The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Brown Shoe missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Brown Shoe recorded revenue of $628.9 million. The four analysts polled by S&P Capital IQ foresaw sales of $643.8 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $604.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.10. The five earnings estimates compiled by S&P Capital IQ averaged $0.20 per share on the same basis. GAAP EPS were -$0.21 for Q4 against $0.08 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 37.9%, 100 basis points worse than the prior-year quarter. Operating margin was -1.3%, 280 basis points worse than the prior-year quarter. Net margin was -1.3%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $605.7 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is $1.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 117 members out of 148 rating the stock outperform, and 31 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Brown Shoe a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brown Shoe is outperform, with an average price target of $10.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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