Despite Increased Forecast, Oxford Industries’ Stock Declines By 9%


On Thursday, Oxford Industries Inc. (NYSE:OXM) announced a net income of $56.6 million for the fiscal second quarter.

Oxford Industries

Despite improving its 2022 guidance in its Q2 results report, Oxford Industries (NYSE:OXM) stock plunged as much as 9.2% on Friday, reaching its lowest level in more than five weeks.

After the recent spike in OXM shares, investors seem to be taking profits since the stock just experienced its largest monthly gain of the year.

Higher-end clientele, great brands, and a presence that profits from positive travel trends all helped KeyBanc Capital Markets maintain its Overweight rating. These factors will continue to shield OXM from macro retail challenges. The firm increased its price objective on OXM from $110 to $120 (a possible increase of 17.2% from the last close), which translates to 11.3x 2023E P/E.

Additionally, KeyBanc upgraded its forecasts for the years FY22 and FY23 to take into account OXM’s improved outlook and growing confidence in OXM’s capacity to overcome challenges.

In contrast to most of its competitors, OXM highlighted that demand had remained solid up until this point, according to analyst Noah Zatzkin in a letter to clients.

SA Quant classified the stock as Hold, in contrast to KeyBanc’s optimistic sell-side rating. OXM increased its 2022 forecast, predicting adj. EPS of $9.85–$10.10 on net sales of $1.30–$1.33 billion.

On net sales of $270 million to 280 million (vs. the consensus expectation of $271.22 million), adj. EPS for Q3 is projected to be between $0.90 and $1.05 (average estimate: $1.02). OXM shares have dropped 3.5% year to date.

Revenue of $363.4 million was reported by the owner of the Tommy Bahama, Lilly Pulitzer, and Southern Tide clothing brands during the period, which was less than Wall Street expectations. Zacks surveyed five analysts, and they predicted $364 million.

Oxford Industries anticipates its earnings per share for the current quarter, which ends in October, to range from 90 cents to $1.05. According to Zacks’ survey of analysts, adjusted earnings per share would be $1.13.

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