On July 24, Mothers Work
- The company posted earnings of $0.90 per share before debt repurchase charges and $0.17 per share after. That may be at the upper end of its recently reduced guidance, but it's well below the $1.54 per share it earned a year ago.
- Sales fell 6.5% to $153.2 million and margins decreased as newly pregnant shoppers continue to flock to non-specialty stores where maternity-type clothing has suddenly become trendy for non-pregnant women.
- The company redeemed $35 million worth of an outstanding note, reducing its long-term debt by nearly 28%. The company will benefit in future periods from lower interest charges.
- Although 75% of investors over at Motley Fool CAPS predict Mothers Work will outperform the S&P 500, it earns just two stars (out of a possible five).
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$153.2 |
$163.9 |
(6.5%) |
|
Net Profit |
$1.0 |
$8.8 |
(88.2%) |
|
EPS |
$0.17 |
$1.54 |
(89.0%) |
|
Diluted Shares |
6.1 |
5.7 |
8.0% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.9% |
54.8% |
(1.9) |
|
Operating Margin |
7.2% |
10.9% |
(3.7) |
|
Net Margin |
0.7% |
5.4% |
(4.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$7.4 |
$41.3 |
(82.1%) |
|
Inventory |
$98.0 |
$97.1 |
0.9% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$92.1 |
$127.7 |
(27.9%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
I guess the cash flow statement didn't fall within the scope of Mothers Work.
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 Mothers Work.
