News From New York & Co.: Fool by Numbers

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On May 24, New York & Company (NYSE: NWY) released first-quarter earnings for the period ended May 5.

• Sales climbed by 6.3% despite a 1.2% decline in same-store sales.
• Arbitration proceedings of the JasmineSola brand, coupled with the charges related to clear the stock connected to "the loss of a JasmineSola lease," were the prime reasons for a 200 bps decline in the net margin.
• Factoring 61.3 million outstanding diluted shares, the company expects EPS in the range of $0.11 to $0.14 in the second quarter of fiscal 2007.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$284.0	$267.1	6.3%
Net Profit	$0.8	$6.1	(86.8%)
EPS	$0.01	$0.10	(90%)
Diluted Shares	60.9	59.7	1.9%

Get back to basics with the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	27.6%	29.6%	(2.0)
Operating Margin	0.6%	4%	(3.4)
Net Margin	0.3%	2.3%	(2.0)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$36.6	$26.9	36%
Inventory	$130.7	$130.2	0.4%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$76.1	$85.9	(11.4%)
Long-Term Debt	$24.0	$30.0	(20%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	($21.5)	($19.2)	N/A
Capital Expenditures	$11.6	$17.4	(33.1%)
Free Cash Flow	($33.1)	($36.5)	N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

• New York Gets Fired
• Limited Excitement for Limited?
• Is Liz That Ugly?

New York & Co. is a Motley Fool Hidden Gems recommendation. Find out why with a free 30-day trial.

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.