What Happened?
Shares of fashion conglomerate Oxford Industries (NYSE:OXM) fell 10.3% in the morning session after the company reported weak third-quarter financial results, with revenue and EPS falling below analysts' expectations. Management blamed the weakness on several issues: surging inflation, distractions caused by U.S. elections and global events that weakened transaction volumes, and two major hurricanes in the U.S., which reduced sales by an estimated $4 million and lowered EPS by $0.14. While management acknowledged that some challenges have eased, some of the improvements might take time to show up in the numbers. Therefore, it was no surprise management gave a weak forecast; its full-year guidance for both revenue and EPS fell short of Wall Street's estimates, underscoring a disappointing quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Oxford Industries’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Oxford Industries and indicate this news significantly impacted the market’s perception of the business.
Oxford Industries is down 22.9% since the beginning of the year, and at $77.07 per share, it is trading 31.5% below its 52-week high of $112.47 from March 2024. Investors who bought $1,000 worth of Oxford Industries’s shares 5 years ago would now be looking at an investment worth $1,028.
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