Retail Ventures Into Trouble: Fool by Numbers
By Motley Fool Contributors
June 12, 2007
On June 11, Retail Ventures (NYSE: RVI) released first-quarter earnings for the period ended May 5.
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An increase in sales at both Filene's Basement and DSW was partially offset by a sales drop at Value City, creating a slight overall improvement of 4.5%.
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Comparable sales fell 5.2%, because the company's sales growth was generated by opening new store locations, rather than by increasing demand at existing stores.
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A $12.5 million non-cash investment gain from derivative instruments was recorded on the income statement. Excluding this gain, the company would have recorded a loss of $0.21 per share for the quarter.
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(Figures in millions, except per-share data.)
Income Statement Highlights
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Q1 2007
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Q1 2006
|
Change
|
|
Sales
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$754.1
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$721.5
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4.5%
|
|
Net Profit
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$2.7
|
($64.9)
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N/A
|
|
EPS
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$0.05
|
($1.58)
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N/A
|
|
Diluted Shares
|
59.4
|
41.1
|
44.6%
|
Get back to basics with the income statement.
Margin Checkup
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Q1 2007
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Q1 2006
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Change*
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|
Gross Margin
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40.3%
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40.3%
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0.0
|
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Operating Margin
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3.7%
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(7.0%)
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10.7
|
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Net Margin
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0.4%
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(9.0%)
|
9.4
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*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
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Assets
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Q1 2007
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Q1 2006
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Change
|
|
Cash + ST Invest.
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$267.9
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$204.6
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31.0%
|
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Accounts Rec.
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$23.5
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$16.1
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45.6%
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Inventory
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$578.5
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$541.7
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6.8%
|
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Liabilities
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Q1 2007
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Q1 2006
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Change
|
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Accounts Payable
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$258.4
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$274.8
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(6.0%)
|
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Long-Term Debt
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$276.0
|
$181.3
|
52.2%
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The balance sheet reflects the company's health.
Cash Flow Highlights
|
2007
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2006
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Change
|
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Capital Expenditures
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$25.1
|
$5.5
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359.0%
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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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