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On Tuesday, KeyBanc Capital Markets adjusted its outlook on Oxford Industries (NYSE:OXM) shares, reducing the price target to $80 from the previous $95, while maintaining an Overweight rating on the stock. The adjustment follows a notable decline in the company’s stock price over the past month, which saw a roughly 16% drop compared to the S&P 500’s 7.4% decrease.
According to KeyBanc analyst Ashley Owens, the revision reflects concerns about a potentially cautious guidance and a challenging retail environment observed year-to-date, which mirrors trends seen across other retailers. Despite expectations that Oxford Industries’ fourth-quarter results will align with predictions, the analyst anticipates a more conservative guidance from the company, influenced by a sluggish start in February and softer search trends. Investors should note that the company’s next earnings report is scheduled for March 27, 2025. InvestingPro subscribers can access 12 additional key insights about Oxford Industries, including detailed analysis of its financial health and growth prospects.
The conservative guidance is attributed to the company’s strategic focus on driving operating leverage amidst the slower initial performance. As a result, KeyBanc has also revised its estimates for the fiscal year 2025, in addition to the price target reduction.
Oxford Industries’ recent stock performance has been impacted by broader market sentiment and sector-specific challenges. The retail sector has faced headwinds, and investors have been closely monitoring companies’ guidance and strategic responses to the evolving retail landscape.
The new price target of $80 set by KeyBanc reflects a recalibration of expectations in light of the factors affecting the company and the industry at large. Despite the lowered price target, the Overweight rating indicates that KeyBanc continues to see a positive outlook for Oxford Industries’ shares in the longer term.
In other recent news, Oxford Industries has confirmed that its fourth-quarter sales and earnings per share (EPS) are expected to align with previous forecasts. The company anticipates a 2-7% decrease in sales, matching the consensus estimate of a 5% drop, and an EPS range of $1.18-1.38, close to the consensus of $1.26. These projections were disclosed in a regulatory filing, highlighting Oxford Industries’ efforts to meet its financial targets. Meanwhile, Citi has reiterated its Sell rating on Oxford Industries, maintaining a price target of $65.00. Analysts at Citi have expressed concerns about potential challenges the company may face in increasing sales and margins in 2025. Despite these concerns, Oxford Industries noted an improvement in consumer trends following the November election, which they believe has continued into December. The company has not provided full guidance for 2025 but stated that expanding operating margins and projecting revenue growth will be their primary focus for the year. Investors will be watching closely as Oxford Industries works to enhance profitability and drive growth.
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