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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