Breaking Down Oxford Industries, Inc. (OXM) Financial Health: Key Insights for Investors

You're looking at Oxford Industries, Inc. (OXM) and seeing a stock trading near its 52-week low, but still paying a hefty dividend-so what's the real story behind the numbers? Honestly, the financial health of the owner of Tommy Bahama and Lilly Pulitzer is a complex picture right now, with management guiding for full-year 2025 net sales between $1.475 billion and $1.515 billion, a slight dip from last year, and adjusted earnings per share (EPS) expected in the $2.80 to $3.20 range. The big headwind is tariffs, which, without mitigation, could have cost the company an incremental $80 million this fiscal year. Still, they delivered a Q2 adjusted EPS of $1.26, beating analyst expectations, which shows operational discipline. My quick math tells me you can't ignore a stock with an annualized dividend of $2.76 and a yield over 7.7% right now. The Street is mixed with a 'Reduce' consensus and an average price target of $54.40, but we need to defintely dig deeper to see if that high yield is sustainable or a value trap given the revenue pressures.

Revenue Analysis

You need to know where the money is coming from at Oxford Industries, Inc. (OXM) to gauge the stability of your investment, especially with consumer spending tightening. The direct takeaway is that while the core brand, Tommy Bahama, remains the dominant revenue driver, its recent sales decline, coupled with a drop in Johnny Was, is pulling down the overall top line, forcing the company to manage a challenging 4% year-over-year consolidated net sales decline in the second quarter of fiscal 2025.

For the full fiscal year 2025, Oxford Industries, Inc. is guiding for consolidated net sales between $1.475 billion and $1.515 billion, which is a contraction compared to the $1.52 billion reported in fiscal 2024. This is a clear signal that the tailwinds from the post-pandemic spending surge have faded, and the company is now navigating a period of macroeconomic uncertainty and tariff headwinds. Honestly, this is a moment for realism, not just optimism.

The company's revenue streams are cleanly segmented across its four main business units. During the second quarter of fiscal 2025, which ended on August 2, 2025, consolidated net sales were $403.14 million. The vast majority of this revenue comes from two established lifestyle brands, but you need to pay close attention to the smaller, high-growth segments to understand the future trajectory.

• Tommy Bahama: The powerhouse, contributing $229 million of Q2 2025 sales.
• Lilly Pulitzer: A strong second, with $90.3 million in Q2 2025.
• Johnny Was: The third largest, bringing in $45.4 million for the quarter.
• Emerging Brands: The smallest but fastest-growing segment at $38.5 million.

Here's the quick math on how each brand contributed to the Q2 2025 total, showing you where the risk is concentrated:

The most significant change in the revenue mix is the divergent growth rates. While the core brands are struggling-Tommy Bahama was down 6.6% and Johnny Was dropped 9.7% in Q2 2025-the Emerging Brands segment is a defintely bright spot, surging by 17% year-over-year. This growth in the smaller brands is a necessary offset to the broader slowdown. Also, the sales channels are seeing pressure; in Q2 2025, full-price retail sales were down 6%, and e-commerce saw a 2% decline, but the food and beverage locations showed modest growth. This shift means the company is leaning more on its smaller, newer brands and its unique dining experiences to stabilize the top line. To dive deeper into who is betting on this strategy, you should read Exploring Oxford Industries, Inc. (OXM) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need to know if Oxford Industries, Inc. (OXM) is converting its premium pricing into bottom-line profits, especially as macroeconomic headwinds hit consumer spending. The direct takeaway is that while the company maintains a strong gross margin, its operational efficiency is under significant pressure, causing its operating and net profit margins to lag behind industry averages.

For the second quarter of fiscal year 2025 (Q2 2025), Oxford Industries, Inc. reported consolidated net sales of $403 million. The key profitability metrics show a clear squeeze from the cost side, which is the immediate risk you need to factor into your valuation models.

Gross, Operating, and Net Margins: The Q2 2025 Snapshot

The company's gross profit margin (Gross Profit / Net Sales) remains a bright spot, reflecting its success in maintaining premium pricing power for brands like Tommy Bahama and Lilly Pulitzer. However, the drop-through to operating and net income is concerning. Here's the quick math for Q2 2025:

• Gross Profit Margin: 61.4%. This is the highest margin, showing strong product mark-up over the cost of goods sold (COGS).
• Operating Profit Margin: 5.5%. Calculated from a Gross Profit of $248 million minus Selling, General, and Administrative (SG&A) expenses of $226 million, divided by Net Sales of $403 million.
• Net Profit Margin: 4.14%. This is the final percentage of revenue left after all expenses, including interest and taxes.

The gap between the Gross Margin and the Operating Margin is the story here. High SG&A expenses are eating up nearly all the gross profit. That's a defintely a red flag for cost management efficiency.

Profitability Trends and Operational Efficiency

The trend in profitability for Oxford Industries, Inc. is one of contraction in fiscal year 2025, driven by two primary forces: tariffs and rising operating expenses. The operational efficiency (or lack thereof) is most evident in the margin decline:

• Gross Margin declined to 61.4% in Q2 2025 from 63.1% in Q2 2024. This decrease was primarily due to approximately $9 million in increased COGS from additional tariffs implemented this fiscal year.
• Operating Income took a major hit, dropping 31.0% in Q1 2025. This dramatic decline is the result of both the lower gross margin and a 4.0% increase in SG&A expenses to $226 million in Q2 2025.

The company is effectively absorbing significant cost increases-both from tariffs (COGS) and overhead (SG&A)-instead of fully passing them to the customer or cutting costs elsewhere. This is a deliberate trade-off to maintain brand perception, but it severely compresses the bottom line. You can see how this strategy aligns with the company's long-term brand focus by reviewing the Mission Statement, Vision, & Core Values of Oxford Industries, Inc. (OXM).

Comparison with Industry Averages

When you compare Oxford Industries, Inc.'s margins to the broader industry, its premium positioning is clear, but its operational leverage is weak. The company sits between general apparel retail and true global luxury, and its margins reflect that mixed status.

The luxury goods sector, which includes many of Oxford Industries, Inc.'s aspirational peers, operates with an average trailing twelve-month (TTM) operating margin of approximately 22.02%. Megabrands in the fashion and leather goods segment, like those in LVMH, can achieve EBIT margins as high as 37%.

Here is a comparison of Oxford Industries, Inc.'s Q2 2025 performance against the general apparel retail benchmark for 2025:

The 5.5% operating margin is less than half the low end of the ideal apparel retail benchmark of 10%. This tells you the company has a structural issue with its operating expense ratio (SG&A/Sales), which is preventing it from realizing the full benefit of its strong gross margin. The key action item here is to monitor management's ability to control SG&A in the second half of FY 2025.

Debt vs. Equity Structure

You need to know how Oxford Industries, Inc. (OXM) is funding its growth, especially when market conditions are challenging. The short answer is that the company maintains a conservative debt profile relative to its peers, but its recent capital allocation decisions have increased its leverage in fiscal year 2025. This move, while funding shareholder returns, warrants close attention.

As of the most recent data from the second quarter of fiscal year 2025, Oxford Industries, Inc. reported total debt of approximately $81.4 million. This figure is predominantly long-term debt, which stood at $81 million, meaning its short-term debt obligations are very low or negligible. The total shareholder equity, the capital structure's other half, was robust at about $597.1 million. That's a very healthy equity cushion.

Here's the quick math on their leverage:

• Total Debt (Q2 2025): $81.4 million
• Total Equity (Q2 2025): $597.1 million
• Debt-to-Equity (D/E) Ratio: 0.14 (or 13.6%)

The company's Debt-to-Equity (D/E) ratio-a key measure of financial leverage-is only about 0.14, meaning for every dollar of equity, Oxford Industries, Inc. has only 14 cents of debt. To be fair, this is significantly lower than the apparel manufacturing industry average, which typically hovers around 0.80. This suggests a far more conservative approach to financing and a lower inherent financial risk compared to most competitors. They are defintely not overleveraged.

The more interesting story is the recent shift in financing. The total debt of $81 million in Q2 2025 is a notable jump from the $31 million reported at the end of fiscal 2024. This increase wasn't for a major acquisition, but rather to fund a combination of capital expenditures (CAPEX) and shareholder returns. Specifically, the company is investing heavily, with expected CAPEX of approximately $125 million in fiscal 2025 for projects like the new Lyons, Georgia distribution center and new store openings.

The balance between debt and equity has tilted slightly toward debt to fund a more aggressive capital allocation strategy, which included paying dividends and repurchasing shares. This is a strategic choice: using debt to reduce the share count (equity) and boost shareholder payouts, even as earnings face pressure from factors like tariffs. This strategy has also pushed up their interest expense, which is anticipated to be around $7 million for the full fiscal year 2025.

Here is a snapshot of the change in their capital structure:

The key action for you is to monitor the effectiveness of this debt-funded strategy. If the $125 million in CAPEX translates into strong future revenue growth and the share buybacks provide a meaningful earnings per share (EPS) lift, the increased debt is a smart move. If not, the higher interest expense and leverage will become a headwind. For a deeper dive into the company's full financial picture, you can check out the rest of the analysis at Breaking Down Oxford Industries, Inc. (OXM) Financial Health: Key Insights for Investors.

Liquidity and Solvency

Oxford Industries, Inc.'s short-term liquidity, while still adequate, shows signs of pressure in the first half of fiscal year 2025, mostly due to strategic inventory build-up and a deliberate increase in debt to fund capital allocation. Your immediate takeaway should be this: the company can cover its near-term obligations, but the quality of its current assets is heavily weighted toward inventory, and cash flow from operations is down significantly year-over-year.

As of the end of the second quarter of fiscal 2025 (August 2, 2025), the liquidity position is tighter than a typical healthy retailer. The Current Ratio (Current Assets divided by Current Liabilities) stood at approximately 1.18 ($294.049 million / $248.238 million). This means Oxford Industries, Inc. has $1.18 in current assets for every dollar of current liabilities. The more stringent Quick Ratio (excluding inventory), which is a better gauge for a retailer, was only about 0.51. That's a low number, but to be fair, it reflects the nature of the apparel business where inventory is a huge part of the balance sheet.

The working capital trends clearly show management's choice to accelerate inventory purchases, a move intended to mitigate the impact of new tariffs and supply chain risks. Inventories, net, ballooned to $166.670 million in Q2 2025, up from $139.583 million in the prior year period. This decision, plus the increase in Accounts Payable to $95.625 million, shows the company is using supplier credit more heavily and tying up more capital in goods, which defintely warrants a closer look at inventory turnover in the coming quarters.

Looking at the cash flow statement overview for the first half of fiscal 2025, cash flow from operations provided $80 million, a noticeable drop from $122 million in the first half of 2024. This decline is a direct result of lower net earnings and those working capital needs, plus a $15 million expenditure for cloud computing implementation costs that hit the operating cash flow. Investing cash flow is negative, driven by planned capital expenditures-expected to be $120 million for the full fiscal year 2025-for new stores and their new distribution center. Financing cash flow shows a new long-term debt balance of $81 million, up from zero borrowings at the end of Q2 2024, because the company used cash for dividends and share repurchases.

The primary liquidity strength is the company's strong brand portfolio and its ability to generate significant gross margins (around 61.4% in Q2 2025). The most immediate concern, however, is the increase in long-term debt to $81 million, which was used to fund capital returns (dividends and buybacks) even as operating profitability was falling. This capital allocation strategy, while shareholder-friendly, is a risky move given the challenging environment, which we detail further in Exploring Oxford Industries, Inc. (OXM) Investor Profile: Who's Buying and Why?. Finance needs to monitor that new debt closely against the declining operating cash flow.

Valuation Analysis

Oxford Industries, Inc. (OXM) presents a classic value dilemma: its traditional valuation multiples scream undervalued, but the stock's drastic price decline and mixed analyst sentiment suggest the market is pricing in significant near-term risk. The direct takeaway is that while the stock is statistically cheap, you defintely need to understand the underlying earnings pressure before calling it a clear 'Buy.'

The Case for Statistical Undervaluation

When we look at the core valuation ratios, Oxford Industries, Inc. (OXM) appears deeply discounted against its historical averages and the broader retail sector. The price-to-earnings (P/E) ratio, which measures the price you pay for every dollar of earnings, sits at approximately 9.55 on a trailing twelve-month (TTM) basis, and the forward P/E for the 2025 fiscal year is around 10.62. For context, a P/E in the low double-digits for a branded apparel company is quite low.

Even more compelling is the price-to-book (P/B) ratio, which is currently around 0.87. A P/B below 1.0 means the stock is trading for less than the value of its net assets (book value), which is a strong indicator of undervaluation, though it often signals deep market skepticism about asset quality or future earnings power.

Finally, the enterprise value-to-EBITDA (EV/EBITDA) ratio, a capital-structure-neutral metric, is also low at approximately 6.5x on a latest twelve months (LTM) basis. This low multiple suggests the company is cheap relative to its operating cash flow before accounting for debt and depreciation.

• P/E (TTM): 9.55
• P/B (Current): 0.87
• EV/EBITDA (LTM): 6.5x

Stock Performance and Dividend Reality

The reason for these low multiples is clear when you look at the stock chart. Over the last 12 months leading up to November 2025, the stock price for Oxford Industries, Inc. (OXM) has plummeted by over 54%. The price has fallen from a 52-week high of $89.86 to a recent trading price near $33.62. This massive correction reflects market concern over slowing sales, particularly in the Exploring Oxford Industries, Inc. (OXM) Investor Profile: Who's Buying and Why? Lilly Pulitzer brand, and conservative wholesale ordering.

Still, the dividend profile is a major draw for income investors. The current annual dividend is approximately $2.76 per share, translating to a substantial dividend yield of about 8.15%. But, you must look at the payout ratio, which is high at roughly 74.73%. Here's the quick math: paying out three-quarters of your earnings as dividends is a stretch when earnings are declining, raising questions about the dividend's long-term sustainability if the sales environment doesn't improve.

Analyst Consensus and Price Targets

The professional analyst community is mixed to negative, which confirms the caution baked into the current stock price. The consensus rating is generally a 'Hold' or 'Reduce' (a soft 'Sell') from the seven to eight analysts covering the stock. The average price target is around $54.40, which implies a significant upside from the current trading price.

What this estimate hides is the range of opinions. The lowest target is $44.00, and the highest is $80.00 (though some older targets are higher). The consensus suggests that while the stock is cheap enough to avoid an outright 'Sell,' the near-term catalysts for a major rebound are missing.

Risk Factors

You're looking at Oxford Industries, Inc. (OXM) and seeing a portfolio of strong lifestyle brands, but honestly, the near-term financial picture is clouded by a few major risks. The direct takeaway is this: external macroeconomic pressures, primarily tariffs and consumer discretionary spending softness, are directly translating into lower profitability, forcing management to execute a tricky operational pivot.

The most immediate and quantifiable headwind is the regulatory risk from tariffs. For fiscal year 2025, the company estimates that additional tariff costs will add about $40 million in expenses, which translates to a dilution of roughly $2.00 per share in earnings. This is a direct hit to the gross margin, which was already down to 61.7% on an adjusted basis in Q2 2025, compared to 63.3% in Q2 2024. Here's the quick math: you're paying more for goods before they even hit the shelf, so profit margins shrink unless you can pass all that cost to the customer.

• External Risks: The Macro Headwinds

The broader market conditions are defintely a challenge. Oxford Industries, Inc. operates in a highly competitive industry, and the current economic environment-marked by inflation and cautious consumer spending-is hurting sales. This is a cyclical risk, as apparel is a discretionary purchase. The company's full-year sales guidance for fiscal 2025 reflects this reality, projecting consolidated net sales between $1.475 billion and $1.515 billion, a decrease from the $1.52 billion reported in fiscal 2024.

The core mitigation strategy here is supply chain diversification. To combat the tariff pressure, management is decentralizing product sourcing, shifting production away from high-tariff regions. This is a smart, clear action, but what this estimate hides is the potential for short-term operational complexity and increased initial costs as new supplier relationships are established and scaled up.

• Internal & Financial Risks: Brand and Balance Sheet

Operationally, the portfolio is showing a clear divergence in performance, which is a key strategic risk. While Lilly Pulitzer remains strong, posting 12% growth in net sales in Q1 2025, the flagship Tommy Bahama brand saw a sales decline of 4.2%, and Johnny Was dropped by 15.1% in the same quarter. This signals that the company must work on brand relevance and product differentiation in its largest segments. You can explore the strategic direction in our related article: Mission Statement, Vision, & Core Values of Oxford Industries, Inc. (OXM).

From a financial health perspective, the company is taking on more debt during a period of declining profitability. Long-term debt increased significantly to $117.7 million in Q1 2025, up from $31.1 million year-over-year. Plus, capital expenditures are high, expected to be around $120 million for the full fiscal year 2025, including investments in a new distribution center. This aggressive capital allocation, combined with a sharp drop in expected profitability-adjusted EPS is guided between $2.80 and $3.20 for FY 2025, down from $6.68 in FY 2024-raises concerns about the balance sheet's flexibility if the economic slowdown persists. The company's focus is on long-term infrastructure, but it tightens liquidity now.

Growth Opportunities

You're looking at Oxford Industries, Inc. (OXM) and seeing a stock under pressure, but the real question is whether the near-term headwinds-like those pesky tariffs-are masking a solid long-term growth story. Honestly, the answer is complex: the company is navigating a rocky 2025 by doubling down on its winners, which should stabilize things for 2026 and beyond.

The core takeaway is this: Oxford Industries, Inc.'s future growth isn't about massive expansion, but about margin recovery and selective, high-return investments. Their full-year net sales guidance for fiscal year 2025 is between $1.475 billion and $1.515 billion, a modest decline from the $1.52 billion in fiscal 2024, but the adjusted earnings per share (EPS) forecast of $2.80 to $3.20 shows the real pain point, a sharp drop from the $6.68 last year, driven mostly by tariffs. Tariffs are defintely a killer right now.

Key Growth Drivers and Brand Momentum

The company's multi-brand portfolio is its biggest competitive advantage, but it's also a mixed bag right now. The growth drivers are clear: Lilly Pulitzer and the Emerging Brands group. Lilly Pulitzer is a star performer, delivering strong direct-to-consumer comparable sales and a high newness quotient (new product introductions) that keeps core customers engaged. Meanwhile, the Emerging Brands group, which includes brands like Salsa Cef, is showing significant promise, with revenue growth of 17% in the second quarter of fiscal 2025.

For the flagship brand, Tommy Bahama, the growth strategy hinges on experiential retail. They plan to open approximately 15 net new stores across all brands in fiscal 2025, including three new high-traffic Marlin Bars, which combine retail and food-and-beverage for an immersive brand experience. This focus on lifestyle, not just apparel, is a smart long-term play that differentiates them from traditional retailers.

• Lilly Pulitzer: Strong e-commerce and product innovation.
• Emerging Brands: Delivered 17% Q2 2025 revenue growth.
• Marlin Bars: Three new experiential locations planned for 2025.
• Product Innovation: Successful launches like the Boracay Island chino at Tommy Bahama.

Strategic Initiatives for Margin Recovery

The most critical strategic initiative for Oxford Industries, Inc. is the aggressive overhaul of its supply chain to mitigate the tariff impact, which is estimated to be a net $1.25 to $1.75 per share after tax in fiscal 2025. They are on track to reduce China sourcing from 40% in 2024 to an expected 30% in 2025, with a goal to be substantially out of China by late 2026. This pivot is costly upfront-they incurred incremental inventory costs and higher SG&A (Selling, General, and Administrative) expenses from new store openings-but it removes a major earnings headwind for fiscal 2026.

Also, to streamline logistics, the company is investing approximately $120 million in capital expenditures for fiscal 2025, with a significant portion going toward a new state-of-the-art fulfillment center in South Georgia. This center is expected to be complete by late fiscal 2025 or early 2026, creating a competitive advantage by improving speed and efficiency, especially in the key Southeastern U.S. market. Here's the quick math: eliminating a tariff overhang of up to $1.75 per share while improving logistics efficiency is a clear path to EPS recovery, even if sales growth remains flat. For a deeper dive into who is betting on this turnaround, you should read Exploring Oxford Industries, Inc. (OXM) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for a quicker-than-expected turnaround in the struggling Johnny Was brand, which management is actively restructuring, or a faster-than-anticipated consumer spending rebound. Still, the current strategy is solid: fix the supply chain, invest in high-margin experiential retail, and let the strongest brands, like Lilly Pulitzer, carry the growth load.

Next step: Finance should model the EPS recovery for fiscal year 2026 assuming a 50% reduction in the tariff impact. Owner: Portfolio Manager.