Oxford Industries stock falls 9% despite higher forecast

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Oxford Industries (NYSE: OXM) the stock fell as much as 9.2% to its lowest level in more than 5 weeks on Friday, despite the company raising its outlook for 2022 in its second-quarter earnings report.

Investors seem to be making a profit reservation after the recent rally in OXM shares, with the stock posting its biggest monthly gain this year last month.

KeyBanc Capital Markets maintained its overweight rating as high-end customers, along with strong brands and a footprint that benefit from strong travel trends, will continue to insulate OXM from macro retail headwinds.

The brokerage raised its price target on OXM to $120 from $110 (upside potential of 17.2% until the last close), implying 11.3x 2023E P/E.

KeyBanc also raised its estimates for FY22 and FY23 to reflect OXM’s revised outlook and increased confidence in OXM’s ability to weather headwinds.

“OXM is well positioned for the current environment…unlike most peers, OXM noted that demand has remained strong to date,” analyst Noah Zatzkin wrote in a note to clients.

KeyBanc’s rating is in line with bullish ratings on the sell side, but SA Quant has rated the stock Hold.

OXM raised its forecast for 2022, projecting adj. EPS of $9.85 to $10.10 on net sales of $1.30 billion to $1.33 billion.

Q3 adj. EPS is expected to be $0.90 to $1.05 (consensus estimate of $1.02) on net sales of $270M to $280M (vs. consensus estimate of $271.22M).

OXM shares have fallen 3.5% since the start of the year.

Sallie R. Loera