On Feb. 27, Federated Department Stores (NYSE:FD) released fourth-quarter earnings for the period ended Feb. 3.

  • Sales for the quarter decreased by 4.3% as the company closed 80 stores over the last year. On a positive note, same-store sales rose 6.1%.
  • The Board of Directors authorized a $4 billion share repurchase program, which at today's prices represents about 18% of the company's market capitalization.
  • One hundred and five of 122 investors think Federated will outperform the market in our community intelligence database, Motley Fool CAPS. Got an opinion? Bring it to CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$9,159

$9,571

(4.3%)

Net Profit*

$760

$678

12.1%

EPS

$1.45

$1.22

18.9%

Diluted Shares

523.7

554.3

(5.5%)

*Continuing operations.

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

40.8%

40.6%

0.2

Operating Margin

13.8%

12.5%

1.3

Net Margin

8.3%

7.1%

1.2

*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.

$1,211

$248

388.3%

Accounts Rec.

$517

$2,522

(79.5%)

Inventory

$5,317

$5,459

(2.6%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$4,944

$5,246

(5.8%)

Long-Term Debt

$7,847

$8,860

(11.4%)

*Accounts Payable includes accrued liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$3,692

$4,145

(10.9%)

Capital Expenditures

$1,317

$568

131.9%

Free Cash Flow

$2,375

$3,577

(33.6%)



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