The 10-second takeaway
For the quarter ended July 31 (Q4), Zale met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share shrank.
Margins grew across the board.
Zale recorded revenue of $407.0 million. The two analysts polled by S&P Capital IQ hoped for revenue of $405.4 million on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $377.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.61. The three earnings estimates compiled by S&P Capital IQ averaged -$0.84 per share. GAAP EPS were -$0.62 for Q4 versus -$1.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 30 basis points better than the prior-year quarter. Operating margin was -2.2%, 330 basis points better than the prior-year quarter. Net margin was -4.9%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $364.8 million. On the bottom line, the average EPS estimate is -$0.68.
Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 106 members out of 260 rating the stock outperform, and 154 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Zale a green thumbs-up, and 60 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zale is buy, with an average price target of $6.75.
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