Earnings Preview for Oxford Industries

Oxford Industries (NYSE: OXM) will be reporting its first-quarter fiscal 2011 results tomorrow, June 7, after the closing bell. Investors are interested in continued momentum at Tommy Bahama and growth at Lilly Pulitzer, and whether the report can boost shares again like the previous one did.

Analysts are looking for the apparel maker to post earnings of $1.00 per share on revenues of $208.8 million. That is up from $0.52 per share and $163.6 million in the same period of last year. The consensus earnings estimate is unchanged from 60 days ago.

Looking Ahead

So far, analysts expect to see year-over-year growth of both earnings and revenues in the second quarter, as well as earnings up 7.8% and revenues up 21.2% for the full fiscal year. Note that analysts have underestimated Oxford's earnings in the past eight quarters. Also, investors may take some comfort from the fact that competitor Phillips-Van Heusen (NYSE: PVH) posted better-than-expected earnings and raised its guidance in its quarterly report at the end of May.

The Company

Atlanta-based Oxford Industries designs, produces and distributes branded and private label apparel for men and women, primarily in the United States and the United Kingdom. Brands include Tommy Bahama, Ben Sherman and Lilly Pulitzer. Customers include national and regional specialty stores, direct retailers, and department stores, such as Macy's (NYSE: M) and Nordstrom (NYSE: JWN).

Performance

Oxford has a dividend yield of 1.2%, a return on equity of 20.4% and a long-term earnings per share growth forecast of 13.0%. Though short interest is a hefty 11.3% of the float and the PEG ratio is 1.4, the stock has a Strong Buy consensus rating. Analysts' mean price target is $43.80 per share.

The share price recently reached a multiyear high of $39.53 but ended last week at $36.70. Year to date, the stock has outperformed competitors Perry Ellis (NASDAQ: PERY) and Polo Ralph Lauren (NYSE: RL), as well as the broader markets.