True Religion Apparel Misses on Revenues but Beats on EPS

Seth Jayson, The Motley Fool
Updated

True Religion Apparel (NAS: TRLG) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), True Religion Apparel missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.


Gross margins dropped, operating margins grew, net margins dropped.

Revenue details
 True Religion Apparel booked revenue of $104.9 million. The six analysts polled by S&P Capital IQ expected a top line of $107.3 million on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $98.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.39. The seven earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.39 for Q2 were 2.6% higher than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 64.3%, 120 basis points worse than the prior-year quarter. Operating margin was 15.9%, 50 basis points better than the prior-year quarter. Net margin was 9.3%, 30 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $120.1 million. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $467.8 million. The average EPS estimate is $1.97.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 489 members out of 560 rating the stock outperform, and 71 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give True Religion Apparel a green thumbs-up, and 23 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 $33.57.

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The article True Religion Apparel Misses on Revenues but Beats on EPS originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend True Religion Apparel. 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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