What Happened?
A number of stocks fell in the afternoon session after the resurgence in U.S.-Iran tensions sent oil prices sharply higher and reignited concerns about both the consumer's discretionary wallet and the cost of a globally sourced supply chain.
Apparel companies face an ocean-freight cost problem. With shipping lanes rerouting around the Middle East and tariff pressures still working through cost structures, landed costs for the spring and summer seasons were heading higher just as retailers' ability to raise shelf prices weakened.
The setup threatened both gross margins and full-price sell-through at a time when inventory discipline had only recently improved.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Consumer Discretionary - Apparel and Accessories company Oxford Industries (NYSE: OXM) fell 2.7%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free.
- Consumer Discretionary - Apparel and Accessories company PVH (NYSE: PVH) fell 2.7%. Is now the time to buy PVH? Access our full analysis report here, it’s free.
- Consumer Discretionary - Apparel and Accessories company G-III (NASDAQ: GIII) fell 2.6%. Is now the time to buy G-III? Access our full analysis report here, it’s free.
Zooming In On Oxford Industries (OXM)
Oxford Industries’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 22.2% on the news that the company reported better-than-expected second-quarter earnings and maintained its full-year financial outlook.
The owner of brands like Tommy Bahama and Lilly Pulitzer posted adjusted earnings of $1.26 per share, surpassing analyst estimates. This result came despite a year-over-year decline from $2.77 per share in the same period last year. Quarterly revenue fell 4% to $403.1 million, narrowly missing expectations.
While revenue missed and profit margins were pressured, investors were encouraged that the earnings beat forecasts and that the company held its full-year guidance steady.
Oxford Industries continued to expect full-year net sales between $1.475 billion and $1.515 billion, with adjusted earnings per share forecasted in the range of $2.80 to $3.20. The market's positive reaction reflects relief that the performance and outlook were not worse amid challenging conditions.
Oxford Industries is up 13.9% since the beginning of the year, but at $40.90 per share, it is still trading 30.1% below its 52-week high of $58.47 from May 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Oxford Industries’s shares 5 years ago would now be looking at only $434.68.
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