True Religion Apparel
The 10-second takeaway
For the quarter ended March 31 (Q1), True Religion Apparel beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
True Religion Apparel tallied revenue of $120.8 million. The six analysts polled by S&P Capital IQ expected revenue of $113.2 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $106.8 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 $0.22. The seven earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. Non-GAAP EPS of $0.22 for Q1 were 46% lower than the prior-year quarter's $0.41 per share. GAAP EPS of $0.02 for Q1 were 95% lower than the prior-year quarter's $0.41 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 61.0%, 350 basis points worse than the prior-year quarter. Operating margin was 8.7%, 740 basis points worse than the prior-year quarter. Net margin was 0.4%, 940 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $115.3 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $513.7 million. The average EPS estimate is $1.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 486 members out of 555 rating the stock outperform, and 69 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 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 outperform, with an average price target of $30.50.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.