
- While there is still a lot of holiday shopping time remaining, the company is well-positioned based on current spending and positive indicators for a robust travel season, added the analyst.
- While next year's economic outlook is uncertain and a recession is a possibility, Oxford believes it will be able to execute through a more pronounced downturn.
- Intending to expand the brand's annual operating margin, the Tommy Bahama team began implementing merchandising and marketing changes before the pandemic, said the analyst.
- Supported by these efforts, the Tommy Bahama brand has performed well over the past several years, with the expectation for continued growth.
- The analyst specified that Tommy's marketing shifted much more towards digital during the pandemic, with the overall tone and messaging now highlighting the brand lifestyle.
- As the current operating environment continues to challenge consumers and companies, management noted that the wholesale channel has also been pressured, the analyst said.
- Oxford's bookings have been relatively flattish Y/Y, implying that the company is gaining share.
- Telsey added, in 2023, the wholesale channel is expected to come in flat Y/Y as growth moderates due to the continued pressures of the current environment.
- Price Action: OXM shares are trading lower by 1.15% at $98.55 on the last check Friday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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