Oxford Industries Inc faces sluggish growth prospects. The company plans to focus on its profitable brands to boost its feasibility. Overall industrial trend is encouraging as most of its component firms are looking forward to announce healthy quarterly and annual results.
Oxford Industries Inc. stock reversed its 2012 trend and grew 3 percent in 2013 on an YTD basis. The company posted better revenue and EPS figures for its third quarter and the trend is expected to continue for the fourth quarter as well. Oxford Industries has popular brands like Lilly Pulitzer and Tommy Bahama.
However, the company has a rather subdued outlook for the near future on account of delays in opening new outlets. The company fortunes are also being dragged down by its low performing Ben Sherman division. Oxford Industries is looking to take steps to bring efficiency to the unit.
Oxford Industries stock is currently in a bullish mode. It is trading above its short-term and long-term moving average price. While it is expected to make up moves in the coming future, it is expected to run into first resistance level at $49.50. It is also trading near overbought territory and thus has the potential to provide good short-term gains. The company also recently paid 15 cents per share in dividend. Oxford Industries offers dividend yield of 1.26 percent.
Conversely, PVH Corp. owns popular luxury brands like Tommy Hilfiger and Calvin Klein in its portfolio. For the third quarter of the year, the company had reported encouraging sales trends. For the full year, PVH Corp. expects to earn in the range of $6.37 and $6.38 per share. Its annual revenue is also expected to grow by 2 percent to $6.01 billion. The stock grew 47 percent in the past 52 weeks and on the expectation of good full year results, it is easy to assume that it has good upside left.
PVH Corp. serves a different market segment through an eclectic mix of brands. This way the company is able to diversify its risk profile. Its stock is in a bullish mode as it recently set a new 52-week high price. The company is now aggressively developing its IZOD brands by inking various licensing agreements. It has collaborated with Concept One, American Essentials and Stepping Stones for promoting the brand. The stock is expected to see a positive impact from these steps.
Apart from growing organically, PVH Corp. is also focusing its attention to acquisitions to bolster its presence in the market. It acquired The Warnaco Group Inc., which will help it to gain a foothold in major markets across the globe. The acquisition is expected to be accretive from FY 2013. The company is on a growth trajectory, which justifies its premium P/E multiple.
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