On May 22, Men's Wearhouse
- Total sales increased 14.2%, but comps were 1.3% lower, despite the company projecting a gain of 1% to 2%. Luckily, Canadians are improving their wardrobes, boosting comps 5.8% higher in the country.
- Earnings at Men's Wearhouse jumped 49.1%, as the retailer earned $40.9 million in the first quarter.
- The company expects to easily top analyst estimates in the second quarter. Thanks to its acquisition of After Hours, it projects earnings of $0.88 to $0.92 per share. It also raised its annual outlook to a range of $2.84-$2.94 per share.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$496.1 |
$434.6 |
14.2% |
Net Profit |
$40.9 |
$28.9 |
49.1% |
EPS |
$0.75 |
$0.53 |
41.5% |
Diluted Shares* |
54,709 |
54,719 |
(0.0%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
45.6% |
42.1% |
3.5 |
Operating Margin |
13.2% |
10.7% |
2.5 |
Net Margin |
8.3% |
6.6% |
1.6 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$125.5 |
$264.1 |
(52.5%) |
Inventory |
$474.4 |
$432.4 |
9.7% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Long-Term Debt |
$78.1 |
$207.4 |
(62.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash From Ops |
$40.3 |
$10.8 |
273.5% |
Capital Expenditures |
$11.7 |
$12.3 |
(5.2%) |
Free Cash Flow |
$28.6 |
($1.5) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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.
At the time of publication, Fool contributor Mike Cianciolo held no position in Men's Wearhouse.