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Oxford Industries and American Woodmark have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 4, 2022 – Zacks Equity Research shares Oxford Industries, Inc. (OXM - Free Report) as the Bull of the Day, and American Woodmark Corp. (AMWD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Match Group (MTCH - Free Report) and Bumble (BMBL - Free Report) .
Oxford Industries, Inc. saw record sales in its fiscal third quarter as shoppers rushed out to buy apparel. This Zacks Rank #1 (Strong Buy) also raised full year fiscal 2021 guidance.
Oxford Industries is a retailer which includes the brands Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head brands.
It also has e-commerce sites and operates restaurants.
Record Third Quarter Net Sales and Earnings
On Dec 8, Oxford Industries reported its fiscal third quarter 2021 results and crushed the Zacks Consensus Estimate by $0.90. Earnings were a third quarter record of $1.19 versus the consensus of just $0.29.
It was Oxford Industries' third earnings beat in a row.
Net sales jumped 41% to a record $248 million, up from $175 million a year ago and $241 million in fiscal 2019, which was pre-pandemic.
Full price direct to consumer sales jumped 40% to $143 million, with growth in each of its brands compared to the third quarter of fiscal 2019, which is pre-pandemic.
Full price retail sales rose 13% and full-price e-commerce sales grew 100% compared to the third quarter of fiscal 2019.
Tommy Bahama revenue was $148.5 million up from $127 million in Fiscal Q3 2019.
Lilly Pulitzer revenue was $72.2 million up from $71.7 million and Southern Tide came in at $13.2 million, up from $9.1 million 2 years ago.
Lilly Pulitzer is one of the apparel industry's hottest brands, and was hot prior to the pandemic as well.
Even restaurant sales were up compared to the 2019 pre-pandemic third quarter with sales jumping 14% to $20 million due to strong increases at existing locations plus the addition of 5 Marlin Bar locations.
Gross margin rose 62% from 55% in the third quarter of fiscal 2019 as Oxford saw strong full-price sales, a shift in sales mix towards full-price direct to consumer channels and higher initial gross margin, partially offset by higher freight costs.
Oxford has exited its Lanier Apparel business as of the fourth quarter 2021.
Oxford Industries Raised Full Year Guidance
Given the strong third quarter, and continuing strong full-priced demand, Oxford raised its full year earnings outlook even with continuing supply chain challenges.
It now expects net sales in the range of $1.127 billion to $1.137 billion, up from $1.123 billion in fiscal 2019.
Fiscal 2019 also included a full year of sales of Lanier Apparel, which was $95 million, and is expected to be just $25 million in fiscal 2021 as the company has now exited that business
Earnings are now forecast between $7.52 and $7.67.
The analysts have been busy raising their full year earnings estimates as a result.
4 estimates have been revised higher in the last month, pushing up fiscal 2021 to $7.63 from $6.68. That's earnings growth of 521% as Oxford lost $1.81 in fiscal 2020 during the pandemic.
4 estimates were also revised higher for fiscal 2022, pushing up the Zacks Consensus Estimate to $7.76 from $6.95 during that time. However, that's just earnings growth of 1.6%.
Oxford Shares are Cheap
Over the last year, Oxford shares have rallied 51%, well out pacing the S&P 500 which is up 27.5% over that same time period.
But the shares haven't gone anywhere in the last 6 months, adding just 2.6% over that period, even as earnings estimates have been raised.
Oxford shares are still cheap, with a forward P/E of just 13.
It's also shareholder friendly, and is back to paying a dividend, which is currently yielding 1.7%. It also has a share repurchase plan, which the board just increased to $150 million.
For those looking for an apparel retailer with red hot brands, Oxford is one to keep on your short list.
American Woodmark Corp.is having trouble fighting inflationary pressures even though it's pushing through price increases. Analysts have cut this Zacks Rank #5 (Strong Sell) earnings estimates for this year and next.
American Woodmark is one of the largest cabinet manufacturers in America with over a dozen brands. It sells in major home centers and partners with builders and independent dealers and distributors.
Inflation Continued to Hit in Q2
Despite pushing price increases through in the fiscal first quarter, inflationary pressures continued to hit American Woodmark in the fiscal second quarter.
On Nov 23, American Woodmark reported its second quarter results and missed on the Zacks Consensus for the fifth quarter in a row.
It reported $0.62 versus the consensus of $0.81, for a 23.5% miss.
Net income in the second quarter of 2022 fell $21.1 million due to continued expansion of inflationary pressures outpacing the company's price actions taken across all their channels.
Prior price increases have begun to partially offset the inflationary impacts but there is an inherent lag between price actions and seeing some relief. It can take up to 6 months, or more.
Net sales for the quarter were only up 1% to $453.2 million compared to the same quarter a year ago. It did see labor and supply chain challenges in the quarter, especially with particle board.
In good news, it experienced growth in the new construction sales channel versus a year ago as market demand remained strong.
Earnings Estimates Cut
With the labor and supply chain challenges expected to remain, as well as the inflationary pressures, it's not surprising that analysts have been cutting earnings estimates for this year and next.
One estimate was lowered over the last 60 days for fiscal 2022 which pushed the Zacks Consensus down to $3.83 from $4.84.
That's an earnings decline of 40.2% as it made $6.40 last year.
One estimate was also lowered for fiscal 2023 which pushed down the fiscal 2023 Zacks Consensus Estimate to $6.77 from $8.47. That's an increase of 76.8%.
Shares Fell Over the Last Year
Even though the housing market remains strong, as does cabinet demand, shares of American Woodmark have sunk nearly 32% over the last year.
They're cheap, but not dirt cheap, at a forward P/E of 17.
Inflation, labor and supply chain challenges continue to be a worry.
Investors might want to wait until that issue shows some clarity before diving in on American Woodmark.
Additional content:
Tap the Billion-Dollar Business of Love with These 2 Stocks
Online dating has become a lucrative industry in recent years, thanks to the growing proliferation of several dating apps that target almost all sections of society. From being frowned upon, online dating has come a long way to gain universal acceptance, primarily led by millennials.
In fact, millennials make up the largest sector of online dating users. Almost 36% of people aged 18 to 29 have used an online dating service or app, per a survey by Pew Research Center. As of 2021, there are 30.4 million online dating users in the United States. This number is expected to grow to 35.4 million by 2027.
The growing popularity of online dating apps is driven by the addition of search filters and criteria such as age and location to find potential matches. The addition of audio and videos has been a key catalyst as these features allow users to interact more with each other, thereby spending more time on the apps, driving top-line growth.
Increasing privacy and data protection features through the usage of blockchain technology is helping in improving the acceptability of dating apps.
Here we discuss two stocks that are well-poised to benefit from this trend:
Match Group is considered to have pioneered the concept of online dating. The company has been benefiting from increasing subscriber addition.
Match is benefiting from increasing activity and engagement seen across its apps like Tinder, Hinge, Meetic, Pairs and OkCupid since the COVID-19 outbreak, especially across western markets.
This Zacks Rank #3 (Hold) company is seeing a rebound in the propensity to pay, driven by robust uptake of video-enabled services to boost engagement amid the COVID-19 crisis. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tinder, the world’s #1 downloaded and top-earning dating app, is benefiting from gender diversification as the app includes more gender options like transgender. Match Group has introduced Tinder Lite to expand its international presence.
Adding new features in Tinder like “Swipe Night,” a live, interactive dating feature where singles follow a storyline together, is expected to keep the traffic momentum intact.
The Zacks Consensus Estimate for its 2022 earnings is pegged at $2.48 per share. Revenues are estimated at $3.61 billion, indicating 20.4% growth from the estimated 2021 figure.
Bumble operates two apps in the online dating market -- Bumble and Badoo. These allow users to create profiles, swipe to match with other users and form connections. The Bumble App is built on principles of female empowerment, with the unique feature that women must “make the first move” to initiate conversations on the app.
Bumble is riding on its women-oriented features that have gained strong traction among its users. Features like “Night In” let users set up a virtual trivia date if they match someone. This has been helping the company expand its user base. Bumble is expected to benefit from its growing brand value and revenue-generating opportunities.
Bumble also carries a Zacks Rank #3. The Zacks Consensus Estimate for its 2022 earnings is pegged at $1.90 per share, up 17.3% over the past 60 days. Revenues are estimated at $950 million, indicating 23.6% growth from the estimated 2021 figure.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Oxford Industries and American Woodmark have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 4, 2022 – Zacks Equity Research shares Oxford Industries, Inc. (OXM - Free Report) as the Bull of the Day, and American Woodmark Corp. (AMWD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Match Group (MTCH - Free Report) and Bumble (BMBL - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
Oxford Industries, Inc. saw record sales in its fiscal third quarter as shoppers rushed out to buy apparel. This Zacks Rank #1 (Strong Buy) also raised full year fiscal 2021 guidance.
Oxford Industries is a retailer which includes the brands Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head brands.
It also has e-commerce sites and operates restaurants.
Record Third Quarter Net Sales and Earnings
On Dec 8, Oxford Industries reported its fiscal third quarter 2021 results and crushed the Zacks Consensus Estimate by $0.90. Earnings were a third quarter record of $1.19 versus the consensus of just $0.29.
It was Oxford Industries' third earnings beat in a row.
Net sales jumped 41% to a record $248 million, up from $175 million a year ago and $241 million in fiscal 2019, which was pre-pandemic.
Full price direct to consumer sales jumped 40% to $143 million, with growth in each of its brands compared to the third quarter of fiscal 2019, which is pre-pandemic.
Full price retail sales rose 13% and full-price e-commerce sales grew 100% compared to the third quarter of fiscal 2019.
Tommy Bahama revenue was $148.5 million up from $127 million in Fiscal Q3 2019.
Lilly Pulitzer revenue was $72.2 million up from $71.7 million and Southern Tide came in at $13.2 million, up from $9.1 million 2 years ago.
Lilly Pulitzer is one of the apparel industry's hottest brands, and was hot prior to the pandemic as well.
Even restaurant sales were up compared to the 2019 pre-pandemic third quarter with sales jumping 14% to $20 million due to strong increases at existing locations plus the addition of 5 Marlin Bar locations.
Gross margin rose 62% from 55% in the third quarter of fiscal 2019 as Oxford saw strong full-price sales, a shift in sales mix towards full-price direct to consumer channels and higher initial gross margin, partially offset by higher freight costs.
Oxford has exited its Lanier Apparel business as of the fourth quarter 2021.
Oxford Industries Raised Full Year Guidance
Given the strong third quarter, and continuing strong full-priced demand, Oxford raised its full year earnings outlook even with continuing supply chain challenges.
It now expects net sales in the range of $1.127 billion to $1.137 billion, up from $1.123 billion in fiscal 2019.
Fiscal 2019 also included a full year of sales of Lanier Apparel, which was $95 million, and is expected to be just $25 million in fiscal 2021 as the company has now exited that business
Earnings are now forecast between $7.52 and $7.67.
The analysts have been busy raising their full year earnings estimates as a result.
4 estimates have been revised higher in the last month, pushing up fiscal 2021 to $7.63 from $6.68. That's earnings growth of 521% as Oxford lost $1.81 in fiscal 2020 during the pandemic.
4 estimates were also revised higher for fiscal 2022, pushing up the Zacks Consensus Estimate to $7.76 from $6.95 during that time. However, that's just earnings growth of 1.6%.
Oxford Shares are Cheap
Over the last year, Oxford shares have rallied 51%, well out pacing the S&P 500 which is up 27.5% over that same time period.
But the shares haven't gone anywhere in the last 6 months, adding just 2.6% over that period, even as earnings estimates have been raised.
Oxford shares are still cheap, with a forward P/E of just 13.
It's also shareholder friendly, and is back to paying a dividend, which is currently yielding 1.7%. It also has a share repurchase plan, which the board just increased to $150 million.
For those looking for an apparel retailer with red hot brands, Oxford is one to keep on your short list.
Bear of the Day:
American Woodmark Corp.is having trouble fighting inflationary pressures even though it's pushing through price increases. Analysts have cut this Zacks Rank #5 (Strong Sell) earnings estimates for this year and next.
American Woodmark is one of the largest cabinet manufacturers in America with over a dozen brands. It sells in major home centers and partners with builders and independent dealers and distributors.
Inflation Continued to Hit in Q2
Despite pushing price increases through in the fiscal first quarter, inflationary pressures continued to hit American Woodmark in the fiscal second quarter.
On Nov 23, American Woodmark reported its second quarter results and missed on the Zacks Consensus for the fifth quarter in a row.
It reported $0.62 versus the consensus of $0.81, for a 23.5% miss.
Net income in the second quarter of 2022 fell $21.1 million due to continued expansion of inflationary pressures outpacing the company's price actions taken across all their channels.
Prior price increases have begun to partially offset the inflationary impacts but there is an inherent lag between price actions and seeing some relief. It can take up to 6 months, or more.
Net sales for the quarter were only up 1% to $453.2 million compared to the same quarter a year ago. It did see labor and supply chain challenges in the quarter, especially with particle board.
In good news, it experienced growth in the new construction sales channel versus a year ago as market demand remained strong.
Earnings Estimates Cut
With the labor and supply chain challenges expected to remain, as well as the inflationary pressures, it's not surprising that analysts have been cutting earnings estimates for this year and next.
One estimate was lowered over the last 60 days for fiscal 2022 which pushed the Zacks Consensus down to $3.83 from $4.84.
That's an earnings decline of 40.2% as it made $6.40 last year.
One estimate was also lowered for fiscal 2023 which pushed down the fiscal 2023 Zacks Consensus Estimate to $6.77 from $8.47. That's an increase of 76.8%.
Shares Fell Over the Last Year
Even though the housing market remains strong, as does cabinet demand, shares of American Woodmark have sunk nearly 32% over the last year.
They're cheap, but not dirt cheap, at a forward P/E of 17.
Inflation, labor and supply chain challenges continue to be a worry.
Investors might want to wait until that issue shows some clarity before diving in on American Woodmark.
Additional content:
Tap the Billion-Dollar Business of Love with These 2 Stocks
Online dating has become a lucrative industry in recent years, thanks to the growing proliferation of several dating apps that target almost all sections of society. From being frowned upon, online dating has come a long way to gain universal acceptance, primarily led by millennials.
In fact, millennials make up the largest sector of online dating users. Almost 36% of people aged 18 to 29 have used an online dating service or app, per a survey by Pew Research Center. As of 2021, there are 30.4 million online dating users in the United States. This number is expected to grow to 35.4 million by 2027.
The growing popularity of online dating apps is driven by the addition of search filters and criteria such as age and location to find potential matches. The addition of audio and videos has been a key catalyst as these features allow users to interact more with each other, thereby spending more time on the apps, driving top-line growth.
Increasing privacy and data protection features through the usage of blockchain technology is helping in improving the acceptability of dating apps.
These factors are expected to help the online dating industry reach $3.920 billion in revenues in 2022, per estimates from Statista. The industry is expected to witness revenue CAGR of 6.56% between 2022 and 2025.
Here we discuss two stocks that are well-poised to benefit from this trend:
Match Group is considered to have pioneered the concept of online dating. The company has been benefiting from increasing subscriber addition.
Match is benefiting from increasing activity and engagement seen across its apps like Tinder, Hinge, Meetic, Pairs and OkCupid since the COVID-19 outbreak, especially across western markets.
This Zacks Rank #3 (Hold) company is seeing a rebound in the propensity to pay, driven by robust uptake of video-enabled services to boost engagement amid the COVID-19 crisis. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tinder, the world’s #1 downloaded and top-earning dating app, is benefiting from gender diversification as the app includes more gender options like transgender. Match Group has introduced Tinder Lite to expand its international presence.
Adding new features in Tinder like “Swipe Night,” a live, interactive dating feature where singles follow a storyline together, is expected to keep the traffic momentum intact.
The Zacks Consensus Estimate for its 2022 earnings is pegged at $2.48 per share. Revenues are estimated at $3.61 billion, indicating 20.4% growth from the estimated 2021 figure.
Bumble operates two apps in the online dating market -- Bumble and Badoo. These allow users to create profiles, swipe to match with other users and form connections. The Bumble App is built on principles of female empowerment, with the unique feature that women must “make the first move” to initiate conversations on the app.
Bumble is riding on its women-oriented features that have gained strong traction among its users. Features like “Night In” let users set up a virtual trivia date if they match someone. This has been helping the company expand its user base. Bumble is expected to benefit from its growing brand value and revenue-generating opportunities.
Bumble also carries a Zacks Rank #3. The Zacks Consensus Estimate for its 2022 earnings is pegged at $1.90 per share, up 17.3% over the past 60 days. Revenues are estimated at $950 million, indicating 23.6% growth from the estimated 2021 figure.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.