On Nov. 1, Guess? (NYSE:GES) released third-quarter earnings for the period ended Sept. 30.
- Revenues and EPS exceeded the Street consensus by 6.7% and 45.8%, respectively.
- Revenues increased by 31.3%, led by improved performance by the retail and wholesale segments.
- Operating margin expansion was driven by a gross margin increase of 390 basis points and a reduced selling, general, and administrative expenses rate of 390 basis points to 25.8%.
(Figures in millions, except per-share data)
Income Statement Highlights|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$327 |
$349 |
$266 |
31.3% |
|
Net Profit |
-- |
$48 |
$21 |
133.8% |
|
EPS |
$0.72 |
$1.05 |
$0.46 |
128.3% |
|
Diluted Shares |
-- |
46 |
45 |
2.1% |
Get back to basics with a look at the income statement.
Margin Checkup|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
46.98% |
43.09% |
3.89 |
|
Operating Margin |
21.23% |
13.36% |
7.87 |
|
Net Margin |
13.87% |
7.79% |
6.08 |
*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. |
$154 |
$139 |
10.7% |
|
Accounts Rec. |
$173 |
$104 |
66.2% |
|
Inventory |
$140 |
$126 |
10.5% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Other Current Liabilities |
$245.9 |
$172.6 |
42.5% |
|
Long-Term Debt |
$42 |
$45 |
(7.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$55 |
$92 |
(40.3%) |
|
Capital Expenditures |
No Data |
No Data |
N/A |
|
Free Cash Flow |
No Data |
No Data |
N/A |
Note to management: If you have the summary, give the details. That helps investors.
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