The 10-second takeaway
For the quarter ended April 28 (Q1), Brown Shoe beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Brown Shoe logged revenue of $626.4 million. The four analysts polled by S&P Capital IQ expected a top line of $600.7 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $624.6 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 $0.23. The five earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.04 for Q1 were 50% lower than the prior-year quarter's $0.08 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 38.2%, 220 basis points worse than the prior-year quarter. Operating margin was 1.4%, 140 basis points worse than the prior-year quarter. Net margin was 0.3%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $608.9 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $2.56 billion. The average EPS estimate is $0.83.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 108 members out of 138 rating the stock outperform, and 30 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Brown Shoe a green thumbs-up, and seven 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 $10.67.
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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