On Sept. 7, Jos. A. Bank (NASDAQ:JOSB) released second-quarter earnings for the period ending July 29, 2006.

  • Sales and earnings exceeded analyst estimates.
  • Gross, operating, and net margins improved.
  • Inventory growth was below sales growth, but overall operating cash flow and, in turn, free cash flow worsened compared to last year.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$115,720

$119,098

$98,588

20.8%

Net Profit

--

$6,973

$5,339

30.6%

EPS

$0.35

$0.38

$0.30

26.7%

Diluted Shares

18,339

18,001

1.9%



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

62.38%

62.05%

0.33

Operating Margin

10.33%

9.53%

0.80

Net Margin

5.85%

5.42%

0.43

*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.

$1,325

$1,072

23.6%

Accounts Rec.

$7,372

$5,453

35.2%

Inventory

$192,471

$172,254

11.7%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$40,165

$57,694

(30.4%)

Long-Term Debt

$5,679

$18,467

(69.2%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

($6,054)

($1,619)

N/A

Capital Expenditures

($12,899)

($11,880)

N/A

Free Cash Flow

($18,953)

($13,499)

N/A



Find out why Fools always follow the money.

Related Companies:

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  • Nordstrom (NYSE:JWN)
  • TJX Companies (NYSE:TJX)
  • JC Penney (NYSE:JCP)

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, Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.