Body Central Earnings: Here’s Why Shares are Down Now

Body Central Corp. (NASDAQ:BODY) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.83%.

Body Central Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.15 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 5.37% to $75.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Body Central Corp. reported adjusted EPS loss of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.1. It missed the average revenue estimate of $82.03 million.

Quoting Management: Brian Woolf, Body Central’s CEO, stated: “While we did not anticipate improvement in our results until the second half, our second quarter performance was more challenging than we expected. During the quarter we took aggressive steps to clear inventory to make room for the new product assortment that we believe better reflects the tastes of our customer. We also brought product in earlier than last year in order to set the floors for the Back-to-School season, which contributed to higher inventory levels at the end of the quarter. Our comparable sales decrease and merchandise margin pressure was the result of a decline in store traffic combined with deep markdowns. In the direct business, we saw a significant decline in sales and margin as the result of our strategic decision to more closely align our catalog and website with the offering in our retail stores.”

Key Stats (on next page)…

Revenue decreased 7.74% from $81.4 million in the previous quarter. EPS decreased to $-0.15 in the quarter versus EPS of $0.17 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved down from a profit of $0.57 to a profit of $0.56 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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