Oxford Industries Inc (NYSE: OXM)

Oxford Industries Inc., commonly referred to as OXM, is a prominent player in the apparel industry, specializing in the design, sourcing, marketing, and distribution of products under its portfolio of lifestyle brands. The company operates in a dynamic and competitive market, characterized by swiftly changing consumer preferences, technological advancements, and an evolving retail landscape.

Oxford Industries' main business activities revolve around its lifestyle brands, which are marketed and distributed through direct-to-consumer and wholesale operations. The company's direct-to-consumer channels include brand-specific full-price retail stores, e-commerce websites, and outlets. These channels offer Oxford Industries the opportunity to engage directly with customers, showcase a wide array of current season products, and immerse them in the essence of the lifestyle brand. The company's e-commerce business has been growing, with a high gross margin on e-commerce sales that enables it to absorb additional costs associated with operating an online business.

One of Oxford Industries' key brands is Tommy Bahama, which caters to consumers older than 45 years, with a household annual income exceeding $100,000. These consumers typically live in or travel to warm weather and resort locations and embrace a relaxed and casual approach to daily living. Tommy Bahama products are available in the company's Tommy Bahama stores, e-commerce website, tommybahama.com, better department stores, independent specialty stores, and multi-branded e-commerce retailers. The brand's direct-to-consumer operations encompass 102 full-price retail stores, 22 food and beverage locations, and 34 outlet stores.

In addition to Tommy Bahama, Oxford Industries' brand portfolio includes Lilly Pulitzer, Johnny Was, Southern Tide, TBBC, Duck Head, and Jack Rogers. These brands are well-positioned to succeed and thrive in the long term, enabling the company to manage the challenges facing the apparel industry.

Oxford Industries' wholesale operations supplement its direct-to-consumer operations by providing access to a broader consumer base and generating high operating margins due to lower fixed costs. Wholesale operations involve the sale of products bearing the trademarks of Oxford Industries' lifestyle brands to various specialty stores, better department stores, multi-branded e-commerce retailers, and other retailers.

In the highly competitive apparel market, Oxford Industries faces competition from several companies. However, the company's strong emotional connections with consumers, coupled with its lifestyle brands, equip it to navigate the industry's challenges. Oxford Industries reported consolidated net sales of $1.57 billion in fiscal 2023, with Tommy Bahama accounting for 57% of the company's net sales.