How Can Oxford Industries, Inc. (OXM) Earnings Keep Soaring?

Oxford Industries, Inc. (NYSE:OXM) will release its quarterly report on Tuesday, and investors have stayed optimistic about the apparel company’s prospects, bidding the shares to all-time record highs in the past few months. With expectations for growth in Oxford earnings so high, though, investors need to be careful not to let the company’s stock price get ahead of its fundamental business prospects.
Oxford Industries, Inc. (NYSE:OXM)

Oxford Industries, Inc. (NYSE:OXM) offers a wide variety of apparel in both branded and private-label lines, with brands including Tommy Bahama for sportswear, women’s clothing line Lilly Pulitzer, and Oxford Golf apparel for golfers. The company has also licensed brands such as Dockers and Kenneth Cole, and it has taken its own company-owned brands to license their names for a variety of other products ranging from accessories to home fashions and personal-care products. Let’s take an early look at what’s been happening with Oxford Industries, Inc. (NYSE:OXM) over the past quarter and what we’re likely to see in its report.

Stats on Oxford Industries

Analyst EPS Estimate $0.98
Change From Year-Ago EPS 51%
Revenue Estimate $243.48 million
Change From Year-Ago Revenue 18%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Can Oxford earnings growth keep up the pace this quarter?
Analysts have been guardedly optimistic about Oxford earnings in recent months, adding $0.03 per share to their July quarter estimates and $0.02 per share to their full-year projections. The stock, though, has been stuck in neutral, with flat performance since early June.

Oxford Industries, Inc. (NYSE:OXM) has undergone a long-term shift that has paid big dividends for investors over the past several years. Traditionally, Oxford focused more on tailored clothing, and that segment has been a tough one lately, with upscale-clothing retailers The Men’s Wearhouse, Inc. (NYSE:MW) and Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) fighting hard against the trend away from more formal clothing toward casualwear. For Oxford’s part, its move toward its lifestyle brands have given it new life outside the formalwear segment, and that has helped drive long-term growth and stock-price appreciation.

Yet Oxford Industries, Inc. (NYSE:OXM)’s earnings growth took a hit during its previous quarter, with the company reporting a 24% decline in net income in its April quarter. But the company managed to post modest revenue growth of just over 1%, with its key Tommy Bahama and Lilly Pulitzer lines helping to make up for weaker results in some of its other brand offerings.