20 Underperforming Stocks Targeted By Short Sellers

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

Short interest: 18.64%

6 months’ performance: -32.04%

Oxford Industries, Inc. operates as an apparel company. The company markets, designs, sources, and sells lifestyle products. It provides women’s and men’s sportswear and related products. It sells its products under the Tommy Bahama brand.

After reporting disappointing Q4 results and issuing lower-than-expected guidance, OXM was downgraded by Citi to Sell. As a result, shares fell by 14.4% to a new 52-week low of $53.85.

The company recorded a 3.3% year-over-year revenue decline during the fourth quarter. Operating and gross margins also contracted significantly. Operating margins were down by approximately 460 basis points, marking a notable decline.

Based on the earnings, the management presented weak guidance for FY 2025. As per the guidance, comparable sales are projected to drop by 2% to 4%. On the back of reduced consumer spending, the challenging trends are likely to continue.

CEO Tom Chubb warned:

We believe the challenging trends experienced in January that accelerated into February are likely an indicator of what we can expect in the first half of fiscal 2025.