On Aug. 23, Aeropostale
- Although total sales increased 13.3% to $311.2 million, that was lower than expected, and comps dipped 4.1%.
- Earnings at Aeropostale soared 74.5% higher to $14.7 million in the second quarter, as lower costs pushed gross margins 470 basis points higher.
- The company expects to earn $0.43-$0.45 per share in the third quarter, which would disappoint the Street's expectations of $0.49 per share.
- Aeropostale is a three-star stock (out of a possible five) in Motley Fool CAPS, as is Abercrombie & Fitch
(NYSE:ANF) . American Eagle(NYSE:AEO) is preferred by the CAPS community, garnering four stars.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$311.2 |
$274.6 |
13.3% |
|
Net Profit |
$14.7 |
$8.4 |
74.5% |
|
EPS |
$0.19 |
$0.10 |
90.0% |
|
Diluted Shares |
78.2 |
81.1 |
(3.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
31.1% |
26.4% |
4.7 |
|
Operating Margin |
7.2% |
4.5% |
2.6 |
|
Net Margin |
4.7% |
3.1% |
1.7 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$204.0 |
$151.4 |
34.7% |
|
Inventory |
$150.6 |
$154.7 |
(2.7%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$99.2 |
$99.4 |
(0.2%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Looks like the cash flow statement got blown away.
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 owned shares of American Eagle, but no shares of any other company in this article. American Eagle is a Motley Fool Stock Advisor recommendation. The Fool has a disclosure policy that's been around the world in 80 days.
