The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Oxford Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Oxford Industries booked revenue of $199.7 million. The four analysts polled by S&P Capital IQ foresaw revenue of $192.3 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $157.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.61. The five earnings estimates compiled by S&P Capital IQ averaged $0.54 per share on the same basis. GAAP EPS of $0.43 for Q4 were 87% lower than the prior-year quarter's $3.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.9%, 250 basis points worse than the prior-year quarter. Operating margin was 7.1%, 120 basis points worse than the prior-year quarter. Net margin was 3.5%, 3,040 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $222.4 million. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $806.5 million. The average EPS estimate is $2.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 58 members rating the stock outperform and 23 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Oxford Industries a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oxford Industries is buy, with an average price target of $48.
Over the decades, small-cap stocks like Oxford Industries have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Oxford Industries to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.