On Nov. 14, casual-apparel retailer American Eagle Outfitters
- American Eagle appears to have connected with current trends this quarter. Sales jumped 20%, comparable-store revenue increased 13%, and consumers were willing to pay higher average product prices, resulting in great gross margins, too.
- The balance sheet looks very healthy, with no debt and a growing cash hoard.
- And that bank account is growing even after accounting for 24 new store openings and nine remodelings in the quarter. The company is on track for more than 115 new and remodeled stores in fiscal 2006.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$691 |
$696 |
$580 |
19.9% |
|
Net Profit |
-- |
$100 |
$73 |
37.7% |
|
EPS |
$0.65 |
$0.66 |
$0.47 |
40.4% |
|
Diluted Shares |
152.3 |
156.0 |
(2.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
49.19% |
46.40% |
2.79 |
|
Operating Margin |
21.90% |
19.44% |
2.46 |
|
Net Margin |
14.50% |
12.63% |
1.87 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q3 2006 | Q3 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $757 | $556 | 36.2% |
Inventory | $348 | $303 | 15.0% |
Liabilities | Q3 2006 | Q3 2005 | Change |
|---|---|---|---|
Accounts Payable | $213 | $154 | 38.4% |
Long-Term Debt | $0 | $0 | N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
American Eagle left cash flow details out of the report. Throw us a bone, guys!
Find out why Fools always follow the money.
Retail Checkup
Q3 2006 | Q3 2005 | Change | |
|---|---|---|---|
Days in Inventory | 78.3 | 83.1 | (4.8) |
Days Payables Outstanding | 49.5 | 43.4 | 6.1 |
Cash Conversion Cycle | 28.8 | 39.7 | (10.9) |
Read up on cash conversion metrics.
Related Companies:
- Aeropostale
(NYSE:ARO) - Abercrombie & Fitch
(NYSE:ANF) - Limited Brands
(NYSE:LTD) - dELiA*s
(NASDAQ:DLIA)
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American Eagle is a Motley Fool Stock Advisor selection. Which other apparel retailers made David and Tom Gardner's list of Wall Street's best investment opportunities? Find out with a free 30-day trial toStock Advisor.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributorAnders Bylund had no position in any company mentioned.
