New York & Co. Dressed to Thrill: Fool by Numbers

On Thursday, Motley Fool Hidden Gems pick New York & Co. (NYSE: NWY  ) released Q3 2006 earnings for the period ended Oct. 28.

  • Sales didn't quite meet expectations, but per-share earnings easily beat estimates, up more than 130% over last year's Q3. Meanwhile, same-store sales advanced 0.5% versus a 3.1% decline during the same period a year ago.
  • Margins, too, improved across the board. Executives credited the gains to better sell-through and tight inventory and expense management.
  • More good times may be ahead because the company raised full-year guidance. Executives now expect New York & Co. to earn $0.74 to $0.83 a stub on $1.20 billion to $1.22 billion in sales, up from earlier estimates of $0.70 to $0.82 a share on $1.19 billion to $1.21 billion in revenue.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$270,922

$254,388

6.5%

Net Profit

$9,593

$4,154

130.9%

EPS

$0.16

$0.07

128.6%

Diluted Shares

59,963

57,675

4.0%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

33.2%

29.3%

3.9

Operating Margin

6.1%

3.4%

2.7

Net Margin

3.5%

1.6%

1.9



*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$23,732

$30,027

(21.0%)

Accounts Rec.

$0

$0

N/A

Inventory

$150,379

$136,772

9.9%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$96,219

$84,762

13.5%

Long-Term Debt

$33,000

$75,000

(56.0%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006*

Q3 2005*

Change

Cash From Ops.

$26,419

$31,187

(15.3%)

Capital Expenditures

$66,084

$68,566

(3.6%)

Free Cash Flow

($39,665)

($37,379)

N/A



*Through the first nine months of 2006

Find out why Fools always follow the money.

Related Companies:

  • AnnTaylor (NYSE: ANN  )
  • Coldwater Creek (Nasdaq: CWTR  )
  • Gap (NYSE: GPS  )
  • J. Crew (NYSE: JCG  )
  • Limited Brands (NYSE: LTD  )

Related Foolishness:

New York & Co. is one of dozens of recommendations in the Motley Fool Hidden Gems portfolio. Here's a backstage peek at the stocks that are helping Tom Gardner and Bill Mann top the S&P index by more than 26% as of this writing.

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 checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, ranked 1,787 out of 13,035 inMotley Fool CAPS, owns shares of New York & Co. You can find out which other stocks he owns by checking Tim's Fool profile. Gap is a selection of both the Stock Advisor and Inside Value services. The Motley Fool's disclosure policy always adds up.


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