It would seem that Oxford Industries
For the fiscal first quarter, sales rose 27%. While the Tommy Bahama business was basically flat, menswear chipped in 49% revenue growth and the womenswear business was up 30%. On top of that growth, the company also improved its gross margin by more than 200 basis points. By the time it all hit the bottom line, profits for the quarter were up about 125%.
Turning to the other financial statements, inventory rose 18%, while accounts receivable climbed 25%. That last number does seem large, but with big orders coming from Target
This stock appeals to my sense of underappreciated value. Earnings have improved markedly over the past three years, and estimates have been heading higher, but the stock trades at a discount to its group. While the company's operating margins aren't quite as high as some peers, the relative return on assets is pretty good. What's more, there is strong insider ownership here and a modest dividend.
The bad news here may be that Oxford is broadly exposed to the retail trade. Customers range from the aforementioned Wal-Mart to Sears
I'll personally need to dig into this story a bit more before buying it for myself, but I think it passes the initial sniff test on unheralded value. I may have some concerns about whether or not people will continue to pay $300 for jeans, but I don't think clothing demand is going away anytime soon, and I find the combination of a broad range of customers and improving financial performance to be at least worth more research.
For more toggish takes:
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).