The Gory Details on True Religion Apparel's Double Fumble
True Religion Apparel (NAS: TRLG) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), True Religion Apparel missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
True Religion Apparel recorded revenue of $119.4 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $128.0 million. GAAP sales were 7.7% higher than the prior-year quarter's $110.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.62. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share on the same basis. GAAP EPS of $0.57 for Q4 were 9.5% lower than the prior-year quarter's $0.63 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 64.1%, 120 basis points better than the prior-year quarter. Operating margin was 20.7%, 280 basis points worse than the prior-year quarter. Net margin was 12.1%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $108.6 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $494.3 million. The average EPS estimate is $2.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 476 members out of 544 rating the stock outperform, and 68 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give True Religion Apparel a green thumbs-up, and 19 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 $36.83.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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