The 10-second takeaway
For the quarter ended July 6 (Q2), Jones Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Jones Group recorded revenue of $845.6 million. The five analysts polled by S&P Capital IQ expected to see a top line of $835.2 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $854.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.02. The six earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. Non-GAAP EPS of $0.02 for Q2 were 91% lower than the prior-year quarter's $0.22 per share. GAAP EPS were -$0.05 for Q2 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 35.6%, 260 basis points worse than the prior-year quarter. Operating margin was 1.3%, 120 basis points worse than the prior-year quarter. Net margin was -0.4%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $0.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 154 members out of 195 rating the stock outperform, and 41 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Jones Group 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 Jones Group is hold, with an average price target of $13.30.
Selling to fickle consumers is a tough business for Jones Group or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add Jones Group to My Watchlist.
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. 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.