True Religion Apparel
The 10-second takeaway
For the quarter ended June 30 (Q2), True Religion Apparel beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Margins shrank across the board.
True Religion Apparel chalked up revenue of $116.6 million. The five analysts polled by S&P Capital IQ expected sales of $115.0 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $104.9 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 $0.33. The six earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.33 for Q2 were 15% lower than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.8%, 250 basis points worse than the prior-year quarter. Operating margin was 13.3%, 260 basis points worse than the prior-year quarter. Net margin was 7.2%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $131.5 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $517.1 million. The average EPS estimate is $1.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 473 members out of 545 rating the stock outperform, and 72 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give True Religion Apparel a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on True Religion Apparel is hold, with an average price target of $32.00.
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