Abercrombie & Fitch, Enriched: Fool by Numbers

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On May 23, Abercrombie & Fitch (NYSE: ANF) released first-quarter earnings for the period ended May 5.

• Total revenue increased by 13%. Comps decreased across the board, leaving new stores responsible for all of the company's growth (and then some).
• The teen-focused clothier opened its first European flagship store in London. For fiscal 2007, A&F expects to increase its gross retail square footage by approximately 11%-12% by adding 10 new Abercrombie & Fitch stores, 29 new abercrombie stores, 69 new Hollister stores, and nine new RUEHL stores.
• For the first half of fiscal 2007, A&F expects $1.47 to $1.52 in net income per diluted share.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$742.4	$657.3	13%
Net Profit	$60.1	$56.2	6.8%
EPS	$0.65	$0.62	4.8%
Diluted Shares	92.3	91.3	1.1%

Get back to basics with the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	65.6%	65.4%	0.2
Operating Margin	12.5%	12.8%	(0.3)
Net Margin	8.1%	8.6%	(0.5)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$342.0	$429.2	(20.3%)
Accounts Rec.	$49.1	$33.8	45.1%
Inventory	$401.8	$336.7	19.3%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable*	$111.8	$125.5	(10.9%)
Long-Term Debt	$0.0	$0.0	N/A

*Includes outstanding checks.

The balance sheet reflects the company's health.

Cash Flow Highlights
Abercrombie & Fitch's lack of a cash flow statement is anything but fashionable.

Free cash flow is a Fool's best friend.

Related Foolishness:

• Before the Call: Abercrombie at the Gate
• Hey Abercrombie, Welcome to the Club
• Urban Outfitters' Positive Direction

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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.