On Mar. 6, after market close, footwear retailer Payless ShoeSource
- Total sales grew 13%, as same-store sales improved an impressive 6.8%. Strength was attributed to an extra week this quarter, as well as higher unit sales.
- Diluted earnings came in positive after a reported loss in last year's quarter, helped by a $0.22 gain related to income tax reserves.
- Management's "long-standing goal" is to post low single-digit same-store sales growth and mid-teens earnings growth.
- Payless continued its foray into owning and licensing its own brands by announcing plans to acquire Collective International and its Airwalk brand. Payless is already working with Disney
(NYSE:DIS) and Nike(NYSE:NKE) on other brand development initiatives. - Payless has earned a four-star rating in the Motley Fool CAPS intelligence database. Footwear peer Skechers
(NYSE:SKX) also has a four-star rating, while Steve Madden(NASDAQ:SHOO) and Nike have three-star ratings. Feel free to tell us what you think about these and other companies.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$693 |
$611 |
13.4% |
|
Net Profit |
$25 |
($6) |
N/A |
|
EPS |
$0.37 |
($0.08) |
N/A |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
33.9% |
31.2% |
2.7 |
|
Operating Margin |
2.2% |
0.0% |
2.2 |
|
Net Margin |
3.6% |
(0.9%) |
4.5 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$461 |
$437 |
5.5% |
|
Inventory |
$362 |
$333 |
8.8% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$186 |
$169 |
10.1% |
|
Long-Term Debt |
$202 |
$204 |
(1.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$230 |
$227 |
1.2% |
|
Capital Expenditures |
$119 |
$64 |
84.4% |
|
Free Cash Flow |
$111 |
$163 |
(31.7%) |
Find out why Fools always follow the money.
Related Foolishness:
Disney is a Stock Advisor newsletter recommendation.
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 is long shares of Nike but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
