The 10-second takeaway
For the quarter ended Oct. 31 (Q1), Zale missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP loss per share dropped.
Gross margins dropped, operating margins were steady, net margins grew.
Zale tallied revenue of $357.5 million. The two analysts polled by S&P Capital IQ predicted a top line of $364.8 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $351.0 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 -$0.88. The three earnings estimates compiled by S&P Capital IQ averaged -$0.63 per share. GAAP EPS were -$0.88 for Q1 versus -$0.99 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 53.2%, 30 basis points worse than the prior-year quarter. Operating margin was -6.4%, about the same as the prior-year quarter. Net margin was -7.9%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $677.8 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $1.92 billion. The average EPS estimate is $0.19.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 109 members out of 268 rating the stock outperform, and 159 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Zale a green thumbs-up, and 67 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 $8.38.
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