Chico's Expands: Fool by Numbers

On May 30, Chico's FAS (NYSE: CHS  ) released first-quarter earnings for the period ended May 5.

  • Net sales of the company increased by 16%. White House/Black Market sales grew 30% despite a 2% decline in same-store sales.
  • SG&A expenses surged from 41.1% to 45.2% of sales. Management cited an increase in payroll expenses as the company opens larger stores and increases the size of older ones.
  • Those stores better get productive pretty quickly because the operating and net margins fell fast as a result.

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

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$453.1

$390.7

16%

Net Profit*

$49.1

$53.0

(7.2%)

EPS

$0.28

$0.29

(3.4%)

Diluted Shares

176.6

183.1

(3.5%)

*Net income from continuing operations.

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

61.7%

61.7%

0.0

Operating Margin

16.5%

20.6%

(4.1)

Net Margin

10.8%

13.6%

(2.8)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$273.9

$407.2

(32.7%)

Accounts Rec.

$10.6

$6.1

74.2%

Inventory

$141.5

$115.6

22.4%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$73.6

$64.8

13.6%

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$88.4

$89.6

(1.3%)

Capital Expenditures

$52.3

$53.6

(2.5%)

Free Cash Flow

$36.2

$36.0

0.5%

Free cash flow is a Fool's best friend.

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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.


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