OXM - Oxford's Q1 2024 Was Challenging And The Stock Is Not An Opportunity
2024-07-03 11:34:16 ET
Summary
- Oxford Industries 1Q24 results show a 5% revenue decline and lower operating margins due to cost deleveraging.
- Concerns arise from challenging comparable sales, lackluster performance in certain brands, and lack of improvement in gross margins.
- Valuation of Oxford stock at a P/E of 11x to 12x seems fair considering negative economic and fashion cycles, but not opportunistic.
This article covers Oxford Industries ( OXM ) 1Q24 results and earnings call .
The results were not out of line in absolute terms, with revenues down 5% and operating margins falling because of cost deleveraging. This has been the state of many retail companies for 2022 and 2023. On a comparable basis, though, the company's results are a little more worrying, especially for some of its brands, like Johnny Was....
Oxford's Q1 2024 Was Challenging, And The Stock Is Not An Opportunity