On Wednesday, Citi reiterated its Sell rating on Oxford Industries (NYSE:OXM) shares with a steady price target of $65.00. The reaffirmation came after Oxford Industries disclosed in a regulatory filing that its fourth-quarter sales and earnings per share (EPS) are anticipated to align with its previous forecast. The company's guidance projected a 2-7% decrease in sales, in line with the consensus estimate of a 5% drop, and an EPS of $1.18-1.38, which is also close to the consensus of $1.26.
Oxford Industries, which reported on its third-quarter earnings call on December 11, noted that consumer trends showed improvement following the November election, a positive shift believed to have persisted into December. However, specific results were not disclosed. The management also mentioned that while full guidance for 2025 has not been provided, their primary focus for the year will be on expanding operating margins and they anticipate projecting revenue growth.
Despite these forward-looking statements from the company, Citi analysts have expressed concerns about the potential challenges Oxford Industries may face in increasing sales and margins in 2025. The detailed commentary from the firm highlights skepticism about the company's ability to achieve its growth objectives in the given time frame.
Oxford Industries' recent announcement and Citi's subsequent rating underscore the company's efforts to meet its near-term financial targets while also setting long-term goals. As investors look ahead, the company's strategies to enhance profitability and drive growth in the coming years will be closely monitored.
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