Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Why Oxford Industries Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of clothing-maker Oxford Industries (NYSE: OXM  ) were getting torn up today, falling as much as 16% after its earnings report disappointed.

So what: Net income jumped 88% for the parent of clothing lines such as Tommy Bahama and Ben Sherman but still fell short of estimates. Analysts had expected EPS of $0.21 a share, while the company delivered only $0.19 and, worse, cut earnings guidance because of "challenges at Ben Sherman and the impact of Hurricane Sandy." Oxford now sees EPS for the year at $2.60-$2.70, well below estimates of $2.92.

Now what: Sales growth in the period was slow at 7%, and I'm skeptical that the company will be able to hit its growth targets for 2013. The stock has performed exceptionally well since the recession, gaining more than 10 times its value from its bottom, but that was mostly due to low expectations. With underwhelming earnings numbers and a P/E of 25, this stock is starting to look like it's due for a pullback.

Don't lose touch with Oxford Industries. Stay connected by adding the company to your Watchlist here.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2141250, ~/Articles/ArticleHandler.aspx, 4/2/2015 2:55:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...