On Aug. 15, Macy's
- A challenging market environment and a fall in same-store sales resulted in a 1.7% decline in total revenues.
- Integration costs of $97 million eroded the operating margin by 280 basis points. Without this cost, the operating margin would have been 5.9%.
- During the quarter, the company repurchased 23.8 million shares for a total of $928 million, resulting in an average price of $38.95.
- The company expects its total sales for the third quarter to be in the range of $5.9 billion to $6.0 billion, and fourth-quarter sales to be between $8.8 billion and $9.0 billion, which would end fiscal 2007 sales around $26.5 billion to $26.8 billion.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$5,892.0 |
$5,995.0 |
(1.7%) |
|
Net Profit* |
$74.0 |
$282.0 |
(73.8%) |
|
EPS |
$0.16 |
$0.51 |
(68.6%) |
|
Diluted Shares |
457.8 |
559.2 |
(18.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
40.5% |
42.1% |
(1.6) |
|
Operating Margin |
4.2% |
7% |
(2.8) |
|
Net Margin |
1.3% |
4.7% |
(3.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$249.0 |
$1,062.0 |
(76.6%) |
|
Accounts Rec. |
$490.0 |
$460.0 |
6.5% |
|
Inventory |
$5,200.0 |
$5,168.0 |
0.6% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$4,606.0 |
$4,712.0 |
(2.2%) |
|
Long-Term Debt |
$9,412.0 |
$8,205.0 |
14.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$412.0 |
$2,281.0 |
(81.9%) |
|
Capital Expenditures |
$403.0 |
$353.0 |
14.2% |
|
Free Cash Flow |
$9.0 |
$1,928.0 |
(99.5%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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