OXM - Oxford Industries Is Growing And Fairly Valued But Not An Opportunity Yet

2024-03-29 11:47:52 ET

Summary

• Oxford Industries owns and manages the brands Tommy Bahama, Lilly Pulitzer, Johnny Was, and others. Their focus is on resort affordable luxury.
• Oxford has a successful track record of acquiring, nurturing, and profitably growing brands, with several examples throughout two decades.
• The company has had stable margins for the past two decades and has other desirable characteristics, such as a track record, long-tenured management, higher-end position, and low leverage.
• In the post-pandemic, Oxford has been posting record sales and profitability. In my opinion this was driven by high store productivity, particularly for Tommy Bahama.
• I believe the current stock price is fair, but would consider below $90 an opportunity.

Oxford Industries ( OXM ) owns and manages the brands Tommy Bahama, Lilly Pulitzer, Johnny Was, and others.

The company has managed a successful brand acquisition strategy since 2003. It has shown that it can grow acquired brands profitably in the US. On top of that, it has other quality characteristics like a long-standing management team, stable margins, and low leverage....

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