What Happened?

Shares of fashion conglomerate Oxford Industries (NYSE:OXM) fell 10.3% in the morning session after the company reported weak third-quarter financial results, with revenue and EPS falling below analysts' expectations. Management blamed the weakness on several issues: surging inflation, distractions caused by U.S. elections and global events that weakened transaction volumes, and two major hurricanes in the U.S., which reduced sales by an estimated $4 million and lowered EPS by $0.14. While management acknowledged that some challenges have eased, some of the improvements might take time to show up in the numbers. Therefore, it was no surprise management gave a weak forecast; its full-year guidance for both revenue and EPS fell short of Wall Street's estimates, underscoring a disappointing quarter.

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What The Market Is Telling Us

Oxford Industries’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Oxford Industries and indicate this news significantly impacted the market’s perception of the business.

Oxford Industries is down 22.9% since the beginning of the year, and at $77.07 per share, it is trading 31.5% below its 52-week high of $112.47 from March 2024. Investors who bought $1,000 worth of Oxford Industries’s shares 5 years ago would now be looking at an investment worth $1,028.

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