The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Brown Shoe met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins increased across the board.
Brown Shoe booked revenue of $640.2 million. The four analysts polled by S&P Capital IQ predicted a top line of $634.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.14. The five earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.14 for Q4 were 40% higher than the prior-year quarter's $0.10 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.) GAAP EPS were $0.09 for Q4 compared to -$0.20 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 39.3%, 110 basis points better than the prior-year quarter. Operating margin was 2.1%, 40 basis points better than the prior-year quarter. Net margin was 0.6%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $627.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.64 billion. The average EPS estimate is $1.31.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 115 members out of 142 rating the stock outperform, and 27 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Brown Shoe a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brown Shoe is hold, with an average price target of $18.50.
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