- Sales rose only 1.5% on a 5.5% decline in same-store sales.
- Margins fell off the lip, as measured in full percentage points. Ouch!
- Net profit dropped 54%, while EPS dropped by half. The magnitude of the underperformance was mitigated by a smaller number of fully diluted shares.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. | Q2 2006 | Q2 2005 | Change | |
|---|---|---|---|---|
Sales | $321,650 | $313,682 | $309,064 | 1.5% |
Net Profit | -- | $9,710 | $21,112 | (54%) |
EPS | $0.15 | $0.14 | $0.28 | (50%) |
Diluted Shares | -- | 71,867 | 76,119 | (5.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2006 | Q2 2005 | Change* | |
|---|---|---|---|
Gross Margin | 31.06% | 35.71% | (4.65) |
Operating Margin | 4.64% | 10.60% | (5.96) |
Net Margin | 3.1% | 6.83% | (3.73) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $11,783 | $162,593 | (92.8%) |
Other Current Assets | $43,870 | $37,146 | 18.1% |
Inventory | $286,666 | $242,631 | 18.1% |
Liabilities | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Accounts Payable | $81,683 | $106,695 | (23.4%) |
Long-Term Debt | No Data | $0 | N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q2 2006 | Q2 2005 | Change | |
|---|---|---|---|
Cash From Ops. | ($1,455) | $77,342 | N/A |
Capital Expenditures | $62,675 | $48,173 | 30.1% |
Free Cash Flow | ($64,130) | $29,169 | N/A |
Find out why Fools always follow the money.
Related companies:
- Abercrombie & Fitch (NYSE:ANF)
- Volcom (NASDAQ:VLCM)
- American Eagle Outfitters (NASDAQ:AEOS)
- Zumiez (NASDAQ:ZUMZ)
- Gap (NYSE:GPS)
- Hot Topic (NASDAQ:HOTT)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
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.com for more of our in-depth discussion of what the numbers mean.
Pacific Sunwear, Gap, and American Eagle Outfitters areMotley Fool Stock Advisorrecommendations. Gap is anInside Valuerecommendation, and Volcom and Zumiez areHidden Gemspicks. You can try any of our market-beating newsletter servicesfor free.
At the time of publication,Seth Jaysonhad shares of American Eagle, but no positions in any other company mentioned. Fool rules arehere.
