Oxford Industries (OXM) Traded Lower Due to Tariff Challenges and Soft Consumer Spending

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The small-cap stocks experienced volatility in the second quarter. The Russell 2000 Index rebounded 10% of its November 2024 record highs just 55 days after the “Liberation Day” decline. It was driven by growth, momentum, high-beta, and low-quality stocks. Even though small-cap stocks rose, they failed to outpace the larger-cap peers due to perceived sensitivity to macroeconomic shocks. The Russell 2000 returned 8.5% for the quarter compared to the 11.1% of the Russell 1000 Index. The strategy underperformed the benchmark in this backdrop. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Small Cap Strategy highlighted stocks such as Oxford Industries, Inc. (NYSE:OXM). Oxford Industries, Inc. (NYSE:OXM) is a leading apparel company. The one-month return of Oxford Industries, Inc. (NYSE:OXM) was 0.59%, and its shares lost 45.85% of their value over the last 52 weeks. On September 12, 2025, Oxford Industries, Inc. (NYSE:OXM) stock closed at $47.13 per share, with a market capitalization of $700.69 million.

ClearBridge Small Cap Strategy stated the following regarding Oxford Industries, Inc. (NYSE:OXM) in its second quarter 2025 investor letter:

“Stock selection within consumer discretionary sector reversed after a strong first-quarter performance, as several idiosyncratic headwinds weighed on holdings Murphy USA and Oxford Industries, Inc. (NYSE:OXM). Oxford Industries, an apparel company that includes brands such as Tommy Bahama and Lilly Pulitzer, also stumbled due to increased tariff costs and softening consumer spending. However, while near-term tariff pressures and lower guidance have weighed on the stock, management’s focus on accelerating its supply chain away from China (with an expected full exit by 2026) and its focus on brand innovation and core customer engagement leave us optimistic about the company’s future.”

Is Oxford Industries, Inc. (OXM) the Underperforming Stock Targeted By Short Sellers?

Oxford Industries, Inc. (NYSE:OXM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held Oxford Industries, Inc. (NYSE:OXM) at the end of the second quarter, compared to 19 in the previous quarter. In the second quarter of fiscal year 2025, Oxford Industries, Inc. (NYSE:OXM) generated consolidated net sales of $403 million, down from $420 million in the second quarter of fiscal year 2024.While we acknowledge the risk and potential of Oxford Industries, Inc. (NYSE:OXM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Oxford Industries, Inc. (NYSE:OXM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Oxford Industries, Inc. (NYSE:OXM) and shared the list of dividend bargains trading below insiders’ prices. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.