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What: Shares of clothing-maker Oxford Industries (NYS: OXM) were getting torn up today, falling as much as 16% after its earnings report disappointed.
So what: Net income jumped 88% for the parent of clothing lines such as Tommy Bahama and Ben Sherman but still fell short of estimates. Analysts had expected EPS of $0.21 a share, while the company delivered only $0.19 and, worse, cut earnings guidance because of "challenges at Ben Sherman and the impact of Hurricane Sandy." Oxford now sees EPS for the year at $2.60-$2.70, well below estimates of $2.92.
Now what: Sales growth in the period was slow at 7%, and I'm skeptical that the company will be able to hit its growth targets for 2013. The stock has performed exceptionally well since the recession, gaining more than 10 times its value from its bottom, but that was mostly due to low expectations. With underwhelming earnings numbers and a P/E of 25, this stock is starting to look like it's due for a pullback.
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The article Why Oxford Industries Shares Tumbled originally appeared on Fool.com.
Jeremy Bowman and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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