Wunderlich's Outlook For Oxford Industries

In a recent report by Wunderlich Securities, analysts reiterated their Buy rating on Oxford Industries Inc

and set a $72.00 target for the stock. After a generally upbeat day of presentations at the 2015 ICR XChange Conference, analysts are optimistic about the prospects for Oxford. Cheery holiday sales Management reaffirmed their 4Q14 guidance at the conference based on strong preliminary holiday sales numbers. Analysts believe that the warmer nation-wide weather this holiday season is partially responsible for the strong retail sales and that Oxford will benefit from solid year-over-year holiday margin gains as a result. Lilly/Target collaboration The Lilly brand will be launched in all U.S. and Canadian Target stores on April 19. While Oxford only gets a relatively small design fee in the deal, the North American exposure of the Lilly brand (including Target's planned fashion magazine, television and online advertising campaigns) will drastically increase brand awareness. Flexibility with Ben Sherman Analysts believe that management is likely to decide soon to move one of two ways with Ben Sherman: expand or sell. With only 11 full-price stores currently in operation, Ben Sherman is a drain on Oxford's earnings in its current state. Tommy Bahama Analysts believe Oxford is committed to maintaining Tommy Bahama as a premium brand and sees even less promotional discounts on the brand in 2015. In addition, management will continue to focus on expanding the women's division of the brand, which currently only makes up about 30 percent of retail sales and a small fraction of wholsesale numbers. Outlook Analysts believe that Oxford Industries stock offers a compelling risk/reward balance at current levels. “We view the company as making the right choices and, with very easy 1HFY16 comparisons, able to to drive upside from very low expectations.”