On Thursday, Feb. 22, department store retailer J.C. Penney (NYSE:JCP) released fourth-quarter and year-end results for the period ended Feb. 3, 2007. Here are the quick-and-dirty details for the quarter.

  • Total sales grew 7%, beating analyst expectations, as same-store department store sales advanced 2.2%. Online sales improved an impressive 17.6%
  • Gross margin improved 180 basis points, attributed to higher sales of private-label merchandise and better inventory management.
  • Diluted earnings fell 10.7%, as last year's tax credits boosted results by roughly $0.20 per share.
  • Management projects first-quarter 2007 earnings of $0.99 per share and full-year earnings of $5.44 per share.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$6,664

$6,203

7.4%

Net Profit

$477

$551

(13.4%)

EPS

$2.09

$2.34

(10.7%)

Diluted Shares

228

235

(2.8%)

*Three months ended Feb. 3, 2007 and Jan. 28, 2006

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

38.0%

36.2%

1.8

Operating Margin

11.3%

10.8%

0.5

Net Margin

7.2%

8.9%

(1.7)

*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.

$2,747

$3,016

(8.9%)

Inventory

$3,400

$3,210

5.9%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$3,058

$2,733

11.9%

Long-Term Debt

$3,010

$3,444

(12.6%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$1,255

$1,337

(6.1%)

Capital Expenditures

$772

$535

44.3%

Free Cash Flow

$483

$802

(39.8%)

*12 months ended Feb. 3, 2007 and Jan. 28, 2006

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Comparable companies:

  • Kohl's (NYSE:KSS)
  • Nordstrom (NYSE:JWN)
  • Dillard's (NYSE:DDS)
  • Sears Holdings (NASDAQ:SHLD)
  • Federated (NYSE:FD)

Related Foolishness:

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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.