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Oxford Industries, Inc. (OXM - Free Report) is one of the rare retailers that recently beat on earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 23.6% in fiscal 2022.
Oxford Industries operates several retail and lifestyle brands including Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head. It owns retail stores, sells wholesale and on its own e-commerce sites and operates Tommy Bahama restaurants.
A Record First Quarter for Earnings
On June 3, Oxford Industries reported its fiscal first quarter 2022 results and blew by the Zacks Consensus Estimate by 26%. Earnings were a record $3.50 which easily beat the Zacks Consensus Estimate of $2.78.
It was the fifth earnings surprise in a row.
Sales were up 33% to $353 million from $266 million a year ago. All of its brands saw growth, led by the largest brand, Tommy Bahama.
Tommy Bahama sales were up 46% to $228.1 million from $156.7 million last year. Lilly Pulitzer sales jumped 25% to $92 million from $73.6 million in the prior year.
Oxford Industries has lumped its smaller brands into the "Emerging Brands" category. This includes Southern Tide, The Beaufort Bonnet Company and Duck Head. Emerging Brands sales were up 42% to $31.8 million from $22.4 million a year ago.
"As more and more people are returning to social events, leisure travel and even the more casually-attired post-pandemic physical workplace, consumers are increasingly attracted to our happy, upbeat brands and the beautiful products we provide which are both true to our brands’ unique DNA and relevant to today’s consumer and marketplace,” said Thomas C. Chubb III, CEO.
Brick and Mortar Returns
Shoppers returned to the stores, as retail sales jumped 49% to $136 million, with growth in all parts of the country.
They also returned to restaurants, as Tommy Bahama restaurant sales grew 23% to $31 million year-over-year as the economy continued to reopen and there were fewer COVID restrictions in the company's 21 food and beverage locations.
But they were also still buying online, with full price e-commerce sales up 20% to $89 million year-over-year, with growth in all brands.
Wholesale sales also had a strong quarter, up 42% to $89 million year-over-year.
Gross margin rose to 64.2% from 62.7% in the first quarter of fiscal 2021 but Oxford was not immune from the pressures of rising freight prices in the quarter.
Raised Full Year Earnings Guidance
In addition to a record first quarter, the company said they saw "momentum" in the second quarter and felt comfortable raising full year earnings guidance to a range of $9.60 to $10.00.
As a result of the bullish guidance, the analysts have raised full year earnings estimates which has pushed up the Zacks Consensus Estimate to $9.88 from $9.32 just 7 days ago.
That's earnings growth of 23.6% as the company made $7.99 last year, which was a record year.
Shares are Cheap
Oxford Industries has been weak like most stocks in 2022. Shares are down 17.6% year-to-date but haven't completely broken down like some other stocks.
Image Source: Zacks Investment Research
Shares are cheap, with a forward P/E of just 9.2.
It also is shareholder friendly, as it pays a dividend yielding 2.4%. It has paid a dividend every quarter since it became publicly owned in 1960.
If you're going to buy a retailer in 2022, with all the economic uncertainty, buy the best. Oxford Industries has two of the top brands in the apparel industry in Tommy Bahama and Lilly Pulitzer.
Even as the Street is skeptical of retail stocks this year as it fears a recession, investors might want to keep Oxford, and its rising earnings estimates, on their short list.
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Bull of the Day: Oxford Industries (OXM)
Oxford Industries, Inc. (OXM - Free Report) is one of the rare retailers that recently beat on earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 23.6% in fiscal 2022.
Oxford Industries operates several retail and lifestyle brands including Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head. It owns retail stores, sells wholesale and on its own e-commerce sites and operates Tommy Bahama restaurants.
A Record First Quarter for Earnings
On June 3, Oxford Industries reported its fiscal first quarter 2022 results and blew by the Zacks Consensus Estimate by 26%. Earnings were a record $3.50 which easily beat the Zacks Consensus Estimate of $2.78.
It was the fifth earnings surprise in a row.
Sales were up 33% to $353 million from $266 million a year ago. All of its brands saw growth, led by the largest brand, Tommy Bahama.
Tommy Bahama sales were up 46% to $228.1 million from $156.7 million last year. Lilly Pulitzer sales jumped 25% to $92 million from $73.6 million in the prior year.
Oxford Industries has lumped its smaller brands into the "Emerging Brands" category. This includes Southern Tide, The Beaufort Bonnet Company and Duck Head. Emerging Brands sales were up 42% to $31.8 million from $22.4 million a year ago.
"As more and more people are returning to social events, leisure travel and even the more casually-attired post-pandemic physical workplace, consumers are increasingly attracted to our happy, upbeat brands and the beautiful products we provide which are both true to our brands’ unique DNA and relevant to today’s consumer and marketplace,” said Thomas C. Chubb III, CEO.
Brick and Mortar Returns
Shoppers returned to the stores, as retail sales jumped 49% to $136 million, with growth in all parts of the country.
They also returned to restaurants, as Tommy Bahama restaurant sales grew 23% to $31 million year-over-year as the economy continued to reopen and there were fewer COVID restrictions in the company's 21 food and beverage locations.
But they were also still buying online, with full price e-commerce sales up 20% to $89 million year-over-year, with growth in all brands.
Wholesale sales also had a strong quarter, up 42% to $89 million year-over-year.
Gross margin rose to 64.2% from 62.7% in the first quarter of fiscal 2021 but Oxford was not immune from the pressures of rising freight prices in the quarter.
Raised Full Year Earnings Guidance
In addition to a record first quarter, the company said they saw "momentum" in the second quarter and felt comfortable raising full year earnings guidance to a range of $9.60 to $10.00.
As a result of the bullish guidance, the analysts have raised full year earnings estimates which has pushed up the Zacks Consensus Estimate to $9.88 from $9.32 just 7 days ago.
That's earnings growth of 23.6% as the company made $7.99 last year, which was a record year.
Shares are Cheap
Oxford Industries has been weak like most stocks in 2022. Shares are down 17.6% year-to-date but haven't completely broken down like some other stocks.
Image Source: Zacks Investment Research
Shares are cheap, with a forward P/E of just 9.2.
It also is shareholder friendly, as it pays a dividend yielding 2.4%. It has paid a dividend every quarter since it became publicly owned in 1960.
If you're going to buy a retailer in 2022, with all the economic uncertainty, buy the best. Oxford Industries has two of the top brands in the apparel industry in Tommy Bahama and Lilly Pulitzer.
Even as the Street is skeptical of retail stocks this year as it fears a recession, investors might want to keep Oxford, and its rising earnings estimates, on their short list.