Warnaco Group Goes Red
Warnaco Group (NYS: WRC) filed its 10-K on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Warnaco Group missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped to a loss.
Gross margins improved, operating margins dropped, net margins contracted.
Warnaco Group logged revenue of $614.7 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $630.5 million on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $591.5 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 $0.97. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share on the same basis. GAAP EPS were -$0.16 for Q4 against $0.42 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 43.6%, 60 basis points better than the prior-year quarter. Operating margin was 6.0%, 270 basis points worse than the prior-year quarter. Net margin was -1.1%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $660.6 million. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $2.64 billion. The average EPS estimate is $4.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 127 members out of 137 rating the stock outperform, and 10 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Warnaco Group a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Warnaco Group is hold, with an average price target of $58.30.
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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.