On Aug. 2, Guess? (NYSE:GES) released Q2 2006 earnings for the period ended July 1.

  • Revenues rose 30%.
  • Earnings more than tripled to $0.30 per share, well ahead of analyst estimates.
  • Margins increased across the board and free cash flow increased dramatically.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$219,300

$231,037

$178,235

29.6%

Net Profit

--

$13,734

$4,164

229.8%

EPS

$0.22

$0.30

$0.09

233.3%

Diluted Shares

45,933

44,703

2.8%



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

40.02%

37.3%

2.72

Operating Margin

9.46%

4.35%

5.11

Net Margin

5.94%

2.34%

3.60

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$197,346

$88,273

123.6%

Accounts Rec.

$75,782

$74,399

1.9%

Inventory

$127,425

$113,206

12.6%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

No Data

$69,991

N/A

Long-Term Debt

$48,154

$50,848

(5.3%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Thru Q2 2006

Thru Q2 2005

Change

Cash From Ops.

$63,272

$24,419

159.1%

Capital Expenditures

$25,336

$23,938

5.8%

Free Cash Flow

$37,936

$481

BIG%



Find out why Fools always follow the money.

Related Companies:

  • American Eagle Outfitters (NASDAQ:AEOS)
  • Urban Outfitters (NASDAQ:URBN)
  • Abercrombie & Fitch (NYSE:ANF)
  • True Religion (NASDAQ:TRLG)
  • Pacific Sunwear (NASDAQ:PSUN)

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.

American Eagle and Pacific Sunwear areMotley Fool Stock Advisor recommendations. You can take afree lookat why the brothers Gardner added these to their stable of market-beating stocks.

At the time of publication,Seth Jaysonhad shares of Guess? and American Eagle, but no positions in any other company mentioned here. Fool rules arehere.