After market-close on Wednesday, Feb.28, retailer Limited Brands
- Total sales grew 13.6% as overall same-store sales improved 8%.
- By brand, comps improved 10% at Victoria's Secret, 9% at Bath & Body Works, and 1% at apparel stores such as Limited and Express.
- Reported diluted earnings fell 15.6%, because last year's quarter included $0.29 in special items. Excluding those items, earnings grew slightly more than 10% .
- Limited Brands is currently projecting 2007 first-quarter earnings of $0.25-$0.28 per share, and full-year earnings of $1.75-$1.90, or 4%-13% growth.
- Limited Brands has developed and spun off other successful brands such as Abercrombie & Fitch
(NYSE:ANF) and Tween Brands(NYSE:TWB)
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$4,024,702 |
$3,541,584 |
13.6% |
Net Profit |
$439,778 |
$519,171 |
(15.3%) |
EPS |
$1.08 |
$1.28 |
(15.6%) |
Diluted Shares |
405,340 |
406,285 |
(0.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
40.1% |
40.8% |
(0.7) |
Operating Margin |
17.5% |
20.4% |
(2.9) |
Net Margin |
10.9% |
14.7% |
(3.8) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$550,399 |
$1,207,731 |
(54.4%) |
Accounts Rec. |
$176,120 |
$182,352 |
(3.4%) |
Inventory |
$1,769,974 |
$1,159,690 |
52.6% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$592,736 |
$534,960 |
10.8% |
Long-Term Debt |
$1,665,109 |
$1,669,403 |
(0.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools will have to shop for further cash flow information once the Limited files its 10-K with the Securities and Exchange Commission.
Find out why Fools always follow the money.
Related Foolishness:
- Foolish Forecast: Limited Tells a Secret
- Putting on the Ritz at Abercrombie & Fitch: Fool by Numbers
- Tween Brands Deserves Justice
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.