The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Brown Shoe beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins increased, net margins shrank.
Brown Shoe reported revenue of $732.2 million. The three analysts polled by S&P Capital IQ anticipated revenue of $700.4 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $713.8 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 $0.60. The five earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.56 for Q3 were 29% lower than the prior-year quarter's $0.79 per share. (The prior-year quarter included $0.40 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.0%, 10 basis points better than the prior-year quarter. Operating margin was 5.9%, 50 basis points better than the prior-year quarter. Net margin was 3.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $642.1 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $2.58 billion. The average EPS estimate is $0.93.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 115 members out of 143 rating the stock outperform, and 28 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Brown Shoe a green thumbs-up, and five 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 $16.00.
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