On March 7, laid-back clothing retailer American Eagle Outfitters
- An extra week of sales helped fourth-quarter earnings soar 40% to $0.66 per diluted share from $0.47 per diluted share, with total sales of $973.4 million, a 14% increase.
- The company launched its intimates sub brand "aerie" in September 2006 and plans to open at least 15 stand-alone stores in 2007. Management expects Q1 2007 EPS to be between $0.31 to $0.33, compared with last year's $0.28.
- Join our Motley Fool CAPS community and tell us what you think of American Eagle and its competitors, such as two-star-rated Abercrombie & Fitch
(NYSE:ANF) or three-star-rated Pacific Sunwear(NASDAQ:PSUN) .
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$973.4 |
$769.1 |
26.6% |
Net Profit |
$150.2 |
$107.5 |
39.6% |
EPS |
$0.66 |
$0.47 |
40.4% |
Diluted Shares |
228.0 |
227.2 |
0.3% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
47.9% |
46.4% |
1.6 |
Operating Margin |
23.3% |
22.5% |
0.8 |
Net Margin |
15.4% |
14.0% |
1.5 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$827.1 |
$751.5 |
10.1% |
Inventory |
$263.6 |
$210.7 |
25.1% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$171.2 |
$139.2 |
23.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools like to see fully dressed earnings releases with cash flow statements included.
Find out why Fools always follow the money.
Related Foolishness:
- American Eagle Stays Aloft
- Sandbagger of the Day: American Eagle
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- Gap's Gut-Churning Comps
American Eagle Outfitters and Pacific Sunwear are Stock Advisor recommendations. Click here if you're interested in learning more about this market-beating newsletter by taking a free 30-day trial.
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