On Thursday, home furnishings retailer Pier 1 Imports
- Pro forma earnings amounted to a $0.34 loss per share, discounting items like tax allowance changes, asset impairments (read: unsellable store inventory), litigation settlements, and stock-based compensation expenses. You be the judge of these items' rightful place on the income statement.
- The company continues to pay out dividends despite mounting losses and negative cash flows.
- The cash conversion cycle is getting shorter, which is good, but it still isn't up to industry standards. According to Capital IQ, the average home furnishings business manages to turn its goods into cash in about 78 days.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$387 |
$370.7 |
$423.7 |
(12.5%) |
|
Net Profit |
-- |
-$73.1 |
-$10.2 |
N/A |
|
EPS |
$0.28 |
($0.84) |
($0.12) |
N/A |
|
Diluted Shares |
87.3 |
86.5 |
0.9% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
28.46% |
31.89% |
(3.43) |
|
Operating Margin |
(16.52%) |
(3.3%) |
(13.22) |
|
Net Margin |
(19.71%) |
(2.4%) |
(17.31) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$150.3 |
$38.8 |
287.6% |
|
Accounts Rec. |
$61.2 |
$56.6 |
8.1% |
|
Inventory |
$404.1 |
$474.9 |
(14.9%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$125.4 |
$114.7 |
9.3% |
|
Long-Term Debt |
$184.0 |
$19.0 |
868.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
-$99.2 |
-$157.9 |
N/A |
|
Capital Expenditures |
$18.7 |
$28.0 |
(33.3%) |
|
Free Cash Flow |
-$117.9 |
-$186 |
N/A |
|
Dividends Paid |
$17.5 |
$17.3 |
1.1% |
Find out why Fools always follow the money.
Retail Checkup
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
129.2 |
137.7 |
(8.52) |
|
Days in Receivables |
15.2 |
11.2 |
4 |
|
Days Payables Outstanding |
37.9 |
34.7 |
3.2 |
|
Cash Conversion Cycle |
106.5 |
114.3 |
(7.72) |
Read up on cash conversion metrics.
Related companies:
-
Ethan Allen Interiors
(NYSE:ETH) -
Kirkland
's
(NASDAQ:KIRK) -
Haverty
Furniture
(NYSE:HVT) -
Restoration Hardware
(NASDAQ:RSTO) -
Bed Bath & Beyond
(NASDAQ:BBBY) -
Williams-Sonoma
(NYSE:WSM)
Bed Bath & Beyond is a Motley Fool Stock Advisor selection. Find out what Tom and David Gardner like about the company with a free 30-day trial.
- There's still life left in some furniture stores.
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At the time of publication, Fool contributor Anders Bylund had no position in any stock mentioned. Fool rules are here.
