On Thursday, Feb. 22, department store retailer J.C. Penney
- 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%) |
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) |
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%) |
Find out why Fools always follow the money.
Comparable companies:
-
Kohl's
(NYSE:KSS) -
Nordstrom
(NYSE:JWN) -
Dillard's
(NYSE:DDS) -
Sears Holdings
(NASDAQ:SHLD) -
Federated
(NYSE:FD)
Related Foolishness:
- Penney Follows Lemmings Over the Cliff
- Retail's Battle for the Middle Class
- Couture Pays at Nordstrom
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.
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.