Top 11 Luxury Clothing Stocks to Invest in Now

6. Oxford Industries, Inc. (NYSE:OXM)

Analyst Upside Potential as of September 12, 2024: 19.82%

No. of Hedge Funds as of Q2 2024: 15

Oxford Industries Inc. (NYSE:OXM) specializes in the apparel industry, running premium brands like Tommy Bahama, Lilly Pulitzer, Southern Tide, Johnny Was, Duck Head, and The Beaufort Bonnet Company. The company distributes its products through direct-to-consumer channels and wholesale channels. The direct-to-consumer channel includes brand-specific full-price retail stores, outlet stores, and e-commerce websites. In contrast, the wholesale distribution channel includes department stores, specialty stores, signature stores, and multi-brand e-commerce websites.

The company’s Tommy Bahama brand designs, markets, sources, and distributes men’s and women’s sportswear and related items, while the Lilly Pulitzer brand does the same for upscale women’s and girls’ apparel, sportswear, and related products. Oxford Industries Inc. (NYSE:OXM) also operates Tommy Bahama food and beverage locations, typically adjacent to the Tommy Bahama full-price retail stores.

Oxford Industries Inc. faced a slowdown in sales in Q2 2024, but made substantial progress on its long-term strategic goals. The dip in sales in the quarter was primarily driven by decreased conversion while traffic remained resilient. This indicates that while consumers were still interested in the company’s products, they had become cautious when making purchasing decisions. With inflation slowing down, the company is expected to get back on track and recover its sales.

There are several reasons for this optimism, including a strong balance sheet and exclusive initiatives by the company. The strong cash flow is allowing Oxford Industries Inc. (NYSE:OXM) to continue investing in its store pipeline and distribution centers. It is also set to create enthusiasm and excitement for its brands through special initiatives in the second half of 2024. These initiatives include new collections, including the Tommy Bahama Indigo Palms collection of denim and denim-friendly products, which launched early in Q3. Response to the launch has been promising, offering customers a brand assortment suitable for the cooler temperature. This will increase the company’s ability to stay relevant in the upcoming colder months, especially in the Mid-Atlantic, the Northeast, the Midwest, and the western wing of the country. 15 hedge funds hold stakes in OXM as of Q2 2024, with Millennium Management holding the highest stake worth $26.6 million. The stock ranks sixth on our list of the top luxury clothing stocks to invest in now.