Guess? Goes Global: Fool by Numbers

On Feb. 14, apparel maker Guess? (NYSE: GES  ) released fourth-quarter earnings for the period ended Dec. 31.

  • Net revenue for the quarter increased by 25.2% on excellent results from its European and licensing operations, which saw 87% and 56% revenue growth, respectively.
  • Operating margin improved by 480 basis points on reduced cost of sales and SG&A expenses.
  • Rising sales and expanding margins are the catalysts for the company. For FY 2008, Guess? expects consolidated revenues between $1.45 billion and $1.5 billion, operating margin of 17%, and EPS in the range of $3.30-$3.40.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$346.4

$276.6

25.2%

Net Profit

$45.7

$25.8

77.1%

EPS

$0.99

$0.57

73.7%

Diluted Shares

46.3

45.6

1.6%

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

46.0%

42.6%

3.4

Operating Margin

20.5%

15.7%

4.8

Net Margin

13.2%

9.3%

3.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$220.3

$171.5

28.4%

Accounts Rec.

$133.4

$81.8

63.2%

Inventory

$166.1

$122.0

36.1%


Liabilities

Q4 2006

Q4 2005

Change

Current Liabilities*

$249.3

$182.2

36.8%

Long-Term Debt

$18.0

$53.2

(66.1%)

*Less current portions of interest-bearing liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$138.3

$149.3

(7.4%)

Capital Expenditures

No Data

No Data

N/A

Free Cash Flow

No Data

No Data

N/A

Find out why Fools always follow the money.

If the company has the totals, it must have the parts. We wish it would give the parts, too.

Related Companies:

  • Gap (NYSE: GPS  )
  • Nordstrom (NYSE: JWN  )
  • Limited Brands (NYSE: LTD  )
  • Abercrombie & Fitch (NYSE: ANF  )

Related Foolishness:

Gap is both a Stock Advisor and an Inside Value recommendation. Limited Brands is an Income Investor recommendation. Free 30-day trials to either newsletter are available by clicking the above links. Really! That's all you have to do!

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 check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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