On Nov. 7, luxury denim brand True Religion Apparel
- 22% sales growth and 6% higher EPS was hardly what the markets -- or this Fool -- expected, and the stock fell hard after hours. Management blames an unseasonably warm European summer and slow sales in Japan.
- The company continues to rake in cash by the bucketload, and the debt-free cash balance will support ample expansion, even as True Religion moves into capital-intensive retail store buildouts.
- Those branded stores are taking operating margins down a couple of notches, owing to the increase in personnel, warehousing, store leases, etc. that retailing entails.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$47,740 |
$42,909.0 |
$34,990.0 |
22.6% |
|
Net Profit |
-- |
$8,216.2 |
$7,725.7 |
6.3% |
|
EPS |
$0.44 |
$0.35 |
$0.33 |
6.1% |
|
Diluted Shares |
-- |
23613.0 |
23238.0 |
1.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.17% |
52.68% |
(0.51) |
|
Operating Margin |
31.60% |
36.20% |
(4.60) |
|
Net Margin |
19.15% |
22.08% |
(2.93) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$34,377.0 |
$10,519.8 |
226.8% |
|
Inventory |
$9,406.7 |
$9,797.7 |
(4%) |
|
Total Assets |
$72,182.5 |
$38,050.5 |
89.7% |
The company did not provide a full balance sheet; these tables present all of the available data.
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$4,400.0 |
$4,872.8 |
(9.7%) |
|
Capital Expenditures |
$800.0 |
$346.6 |
130.8% |
|
Free Cash Flow |
$3,600.0 |
$4,526.2 |
(20.5%) |
Cash flow figures extracted from the earnings conference call.
Find out why Fools always follow the money.
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Get the lowdown on True Religion from our Motley Fool CAPS community.
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, Fool contributor Anders Bylund was a True Religion shareholder, but held no position in any other company mentioned. Fool rules are here .
