1 big thing: Oxford on the prowl

Oxford Industries, the parent of resort-inspired brands such as Tommy Bahama, is "actively looking for appropriate acquisitions" for its portfolio, Jevon Strasser, its director of financial reporting, tells me.

Why it matters: The apparel conglomerate has so far navigated the pandemic and avoided the fates of competitors like Liz Claiborne and Jones Group, whose acquisition sprees ended in breakups.

Details: Oxford is sticking to its knitting, at least when it comes to M&A, eyeing apparel brands or related businesses in footwear or accessories, Strasser says.

• The target either has to have a direct-to-consumer business or the path to one.
• It would also need to be a business capable of full-price selling (not reliant on discounting) in both wholesale and DTC.
• And it would have to have a strong management team that could complement the leadership at Oxford.
• Finally, it would need to be profitable, as the acquirer is not interested in turning around a distressed company.

Be smart: As of October, the conglomerate had nearly $188 million in cash and short-term investments, according to SEC filings.

• That number is likely to swell once holiday sales are accounted for.
• And the company has no debt, giving it financial firepower to get a deal done.

Reality check: Valuations and multiples for potential targets Oxford has seen on the market recently appeared high, Strasser says.

Of note: The company is getting into the restaurant business with its Tommy Bahama Marlin Bar concept, which serves up custom cocktails and blackened mahi-mahi tacos.

• Currently, there are eight locations, but by fiscal 2023 Oxford plans to open four or five locations per year.

The bottom line: "Hopefully the prices and expectations for targets in our sector will moderate in the future," he adds.